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STOCKS NEWS SINGAPORE-Index flat; Synear, Courts Asia jump

Source : REUTERS
Last Updated: Mon, Oct 15, 2012 08:00 hrs

Singapore shares were little changed, with small and mid-cap stocks like buyout target Synear Food Holdings Ltd and trading debutant Courts Asia Ltd in the spotlight.

The Straits Times Index was up 0.05 percent at 3,043.16 points, while the MSCI index of Asia-Pacific shares outside Japan shed 0.3 percent.

Shares of Synear Food Holdings Ltd surged after its main shareholders offered to take the Singapore-listed Chinese frozen food producer private, valuing the company at nearly S$256 million ($210 million).

On Monday, Synear shares rose as much as 6.9 percent to their highest intra-day level since April 2011, matching the offer price. Nearly 45 million shares were traded, about 27 times the average full-day volume over the past 30 days.

Synear was the top-traded stock by volume in the Singapore market.

Shares of electronics and furniture retailer Courts Asia Ltd , which operates stores in Singapore and Malaysia, rose more than seven percent in heavy trading on their debut in Singapore.

Courts shares hit S$0.83 earlier in the day, about 7.8 percent higher than their initial public offering price of S$0.77. Courts was among the top traded stocks by both value and volume on the Singapore bourse.

1307 (0507 GMT)

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

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11:30 STOCKS NEWS SINGAPORE-Singapore Press Holdings yield still attractive-brokers

Singapore Press Holdings Ltd (SPH) still offers an attractive yield even after the media and property firm reported a 5.9 percent fall in 2012 net profit mainly due to lower investment income, brokers said.

SPH shares were up 0.5 percent at S$4.09 on Monday. The stock has risen nearly 11 percent so far this year versus the 15 percent gain in the broader Straits Times Index.

SPH posted net profit of S$365.5 million ($299.3 million) for its financial year ended August, down 5.9 percent from a year earlier. The company announced full-year dividend of 24 Singapore cents, representing a yield of nearly 6 percent.

Maybank Kim Eng said the yield spread between SPH and 10-year government bond is now 443 basis points (bps), above the historical average of 350 bps.

The broker expects SPH to declare a dividend of 25 Singapore cents for 2013 fiscal year, implying yield of 6.2 percent which it said is still very attractive. Maybank raised its target price to S$4.50 from S$4.43 and kept its 'buy' rating.

CIMB Research, which has an 'outperform' rating and S$4.39 target price, said SPH's property business remains the star performer and could help drive dividend payout in 2013. Both Paragon and Clementi malls had rental increases this year, CIMB noted.

OCBC Investment Research said falling margins highlighted the increasing uncertainties for SPH's core print business, but SPH's dividend yield is likely to limit the share price downside. OCBC has a 'hold' call and S$4.05 target price.

1122 (0322 GMT)

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

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10:27 STOCKS NEWS SINGAPORE-Synear surges after bid to take company private

Shares of Synear Food Holdings Ltd surged after its main shareholders offered to take the Singapore-listed Chinese frozen food producer private, valuing the company at nearly S$256 million ($210 million).

Synear's executive chairman, Li Wei, and his affiliates already hold 50.13 percent of Synear's issued shares. Their vehicle, Fortune Domain Ltd, offered to buy the remaining shares at S$0.186 each.

On Monday, Synear shares rose as much as 6.9 percent to their highest intra-day level since April 2011, matching the offer price. More than 28 million shares were traded, about 17 times the average full-day volume over the past 30 days.

Synear was the top-traded stock by volume in the Singapore market on Monday. Before the offer announcement, the stock had gained 35 percent this year versus the 24 percent gain in the FT ST Small Cap Index.

Bosses of Singapore-listed companies are taking their firms private to take advantage of beaten-down prices and cheap financing, more than trebling management buyout deals in the island-state to $10.9 billion compared with the whole of 2011.

1017 (0217 GMT)

(Reporting by Eveline Danubrata in Singapore; Editing by Prateek Chatterjee; eveline.danubrata@thomsonreuters.com) ($1 = 1.2211 Singapore dollars)




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