Stock News: Sinwa KS higher on hopes of more rig orders

Sinwa KS Ltd was higher midafternoon on hopes the company will secure more contracts in the oil and gas exploration rig market after having formed a joint venture with KS Energy Services recently, dealers said. Sinwa was up 0.025 sgd or 7.94 pct at 0.34 with 5.86 mln shares traded, while KS Energy was down 0.04 or 1.63 pct at 2.41 with 723,000 shares traded. Last month, KS Energy Services and Sinwa KS Ltd won a 109.5-mln-usd deal to charter a jack-up rig to an unnamed state oil company in Central America for five years. Sinwa KS and KS Energy announced on Sept 21 that they were forming an equally-owned joint venture company to buy the rig and charter it to the customer. "We believe Sinwa's offshore ambitions will not be restricted to this single rig contract as management is currently exploring opportunities for other offshore equipment supply projects," Kim Eng Securities unit Kelive Research said. Kelive rates Sinwa a "buy" with a target price of 0.46 sgd per share.