STI Ends Flat In Low Trades
The STI ended flat with a slight 0.03% loss at 2317.17 as volume dropped sharply to just 1.06b from last week’s 1.39b daily average. The benchmark index managed to recover from its session lows in the afternoon towards the end of the trading hours, led by higher openings across the European markets. The day’s low volume could be attributed to lack of fresh positive catalysts and possibly the increasing incidence of the H1N1 virus among stockbrokers. Property stocks slipped notably during the session along with shipping stocks which suffered as the recent decline in the Baltic Dry Index weighed. All 3 banks finished higher though, led by DBS which rose 1.4% to end at $11.82 after Deutsche Bank released a report that the bank has the lowest risk profile among its local peers.
Wall St Rallies On Analysts’ Upgrades Boost
US equities rallied on Monday as upgrades in the consumer sector and improving energy stocks helped lift stocks after an early droop. Homebuilders were especially strong after Credit Suisse upgraded shares in KB Home, citing a rebound in orders, uplifting its rivals as well. Consumer stocks were joined by the energy sector in providing support as the price of oil rose back above US$71 per barrel. The S&P 500 finished 0.9% up at 927.23, while the DJIA rose 1.1% to 8,529.38 and the Nasdaq Composite index picked up 0.3% to 1,844.06.
Olam Given Green Light To Sell 14% Stake
Olam International has obtained shareholder approval to sell 14% of the company to Temasek Holdings for $1.60 a share, raising $437.5m through the issuance of 273.46m new shares. The company’s MD said that the company has ‘reactivated an acquisition pipeline with over 10 targets as capital markets appear to have turned a corner’. Thus, the capital raised will enable the company to realise its expansion strategy via acquisitions and improve its access to long-term debt financing as well.
IPC Corp To Invest $46.1m Into Japan Property
IPC Corporation has inked a 1-year business collaboration property agreement with Japan Cerca and Ibex Co, both Japanese companies with marketing capabilities in real-estate business in Japan, under which the company will invest up to $46.1m to buy newly build unsold apartments from 3rd-party developers for purchase and resell purposes. The latter two shall be responsible to sell the apartments. This agreement follows company’s strategic decision to diversify its core businesses into property investment and development. Through the collaboration, the company has already bought an apartment project in Tsukuba region for approximately $8m and sales of the units, slated to begin in July 2009, will have a financial impact on company for the current financial year.
