MARKET UPDATES :
- POPULAR Holdings on Friday reported a 76.8 per cent increase in net profit to S$9.4 million for its first quarter ended July31, 2014. Its turnover rose 5.9 per cent to S$141.4 million, thanks to higher revenue from its retail, distribution, publishing and e- Learning divisions. Earnings per share improved 81.5 per cent to 1.18 Singapore cents, from 0.65 Singapore cents a year ago.
- Pan Ocean said on Friday it would sell its near 85 per cent stake in Heungkuk Mutual Saving Bank for 2.2 billion won (S$2.7 million) to Investor United Inc. The company said this followed a breakdown in negotiations with Hankuk Steel Wire Co earlier this year to seal the disposal. The company has received written permission from the relevant Korean court on Friday, and the sale contract will be finalised upon due approval of Financial Service Commission of Korea. According to earlier press reports, the company was pursuing the business of ship financing, and did so by snapping up 84.4 per cent of Heungkuk Mutual for US$30.5 million in 2011.
- FUJI Offset Plates Manufacturing Ltd on Friday said that it was unaware of any reasons, other than its announced disposal of a property, that explain the unusual price movements in its shares recently. The company was responding to a trading query from the Singapore Exchange on Friday. Fuji said that it had announced on Sept 2 the proposed disposal of a property located in Johor at the sale price of 35 million ringgit (S$13.8 million).
- Asia and second in the world for intellectual property (IP) protection for the fourth straight time, the latest World Economic Forum’s (WEF) Global Competitiveness Report showed. In a press statement on Friday, the Intellectual Property Office of Singapore said that in the area of franchising and licensing, Singapore was estimated to have over 600 franchising systems with more than 40,000 franchisees in 2012, accounting for 18 per cent of total domestic retail sales volume.
- Singapore’s sovereign fund GIC is joining PSP Investments and Ontario Teachers’ Pension Plan in together investing US$700 million in XPO Logistics Inc, the US company said, adding it plans to use proceeds for unspecified acquisitions In a statement released in the United States, XPO said the deal will be carried out through the sale of newly issued common stock and preferred stock to the investors, who will hold about 22 per cent of XPO after conversion. Greenwich, Connecticut-based XPO, a provider of freight transportation services, has a market value of US$1.8 billion.
- DEL Monte Pacific swung into the red in its first quarter compared to a year ago on higher expenses, it said in a statement on Friday. It said that net loss for the three months ended July stood at US$21.9 million, compared with a net profit for US$4.15 million for the year-ago period. This was due mainly to higher expenses, including expenses linked to the acquisition of Del Monte Foods, Inc (DFMI). General and administration expenses jumped .
- SINGAPORE Telecommunications Limited (SingTel) unveiled on Friday changes to its organisation structure, which will see Allen Lew, its CEO of Group Digital L!fe, appointed as CEO Consumer Australia and CEO Optus. Mr Lew will be based in Australia. Paul O’Sullivan will be appointed as Optus chairman.
- VIVA Industrial Trust on Friday said that its trustee would acquire two industrial properties for S$112.8 million. It would buy Jackson Square, which comprises four blocks of light industrial buildings at 11 Lorong 3 Toa Payoh with a gross floor area (GFA) of approximately 418,586 sq ft, for S$80 million. It would also buy Jackson Design Hub, a five-storey modern light industrial building at 29 Tai Seng Street with a GFA of about 85,070 sq ft, for S$31.5 million. Following completion of the acquisitions, the real estate investment trust will increase its investment.
STOCK RECOMMENDATION :
- BUY JARDINE CYCLE ABOVE 43.750 TG 44.000, 44.300, 44.700 SL 43.450