The Straits Times / The Business Times News on AsiaPharm

AsiaPharm jumps 14.8% on results rumours

By Hugh Chow - May 12, 2004
The Straits Times

SHARES of recently listed Chinese drugs firm AsiaPharm Group jumped 14.8 per cent yesterday as rumours circulated that it will report 'fantastic' first-quarter results tomorrow.

Its shares rose six cents to close at 46.5 cents amid frantic trading on the Singapore Exchange. It was the most actively traded counter yesterday with about 53.3 million shares changing hands.

AsiaPharm's shareholders include Singapore's investment company, Temasek Holdings, which bought a 4.9 per cent stake in the firm during its recent initial public offer. The counter had closed at 39 cents, or at a 39 per cent premium over its 28-cent issue price, on its debut last Wednesday.

DBS Vickers research head Timothy Wong said that Temasek's investment in AsiaPharm was stimulating interest from other large institutional investors.

Remisiers at stockbroking firms reckoned that AsiaPharm may have good news when it announces its financial results for the period from January to March.

One remisier said the market expected these results to be 'fantastic'.

AsiaPharm's first results briefing tomorrow could prompt analysts to initiate research coverage, which will boost the firm's profile within the investment community.

But remisiers also warned that trading syndicates could be talking up the share price for their own advantage. - Hugh Chow