The Straits Times / The Business Times News on Cosco

Cosco insiders pare stakes in company

DESPITE a spate of bullish reports by analysts following Cosco Corp's second-quarter results, insiders have been unloading the company's shares.

Filings by the Chinese shipping company with the Singapore Exchange (SGX) show that independent director Wang Kai Yuen's deemed interests in Cosco have been cut from 540,000 shares to 123,000 shares. Dr Wang is also an MP.

This followed a sale of 417,000 shares at $2.56 to $2.57 per share by his wife, Ms Mina Chan Sze Ming, on Thursday and Friday last week.

She picked up Cosco shares late last year, as the company's share price fell below the $1 psychological support level, following the collapse of China Aviation Oil.

The filings also show that Mr Sia Eng Beng, a director of two of Cosco's units, Costar Shipping and CNF Shipping Agencies, sold his entire interest of 460,000 shares at $2.50 apiece on Friday.

Given the profit-taking mood now sweeping across the market, news of their sales may prompt other investors to do the same, said a dealer yesterday.

Since the start of this year, Cosco has gained 120 per cent, making it one of the best-performing stocks on the SGX. Yesterday, it closed four cents lower at $2.53 on a volume of 7.03 million shares.

In a report on Tuesday last week, Merrill Lynch said it has a price target of $2.86 on Cosco, based on the 'sum-of-parts valuations'. Merrill believes Cosco still 'has significant upside'.