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Hot stocks: Rowsley, Swiber rise on corporate deals; Singtel on active trade
ROWSLEY Ltd and Swiber Holdings Ltd were among the top gainers in morning trading, on news of contracts being inked by these companies.
At 11am, Rowsley shares were up 2.6 per cent at 19.9 Singapore cents, after 9.75 million shares changed hands. Swiber shares rose 1.1 per cent to 18.5 cents after 3.73 million shares were traded.
Singtel, which just announced an 11 per cent rise in third-quarter net profit, also edged up one cent or 0.24 per cent to S$4.15 on active trade of 6.67 million shares.
"The market is subdued and looking at some 400 million of total shares traded in the morning, there is very low level of interest in the market," a local broker observed. This is why it is looking for positive spins, he added.
Rowsley's agreement with Vietnam's Hoang Anh Gia Lai Joint Stock Company (HAGL) to jointly develop a mixed-use development in Yangon, Myanmar marks a diversification from Iskandar, which is perceived to be overbuilt.
Under a heads of terms agreement signed on Thursday, Rowsley will invest US$275 million for a 50 per cent stake in a company that wholly owns HAGL Myanmar Centre.
Shares of Swiber Holdings Ltd also enjoyed a lift from news that the company has secured an engineering, procurement, construction, installation and commissioning (EPCIC) contract worth about US$310 million from a national oil company in South Asia - the second-largest contract in its corporate history. With this new contract, Swiber's order book will rise to about US$1.6 billion, a new record high for the group.
As for Singtel, it posted a net profit of S$970 million for the three months ended December, compared with S$872 million a year ago, and beating the average forecast of S$917 million by three analysts polled by Reuters.