index surged 41.12 points yesterday to a new, all time high, gaining 2.95 percent and closing at 1,435.75.

The three most heavily weighted issues on the index all closed higher, causing the index to soar on an otherwise lacklustre day of trading.

The close came after 28,507 shares, valued at $635,205.25, changed hands.

Analysts were non-committal on what the sudden surge in the index might mean, noting that in the current luke-warm market, anything could happen. The rally was led by the Bank of Bermuda, which matched its record share price of $30, gaining $1.50 or 5.3 percent on the day, on a volume of 11,979. It last traded at $30 during the summer heat of August.

Two other bank sector stocks traded yesterday, with one having a hand in the index fluctuation. The Bank of Butterfield finished 25 cents higher at $16, just $0.375 off of its record high, as 14,403 shares traded. The Bermuda Commercial Bank closed unchanged at $5.125 on a volume of 350. The only other issue trading was BELCO Holdings Ltd. The third most heavily weighted issue (after the Bank of Bermuda and the Bank of Butterfield) had 1,775 of its shares change hands.

BELCO finished 50 cents or two percent higher for the day at $25, also matching its record high for the stock price, established in November. Bermuda Investment Advisory Services analyst, Mark Melvin, said last night, "Why today over any other day? It beats me, actually. There's not been very much going on. We will have to wait and see.'' He noted that while observers would hope that more people are seeing the value in the underpriced stocks on the Bermuda Stock Exchange, yesterday's activity could simply have been a case of people moving to buy specific stocks they had targeted.

Buyers insisting on buying, he said, would have to match the price of the market makers. Mr. Melvin said, "BELCO has been up and down between $23.50 and $25. A lack of activity is going to trickle the price down. It had traded up to $25 within the last few months, during the last feeding frenzy. Then it just trickled down.

"I think that you will find that the two banks also traded as high as they have, but they also trickled down because of the lack of activity. And almost any activity is going to force it up again.'' Island Press (Holdings) Ltd. 8% Cum. Red. Preferred shares has declared a 40 cent per share dividend for shareholders of record January 9, to be paid January 30.

NEW HEIGHTS -- The graph shows the BSX'S rise