Monday, March 9, 2009

Daily news - 9 Mar

Values of all portfolios plunge on S-chips decline
The floor - however flimsy - that investors thought were there for stocks turned out to be yet more wishful thinking. This is particularly so for China stocks listed here, the so-called S-chips. Whatever confidence that's left in the sector has all but disappeared from the face of this earth following recent developments. First, one of the sector's most well-regarded stocks FibreChem was suspended over questions of its cash and accounts receivables. And then it emerged that some of the majority shareholders of some S-chips have pledged their holdings to financial institutions for cash. And market talk has it that the cash was used to trade the market. Now that the entire market has collapsed, the collateral that these financial institutions are holding on to has reduced in value. So the majority shareholders either have to come up with the cash to pay back, or will have their shares forced sold. Some of these shareholders are in real danger of losing their companies. All these added to the negative sentiment in the market.

SIA Cargo flies to Latin America
Singapore Airlines Cargo has started commercial flights to Sao Paulo in Brazil, Quito in Ecuador and Bogota in Colombia. It has been operating the services since Feb 7 under special approval from the aviation authorities in the three Latin American countries. The services are hubbed via Sharjah and Brussels. SIA Cargo's senior vice-president for sales and marketing Tan Tiow Kor said that the aim is to enhance connectivity between Latin America, Europe, Asia, North America and Australia. SIA Cargo aims to make its Latin American presence permanent, he said. 'We will work very closely with authorities to secure the necessary approvals to serve Latin American markets with scheduled freighter flights.'

Source: Kim Eng

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