Daily news - 13 Mar

ComfortDelGro, SMRT to be included in STI
ComfortDelGro Corporation & SMRT Corporation – Transport operators ComfortDelGro Corporation and SMRT Corporation will replace property counters Keppel Land and Yanlord Land Group in the Straits Times Index (STI). This follows the latest half-yearly review of the index component stocks, said a joint statement yesterday from FTSE Group, Singapore Exchange and Singapore Press Holdings. FTSE ST indices also saw changes. Half-yearly reviews are carried out to ensure that the indices remain an accurate reflection of the market that they represent, they said, adding that the changes will take effect on March 23. The STI is made up of the biggest 30 companies by market capitalisation but their inclusion also encompasses other criteria such as free float and liquidity. The latest review comes as the share prices of property counters have been hit by fears of dwindling sales and asset write-downs.

Swiber takes delivery of two delayed vessels
Swiber Holdings provided some relief to shareholders with the confirmation that its two delayed offshore construction vessels have been delivered and are being put to work. The expanded fleet puts Swiber in a strong position to service its outstanding order book worth about US$600 million, the company said. The vessels are currently deployed to various offshore locations in Asia. The deliveries of pipelay barge Swiber Concorde and dive-support work barge Swiber Supporter were originally expected in Q3 FY08 but were delayed to Q1 FY09 due to unforeseen circumstances. With both vessels unavailable for work in Q4, Swiber was unable to perform a significant amount of work slotted for completion relating to pipeline installation and subsea tie-in work for three projects; and with project work ongoing at multiple locations, the group incurred a higher cost for multiple mobilisations and demobilisations of vessels from project to project. Swiber recorded a US$8.3 million loss in Q4 mainly due to these delays.

Source: Kim Eng