Singapore’s stock market benchmark, the Straits Times Index (SGX: ^STI), slumped slightly by 0.3% to 3,104 following yesterday’s 1.3% gain. Within the index’s 30 blue chip shares, 20 had made some losses while eight others managed to clock some gains.
Let’s take a look at a number of shares that fared worse than the Straits Times Index.
Pan Ocean (SGX: TO9) dropped by 4.7% to S$4.10. The South Korea-based marine transportation service provider had announced yesterday that it has decided to sell all its shares in Hengkuk Mutual Saving Bank to Hankuk Steel Wire Co.
Hengkuk had served as Pan Ocean’s shipping finance unit and the sale would include the management right for business structure reform. Both parties – Pan Ocean and Hankuk – are currently “discussing on the details” of the transaction. Pan Ocean would be notifying the investing public in due course when the details are finalised.
The upstream oil and gas outfit Kris Energy (SGX:SK3) saw its shares decline by 3.3% to S$0.745. Earlier this morning, the company had revealed that it has secured a US$100 million revolving credit facility that would mature in March 2016. Funds from the facility, of which Kris Energy holds the option of extending the maturity by an additional year beyond March 2016, have been earmarked for “the acquisition of hydrocarbon assets, general corporate purposes and working capital requirements.”
The company currently carries US$252 million in cash, so this new credit facility can provide a substantial amount of new funds to bolster its business.
Yangzijiang Shipbuilding (Holdings) (SGX: BS6) is down 2.3% to S$1.045. The aptly-named shipbuilder had made it known last week that its wholly-owned subsidiary, Jiangsu New Yangzi Shipbuilding Co., Ltd, had been accredited as a “High/New Technology Enterprise”.
The accreditation was awarded by Jiangsu Ministry of Science and Technology Department in China and comes with it, favourable tax treatments. The prevailing corporate income tax rate in the Asian giant stands at 25% and with the accreditation, Yangzijiang’s subsidiary can enjoy tax rates of 15% for 3 years starting from 2013. The lower tax rates will have “positive impact” on Yangzijiang’s bottom-line.
Yangzijiang had commented that its subsidiary had won the accreditation on the back of its “innovation and technological research for building high quality and efficient vessels which [focus] on environmental[ly]-friendly technolo[gies].”
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