Stocks to watch: Suntec Reit, Olam, Accordia Golf Trust
THE following stocks had announcements that could affect trading activity on Wednesday.
Suntec Reit joins the MSCI Singapore Index (SiMSCI) on Wednesday, replacing commodity play Olam International.
Along with Keppel Infrastructure Trust, Stamford Land Corporation and Swiber Holdings, Suntec Reit was at the close of Tuesday replaced by four other companies in the MSCI Singapore Small Cap Index.
They are Japanese golf course owner Accordia Golf Trust, offshore support vessel provider PACC Offshore Services Holdings, Indonesian food producer Japfa, and hotel and serviced residence group Frasers Hospitality Trust.
The replacement of Olam comes two weeks after its shares surged to a seven-week high on Nov 13, a day before it was expected to announce its first-quarter earnings. Olam shares climbed to as high as S$2.50 in intraday trading on Nov 13, about 10 per cent above the opening price of S$2.25. But gains were later pared, with the counter closing at S$2.41, up 7.1 per cent.
The share price surge came two days after the Singapore Exchange queried the company about unusual activity in the trading of its shares.
Olam had replied that although it was "in discussions" on possible acquisitions or sales, no definitive agreements were signed at that time and there was no certainty that any of them will materialise.
The company posted a 2.9 per cent drop year-on-year in net profit to S$44.29 million for the first quarter ended Sept 30.
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