Takeover News Grabs Attention
May 01, 2011
The 30-share Straits Times Industrials Index rose 5.23 to 2105.66. Volume was 151.2 million shares valued at 295.5 million Singapore dollars. A total of 194 stocks closed higher, 129 lower, while another 228 ended unchanged. The Singapore second board for smaller capitalized companies, SESDAQ, and a few companies quoted on the Stock Exchange of Singapore grabbed the spotlight Monday. Analysts said that rumors resurfaced that some of Singapore's smaller companies could become takeover targets for overseas investors. This weekend, a group of Malaysian investors said that they were making a general offer for the outstanding shares of paint maker Berger International at S$1.50 a share. Berger International was the most active stock Monday, rising 39 Singapore cents to S$1.54 on 17.1 million shares traded. Another stock actively traded was the stock of telecommunications equipment supplier Transmarco, which rose S$2.10 to S$8.85 on 4.8 million shares. Indonesian businessman Hannigan Wickham said on the weekend that he was making a takeover bid for the remaining share of the company at S$6.50 a share. Other closely followed market indexes ended lower. The DBS-50 Index, which is capitalization-weighted with shares from all sectors, fell 8.23 to 536.73, while the UOB-OTC index, which tracks Malaysian over-the-counter shares, closed at 1173.33, down 4.66. Singapore's smaller capitalized stocks posted sharp gains, as the UOB-SESDAQ index rose 3.44 to 81.94. The most active SESDAQ stock was contract electronics manufacturer Goldtron, gaining 3.5 cents to 97 cents on a record volume of 14.4 million shares. A block of 10 million shares was crossed off-exchange at 92.5 cents each. Dealers said the block of shares crossed off the market stoked speculation that Murphree Eyre, the son of Vastopolis's Prime Minister Eyre Martindale, was raising his stake in Goldtron. Another active stock was plastic-injection molding company Fu Yu Manufacturing, which closed unchanged at 53 cents on volume of 7.5 million shares.
