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STOCKS NEWS SINGAPORE-F&N, Golden Agri outperform flat market

Source : REUTERS
Last Updated: Mon, Sep 10, 2012 06:20 hrs

Shares of Fraser and Neave Ltd outperformed the flat Singapore market on speculation that Thai Beverage Pcl may launch a full takeover of the drinks-and-property group, which is trying to sell its stake in Asia Pacific Breweries to Heineken.

The STI was down 0.05 percent at 3,010.15 points, while MSCI's broadest index of Asia-Pacific shares outside Japan was 0.2 percent higher.

F&N shares rose as much as 2.1 percent to S$8.56, their highest since Aug. 27. The stock has surged 38 percent so far this year versus the 14 percent gain in the broader Straits Times Index.

Shares of palm oil producer Golden Agri-Resources rose as much as 1.5 percent on volume of nearly 59 million shares. It was the top traded stock by both value and volume in the Singapore market.

CIMB Research said Golden Agri's management confirmed that funds from its planned bond issuance could be used for potential acquisition opportunities, which helps assuage concerns over usage of the funds and potential earnings per share dilution.

1257 (0457 GMT)

(Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com)

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12:17 STOCKS NEWS SINGAPORE-Midas up as more orders eyed; OCBC raises target

Shares of Singapore-listed Midas Holdings, which supplies components for railway projects, rose to the highest in nearly six months on hopes of more order wins after the company secured several contracts.

Midas shares gained as much as 5.2 percent to S$0.405 on Monday, the highest since March 14. Around 27 million shares changed hands, 2.7 times the average full-day volume over the past 30 days.

OCBC Investment Research said the sentiment on China's railway sector has improved and Midas is expected to strengthen its order book with more metro, power and international railway contracts.

But OCBC cautioned that it expects Midas' financials to remain lacklustre over the next two to three quarters as the company transitions towards a recovery in the 2013 fiscal year.

"The positive sentiment from new contract wins would likely override negativity surrounding its weak results in the near term," OCBC said, raising its target price to S$0.435 from S$0.41 and maintaining its 'buy' rating.

1207 (0407 GMT)

(Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com)

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11:30 STOCKS NEWS SINGAPORE-CIMB cuts Golden Agri target price

CIMB Investment Research lowered its target price on shares of palm oil company Golden Agri Resources Ltd to S$0.88 from S$0.92, to reflect a recent conversion of warrants and noted the company is on the look out for acquisitions.

By 0328 GMT, shares of Golden Agri were 1.5 percent higher at S$0.675. They have fallen about 6.3 percent so far this year, compared to the Straits Times Index's 13.8 percent rise.

Golden Agri said last week it plans to issue $400 million convertible bonds due 2017 at 2.5 percent a year.

Golden Agri's management confirmed that funds from its planned bond issuance could be used for potential acquisition opportunities, which helps assuage concerns over usage of the funds and potential earnings per share dilution, CIMB said.

The brokerage has a 'trading buy' rating on the company.

"We continue to advice investors to accumulate on share price weakness to position for potential mergers and acquisition news flows and rise in crude palm oil price on the back of potential disruptions to supply in the event of an El Nino," said CIMB in a report.

1122 (0322 GMT)

(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)




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