SINGAPORE (July 24):The Straits Times Index has continued to rise and is up 14.8% for the year to July 18. The index now trades at 15 times earnings, above its long-term average of 13.2 times. The higher earnings multiples are making it more difficult to find bargains in the local market, as earnings have yet to catch up.

Meanwhile, a look at the best performing stocks on the Singapore Exchange this year shows that investors are making bullish and even speculative bets on companies with uncertain prospects.

The best performing stock this year based on price change is Serrano, which has risen 1,450%. Serrano is an interior fit-out company, providing interiors for property and refurbishment projects. Shareholders are still waiting for the company to hold its AGM for FY2016. Serrano has applied twice for an extension, the most recent application having been made on July 14. The company has been having trouble paying its auditor BDO, resulting in the auditor not being able to complete its audit of the financial statements for FY2016.

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