Q&M Dental - Stocks-up on bargain hunting at midday, Golden Agri leads gains

Stock Name: Q&M Dental
Company Name: Q & M DENTAL GROUP (S) LIMITED
Research House: CIMB

Singapore shares were 0.47% higher at Monday’s midday break, in line with other Asian bourses as investors bought back shares after last week’s sell-off. Palm oil firm Golden Agri-Resources (GAGR.SI) rose in active trading.



As the lunch break, the Straits Times Index (STI) <.FTSTI> was up 14.89 points at 3,199.49. The total value of shares traded in the morning session was $562.1 million, down from $789.8 million on Friday.

"The STI is rebounding after being oversold in several bad days of trading last week, and investors are buying back some of their short positions," said Carey Wong, an investment analyst at OCBC Investment Research.

 

Wong said he expects the STI to consolidate in the in 3,180-3,220 range this afternoon, and to trade sideways this week ahead of the U.S. Federal Open Market Committee’s meeting and weekly jobless claims data.  

Golden Agri-Resources jumped as much as 4.2% on Monday as palm oil futures rose, boosted by expectations of tight supply and stronger demand, traders said.

As of midday, Golden Agri shares were up 3.5% at $0.735 with over 55.1 million shares changing hands.

Malaysian palm oil futures rose to a near two-week high on Friday as traders cited strong export data amid concern that supplies will struggle to keep pace with robust demand.

“Palm oil stocks are likely to continue inching upwards as palm oil prices are pretty stable, and demand for crude palm oil typically rises nearer to the Chinese New Year holiday because of the festivities,” said Wong.  

Palm oil firm First Resources (FRLD.SI) also rose 1.4% to $1.43 with over 4.5 million shares traded.

Shares of Singapore dental firm Q&M Dental Group (QMDT.SI) rose 4.7% to $0.56 after CIMB initiated coverage of the firm with a “buy” rating. 

CIMB said it expects Q&M’s core earnings to grow by 30% per annum on average over the next three years, and set a target price of $0.83.