SINGAPORE May 27 Singapore shares eased on
Tuesday, tracking losses in regional markets, led by Olam
International Ltd whose shares fell after a buyout
offer from a Temasek-led group expired.
Olam shares fell 4.5 percent to an intra-day low of S$2.13.
The losses led the Singapore index lower, with the benchmark
Straits Times Index snapping three straight sessions of
gains to fall 0.2 percent to 3,276.11.
The drop followed similar declines in regional markets, with
MSCI's broadest index of Asia-Pacific shares outside Japan
down 0.2 percent.
State investor Temasek Holdings made an offer to buy all of
Olam's shares in March, in what analysts said was a bid to take
the company private. After the announcement, Olam shares shot up
11.8 percent to S$2.23, matching Temasek's offer price.
That offer has now expired, with Temasek controlling around
80 percent of the company.
OCBC, which has a "sell" rating on the stock with a target
price of S$1.87, said it did not expect the current share price
to be supported around current levels with the expiry of the
Bucking the trend, shares of Noble Group Ltd rose
as much as 2.3 percent to hit a 1-1/2-year high of S$1.35,
stretching gains into a third straight day.
Among small caps, shares of oil production company RH
Petrogas Ltd soared as much as 9.6 percent to hit a near 5-year
high. The stock rose as much as 11 percent last Tuesday,
prompting a query on trading activity from the Singapore bourse.
In response to the query, the company said its controlling
shareholders had been approached by an investor for a possible
takeover of shares in RH Petrogas, though it cautioned that no
formal offer had been made.
(Reporting by Andrew Toh; Editing by Anupama Dwivedi)