ST; Singapore stock market and companies daily report
Dow Gains 2.3% For The Week
The Dow Jones Industrial Average rose 0.2% on Friday to end the week up 2.3%, amid “quadruple witching” volatility which is the simultaneous expiration of stock index futures, single stock futures, stock options and stock index options, an event that notoriously stirs a lot of volatility in the market. The S&P and Nasdaq each gained about 0.1%. Gold soared to a new closing high, settling at a record above US$1,258 an ounce, while oil rose to settle at US$77.18 a barrel. Meanwhile, the euro traded near a 4-week high against the dollar after China signaled an end to the yuan’s fixed rate to the greenback, boosting confidence in the global economic recovery. China’s central bank said greater flexibility would help cut trade surplus and reduce the reliance on exports as a driver of growth. A stronger yuan may also help stanch inflation without strapping the fastest-growing major economy.
Eastern To Gain $26m From Disposal Of Business
Eastern Holdings stands to gain $26m, after minority interest, from the proposed sale of its exhibition business to Sphere Exhibits, a subsidiary of Singapore Press Holdings (SPH). The sale price of $43.5m – for the exhibition business and assets of Eastern’s unit Eastern Directories – was a valuation multiple of 6.2 times the FY09 pre-tax profit of Eastern Directories. The net asset value of the assets that will be disposed is $35k which includes the goodwill of the Comex Exhibition and the registered trademark of IT Show that does not carry a book value. According to Eastern, no valuation was conducted on the assets. Meanwhile, SPH said that the acquisition will enable it to expand its growing portfolio of exhibition businesses.
Midas Secures US$8.6m High-Speed Train Contract
Midas Holdings announced that its aluminium alloy division, Jilin Midas Aluminium Industries Co, clinched a US$8.63m contract to supply aluminium alloy extrusion profiles, including fabricated parts, to a inter-city high-speed train project in China. The contract was awarded by CNR Changchun Railway Vehicles Co. Under the terms of the contract, Jilin Midas will supply 20 train sets, which is expected to take place this year. Midas said the contract is expected to have a positive impact on the Group’s financials for the financial year ending 31 Dec-10.
