Singapore Hot Stocks-Tech firms boosted by buyout talk

SINGAPORE, Jan 9 (Reuters) - Singapore-listed tech stocks
rose on Friday after Chartered Semiconductor's shares surged on
rumours that it might be a buyout target.

Jurong Tech (JTIL.SI) and Stratech Systems (SSYM.SI) gained
as much as 53 percent and 33 percent respectively, on the
potential for takeovers at other firms in a sector that has
been hit by the global slowdown.

"The industry may be looking to rationalise itself as a
whole, and shorten supply chains," said a broker in Singapore.

By 0639 GMT, Jurong Tech, which assembles and manufactures
electronic products, was up 33 percent to S$0.10.

Shares in Jurong Tech, which said a month ago it was
investigating alleged financial irregularities, slid 82 percent
last year, underperforming the benchmark index that fell by
around half.

Stratech, which designs and implements IT systems, was up
33 percent to S$0.02. Creative Tech (CREA.SI) was up 1.7
percent.

The benchmark Straits Times Index was up 0.13 percent.

CHARTERED SEMI

Shares of Chartered Semiconductor (CSMF.SI) extended gains
on Friday as it rose as much as 13.3 percent even though the
firm said it is unaware of any information that boosted its
share price on Thursday.

Shares of Chartered rose as much as 43 percent on Thursday
as dealers said the stock had risen on rumors that the company
may be merged with its bigger Taiwanese rivals, such as sector
leader TSMC (2330.TW) (TSM.N) that have slashed their
fourth-quarter guidance as consumers prove reluctant to spend
on the new computers, mobile phones and flat-screen TVs that
use microchips. [ID:nTPU001021]

"It is still very much in the rumors even after the company
came out to clarify," said a local dealer.

Singapore state investor Temasek Holdings [TEM.UL], which
owns around 60 percent stake in Chartered, said it does not
comment on market speculation, a spokeswoman said.

Rumours have long dogged the firm which is struggling in
the latest economic downturn. In December, Chartered lowered
its fourth-quarter forecast and said it would cut contracting
jobs in a move to slash costs.

For the December quarter, Chartered now expects revenue of
$343 million to $353 million and a net loss of 30 to 33 cents
per basis American Depositary Share.

By 0138 GMT, Chartered Semiconductor was up 10 percent to
S$0.33

The benchmark Straits Times Index was up by 0.1 percent.
(Reporting by Kash Cheong, Laurence Tan and Saeed Azhar;
Editing by Neil Chatterjee)