When shares hit a 52-week high, it is natural to feel worried.
Typically, there’s a concern that valuations may be getting expensive.
However, there are usually justifiable reasons for shares to hit a year-high.
There could be corporate developments or the announcement of good news that propels the stock price upwards.
Blue-chip companies have been mostly battered in the last year as the pandemic upended the economy and crimped consumer spending.
However, there are three that have been scaling new 52-week highs in recent weeks.
Is there a great reason to own these companies? Or are valuations getting too frothy?
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
Shares of the local bourse recently hit a 52-week high of S$11.80, up around 22% year to date.
The group has been busy growing its business in the last six months.
It also reported healthy growth for its fiscal 2021 half year ended 31 December 2020....