STI gains 0.4% to 2,938.74 at closing

Singapore’s Straits Times Index gained 0.4% to 2,938.74 at the close, pushing the gauge 0.1% higher this week. Two stocks rose for each that fell on the 30-member gauge.

Shares on the measure trade at an average 14.2 times estimated earnings, compared with about 17.4 times at the beginning of the year, according to Bloomberg data. The following shares were among the most active in the market. 

 

Kian Ann Engineering (KAE SP), a supplier of tractor and diesel engine parts, gained 2.6% to 20 cents. The company said full-year profit increased 15% to $13.2 million from a year earlier.

 

MCL Land (MCL SP) surged 26% to $2.45, its biggest advance on record, after its parent Hongkong Land Holdings (HKL SP) offered to buy the rest of the Singapore- based homebuilder for $2.45 a share. Hongkong Land, which holds about 77.4% of MCL Land, rose 1.5% to US$5.40 ($7.32).

 

Olam International (OLAM SP), a Singapore-based supplier of agricultural commodities, jumped 6.8% to $2.68. The company said fourth-quarter net income doubled to $92.3 million from $46.7 million a year earlier. Credit Suisse Group AG raised its share-price estimate to $4.25 from $3.50 and kept its “outperform” rating, saying the company’s earnings beat estimates.

 

Wilmar International (WIL SP), the world’s biggest palm-oil trader, rose 0.5% to $6.21. The company said its unit PGEO Group agreed to buy the remaining 8.6% of Natural Oleochemicals from National Land Finance Co-operative Society for 42.5 million ringgit ($18.3 million). PGEO last month acquired 91.4% of Natural Oleochemicals from Kulim (Malaysia) Bhd.

Olam increases offer for NZ farming systems by 27%

Written by Bloomberg


Tuesday, 24 August 2010 10:06

Olam International, a Singapore-based commodity producer, raised its takeover offer 27% after NZ Farming Systems Uruguaysaid the first bid was too low. Shares rose 13%.

Olam increased its bid to 70 New Zealand cents a share from 55 cents, valuing NZ Farming at NZ$171 million ($164.2 million), according to a filing with the New Zealand stock exchange. The new offer beats a 60 cents-a-share bid plan announced last week by Union Agriculture Corp., a Uruguayan landowner.

Olam to invest US$43.5 mln in Africa cocoa plant

SINGAPORE - Singapore commodities firm Olam International said on Tuesday that it will invest US$43.5 million in Cote d'Ivoire to set up a greenfield cocoa processing facility in Abidjan. -- REUTERS

STI ends 0.2% lower at 2,933.51

Singapore’s Straits Times Index dropped 0.2% to 2,933.51 at the close. Two stocks declined for each that rose on the 30-member gauge. Shares on the measure trade at 14.2 times estimated earnings, compared with about 17.4 times at the beginning of the year, according to Bloomberg data. The following shares were among the most active in the market. Stock symbols are in parentheses after company names.


Genting Singapore Plc (GENS SP), the owner of one of two casinos in the city-state, surged 8.2% to $1.58, setting a fresh record closing price. The stock advanced 14% on Aug 13 as Credit Suisse Group AG, Citigroup Inc. and Morgan Stanley raised their stock recommendations after the company returned to profit in the second quarter.

Olam International (OLAM SP), a Singapore-based supplier of agricultural commodities, fell 0.8% to $2.54. Union Agriculture Group, a closely held Uruguayan landowner, plans to outbid Olam International for NZ Farming Systems Uruguay to gain control of the South American dairy farmer. Union Agriculture will make an offer of 60 New Zealand cents a share, valuing NZ Farming at NZ$147 million ($140.6 million), Christchurch-based NZ Farming said in a statement posted on the exchange. The offer is 9% higher than the 55 cents-a-share bid announced last month by Olam.

Wilmar International (WIL SP), the world’s biggest palm-oil trader, lost 0.3% to $6.11. The company had its share-price estimate cut to $7.50 from S$8.30 at DBS Vickers Securities while it maintained a ”buy” rating.

Olam makes its mark into US$250m bond issue

Commodity player Olam International yesterday sold US$250million worth of 7.5 per cent, 10-year bonds-the first unrated Singapore company to do so in international debt markets.

A jubilant banker close to the transaction said that, for international markets, bonds normally have to be rated.

"Many investors in their mandates can't buy unrated paper," he said. - Business Times Weekend, Sat/Sun, 7-8 August, 2010, lisen@sph.com.sg