News Today

Fresh round of clashes in Gaza
GAZA CITY - FIGHTING between rival Palestinian forces erupted again yesterday in the Gaza Strip, where 23 people have been killed in the fiercest bout of internecine violence since Hamas won elections a year ago. Three Palestinians died overnight as militants... [Read more]

Riders tested 50 times a year
JULIAN (CALIFORNIA) - SLIPSTREAM, a professional cycling team here, are trying to set themselves apart from the doping scandals that have uprooted their sport.At the crook of their riders' arms are a series of dark needle marks, the results of repeated... [Read more]

Ratna has best move
Balestier Khalsa's Ratna Suffian was crowned the H-TWO-O Ultimate Move winner at Esplanade nightspot DXO on Saturday. The defender beat 11 other S-League players to the title. They were handpicked by H-TWO-O for their wholesome bodies and athleticism. The guest of... [Read more]

I'm fitter than I look, says Williams
SERENA Williams has always been outspoken. And so it should come as no surprise that the newly crowned Australian Open champion did not mince her words when she was asked about her fitness. The American told Sports Illustrated's website: 'I feel... [Read more]

Management team at odds over $15k withdrawal
THE new Youth Challenge management committee yesterday appeared a fractured lot, publicly trading accusations over a $15,220 withdrawal from the charity's bank account.The committee told the media last Tuesday it had discovered that the sum - withdrawn via an Internet bank... [Read more]

Body Shop founder tells of liver damage
BODY Shop founder Anita Roddick is suffering from liver damage after contracting the hepatitis C virus more than 35 years ago, she said.Dame Anita, 64, one of Britain's best-known businesswomen, developed the potentially deadly disease from infected blood given to her... [Read more]

Civil servants in second court bid to regain pension rights
MORE than 50 civil servants packed the Appeals courtroom yesterday to hear their lawyer make a case for them to return to the pensions scheme.Additional benches had to be brought in by the court orderlies to seat them all. Many of... [Read more]

CapitaLand, DBS issues hog limelight
IN A week where CapitaLand and DBS Bank announced results that surpassed expectations, warrants on the two counters hogged the most active list. The property developer reported a 35.6 per cent jump in full-year net profit to $1.02 billion last Wednesday.... [Read more]

School tests near CNY hard on some students
CHINESE New Year is just around the corner. Foreigners, particularly those of Chinese origin, are naturally excited and many are anxious to return home. Students from China are in an exuberant mood - they can be with their parents and grandparents... [Read more]

It's still a two-horse race for title
LET'S not lose perspective on things right now. While last week's Premiership results were big, the overall effect is insignificant. It might be in many people's interests to call the title race 'back on' or 'a four-way race', but this really... [Read more]

Yeo meets S'poreans in Brunei
Foreign Minister George Yeo met Singaporeans living in Brunei at a reception yesterday hosted by the Singapore High Commission. Mr Yeo, who is visiting Brunei, will call on Sultan Hassanal Bolkiah and Crown Prince Haji Al-Muhtmadee Billah today. A Singapore Foreign... [Read more]

STI continues recovery despite subdued sentiment

SINGAPORE shares yesterday continued their tentative recovery on moderate volume, as uncertainties remain over the market's direction in the short term.

About 1.5 billion shares worth $1.63 billion changed hands, a modest improvement over Thursday's volume of 1.38 billion but well under the daily levels seen in the last three months.

This suggests that investors are still nervous about the market's prospects and shy about bargain-hunting in case another barrage of selling erupts, said a dealer.

The Straits Times Index (STI), which struggled for direction much of yesterday, finished at 3,143.71, up 21.22 points or 0.7 per cent. The market has so far recovered about 5.4 per cent - more than half the 9.9 per cent losses - after its recent sharp correction.

But some analysts expect the market to find a firmer footing and investor cash to flow back into the local bourse after last night's announcement of United States jobs data for February.

Fraser Securities research head Najeeb Jarhom said: 'Conflicting signals may end soon as the STI winds down its wild swings of the past week and consolidation sets in with the index building a new base around 3,100.'

Gainers led losers by 483 to 229, with advances by property counters leading the index up.

Hongkong Land gained 28 US cents to US$4.64 and South-east Asia's largest developer CapitaLand rose 20 cents to $7.20.

Electronics firm Venture Corp did its bit, surging 60 cents to $14.60, while fashion retailer FJ Benjamin Holdings rose 1.5 cent to 68 cents after major investor Raffles Investments raised its stake.

The top loser was Jardine Matheson Holdings, which shed US$1 to end at US$21.70, after soaring US$1.70 a day earlier.

Suntec Reit was the third most active, following a married deal of 23.6 million shares that was done at $1.876 each. It gained three cents to $1.92 and total volume was 42.75 million. On Thursday, it also announced two married deals at $1.828 and $1.85 apiece.

