Singapore Hot Stocks-Li Heng Chemical up on positive broker note

SINGAPORE, July 9 (Reuters) - Shares of Li Heng Chemical (LHCF.SI: Quote, Profile, Research) surged as much as 6.9 percent after UOB Kay Hian initiated coverage of the stock with a "buy" rating.

The Chinese nylon fibre producer rose to a high of S$0.545 with more than 19 million shares changing hands.

UOB Kay Hian on Tuesday cited Li Heng's market leader position in the nylon industry in China and its superior product positioning for its positive rating. The broker has a target price of S$0.845 for the firm.

"The company is heading for the next stage of growth through further capacity expansion, widening of its geographical coverage, and moving upward in the supply chain to mitigate the raw material risk and become more profitable," said UOB Kay Hian in its research note.

0344 GMT - Straits Times Index .FTSTI was up 1.22 percent.

(Reporting by Charmian Kok, Editing by Neil Chatterjee)