The Straits Times Index (SGX: ^STI) followed yesterday’s slight 0.2% loss with another minor 0.1% fall to 3,144 points. 13 of the index’s 30 component-shares had made some gains while 10 others ended the day in the red. The index constituents all had relatively minute movements, with the largest mover being Hongkong Land Holdings (SGX: H78), which climbed 1.6% to US$6.26. While the blue chips had a quiet day, there were other shares that were having a riot. Let’s take a look at some of the big movers. Upstream oil & gas exploration and production outfit KrisEnergy…
13 of the index’s 30 component-shares had made some gains while 10 others ended the day in the red. The index constituents all had relatively minute movements, with the largest mover being Hongkong Land Holdings (SGX: H78), which climbed 1.6% to US$6.26.
While the blue chips had a quiet day, there were other shares that were having a riot. Let’s take a look at some of the big movers.
Upstream oil & gas exploration and production outfit KrisEnergy (SGX: SK3) tumbled 27% to S$0.86. Yesterday evening, the company announced that its Cua Lo-1 exploration well in Block 105 will be plugged and abandoned after testing showed that the gas reservoir in the well had a poor deliverability rate.
Block 105, 25%-owned by KrisEnergy, covers an area of 7,192 square kilometres on the northern offshore part of Vietnam. Cua Lo-1 was drilled to a measured depth of 2,867 metres, in which “several gas bearing sandstone reservoirs were identified.” But, a drill stem test on a reservoir with the “largest potential” dealt a blow to the company as test results turned out to be unfavourable and development of the tested-reservoir is thus “unlikely”.
Sino Construction (SGX: F3V) is next in line with a 19.7% decline to S$0.106. The China-based construction company’s shares have fallen rather furiously, as it was just on Monday when it closed at S$0.173. This means the company has lost 39% of its market value in the space of four trading days.
In any case, the company announced yesterday that it had entered into an agreement with Daqing City Xu Teng Construction Installation Co. Ltd to be “strategic business partners to jointly tender for construction contracts in [China] for 5 years.”
According to Sino Construction’s press release, Xu Teng’s based in Daqing, China, and has “established a good reputation in delivering high quality building construction and civil engineering works.” Some of Xu Teng’s notable projects include the Daqing Olympic Stadium and Fu Rui Bang Biological Industrial Park.
Sino Construction “believes that the partnership with Xu Teng will allow the [company] to continue with its core business of construction in [China].”
Rounding up the trio is environmental engineering service provider United Envirotech (SGX: U19). Its shares jumped 6.6% to S$0.975. The company announced yesterday night that it has received an approval in-principle from regulatory bodies in relation to its proposed acquisition of Memstar Technology (SGX: 5MS).
It should be noted, however, that the approval in-principle is subjected to certain conditions, which includes seeking an approval from United Envirotech’s shareholders and compliance with Singapore Exchange’s listing requirements and guidelines.
United Envirotech will be issuing 200m new shares – some 34% of its outstanding share count of 594m – to Memstar as part of the acquisition, in addition to paying S$73.35m in cash. Based on United Envirotech’s current share price, the acquisition would value Memstar at S$268m.
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