SGX Stocks and Warrants
Olam CEO Bought $3.7mn Shares in 2 Days
Warrants Highlight
Olam CEO Bought $3.7mn Shares in 2 Days
| Code | Name | Type | Expiry | Exercise Price |
| QF2W | OLAM MB eCW121005 | Call | 05-Oct-12 | 2.00 |
Agricultural supply chain manager and processor, Olam, fell from its recent highs of $1.96 last Wednesday (20 Jun) after its CFO since 1996 announced his resignation. Mr Shekhar Anantharaman will be taking over as the new CFO. Prior to this new role, he had oversight responsibility for Olam's global Edible Nuts division.
CEO purchases more shares
Olam's CEO Sunny Verghese has always been proud of its company's business model which emphasises on diversity and maximising the value chain. In the past, he attributed Olam's consistent performance across economic and commodity cycles over the years to its distinct model.
After the CFO's resignation, Mr. Verghese showed his conviction on Olam by purchasing 2mn shares in the past 2 days, with the total consideration of S$3.7mn. This increased his total direct interest of the company to 4.56%.
The following are his recent share purchases announced in SGX.
Mon 25 Jun : CEO Sunny Verghese - 1mn shares @ average price $1.8589
Fri 22 Jun : : CEO Sunny Verghese - 1mn shares @ average price $1.8627
Yesterday, Olam’s non-executive director, NED Narain Chanrai, also followed suit with a 1mn shares purchase at an average price $1.8702
Share buy-backs
Olam started its recent share buy-back programme on 8th June. Up till yesterday, the company has purchased 49.7mn shares or 2% of its market capitalisation. The programme partially helped its share price recovering from its 3-year low of $1.53 in early June. The management has the mandate to buy up to 244mn shares.
Details of share buy backs (after 20 Jun)
Mon 25 Jun : 2mn shares @ average price $1.8389
Fri 22 Jun : 8mn shares @ average price $1.8489
Thu 21 Jun : 18.7mn shares @ average price $1.8733
Singapore Market Wrap
Markets lower for third straight day
Global markets drifted lower for a third straight day yesterday as investors appear reluctant to make any purchases prior to further updates on the Euro crisis. In Singapore, the STI dipped lower for a third straight day, this time 0.5% day-on-day (dod) to 2,815.26 yesterday.
Call STI 2750MBeCW120831 (QP9W) exercise level 2,750.*
Call STI 2950MBeCW120831 (QE8W) exercise level 2,950.*
Put STI 2850MBePW120831 (QE9W) exercise level 2,850.*
Put STI 2650MBePW120831 (QQ0W) exercise level 2,650.*
SingTel defends yet again
A safe haven in difficult times, SingTel went up in as many days as the overall bourse has fallen. The telecom giant gained for a third day to its highest since 12 December 2011. Its Optus unit said last week that it plans to spend A$2 billion on 4G over next 2 years.
Call SingTelMBeCW130301 (PB6W) exercise price $3.30.*
CapitaLand CEO to retire, Olam's CFO resigns
In news, CapitaLand's President and CEO Liew Mun Leong said last Friday that he will retire in a year from the company he helped create almost 12 years ago. In the same after market announcement, CapitaLand said it will review succession candidates to take Liew's place. CapitaLand's share price has stayed unchanged amid this piece of news, closing at $2.64 on both Friday and yesterday.
Another company that announced a management change was Olam, whose CFO tendered his resignation last Wednesday evening. While the company has had the position replaced by Shekhar Anantharaman who was previously overseeing Olam's global Edible Nuts division, Olam's share price appears to have taken a setback on the news, falling for a third consecutive day to $1.84 yesterday.
Call CapitalaMBeCW120903 (P0ZW) exercise price $2.582.*
Call CapitalaMBeCW120904 (QC5W) exercise price $2.979.*
Put CapitalaMBePW121203 (QR6W) exercise price $2.60.*
Call OLAM MB eCW121005 (QF2W) exercise price $2.00.*
Overnight Market Wrap
Stocks fell despite strong home sales
The declining mortgage rates pushed US new home sales to its 2-year highs. However, the stock market ended lower, with the S&P500 falling 1.6% to 1,313.72. The index is currently 7.4% below its February peak of 1,419.04.
Spain remains as the sore of Europe's eye. Yesterday, the Spanish government formally requested a rescue loan of EUR100bn to help recapitalise its banks. Hours later, the ratings agency Moody's slapped 28 Spanish banks with new credit downgrades. EUR fell further to touch 1.25 against the USD.
Overnight Markets
| Indices | Last | Change |
|---|---|---|
| STI | 2815.26 |
-0.5%  |
| HSI | 18897.45 |
-0.5% |
| DJIA | 12502.66 |
-1.1% |
| S&P 500 | 1313.72 |
-1.6% |
| Nasdaq | 2836.16 |
-2.0% |
| China A50 | 7756.66 |
-1.5% |
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
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