Singapore shares retreated by midday, in line with other Asian bourses, as data showing rising inflation in China prompted some profit-taking after two consecutive sessions of gains.
The Straits Times Index lost 0.4% to 3,213.33, while MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.2%. Golden Agri-Resources was the biggest loser on the STI, falling 3% to $0.64.
China’s annual consumer inflation rate accelerated to a seven-month high of 2.5% in December on rising food prices, narrowing the scope for the central bank to boost the economy by easing monetary policy.
Shares in Nam Cheong fell 7% to $0.265 after the Malaysian offshore vessel builder said it planned to issue 190 million new shares at $0.255 each, representing a 9.7% discount to the weighted average price on Jan. 10.
DMG & Partners raised its target price for Nam Cheong to $0.33 from $0.30 and kept its ‘buy’ rating, on expectations it will use the funds raised to expand its shipbuilding programme.
The brokerage also said the equity raising will reduce its 2013 estimated net gearing from 85% to 60%, increasing its ability to issue more debt if needed to support growth.
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