The Straits Times / The Business Times News on OSIM

Trades sharply down to just 35 worth $38m

TRADING by directors and substantial shareholders were sharply down last week with only 35 trades worth $38 million, based on filings with the Singapore Exchange for the week of Jan 29 to Feb 2. This compares with the previous week's 74 trades worth $62.7 million. Sentiment remained negative as sellers outnumbered buyers for the third straight week with 10 firms posting 22 disposals worth $21.6 million versus eight companies with 13 acquisitions worth $16.4 million.

Despite the low turnover, there were several interesting trades in the local market last week. On the buy side, the share price of OSIM International plunged after Templeton Worldwide recorded its first buy since it became a substantial shareholder in June last year; while JF Asset Management made its largest buy in China Sky Chemical Fibre after the stock fell by 12 per cent. At Sino Best Technology Holdings, purchases by a new substantial shareholder accounted for 90 per cent of the counter's trading volume in the past three weeks.

On the sell side, United Overseas Bank has reduced its holdings in Falmac Ltd by 49 per cent since December 2006. At China Fashion Holdings, there was a first-time sale since the stock was listed in 2004.

OSIM International

Templeton has made its first buy in healthy lifestyle products distributor and franchiser OSIM International since it became a substantial shareholder in June last year. The purchase is significant because the price fetched is sharply higher than the initial filing price. The acquisition, however, was made on the back of a 32 per cent drop in the share price from the time the group announced its Q3 results in October 2006.

Templeton bought 6.8 million shares on Jan 24 at an estimated $1.41 each, which increased its deemed holdings by 25 per cent to 33.9 million shares or 6.3 per cent of the issued capital. The group previously acquired an initial 27.4 million shares or 5.07 per cent in June 2006 at $1.05 each.

The recent purchase by Templeton was ill-timed as the stock plunged more than 25 per cent from its purchase price to $1.06 on Friday. The counter fell after OSIM announced on Jan 31 a profit warning for its upcoming year-end results with net profit expected to fall 20-28 per cent from FY05.