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DRAMATICALLY higher growth forecasts for the Singapore economy sent the benchmark Straits Times Index hurtling past the 3,000 mark on Wednesday.
Traders queued up to buy heavyweight blue-chips, such as DBS Group Holdings and Singapore Airlines, following the Government's marked revision of its 2010 growth forecast from 4.5 to 6.5 per cent to between 7 and 9 per cent.
'The re-rating of economic growth is a powerful catalyst in moving the market up. Banks are surging because they are viewed as proxies to the economy, while electronics stocks are making a strong come-back as that is where the growth is coming from,' said NRA Capital executive chairman Kevin Scully.
The stampede of punters propelled the benchmark Straits Times Index higher by 48.14 points to 3,019.74 - its highest close in almost two years.
Trader Peter Ong said that STI's latest advance reminded him of the surge experienced in early 2007, when the index last breached the 3,000 level and went on to hit a record high of 3,831 later that year.
The re-framing of growth forecasts had analysts scrambling to revise their targets for the STI.
Read the full report in Thursday's edition of The Straits Times.
Traders queued up to buy heavyweight blue-chips, such as DBS Group Holdings and Singapore Airlines, following the Government's marked revision of its 2010 growth forecast from 4.5 to 6.5 per cent to between 7 and 9 per cent.
'The re-rating of economic growth is a powerful catalyst in moving the market up. Banks are surging because they are viewed as proxies to the economy, while electronics stocks are making a strong come-back as that is where the growth is coming from,' said NRA Capital executive chairman Kevin Scully.
The stampede of punters propelled the benchmark Straits Times Index higher by 48.14 points to 3,019.74 - its highest close in almost two years.
Trader Peter Ong said that STI's latest advance reminded him of the surge experienced in early 2007, when the index last breached the 3,000 level and went on to hit a record high of 3,831 later that year.
The re-framing of growth forecasts had analysts scrambling to revise their targets for the STI.
Read the full report in Thursday's edition of The Straits Times.
