MARKET INTEREST in Oceanus has soared in the days and weeks running up to the listing of its TDRs in Taiwan this morning.
On Dec 1, the number of Oceanus shares traded in Singapore stood at 8,079,000.
Yesterday (Dec 30), on the eve of its TDR listing, the volume was 119,187,000.
Along with the volume surge, the stock price which closed at 32.5 cents on Dec 1 hit 45.5 cents by the end of trading yesterday.
Updates on trading today (times cited below are approximate):
9.05 am: Oceanus opened at 45.5 cents in Singapore, while TDR opened at NTD10.15 (44.3 Singapore cents) in Taiwan, which is higher than the listing price of NTD9.5.
Now at NTD10.15, with shares in Singapore easing to 43.5 cents.
9.20 am: No sellers! No trading, as the investors who were allocated the TDRs are not selling.
9.25 am: We twiddle our thumbs waiting for some price movement. So, it would seem that every stock is different in the sense that Oceanus' price action is very different from that of China XLX.
The latter had a fantastic high, and had lots of shares changing hands during its first day of trading in HK.
9.33 am: It's a yawn! No seller in the queue, despite 200 million TDRs being out there.
But there is strong buying interest..... Now, 208,682 TDRs waiting in the buying queue at NTD10.15.
9.50 am: Still at NTD10.15, with 106 TDRs traded so far. Queue to buy is still over 200,000 TDRs - but no seller in the sell queue.
In Singapore, price is hovering at 43.5 cents. Will it trade higher, if the market interprets positively the no-seller situation in Taiwan? No seller could mean the shareholders are holding out for a much higher price for their TDRs. (Can't be that they forgot today is the start of trading, right?)
10 am: Oi, 1 hour of trading over already.... the TDRs are not moving. Next hour won't be much different? To kill the boredom that is creeping up, can some readers predict the closing price of Oceanus today? Post it in the forum, can? We will copy over your predictions to this page. Thank you!
10.13 am: winstorn says: "I predict it will close close to 0.455. Unfortunately, today is half day trading, otherwise 0.455 should be no problem."
10.25 am: pathfinder says: "I predict it will cls at 43.5 as too much profit taking plus going long weekend."
10.34 am: Dow Jones had this a while ago: "Oceanus Group (579.SG) last down 5.5% at S$0.43 in active trade, with price largely dictated by performance of its TDRs, which start trading today. TDRs last at NT$10.15, equivalent to about S$0.44. While TDRs +6.8% from listing price of NT$9.50 (S$0.415), further upside limited for now. DMG notes daily limit for gains or declines on Taiwan exchange is 7%; "this will place a cap on the rise of Oceanus' TDRs on its first day of listing." With TDRs now already 7% higher than issue price, mother shares likely to hold around current levels. Despite current pullback, stock still +16.7% so far this week, having reached 4-month intraday high S$0.47 yesterday."
10.38 am: Reader sends us a short email (not quoting his name, cos not sure if he minds): "TDR has a daily cap of 7% increase. At 1st I was skeptical abt the 7% cap ... so I check other TDR's first few days price to confirm."
11.08 am: Zzzzzzzzz....Last trade done was at 10.15 am - wah piang, almost an hour ago! Price NTD 10.15, 1 TDR done! Still, no seller showing hand (but got 200,000+ TDRs in the buy queue). Oceanus in Singapore trading still 43.5 cents. Zzzzzzz.....
12.30 pm: Oh time to wake up. End of trading for the day and for the year. Oceanus closed at 44 cents in Singapore and NTD10.15 in Taiwan. Equivalent pricing.
Volume in Singapore was 73,862,000 shares and, in Taiwan, 108 TDRs.
For what readers were saying about Oceanus trading today, click on this forum thread.