Reports » Singapore

Singapore stock market and companies daily report (Dow Jones,Leader Environmental Technologies,Singapore Exchange ) (July 09, 2010)

Contributed by Shares Investment

By Shares Investment

US Stocks Extend Win Streak On Encouraging Jobs And IMF Data
The Dow Jones Industrial Average rose 1.2%, putting it on track for its best week in over a year, as sentiment was lifted by a drop in the number of Americans registering for jobless benefits and the IMF’s upward revision of global growth forecast. The S&P gained 0.9%, while the Nasdaq advanced 0.7%. The IMF raised its global growth forecast for 2010 to 4.6%, thanks to expansion in Asia and higher US private demand, but warned that the European debt crisis poses a significant recovery risk. Oil rose 1.9% to US$75.44 a barrel while gold slipped 0.2% to US$1,196.10 an ounce on speculation a rebound in the euro will reduce demand for the precious metal as an alternative to the currency.

China’s Leader Environmental Technologies Launches IPO To Raise $16m
China-based environmental protection solutions provider, Leader Environmental Technologies (LET) has launched its IPO, hoping to raise $16m in net proceeds from a listing on the mainboard. The offering consists of 116.5m shares – 2m for public subscription and 114.5m for placement – at $0.21 each. The offer represents about 26.4% of LET’s enlarged share capital of 441.6m shares and will give LET a market capitalisation of $92.7m. LET’s IPO is priced at a price earnings ratio of 6.8 times, based on its net profit of Rmb64.3m for FY09 and on a post-invitation share capital of about 441.6m shares. LET plans to use the proceeds for larger environmental protection projects, enhance its research and development activities, as well as acquire better systems and technologies for the treatment of wastegas. Trading of LET’s shares is expected to start on 16 Jul-10.

Significance: LET’s listing will help to enhance its corporate image and reputation as its chance of securing higher contract values rises. As the China government continues to place great emphasis on environmental protection, coupled with further demand for environmental protection services resulting from China’s continued growth, LET’s industry prospects look good.

SGX Inks Deal With Suzhou On Listing Firms
The Singapore Exchange (SGX) signed a memorandum of understanding (MOU) with China’s Suzhou Industrial Park (SIP) to promote the listing of companies from SIP and other parts of its province on SGX. SIP will also provide guidance to listing aspirants, as well as facilitate regulatory processes and approvals from relevant Chinese authorities where necessary. SGX said the MOU will pave the way for closer collaboration between the Jiangsu government and SGX to meet the business funding needs of companies in Jiangsu, where the SIP is based. In a separate announcement, SGX said that its mutual offset arrangement with the Chicago Mercantile Exchange (CME) will now cover Nifty futures – allowing round- the-clock trading of the contract where investors can offset Nifty futures positions on one exchange to the other. The Nifty futures contract will be the fifth covered by the mutual offset arrangement between SGX and CME.

Significance: These 2 arrangements will further extend SGX’s product range and market reach, improving access for all its customers.

This article is contributed by Shares Investment. Visit Sharesinv.com for the latest Singapore, Malaysia and China stock market news and reports.