June 11, 2012 / 2:52 AM / 7 years ago

STOCKS NEWS SINGAPORE-PSL up after Indonesian mining move

Shares of PSL Holdings Ltd rose after the engineering firm said it plans to buy shares in PT Sinar Wijaya Pratama (SWP), which holds a coal mining licence for a concession area in Indonesia.

PSL said on Saturday it sees SWP as an opportunity to enter the Indonesian mining industry.

PSL shares gained as much as 4.3 percent to S$0.365, the highest since June 1, while the FT ST Small Cap Index was up 1 percent. More than 86 million PSL shares were traded, 8.8 times the average daily volume over the past 30 days.

The stock was the top traded by both value and volume on the Singapore bourse on Monday. The shares have risen about 15 percent this year versus a 6 percent gain in the small cap index.

PSL plans to buy 99.9 percent stake in SWP, but said the consideration has not been determined. SWP holds a production operations mining business licence for a concession area of 2,127 hectare in Jambi Province, Indonesia. The concession has a term of 10 years starting from April 4, 2011.

Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com

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