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STI Edges Higher, Sin Heng Shares Fall 18 Per cent after Stake Sale News

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by Donavan Lim

The benchmark STI (Straits Times Index) closed at 2,787.22 on Monday amidst thin volume, up 14.47 points as concerns over a Greek exit eased following a poll forecasting the pro-bailout party victory in Greece’s June elections.

Seven companies closed lower out of the 30 companies comprising the index, SingTel remained unchanged and the remaining 22 ended higher.

Among the top volume list is Sin Heng Heavy Machinery with 76 million shares changing hand. Shares of the company fell 18.87 per cent after Toyota Tsusho Corp acquired a 27-per cent stake in Sin Heng at a discount to the last traded price.

Toyota, a member of Toyota Motor Corp Group, bought around 123.8 million shares in Sin Heng from its controlling shareholder SEAVI Advent Equity V (C) Ltd for S$26.0 million.

That translates to S$0.21 per share, a 20.75 per cent discount to its closing price of S$0.265 last Thursday before the company requested a halt in trading of its shares.

The stock had risen nearly 13 per cent before the halt.

“People were already buying the stock before the news and they were probably expecting a premium. But the offer was quite disappointing because it was a fairly big discount to the last traded price,” said a local trader.

Commodities plays such as Wilmar International, Noble Group and Golden Agri-Resources also manage to chalk up moderate gains. Property-related plays also ended up higher, with Global Logistic Properties rising to S$2.06, extending gains after the company announced impressive four quarter result last week.

While the European issue will continue to take centre stage, investor will also take note of the US Consumer Confidence number to be released tomorrow at 10 am Eastern Time. The consensus according to Bloomberg is 69.7.