Ezra hits over 2-year high on deal talk; Singapore index flat
Written by Reuters
Wednesday, 04 December 2013 13:54
Shares in offshore oilfield service firm Ezra Holdings hit their highest level in more than two years, on talks that the company is engaged in discussion on its subsea division, while the Singapore benchmark index barely moved.
Ezra’s stock rose as much as $1.475 on Wednesday, a level unseen since July 2011, after shooting up 9% in the previous session, for which the company received a query from the Singapore Exchange.
In response to the exchange’s query filed late Tuesday, Ezra said it was not aware of any information that had caused the price jump, but admitted that it is in discussions related to its subsea division.
“The Company is currently evaluating certain proposals and is engaged in discussions in relation to these proposals,” it said in a filing, adding that there is no certainty whether these discussions will progress beyond the current stage.
The benchmark Straits Times Index remained in the doldrums, down 0.1% at 3,183.61 points by 11:51 a.m., holding up better than MSCI’s broadest index of Asia-Pacific shares outside Japan , which was 0.7% lower.
In other stocks, Blumont Group slumped as much as 19% to a one-year low of $0.079. LionGold Corp and Asiasons Capital, which were associated with Blumont, fell 5% and 7% respectively.
All three stocks suffered steep declines in share prices in October, and triggered a probe into the price volatility from the exchange and Singapore’s central bank.
Ship Ahoy: NOL veers towards profits recovery in 2014
The worst may be over.
According to CIMB, despite the likelihood of outsized losses in 4Q13 following a dramatic fall in spot rates over the past few months, the worst may be over for Neptune Orient Lines and a brighter year lies ahead in 2014.
Here's more from CIMB: By end-2014, NOL would have completed the vast majority of its vessel charters that were entered into in the pre-GFC days. As a result, we believe the group will largely achieve its desired cost base next year, and we expect it to turn a small profit of less than 1% net margin.
Despite expectations of better earnings in 2014, its near-term share price upside will likely be capped by the possibility of outsized losses in 4Q13.
We recommend investors stay on the sidelines for now.
Cosco Corp pops the champagne on USD54m contract win
Bulk carriers will be delivered end-2014.
In a release, Cosco Corporation announced that COSCO Shipyard Co. Ltd, a subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co. Ltd, has secured a contract valued over USD54 million from an Asian buyer to build two (2) 64,000 DWT bulk carriers.
The two bulk carriers are scheduled for delivery in the fourth quarter of 2014. Save for their respective shareholdings in the Company, none of the directors or controlling shareholders of the Company has any interest, direct or indirect in the contract.
Barring any unforeseen circumstances, the contract is not expected to have a material impact on the net tangible assets and earnings per share of the Company for the year ending 31 December 2013.
CapitaLand completes 70% stake acquisition in SHGC
Increases exposure to Shanghai property market.
CapitaLand Limited (CapitaLand) wishes to announced that its acquisition of a 70% stake in Shanghai Guang Chuan Property Co., Ltd.
(SHGC) which was unveiled back in June has been completed.
SHGC, a company incorporated in the People’s Republic of China with a registered capital of RMB1.35 billion (approximately S$274.4 million), owns two plots of land with a total gross floor area of 110,000 sqm in Hanzhonglu, Zhabei District, Shanghai.
The Property which will be developed into a mixed development comprising residential, office and retail components is entrally located within the Inner Ring of Shanghai and sits right above an interchange station for three metro lines.
It enjoys a waterfront view of the Suzhou River. SHGC’s sole asset is the property.
Following the completion, SHGC has become a 70% owned subsidiary of CapitaLand.
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