STI headed for biggest monthly loss in 15 months

STI headed for biggest monthly loss in 15 months

Written by Reuters  
Friday, 30 August 2013 12:35

Singapore shares eased, headed for their biggest monthly drop in more than a year, led by sharp falls in Thai Beverage Pcl and Olam International.

The benchmark Straits Times Index eased 0.1% to 3,034 points, on course for a nearly 2% weekly drop in its fourth straight week in the red.

The index fell nearly 6% so far in August, faring better than peers in Indonesia , Philippines and Thailand but underperforming Malaysia.

Olam shares fell as much as 2.7% to an eight-month low of $1.42, down for the ninth session in 10, after the company reported a 48% decline in quarterly net profit on higher tax charges and challenging market conditions.

Citi maintained its 'buy’  call on Olam, and pinned the target price at $2.60, though chose Wilmar International as its top pick in the sector.

“(For Olam) we do think the assets are there, and it will take time for the assets to turn around. The reason we are positive is that when the assets get ready, it will generate a return,” Citi analyst Patrick Yau said.

ThaiBev shares fell more than 7% after soaring nearly 24% in the previous session.


- wong chee tat :)