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Singapore stock market and companies daily report (Global GSH Corporation, Global Logistic Properties) (March 07, 2013)

Contributed by Shares Investment

US Economy Shows Modest Growth In Jan-Feb: Fed
US economic growth continued to improve progressively in January and early February as consumer spending picked up and the country’s shabby housing market maintained a broad-based recovery, the Federal Reserve said on 7 March 2013. Meanwhile, in a cautiously optimistic report from its 12 regional branches, the US central bank also drew attention to stronger demand in the auto sector and for technology and logistics services, while emphasising that price pressures remained subdued. “Reports from the 12 Federal Reserve districts indicated that economic activity generally expanded at a modest to moderate pace since the previous Beige Book,” the Fed said in a description that was similar to the prior report.
Significance: Notwithstanding the fact that US growth fell to a mere 0.1 percent annual pace in the final three months of 2012, the Fed expects the economy to maintain a gradual recovery, aided by near-zero interest rates and its own massive bond buying programme to spur borrowing.

GSH Plans To Raise Another $246.8 million Via Right Issue
Just two weeks after the Lippo group and a private equity fund invested $37.5 million in it through a stock placement, Global GSH Corporation, which distributes medical consumer goods and photographic and imaging equipment, announced plans to raise another $246.8 million in a rights issue. GSH plans to issue up to 4.9 billion new renounceable 1-for-1 non-underwritten rights shares at $0.05 per right share. According to the release on the SGX, GSH said it is gearing itself for further inroads into the property, building construction and the manufacture and/or sale of concrete, sand, cement and other construction materials in China.
Significance: The issue price is a 42.5 percent discount to the stock’s theoretical ex-rights price of $0.087 per share, based on its closing price $0.124 on 5 March 2013. GSH had in last month reported a net gain of US$4.3 million, as compared to a net loss of US$0.3 million for the full year ended 31 December 2012, primarily due to the net gain on extinguishment of debt of US$3.6 million.

GLP Leases 15,000 Sqm In ChangZhou
Global Logistic Properties (GLP) announced that it has signed approximately 15,000 square metres (sqm), or 162,000 square feet (sqf), of new leases with a third party logistics provider in Changzhou, Eastern China. Said to be GLP’s first development in Changzhou, the GLP Park CND is a modern logistics park comprising 33,000 sqm (351,000 sqf) of high quality, multi-functional warehouse facilities. Strategically located in Changzhou National Hi-tech District (CND), the only development zone in China offering road, rail, water and air transportation links, GLP Park CND is an ideal platform for regional distribution within Yangtze River Delta as well as production-related logistics due to its proximity to many multinational manufacturers.
Significance: With the new lease, the occupancy rate for GLP Park CND has reached 97 percent within three months of its completion. Meanwhile, GLP is of the view that the logistics market in Eastern China is expanding rapidly and it thinks the park is well-positioned to cater to both manufacturing and distribution demand in the region.