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ComfortDelGro hits 7-year high, Singapore shares firm

Published on May 14, 2014 1:49 PM

SINGAPORE (Reuters) - ComfortDelGro shares surged on Wednesday to hit a seven-year top on better-than-expected first-quarter earnings and expectations of favourable policy changes, while the Singapore index rebounded from 1-month lows.

Shares of ComfortDelGro rose as much as 6.6 per cent to an intra-day high of $2.26, its highest since June 2007, after the transport operator posted a 9.7 per cent rise in net profit for the first quarter.

The gains helped the Singapore benchmark index bounce from a one-month low hit on Monday. The Straits Times Index was up nearly 1 per cent at 3,252.74 by midday. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.7 per cent.

OCBC maintained its "buy" rating on ComfortDelGro shares, with a target price of $2.30, citing robust growth in its overseas business despite challenges in its Singapore operations.

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