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Headliners | 08 April 2011
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By: Jade Lee
Articles (97) Profile

Australia Formally Says No To SGX
The Australia’s government has nixed the SGX proposed US$8b bid for ASX. Treasurer Wayne Swan said his decision was based on a unanimous recommendation from the country’s Foreign Investment Review Board, as well as financial regulators, which all had objected to the takeover. It was noted that major reform of his nation’s financial system was required before ASX could be bought by a foreigner, specifically on the rejected deal, regulators were not prepared to cede control over clearing and settlement of share trading to SGX. Another concern cited was the possible shift of Australian jobs and capital to Singapore, noting that the bourse of the island state was smaller than ASX. Since the announced takeover bid in Oct-10, shares of SGX have been under pressure and the company has lost some $1.5b in market capitalization. “Taking a longer term perspective, it’s a bit harder to see where the next level of expansion and growth is going to come from,” says Kim Eng.

GMG Shares Hit By Political Unrest In Ivory Coast
GMG Global has temporarily stopped its operations in Ivory Coast due to a country-wide curfew and disruption in transportation. A standoff between presidential rivals in Ivory Coast led forces loyal to president-elect Alassane Ouattara to close the country’s borders on 9 Apr. This prompted GMG’s subsidiary, Tropical Rubber Cote D’Ivoire (TRCI), to decide on 10 Apr to temporarily halt plantation and processing operations. TRCI is the second-largest buyer of rubber from small farmers in Ivory Coast, Africa’s top exporter of the commodity. It operates a factory capable of processing up to 36k tonnes annually. TRCI’s operations account for 12% of Ivory Coast’s annual rubber exports, GMG said on its website. In view of these recent events, GMG’s share price may face challenges in the coming months as its performance is highly dependent on factors such as the stability of operational costs and implementation of new fiscal measures in economies like Ivory Coast, Cameroon, Indonesia and Thailand.

BBR Inks $48.3m Warehouse Construction Contract
BBR Holdings, through wholly owned Singa Development, has secured a $48.3m contract to construct the second phase of the Yang Kee Chemical Logistics Hub at Jurong Pier Road. The contract, awarded by Yang Kee Holdings, involves designing and building a 10-storey warehouse with an 8-storey ancillary office administration block. Work on the project has begun and is scheduled for completion in the 2Q12. The aforesaid contract is BBR’s second contract win since the beginning of the year. Meanwhile, BBR is also working on Phase 1 of the hub, a contract it secured last year for $42m. The works comprise a 5-storey warehouse building and drive-up ramps serving each floor. BBR turned in a net profit of $19.6m for the year ended 31 Dec-10, over revenues of $205.8m. As at 23 Feb-11, BBR’s order book stood at $620m, with projects lasting up to 2015. These involve civil engineering and building contracts mostly in Singapore and Malaysia.

Shanghai Asia Comes Under Fire For Sale Of Businesses
Shanghai Asia Holdings’ (Shanghai Asia) is facing intensifying pressure over its proposed sales. Following the resignation of its chief financial officer and executive director Tung Kum Hon over disagreement on the disposal, lashings were received from the Securities Investors Association Singapore (SIAS). The chief executive of the investors rights advocacy group, David Gerald, blasted the board of Shanghai Asia saying that it has not been accountable to minority shareholders as it seeks to sell all of its businesses. He urged minority shareholders to call for an extraordinary general meeting to speak with the board and have their questions answered. In the event it does not materialise, minority shareholders should consider legal action in a show of their rights.

Jade manages and oversees a portfolio of stocks which are mainly focused on the mining and property sectors at Shares Investment.

Please click here for more information about this author.

Singapore Exchange  8.260 -0.04 -0.48%   
Business: [FY18 Turnover] Equities & fixed income (48.2%), derivatives (40.2%), mkt data & connectivity (11.6%).

Insight: Jan-19, 1H19 operating revenue increased 5.7% to $... Read More
BBR Hldgs (S)  -- -- --   
Business: [FY17 Turnover] specialised engineering (58.8%), general construction (35.2%), property development (5.3%), green technology (0.7%).

Insight: Feb-19, FY18 revenue fell 39.7% owing to lower rev... Read More

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