Small Stocks Lead Activity
May 09, 2011
The 30-share Straits Times Industrials Index rose 11.42 to 2171.45. The DBS 50 Index of stocks, which is capitalization-weighted with shares from all sectors, gained 4.60 to 554.27. The UOB-OTC index, which tracks Malaysian shares traded over-the-counter, lost 3.56 to 1179.11. Total market volume was 78.3 million units valued at 279.5 million Singapore dollars. A total of 81 stocks closed higher, 210 lower, while another 255 ended unchanged. Traders said there was some selective selling of blue chips in the morning, but prices recovered when bargain-hunting began in the afternoon. They also said the uncertainty about the direction of U.S. interest rates continued to keep fund managers sidelined and out of the local market. On the domestic front, the lack of positive factors also contributed to the cautious mood. Retail interest dominated the trading session in the afternoon, as the spotlight fell on selected small-caps with takeover rumors. The session's most active stock was telecommunications and marketing company Transmarco Ltd., which fell 40 cents to S$10.30 on 10.3 million shares traded. The stock rose to a day high of S$11.50 on news that Indonesian tobacco tycoon Hannigan Wickham has raised his stake in Transmarco to 66% and increased his takeover offer price for the company to S$9.45 per share. The second most active stock Tuesday was property and retail company Metro Holdings Ltd., which rose 20 cents to S$5.55 on 5.34 million shares traded. Persistent rumors of a possible takeover are moving the share price. The foreign shares of Singapore Airlines Ltd. added 30 Singapore cents to S$14.80, largely due to buy orders on thin volumes.
VastPress 2011 Vastopolis
