The Straits Times / The Business Times News on Cosco

Cosco directors cut stakes in firm

SEVERAL Cosco Corp directors have whittled their direct stakes following a resurgence in the group's share price.

Alternative director Li Jian Xiong sold 300,000 shares of the shipyard and shipping group at $2.88 apiece on Tuesday.

This reduced his direct stake from 1.7 million shares, or 0.077 per cent, to 1.4 million shares, or 0.063 per cent.

Independent director and former MP Wang Kai Yuen sold 300,000 shares on the open market at $2.92 apiece on Wednesday, according to a Singapore Exchange filing.

This cuts Dr Wang's direct stake from 1.3 million shares, or 0.059 per cent, to one million shares, or 0.045 per cent. He has a deemed interest of 0.009 per cent, or 200,000 shares.

Mr Xu Hui Xing and Mr Feng Jin Hua, who are both directors of the subsidiary Cosco Shipyard Group, also reduced their direct interest this week.

Market watchers are not surprised by the disposals as Cosco's stock has surged by more than 20 per cent from its month-low of $2.40. It was sold down recently in line with the broader market, with investors taking profits on fears that overheated markets in China and India may weigh upon the region.

But the fundamentalists have pointed out that the company is set to benefit from the robust global economic growth and increasing trade activity.

They add that if Cosco continues to win contracts and add to its order book, which stands close to $1.7 billion stretching into financial year 2009, then its outlook is very promising.

DBS Vickers for one has a 'buy' call on the counter with a target price of $3.45.

The stock closed a cent down at $2.91 yesterday.