Singapore market gains 1.3%, Jaya jumps on strategic review
SINGAPORE (Reuters): Shares in Jaya Holdings jumped as much as 8 per cent on strong volume after the offshore energy services provider said it had appointed advisers for a review of its strategic options.
More than 1.5 million shares were traded in the first hour of trading, double the average full-day volume traded over the past month. Based on Friday's close of $0.61, Jaya had a market value of $472 million.
"They are still trying to get the vessels in their ship building program out right now and that's going to consume just about all the cash on hand for them over the next 2-3 years,"said one analyst, noting that raising debt was one option for the company. Jaya issued a short statement on its review.
In the broader market, the Straits Times index was up 1.3 per cent, led by banks DBS Group, United Overseas Bank and Oversea-Chinese Banking Corp. Asian shares rose after mildly upbeat Chinese trade data underscored signs of stability in the world's second-biggest economy.