Early on, the market - fresh from a 1.82-per cent surge on Monday - was buoyed by better-than-expected second-quarter economic growth figures.

The STI powered its way to a new all-time peak of 3,653.27 points in intra-day trade.

However, post-lunch profit-taking, most notably in the final hour, ensured that the index closed 6.4 points lower at 3,620.32, a 0.18 per cent dip.

In contrast, other key regional indexes continued their bull run.

Hong Kong's Hang Seng Index surged to another record of 22,885.84 points, aided by robust earnings growth forecasts from the banking sector. There were also gains for bourses in Taiwan, Indonesia and Thailand.

Back home, some 4.26 billion shares worth $2.61 billion changed hands, with losers leading gainers by 488 to 380.

The Singapore economy grew by a sharp 8.2 per cent in the second quarter from the same period last year, beating market estimates, the Ministry of Trade and Industry said yesterday, releasing advance figures.

Economists earlier forecast growth of between 6.7 and 7.7 per cent.

Dealers said the market responded to the morning announcement positively, sending the STI to a fresh all-time high in the first hour of trading.

However, late profit-taking on United Overseas Bank shares contributed an 8.78-point fall in the index, which led to the overall decline.

The counter was the day's top loser, shedding 50 cents to close at $22.60 despite hitting an intra-day high of $23.30.

DBS Group Holdings shares gained 20 cents to close at $23.80, while OCBC Bank finished flat at $9.40.

However, there were bright sparks in other sectors, especially shipping.

Cosco Corp shares reached a new high for the second straight day, gaining 12 cents to close at $4.38 after DBS Vickers raised its target price from $3.45 to $5.60.

A day earlier, the stock had risen to a new peak on hopes that the firm would divest itself of its shipping arm.

Neptune Orient Lines - the top performer on the STI this year - gained another 10 cents yesterday to end at $5.80 after an industry grouping raised freight charges to Europe this month.

The gloom continued for voice-over-Internet firm MediaRing yesterday after DBS Vickers downgraded the stock to 'sell' from 'hold' and lowered its 12-month price estimate from 42 cents to 30 cents.

The downgrade followed MediaRing's profit warning on Monday. After dropping two cents the day before, the counter lost another 3.5 cents yesterday to close 9.1 per cent lower at 35 cents.

alfoo@sph.com.sg

BRIGHT SPARKS

The shipping sector is still faring very well, with Cosco setting a new record and Neptune Orient Lines remaining as the STI's top performer so far this year.