Inphyy Corner

Singapore shares headed for third week of gains; penny stocks tumble

Written by Reuters
Friday, 25 October 2013 13:35

Singapore shares edged down on Friday but remained on course for their third week of rise, while the three stocks that have become targets of a government investigation tumbled on heavy volumes.

The benchmark Straits Times Index (.FTSTI) was down 0.2% at 3,211.84 by 1:06 pm, on course for a 0.6% rise from a week earlier.

The MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4%, as rising Chinese money-market rates countered signs of a pick-up in manufacturing.

Shares of Blumont Group, Asiasons Capital and LionGold Corp plunged after the Singapore's central bank and stock market operator announced they were conducting an extensive review of the recent share price volatility of these stocks.

Blumont fell as much as 9.5% to $0.181, the lowest in more than a week. It hit a record high of $2.54 earlier in October, before losing 95% of the value over subsequent four sessions. Asiasons dropped 8.7% and LionGold 8.5%.

Budget carrier Tiger Airways Holding dropped as much as 6.3% to an almost seven-week low at $0.53, after posting a core net loss of $32 million in the second quarter ended Sept. 30.

"Factoring in lower load factors and higher costs at Tigerair Singapore and wider losses from associates, we push up our core loss estimate for FY14 to $80 million from $11 million previously," DBS said in a research note. "We now believe the Group is unlikely to turnaround in FY15 as well."

DBS has downgraded the stock to "fully valued" and cut its target price to $0.74 from $0.47.

Commodities firm Noble Group was the worst performer on the index. Its shares dropped 2.8% to $1.04, the biggest decline the company has seen in six weeks. The stock hit $1.095 earlier in the week, its highest in more than five months.

www.theedgesingapore.com/the-daily-edge/...y-stocks-tumble.html


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Finally, law enforcer has been deployed to stocks market to catch the rats who steal the cheese. Able to complete the task....me wondering? The "invisible hands" have been in market for so many years...why now take action? public pressure or do it for show?
Any side effect? of course..the rats run wild...FEAR surface again.
Tighten the knot too tight, they break their own rice bowl, investors stay on the side. As for me, babysitting again. Vested A and L.

Blumont - SUBSCRIPTION OF UP TO 60,057,034 NEW SHARES CONSTITUTING APPROXIMATELY 14.61% OF THE EXISTING ISSUED SHARE CAPITAL OF COKAL LIMITED (THE “SUBSCRIPTION”)

– COMPLETION OF THE FOURTH TRANCHE

Unless otherwise defined, all terms used in this announcement shall bear the same meanings ascribed to them in the announcement by the Company dated 8 July 2013in relation to the Subscription (the “Announcement”).

Further to the Announcement, the Board of Directors of the Company is pleased to announce that the Company has on 25 October 2013 completed the fourth tranche of the Subscription (the “Tranche 4 Subscription”), pursuant to which 12,500,000 new ordinary shares in Cokal Limited
(“CKA”) have been issued and allotted to the Company.

Following completion of the Tranche 4 Subscription, the Company holds an aggregate of 56,875,000 ordinary shares in CKA, representing approximately 12.15% of the total issued share capital of CKA.

BY ORDER OF THE BOARD
BLUMONT GROUP LTD.

James Hong Gee Ho
Executive Director
25 October 2013

Tat Hong - ESTABLISHMENT OF JOINT VENTURE WITH AME LAND SDN BHD, BP LANDS SDN BHD AND L&M GROUND ENGINEERING SDN BHD

infopub.sgx.com/Apps?A=COW_CorporateAnno...ntOfJointVenture.pdf

Blumont - USE OF NET PROCEEDS FROM THE RIGHTS ISSUE 2013

Unless otherwise defined, all terms used in this announcement shall bear the same meanings ascribed to them
in the announcement by the Company dated 29 July 2013 on the proposed renounceable non-underwritten rights issue of up to 861,002,293 new ordinary shares in the capital of the Company (the “Rights Issue 2013”).

The Board of Directors of Blumont Group Ltd. (博诺有限公司) (the “Company”, and together with its subsidiaries, the “Group”) refers to the Rights Issue 2013 completed on 21 October 2013, which raised gross proceeds of approximately S$42.67 million (the “Net Proceeds”) (after deducting expenses of approximately S$380,000).

The Company wishes to announce that as at 25 October 2013, the Net Proceeds have been utilised as follows:

(a) approximately S$25.47 million for the business expansion of the Group (equivalent to approximately 60.0% of the Net Proceeds), comprising:

(i) S$2.43 million for completion of the fourth tranche of subscription of shares in Cokal Limited, as announced on 25 October 2013;

(ii) S$2.58 million for loan/advance to the Group’s subsidiaries for investment;

(iii) S$7.46 million drawn down by Azarga Resources Limited (“Azarga Resources”) pursuant to a facility of US$21 million (the “Azarga Facility”) extended by the Company’s wholly-owned subsidiary, Powerlite Ventures Limited to Azarga Resources, as announced on 28 August
2013; and

(iv) S$13.00 million for the repayment of an interest-free director’s loan which was utlised as follows:

1. (A) S$3.63 million for the subscription of shares in Cokal Limited, (B ) S$1.31 million for the subscription of shares in Kidman Resources Limited and (C) S$3.93 million for the subscription of shares in Discovery Metals Limited, as announced on 8 July 2013, 13 August 2013 and 19 September 2013 respectively;

2. S$1.01 million drawn down by Celsius Coal Limited under the Convertible Note Deed, as announced on 7 February 2013;

3. S$3.12 million drawn down by Azarga Resources under the Azarga Facility; and

(b) approximately S$0.30 million for general working capital purposes (equivalent to approximately 0.7% of
the Net Proceeds), being the payment of consultancy fees.

