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Hot stock: CNMC Goldmine up 4.8% on active trade
SHARES of CNMC Goldmine Holdings leapt on active trading on Monday in an otherwise listless market, likely buoyed by continued positive sentiment stemming from its second-quarter results.
At 12.30pm, the share price was up 4.8 per cent or 2.5 Singapore cents at 54.5 Singapore cents, after 10.9 million shares changed hands. The broader Singapore market was edging down, with the benchmark Straits Times Index down 2.67 points at 2,841.35.
Dealers note that investors were probably responding to CNMC's strong set of results for the second quarter ended June 30 released earlier this month and higher dividends.
Having produced and sold a record amount of gold output and achieved higher average gold prices, CNMC posted a 31 per cent growth in net profit to US$4.70 million from the year-ago period. It reported its highest quarterly gold output and sales of 9,807 ounces since it started gold production in July 2010, 24.5 per cent more than a year earlier. The average realised gold price was 8.1 per cent higher in the quarter than a year ago.
CNMC has declared a first interim dividend of 0.20 Singapore cent a share, 11.1 per cent more than a year earlier, with Aug 26 as the book closure date.
Dealers note that the market's listlessness on Monday, characterised by low volumes and sideways trading, could be attributed to a wait-and-see approach among traders ahead of the US Federal Reserve chairman's speech and the Fed's decision on interest rates this week.