The Straits Times / The Business Times News on Hyflux

Hyflux and CAO take centre stage

IT WAS a tale of oil and water on the market yesterday with losers at one end - China Aviation Oil (CAO) and transport firms - balancing out winners at the other - Hyflux.

The water treatment firm had its biggest one-day gain in more than four years after a World Bank unit said it would invest in a 50 per cent owned joint venture in China.

Hyflux gained 29 cents to $2.70 with 19 million shares traded yesterday.

After its first-day heroics, however, CAO fell 19 cents, or 11.6 per cent, to $1.45.

Company chairman Lim Jit Poh said in an announcement to the Singapore Exchange that the jet fuel trader would be managed by board committees, which he described as 'unique'.

Mr Lim told a press conference yesterday that the company will not engage in speculative trading of any product.

The counter-balancing performance of the two firms was reflected by the Straits Times Index (STI), which finished virtually unchanged - up 0.29 points at 2,521.04 for its fifth day of gains.

There were 1.37 billion shares worth $1.23 billion traded with 323 gainers, 248 losers and 624 counters unchanged.

While Hyflux stole the limelight, banks also had a good day with index heavyweights United Overseas Bank and DBS Group Holdings gaining 10 cents, to $15.60 and $16.20 respectively. Their double act contributed 3.4 points to the index.

DBS chief executive Jackson Tai said the group would continue to hunt for overseas acquisitions, noting that scale and distribution were crucial to a bank.

He dismissed talk that DBS had lost out in the bid for Korea Exchange Bank because of its links to Temasek Holdings, saying that the deal hit a snag over pricing.

The oil blues also hit transport stocks, which fell after crude traded above US$66 a barrel for the third day running. Neptune Orient Lines fell eight cents to $2.16, while Singapore Airlines fell 20 cents to $14.

Property was also on a downer. Hongkong Land shed eight US cents to US$3.72, shaving 2.45 points off the STI. City Developments fell 30 cents to $10.50 after its recent run-up.

But commodities trader Noble Group gained three cents to $1.22. It said in presentations in Hong Kong that it has entered the carbons trading market and is interested in the uranium processing business.

The Hong Kong-based, Singapore-listed group said it believes nuclear power will become an essential energy source, according to a note by Credit Suisse.