Wed Aug 29, 2012 11:54pm EDT
Singapore shares dropped to a one-month low, weighed by losses in United Overseas Bank Ltd, and as investors stayed on the sidelines awaiting hints about further U.S. stimulus from Federal Reserve Chairman Ben Bernanke.
UOB shares fell 2.3 percent to S$19.33, as it trades ex-dividend. Nearly 1.2 million shares were traded, compared with its full day average volume of 1.4 million shares over the last five sessions.
Commodity firm Olam International extended its losses after it reported quarterly earnings, prompting several analysts to cut their target prices for the company.
By 0332 GMT, Olam shares were down 2.6 percent at S$1.90, with 12.4 million shares traded.
The benchmark Straits Times Index fell 1 percent to 3,011.15 points, its lowest level since July 31. Asian shares were also at a one-month low, with the MSCI's broadest index of Asia-Pacific shares outside Japan down 1 percent.
Bernanke will speak on Friday at the Jackson Hole meeting of central bankers and economists, an event he has used in the previous two years to signal the Fed's policy intentions.
Shares of oil and gas services firm AusGroup Ltd gained 5.3 percent to S$0.395 after it posted an 88 percent jump in its fourth-quarter net profit, helped by higher margins and sales from major projects.
1136 (0336 GMT)
(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)
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9:29 STOCKS NEWS SINGAPORE-Offshore marine, property firms may see delistings-CIMB
A string of privatisations in Singapore is likely to continue, helped by cash-rich buyers, highly-valued Asian consumer franchises and battered valuations for cyclical companies, CIMB Research has said.
Singapore's market has recently seen a few privatisation offers, including Heineken's for Tiger Beer maker Asia Pacific Breweries and Thai energy firm PTT's offer to buy out Sakari Resources Ltd for $960 million.
CIMB said stocks that may receive privatisation offers include offshore marine firms CH Offshore and KS Energy, as well as property developers such as Bukit Sembawang and Ho Bee.
To narrow down a list of companies that could be privatised, CIMB looked at stocks trading below 1 standard deviation from their historical trading ranges and shareholders with interest and means to de-list the companies.
"We believe that globally, corporates have been building up cash to prepare for the worst, ever since the global financial crisis. They have the means to make an offer," CIMB said in a report.
1016 (0216 GMT)
(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)
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9:37 STOCKS NEWS SINGAPORE-Dairy Farm to gain from Carrefour's Singapore closures-CIMB
The closing of France's Carrefour supermarkets in Singapore will benefit Dairy Farm International Holdings Ltd , as it gets a chance to extend its market share in the city state, CIMB Research said.
World No. 2 retailer Carrefour said it will shut its two stores in Singapore by the end of this year, as it pulls out of more non-strategic countries to free up cash to cut debt and fund the revival of its struggling European hypermarkets.
"Carrefour's withdrawal will allow Dairy Farm to swoop in on its retail staff, a boon in the current tight labour market," CIMB said in a note.
Dairy Farm, through its 'Giant' supermarket chain, controls more than 50 percent of the hypermarket sector, CIMB said, adding that the company will be exploring options to take over Carrefour's outlet at shopping mall Plaza Singapura.
It has an 'outperform' rating on Dairy Farm and a target price of $12. Shares of Dairy Farm were up 0.1 percent at $10.90, and have gained 16.8 percent so far this year.
The brokerage estimates that Carrefour's sales in Singapore was about 100 million euros, making up about 10 percent of Dairy Farm's revenue in the country.
0916 (0116 GMT)
(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)
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