Reuters: Hot Stocks: STOCKS NEWS SINGAPORE-AusGroup jumps on ASX listing hopes

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STOCKS NEWS SINGAPORE-AusGroup jumps on ASX listing hopes Sep 25th 2012, 03:29 Mon Sep 24, 2012 11:29pm EDT Shares of AusGroup Ltd, which provides construction services to the mining as well as oil and gas industries, surged after the company said it is looking to list on the Australian Securities Exchange (ASX). AusGroup shares rose as much as 12 percent to S$0.46, the highest since May 20 last year. Nearly 38 million shares were traded, 4.6 times the average full-day volume over the past 30 days. AusGroup was among the top traded stocks by both value and volume in the Singapore market. AusGroup, based in Australia, will demerge all of its subsidiaries into a group headed by AGC Australia Pty Ltd. It will then seek a sole listing of AGC on ASX, while AusGroup will remain listed on the Singapore Exchange. "It is the board's opinion that a sole listing of AGC on the ASX would provide better value to shareholders compared to a dual listing of AusGroup in Australia and Singapore, particularly as the ASX is the world's largest mining and resources exchange," AusGroup chief executive officer Laurie Barlow said in a statement. DMG & Partners Securities initiated coverage of AusGroup with a 'buy' rating and a target price of S$0.755, citing the company's strong earnings potential, improving margins and bright industry outlook. "With a strong earnings growth profile, AusGroup joins our top picks with a high potential to double in two years," DMG said. The broker added that AusGroup was trading at a 6.6 times historical price-earnings ratio and 4.9 times forward PE. 1120 (0320 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) ************************************************************ 10:44 STOCKS NEWS SINGAPORE-Wilmar rises after JV with Kellogg in China Shares of Wilmar International Ltd jumped more than 2 percent after the palm oil firm entered into a joint venture with U.S. cereal maker Kellogg Co to expand in China's fast-growing breakfast and snack foods market. Wilmar shares gained as much as 2.5 percent to S$3.27 on Tuesday. Within 90 minutes of trading, some 7.4 million Wilmar shares -- more than half the average full-day volume over the past 30 days -- exchanged hands. "In the longer term, it's a positive because it allows them to monetise their extensive distribution network in China. It's already in place, so it is a matter of moving the goods through the channels," said Carey Wong, an analyst at OCBC Investment Research. But Wong noted that the breakfast and snack foods market in China is very competitive and the Chinese may not yet have a tradition of eating cereal, compared with Western countries. Kellogg said Wilmar will contribute infrastructure, supply-chain scale and its sales and distribution network in China to the 50-50 joint venture. The JV will market Kellogg's and Pringles branded products, said the maker of Mini-Wheats and Rice Krispies. 1030 (0230 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) Link this Share this Digg this Email Reprints

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