The above utilisation of the Net Proceeds is in accordance with the stated use and percentage allocation of the Net Proceeds as previously disclosed in the Company’s announcement dated 29 July 2013 in relation to the Rights Issue 2013.

The Company will make further announcements on the use of the balance of S$16.9 million of the Net Proceeds as and when they are materially disbursed.


By Order of the Board
BLUMONT GROUP LTD.

James Hong Gee Ho
Executive Director
25 October 2013

SGX - SGX corrects misconceptions

25 October 2013

Singapore Exchange (SGX) would like to correct certain misconceptions which have appeared in the media recently.

Contra trading is a facility extended by brokers to customers
Contra trading is a facility that brokers offer to their customers. It is not specified by SGX.

In contra trading, brokers enter a commercial agreement allowing customers to sell shares they have bought before the purchase consideration of the shares is settled. Or, customers can buy shares on the same day they were sold, before the sale consideration is settled. In doing so, customers either collect any net gain or pay any net loss.

Regulatory tools for fair, orderly and transparent market
SGX has three key regulatory tools to bring about a fair, orderly and transparent market. They are as follows:-

i) Query to listed companies where there is unusual trading not explained by announced developments or industry trends. For investors, even if the query does not elicit new information, it serves to raise awareness that trading activity is unusual. As explained in our
Regulatory Column of 25 Feb 2013 and “Write to SGX” Column of 27 April 2013 , investors do well to take note when there are public queries of listed companies and trade with care;

ii) Designate a security where, in SGX’s judgment, there is manipulation of the security, excessive speculation, or it is otherwise in the interests of the market to do so. Designation is introduced to temper the risk of such activities.

iii) Suspend a security where, in SGX’s opinion, the market is not orderly, informed or fair.

All three tools were used in the cases of Asiasons Capital Limited, Blumont Group Ltd and LionGold Corp Ltd. SGX’s objective is to uphold fair and orderly market. Application of the regulatory tools is not intended as a comment on the fundamentals, or value, of the companies concerned.

When SGX suspended the 3 counters, it was acting to fulfil its responsibilities to preserve a fair, orderly and transparent market. This remained the sole objective when the securities were designated and when trading resumed.

Investigation is a separate matter from maintaining orderly trading
Any investigation into possible breaches of the Securities and Futures Act, including insider trading and market manipulation, is a distinct and separate action from the regulatory tools to bring about informed and orderly trading. Investigations are undertaken to review past trading conduct and detect possible transgressions. In line with global practices, they can proceed without suspension of trading in the securities.

Investigation of misconduct
SGX devotes significant resources into detecting and investigating market misconduct and work closely with statutory authorities against offenders of the law. While we appreciate the interest of the public on recent developments in the 3 securities, we are unable to comment any further to preserve the integrity of any investigation.

-End-

info.sgx.com/webcoranncatth.nsf/VwAttach...ions.pdf?openelement


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Let it go...open one eye, close one eye. Dont underestimate what Big Bird can do.

Singapore’s Fastest-Growing Blue Chips

By David Kuo - October 25, 2013

Probably one of the biggest misconceptions about large-cap stocks is that they don’t grow quickly. Hence the well-trodden but, nonetheless, inappropriate stock market saying that “elephants don’t gallop”.

Admittedly, large cap stocks generally don’t grow as quickly as more nimble small caps. That is understandable given that, by and large, blue chip shares tend to be more established businesses. Consequently, their days of rapid growth are likely to be behind them rather than something to look forward to.

But to dismiss large caps as being “past their best” may be doing them a huge disservice. A quick trawl of Singapore’s large-cap stocks reveals that growth amongst the blue chips is far from pedestrian. The average revenue growth for the 30 companies that make up the Straits Times Index (SGX: ^STI) is a not-too-shabby 11% a year.

But that’s not all.

Companies such as Noble Group (SGX: N21) have lifted their revenue from around S$2b in 2000 to S$114b in 2012. That equates to a compound growth rate of over 40% a year. Meanwhile, revenues at Jardine Cycle & Carriage (SGX: C07) have grown from about S$3b to more than S$26b over 12 years. That would suggest the company’s top line has grown at nearly 20% annually.

Thing is, these two companies are far from isolated cases. Golden Agri-Resources (SGX: E5H) has raised its revenues from S$0.7b at the start of the Millennium to around S$7.4b last year. That’s an increase of around 22% a year. Meanwhile, turnover at Olam International (SGX: O32) has jumped from S$1.3b in 2001 to S$17b in just 11 years.

Often investors believe they need to look outside the Straits Times Index for growth companies. But nothing could be further from the truth.

A company that can grow its top-line at 10% a year should see its turnover double in a little over seven years. If profits can follow suit, then there is a good chance that the market value of the company could grow too.


Courtesy of The Motley Fool