Overseas Union Enterprise (LJ3.SG) +1.8% at $2.90 (STI flat), recouping part of yesterday’s 6.6% loss triggered by controlling shareholder Golden Concord Asia’s placement of 120.5 million shares at $2.80 each, says Dow Jones. 

 

Exercise deemed healthy for stock as free float will rise to 32.9% from 20.7%, potentially boosting trading liquidity, which historically has been thin. 

 

“We believe this places OUE as the sixth-largest Singapore developer by free-float market cap. We also expect average daily trading volume for OUE to improve significantly” to US$4 million-US$5 million daily from US$3 million ($3.92 million) currently, enhancing property group’s appeal to large institutional investors, says Standard Chartered, which has Outperform call with $3.25 target. 

 

Resistance expected at high end of yesterday’s $2.91-$2.96 breakdown gap.