Singapore shares rose slightly in sluggish trade by midday on Tuesday, led by commodities firm Noble Group (NOBG.SI) on its US$950 million ($1.25 billion) acquisition of two Brazilian sugar cane mills, but were seen trading in a tight range of between 3,120 and 3,150 points in
the afternoon.
By the midday break, the Straits Times Index (STI) <.FTSTI> was up 0.35%, or 11.01 points, at 3,143.97. Total value of shares traded in the morning session was $461.5 million, lower than $800.8 million on Monday.
Shares of Noble Group rose as much as 2.9% after it said the deal would raise its sugar crushing capacity by 84% to 17.5 million tons per year.
At midday, Noble shares were up 2% at $2.08 on a volume of 15.2 million shares.
“The acquisition will be earnings-accretive because both mills are already fully operational. We view this positively because it is line with the group’s inorganic growth strategy,” said Lee Wen Ching, an analyst at OCBC Investment Research.
Shares of Singapore-listed China Animal Healthcare (CAHC.SI), which makes drugs for livestock, rose as much as 3.8% as the company made its debut on the Hong Kong Stock Exchange.
At midday, China Animal Healthcare shares were up 1.3% at $0.40 on a volume of 21.2 million shares.
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