GLP shares rebound as concerns over Japan operations ease

Shares of mainboard-listed Global Logistic Properties (GLP) closed 3.1 per cent higher at S$1.98 yesterday as concerns eased about its operations in disaster-struck Japan.

The rally, on a volume of about 31 million shares, brought it roughly back to the pre-earthquake levels. Shares in GLP, which counts Japan as its largest market, had fallen to as low as S$1.74 following the killer quake and tsunami on March 11.

Analysts said that GLP was one of the most popular shorts in Singapore after the earthquake, and the stock was to a certain extent oversold.

“The dust is settling down on worries about its Japan operations and so we have seen GLP gradually recovering to levels before the earthquake,” one dealer said.

GLP has more than 33 million sq ft in 69 logistics facilities in Japan, valued at US$6.3 billion (S$7.9 billion). GLP has said it sustained damage of US$38.8 million, or just 0.6 per cent of the portfolio.

The share price surge yesterday made GLP one of the best performers on the benchmark Straits Times Index. GLP became a constituent of the index on March 21 and some analysts believe that it also explains the recent gains in GLP. The STI closed 20.15 points, or 0.65 per cent, higher at 3.140.62.

“The STI is also seeing a strong rebound with renewed confidence in Asian stocks,” said Mr Wong Sui Jau, general manager,

“Since (GLP) it’s now part of the index, it also receives buying interest when fund managers increase their buying of Singapore equities,” he said.

Listed on Oct 18 last year, GLP manages and leases out 308 completed properties in 123 logistics parks, spread across 26 major cities, in China and Japan. It was the biggest IPO, at S$3.9 billion, since SingTel’s 1993 debut but both were overtaken by the US$5.4 billion listing of Hutchison Port Holdings Trust this month.

Source : Today – 5 Apr 2011

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