PROPERTY counters remained very much the current trading flavour, with investors piling into stocks like City Developments (CDL), CapitaLand and Keppel Land.
Traders believe that prospects for a further rise in property shares brighten considerably, with every piece of news that demand for high-end residential properties and prime office space is showing no sign of letting up.
Of late, property stocks have been the beneficiaries of several analyst upgrades, including a raised construction demand forecast for this year.
And with the Dow Jones Industrial Average finishing up nearly 20 points overnight at 11,689, a shade shy of the record of 11,722 set in January 2000, optimism remains strong for bourses worldwide.
In Singapore, the benchmark Straits Times Index advanced 10.07 points to 2,567.97. Around 1.15 billion shares worth $1.09 billion changed hands, with gainers outnumbering losers by 338 to 247.
CDL was the top property gainer, shooting up 30 cents to $11.10 - a level not seen since 1999.
CapitaLand, which said yesterday that it bought a piece of property in the prime Orchard Road district for $161 million, rose nine cents to $5.05.
Equation Corp, formerly called Heshe Holdings, remained the most active stock with 81 million shares traded, closing down 1.5 cents at 21.5 cents.
After Seagate Technology announced yesterday its plans to open a third plant in Singapore, Seksun Corp inched up half a cent to 38.5 cents, while MMI also rose half a cent to 99 cents.
'MMI and Seksun are the two prime beneficiaries in the hard disk drive sector from expected volume increases at Seagate after the Seagate-Maxtor merger,' noted CIMB-GK.
Among the losers were Singapore Airlines, which shed 30 cents to $14.60, after crude oil prices jumped US$1.95 a barrel, or 3.2 per cent, to US$62.96.
'Some people are saying Opec might reduce its production so as to keep prices above US$60,' said a trader. Oil prices have fallen since hitting all-time peaks above US$78 per barrel in July and August.
Meanwhile, Macquarie Research Equities (MRE) has touted agricultural commodities to be major winners, and has suggested that investors look into them.
MRE's most preferred commodity is palm oil, as it is driven by more than just biofuels, with demand increasing for food and detergent use.
gabrielc@sph.com.sg
