Singapore Stocks: Indofood Agri Resources, OCBC, Singapore Air
Singapore’s Straits Times Index (FSSTI) declined 1.8 percent to 3,110.48 at the close. All but two stocks in the benchmark index of 30 companies dropped.
Shares on the measure trade at an average 14.3 times estimated earnings, compared with about 15.6 times at the end of 2010, according to data compiled by Bloomberg.
The following shares were among the most active in the market. Stock symbols are in parentheses after the company name.
Palm-oil producers: Golden Agri-Resources Ltd. (GGR) , the world’s second-biggest palm-oil producer, dropped 2.1 percent to 69 Singapore cents. Wilmar International Ltd. (WIL) , the world’s largest palm-oil processor, decreased 2 percent to S$5.38. Indofood Agri Resources Ltd. (IFAR) , the palm-oil unit of Indonesia’s No. 1 noodle maker, slumped 16 percent to S$1.72 after pricing the initial share sale of its PT Salim Ivomas Pratama, an Indonesian palm-oil producer, at 1,100 rupiah each. That’s at the lower end of the targeted price range of 1,060 rupiah and 1,700 rupiah a share, according to JPMorgan Chase & Co. The brokerage reiterated its “neutral” rating on Indofood Agri Resources.
Crude palm-oil futures for August delivery fell as much as 1.2 percent in Kuala Lumpur, heading for the first decline in five days.
Lippo-Mapletree Indonesia Retail Trust (LMRT) , the owner of shopping malls in Indonesia, gained 0.9 percent to 55 Singapore cents. Bridgewater International Ltd. agreed to buy Mapletree Investment Pte.’s 9 percent stake in Lippo-Mapletree for S$54.8 million ($44 million), the company said in a statement.
Oversea-Chinese Banking Corp. (OCBC SP), Singapore’s second-biggest lender by market value, fell 2.2 percent to S$9.31. OCBC, as the bank is known, may see slower growth in lending in China as the government tightens monetary policy, ShanghaiDaily.com reported, citing Leong Wai Leng, chairman of the lender’s unit in China.
Singapore Airlines Ltd. (SIA) , the world’s second- biggest airline by market value, lost 2.1 percent to S$14.14. A volcanic eruption that began May 21 under Europe’s largest glacier, Vatnajokull, could threaten trans-Atlantic air traffic, according to the nation’s weather office. The explosion of Eyjafjallajokull on April 14, 2010, closed European airspace for six days, grounding 100,000 flights at a cost of $1.7 billion, according to an estimate then by the International Air Transport Association.
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