A surprise devaluation of the yuan coupled with a slower growth target from Singapore regulators sent local shares tumbling on Tuesday, with both blue chip and smaller stocks taking a hit. The benchmark Straits Times Index fell 43.6 points, or 1.36 per cent, to 3,153.06 with about 1.9 billion shares worth S$1.7 billion changing hands.
The yuan dropped the most in two decades, sparking a tumble in Asian currencies and commodities after China devalued its exchange rate to combat an economic slowdown. The yuan dropped 1.9 per cent to 6.3270 per US dollar as of 1:25 p.m. in Hong Kong, after the central bank cut its reference rate by a record and said market forces will play a greater role.
Mainboard-listed Cosco Corporation (Singapore) has requested a trading suspension on its shares with immediate effect pending the release of an announcement. This announcement relates to the plan by its parent firm China Ocean Shipping (Group) Company on a significant transaction that may have an impact on the company's securities, and which may or may not materialise, it said.
Noble Group, the commodity trader battling criticism of its accounting, has asked deal maker Michael Klein to review options for the Singapore-listed company, including raising secure financing from banks or selling a stake in the company.
Keppel Shipyard has secured four contracts worth a total of about S$125 million. These include a floating production storage and offloading (FPSO) conversion contract as well as three repair, upgrade and modification contracts, the company said in a release on Tuesday.
Hong Leong Bank Bhd is planning to raise up to 3 billion ringgit (S$1.04 billion) in rights issues this year to strengthen its capital, two sources with direct knowledge of the matter said on Tuesday. The bank, Malaysia's fifth largest by assets, is the last of its peers to bolster its capital to meet more stringent central bank requirements under the global Basel III framework, the sources said.