The Straits Times / The Business Times News on Hyflux

Hyflux director reduces direct stake

HYFLUX director Christopher Murugasu sold 80,000 of the firm's shares on the open market on Tuesday.

The transaction cut his direct stake in the water treatment company from 0.1 per cent to 0.08 per cent, or 431,875 shares. His deemed interest stays at 0.02 per cent, or 120,000 shares.

Singapore Exchange filings yesterday showed that Mr Murugasu sold the shares for about $2.76 each.

Hyflux shares have rallied by more than 16 per cent since Monday last week, with traders saying the market is still keen on the stock, following the firm's recent deal to buy a 51 per cent equity stake in CEPAration for 1.5 million euros (S$2.98 million).

The Dutch company produces and sells ceramic membranes that are used in liquid and gas separation.

Under the deal, CEPAration, through a wholly-owned subsidiary, will give Hyflux the exclusive right to make its ceramic hollow fibre membranes for the world market.

Traders also say the stock might be a 'laggard' now finding favour among investors, as it is down close to 14 per cent from the recent high of $3.16 on Feb 16.

Last month, CIMB-GK had a 'underperform' rating on the counter, with a target price of $2.78.

'We reiterate that the company needs a significant boost to its order book to justify its premium valuation over the sector,' the report said.

The counter closed up two cents yesterday at $2.78.