SGX Partners SIAS To Reach Out To Retail Investors
The Singapore Exchange (SGX) announced this morning that it will be signing a memorandum of understanding (MOU) with the Securities Investors Association (Singapore) (SIAS) to bring investing to the heartlands. The partnership that will span over the next three years will see both parties organising the Community Outreach Education Programme. The programme will entail various investment seminars conducted in the heartlands which will be customised according to the needs of the community. Another aspect of the MOU includes the Youth Chapter which will involve both partners cooperating with tertiary education institutions in equipping the youth with foundational investing knowledge as well as SGX-listed stocks. Chew Sutat, head of sales and clients at SGX said that the partnership seeks to “empower the investor community with financial literacy and raising awareness of Singapore’s securities market through committed programmes” through the next three years.
Significance: In the face of rising inflation, having a sound savings plan is not sufficient, especially in view of the low interest rates offered by banks. The importance of investing has now been placed at the forefront of sound financial planning and such moves by the SGX could benefit the bourse in terms of trading volumes.
Sakari Posts Fall In 1H12 Earnings
Sakari Resources posted a 52.2 percent fall in earnings amidst lower international coal prices as well as lower sales volumes. However, Sakari’s focus on margins and production efficiency managed to pull its 2Q12 earnings sharply higher by 65.6 percent as compared to 1Q12 earnings. Sakari attributed this better performance to planning and development work in 1Q12 that had paved the way for the improvement in performance in 2Q12. Sakari said that it is now shifting its focus towards “increasing production of high quality coals to fulfil market commitments over the rest of the year”. As part of this drive, the ramp-up at its Sebuku mine has progressed according to plan with an increase of 30 percent in production over the previous quarter. Sakari also said that while operations at its Jembayan mine had begun slowly in 2012, it is now set to resume production increases.
Significance: Despite good thermal coal demand in Asia, market prices have fallen steadily due to strong supply growth rates as well as higher inventory levels. Despite this, Sakari’s emphasis on margins has helped it cut costs and maintain some semblance of profitability from its heydays in 2011.
Luye Pharma’s Majority Shareholder Amasses 92.6% Stake
Trading in China based drug company, Luye Pharma has been suspended after its majority shareholder raised its stake to 92.6 percent as a result of married trades made on 27 July 2012. The suspension comes as the company’s public float fell below 10 percent and had surged 11.6 percent to $1.25. The company is engaged in pharmaceutical research and development and launched more than 50 products in oncology, cardiovascular, orthopaedics, gastroenterology and the central nervous system. Questions now hang over whether it will be privatised. The majority shareholder, Luye Pharmaceutical Investment had acquired about 75 million shares at $1.30 apiece. Among the sellers was See Hoy Chan Equities which sold its entire 7.1 percent stake.
Significance: This is not the first time the company has been subject to speculation that it might be privatised. That being said, however, the recent married deals have made the privatisation question all the more louder.