Reuters logo
STOCKS NEWS SINGAPORE-OCBC cuts Olam target price
May 30, 2012 / 2:42 AM / 6 years ago

STOCKS NEWS SINGAPORE-OCBC cuts Olam target price

OCBC Investment Research lowered its target price on commodity company Olam International Ltd to S$1.86 from S$2.24, saying growing uncertainty in Europe may continue to cause increased volatility in commodity stocks.

Shares of Olam were down 0.9 percent at S$1.68. They have fallen about 21 percent so far this year, underperforming the Straits Times Index’s gain of 5 percent in the same period.

Olam said on Tuesday it would invest $240 million in its first sugar milling asset in Brazil, Usina Acucareira Passos S.A.

OCBC, which maintained its hold rating on the stock, said Olam’s management believed the latest acquisition was part of its plan to boost its milling assets in large sugar-producing countries that have a cost advantage.

However, the broker also noted that Olam expects sugar prices to continue to fall into the fourth quarter of the year, driven by the sugar surplus, but that prices should eventually bottom out before the mill reaches a steady state of production in fiscal 2016.

For company statement, click.

1019 (0219 GMT)

(Reporting by Leonard How in Singapore;


10:21 STOCKS NEWS SINGAPORE-Biosensors up after earnings

Shares of medical device maker Biosensors International Group Ltd rose as much as 2.7 percent after it posted better-than-expected fourth-quarter earnings.

Biosensors said net profit for the quarter rose 49.5 percent to $27.2 million, helped by a surge in sales and revenue from licensing and royalties.

“(The) results exceed management’s guidance. After investors’ initial overreaction to price reduction fears in China, bargain valuations have emerged,” said CIMB Research, which has an outperform rating on the stock.

However, it cut its target price on Biosensors stock to S$1.82 from S$1.98, citing lower margin assumptions due to weaker average selling prices.

Biosensors shares were up 0.4 percent at S$1.29, outperforming the FT ST Mid Cap index’s 0.4 percent fall. The stock has fallen nearly 10 percent since the start of the year, against the index’s 10 percent gain.

OCBC also lowered its target price for Biosensors to S$1.88 from S$1.92, but kept its buy rating.

To read related statement click

1000 (0200 GMT)

(Reporting by Charmian Kok in Singapore;


08:46 STOCKS NEWS SINGAPORE-Index futures down 0.6 pct

Singapore index futures were down 0.6 percent on Wednesday, indicating the benchmark Straits Times Index is likely to fall.

Asian shares slipped on Wednesday, hurt by fears that Spain’s banking woes will push up the country’s borrowing costs to unsustainable levels although falls were limited on hopes that Greece would stay in the euro zone and for China stimulus steps.

To read a related story click

Reporting by Charmian Kok in Singapore;

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below