Singapore shares were down at midday on Friday, pulling back after a rally in the first few trading sessions of the year, but stockbroker Kim Eng (KEHS.SI) outperformed the broader market after Malaysian lender Maybank made a bid for the firm.
Maybank (MBBM.KL), Malaysia’s largest lender by assets, is snapping up Kim Eng for $1.4 billion in a move to strengthen its grip on the regional stock broking industry and diversify the lender’s source of overseas revenue.
Maybank (MBBM.KL), Malaysia’s largest lender by assets, is snapping up Kim Eng for $1.4 billion in a move to strengthen its grip on the regional stock broking industry and diversify the lender’s source of overseas revenue.
Kim Eng shares rose as much as 13%. At midday, they were up 11.9% with 43.1 million shares changing hands at $3.02 each, below Maybank’s offer price of $3.10 per share, but well above its closing price of $2.70 on Wednesday. Kim Eng was suspended from trading on Thursday.
The Straits Times Index (STI) <.FTSTI> was down 0.4%t, or 13.17 points, at 3,266.53. The total value of shares traded in the morning session was $1.15 billion, lower than $1.24 billion on Thursday.
The STI had risen 2.8% for the first four trading days of 2011, as many traders and fund managers were back from the year-end holidays and quickly took fresh positions.
“It’s been quiet the whole of December, and now there’s a return of fund managers from the holidays,” said Janice Chua, DBS Vickers head of research.
“But today there is a pull-back. The STI has been up four days in a row, so this is marginal profit-taking,” she added.
Traders said there could be further downside to the STI in the afternoon, but support may kick in at around 3,250 points.
Shares of GMG Global (GMGG.SI), a Singapore rubber producer, rose as much as 6.8 % on news reports that it had resumed shipments of rubber from its facilities in the Ivory Coast.
At midday, GMG Global shares were up 3.4% at S$0.305 on a volume of 45.7 million shares.
Shares of Singapore-listed container shipping firm Neptune Orient Lines (NEPS.SI) fell as much as 2.5% mainly on an oversupply in the industry and falling container rates.
At midday, NOL shares were down 1.7% at $2.34 on a volume of 4.2 million shares.
Shares of Singapore technology firm Stratech Systems (SSYM.SI) rose as much as 43% after it said it plans to buy an 80% stake in Global Telecom, a company incorporated in South Korea, for US$7.6 million ($9.86 million).
At midday, Stratech shares were up 14.3% at $0.04 on a volume of 52.9 million shares.
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