The Straits Times Index (SGX: ^STI) crept 6 points higher on Friday to 3,286 points. However, it is still a smidgen – 22 points – off its 52-week high. Nevertheless, some constituents have shown the benchmark index a clean pair of heels this week by setting fresh highs for the year.
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Singapore Press Holdings (SGX: T39) reached a 52-week high of $4.52 this week following news that it was mulling a flotation of its real estate assets. SPH, which prints 18 newspaper titles in four languages, cautioned that the spin-off would be subject to market conditions as well as regulatory approval and approval by other parties. But that didn’t dampen enthusiastic investors from waking up the sleeping giant.
Just one for the road
Shares in Thai Beverage Public Co. (SGX: Y92) also touched a 52-week high of $0.63 following news that it will be admitted to the top-flight index next week. The brewer of Chang beer, which is a shirt sponsor of Everton football club, will replace IHH Healthcare (SGX: Q0F) in the Straits Times Index. The promotion of the brewer, which is controlled by Thai tycoon Charoen Sirivadhanabhakdi, follows a lengthy contest with Heineken over the control of Asia Pacific Breweries.
Banking on a recovery
News that more jobs than expected were created in America last month gave cyclical shares a shot in the arm. DBS Group Holdings (SGX: D05) rose to a 52-week high of $17.75 following news that the world’s largest economy had added 236,000 jobs in February. The good news about job creation was followed by even better US unemployment numbers. The number of people who sought unemployment aid has fallen to a five-year low.
By itself a 52-week high is meaningless apart from the fact that it is the highest price that investors are prepared to pay for a share over the last trading year. It is more important to look at the fundamentals, which is at the heart of what we do here at The Motley Fool.
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