Singapore Hot Stocks-China XLX up after positive broker note

SINGAPORE, April 22 (Reuters) - China XLX Fertiliser rose as much as 5.8 percent after Macquarie initiated coverage of the firm with an investment rating of "outperform" and a share target price of S$1.10.

Shares of the Chinese firm, which produces urea and fertilizer, hit an intraday high of S$0.815 with over 13.6 million shares traded.

China XLX's urea is among the most cheaply produced in China, Macquarie said in a client note, adding that urea prices are set to stay firm over the next two years due to a tight supply in 2008.

Macquarie analysts also said China XLX stocks are trading at a deep discount and recommended investors buy the Chinese firm's shares.

0334 GMT - Straits Times Index .FTSTI down 0.45 percent.

BIO-TREAT HITS NEW LOW ON BOND DEFAULT

Shares of Bio-Treat Technology (BIOT.SI) fell as much as 10.4 percent to an all-time low of S$0.30 in spite of reassurances on Monday that it would be able to raise funds to repay bondholders.

Bio-Treat said on Saturday that Merrill Lynch demanded immediate payment for S$27.6 million ($20.4 million) in Bio-Treat convertible bonds after it defaulted on repayments.

The Hong Kong-based firm also said it was prepared to divert funds from its projects in China to raise the cash.

0204 GMT - Straits Times Index .FTSTI down 0.64 percent. (Reporting by Tan Wei Xin; Editing by Jan Dahinten)