Trading of NH Ceramics was halted pending an announcement.

arthurp@sph.com.sg

News Today

Why Somkid was picked to be economic adviser
DR SOMKID Jatusripitak's brief tenure as an economic adviser to the Thai government put the spotlight again on why he was appointed in the first place. Five possible reasons were offered by The Nation newspaper yesterday: He was brought in so... [Read more]

GST hike: How it will benefit the poor
A WEEK before it is due to detail the impending hike in the goods and services tax (GST), the Government has reiterated the rationale for the move.Second Finance Minister Tharman Shanmugaratnam also tackled the question of why the changes were being... [Read more]

Beijing slams Taipei over changes to textbooks
BEIJING - CHINA lashed out at Taiwan yesterday for dropping phrases from high-school history textbooks that link the two as one country, and said the move was another step towards promoting the island's independence.The changes included replacing terms such as 'the... [Read more]

North Korea 'ready to implement agreement'
NORTH Korea is ready to implement an agreement reached earlier this week on initial steps towards denuclearisation, a news report yesterday quoted the North's top nuclear negotiator as saying.'The talks went well,' Kyodo news agency quoted the North's Vice- Foreign Minister... [Read more]

Ministers reply to MPs' queries
MPS yesterday quizzed National Development Minister Mah Bow Tan and Foreign Minister George Yeo on the impact of Indonesia's ban on land sand exports to Singapore. Below is an extract of the exchange in Parliament: Mr Sin Boon Ann (Tampines GRC)... [Read more]

Two-way race for HK's Chief Executive post
HONG KONG leader Donald Tsang will announce today his candidacy in the coming Chief Executive election, which is shaping up to be the city's first-ever contested leadership poll. The election is likely to be a two-way race after barrister-cum-lawmaker Mr Alan... [Read more]

Tax 'gap' to benefit some firms
SOME companies with financial years ending before July 1 this year could reap an unexpected bonus.They will get a head start over other companies and start enjoying the benefit of the lower corporate tax rate earlier before having to start paying... [Read more]

Henry left out of League Cup final team
LONDON - THIERRY Henry will be confined to the role of cheerleader when Arsenal play Chelsea in Sunday's League Cup final.Arsene Wenger will keep faith with the young players who have taken them to Cardiff, and the Gunners' captain understands the... [Read more]

Security cameras for all MRT trains and stations
SECURITY cameras will be fitted on every train and at every MRT station to keep an eye out for terrorists on Singapore's transport network. These 'eyes' will also have a strong deterrent effect on other mischief makers out to rob or... [Read more]

Malaysia to review curbs on foreign investors
KUALA LUMPUR - MALAYSIA is to review curbs on foreign shareholding in state-linked firms as it gears up for a big push to attract more foreign investment and raise its profile, a minister said yesterday.Second Finance Minister Nor Mohamed Yakcop revealed... [Read more]

Police inquiry ordered into botched murder investigation
KUALA LUMPUR - MALAYSIA'S police chief has ordered an inquiry into the botched investigation of the murder of a 21-year-old which led to the case being thrown out of court earlier this week.The collapse of the Mohd Hosni Fadzil Mohd Amin... [Read more]

Star Cruises' stock drops 12.5% on concerns over Macau project funding

INVESTORS of Star Cruises jumped ship yesterday after sister firm Genting International pulled out of a Macau casino project linked to Hong Kong tycoon Stanley Ho.

The shares were suspended on Monday to allow the company to make the announcement but once the halt was lifted yesterday morning, the selldown began.

Star Cruises' share price closed down four US cents, or 12.5 per cent, at 28 US cents on a heavy volume of 32.9 million shares, a far cry from its high of 57 US cents reached on Jan 23.

Genting's stock closed two cents lower at 86.5 cents on 117.3 million shares traded.

Investors are concerned over the ability of heavily-indebted Star Cruises to shoulder the finances of the HK$3.5 billion (S$685.3 million) Macau project on its own now that Genting has backed out.

Star Cruises, which has long-term borrowings of US$3.2 billion (S$4.9 billion), had formed a 75:25 joint venture with Genting. This entity, in turn, intended to take a 75 per cent stake in the Macau casino project in partnership with Mr Ho.

Star Cruises had also agreed to sell a minority stake to Mr Ho and other investors.

But the company said on Tuesday that it had agreed to buy Genting's 25 per cent stake for HK$58.5 million.

This will raise the funding it has to stump up for the project by HK$875 million to HK$3.5 billion, once projected borrowings are taken into account.

Those numbers spooked investors, who were alarmed at the prospect of yet another cash call from a firm that has already made three rights issues in the past five years.

Star Cruises admitted as much, saying that 'to meet such funding requirements, it intends to utilise internal resources, available un-utilised credit facilities and/or additional equity to be raised...details of which have not yet been determined'.

The unravelling of the joint venture is seen by many as a bid by Genting to protect its Sentosa casino resort project by selling its Macau stake to Star Cruises.

In turn, Star Cruises is selling its 25 per cent stake in the Singapore resort to Genting.

Star Cruises and Genting are controlled by Malaysia's Lim family through Malaysia-listed Genting Berhad.

The catalyst for all these corporate movements has been the controversial figure of Mr Ho.

Singapore's Home Affairs Ministry has said it will conduct suitability checks on Genting's new shareholders, including Mr Ho, before deciding whether to give the Genting consortium a casino licence.

News Today

Go ahead! Use algebra if you want to
I refer to the letter, 'Can algebra be used to solve PSLE maths problems?' (ST, Feb 12), by Mr Lim Boon Tong.Go ahead and use algebra if your child can do so correctly.To set the record straight, primary school children are... [Read more]

Family political tradition
ESTRADAS Mrs Luisa 'Loi' Estrada is the wife of former president Joseph Estrada, who is under house arrest and awaiting the verdict in his marathon plunder trial, which ended last year. After her husband's ouster in 2001, Mrs Estrada - a... [Read more]

War on fakes goes digital as S'pore targets online pirates
SINGAPORE, already relentless on those who hawk fakes on the streets, has been stepping up action against online peddlers too. Last week, police charged a 31-year-old man who tried to sell fake Calvin Klein jeans through the Internet. He is now... [Read more]

Gas water heaters linked to three deaths
TOKYO - GAS water heaters manufactured by Japan's Rinnai Corp have been linked to at least three deaths over the past seven years, according to industry ministry officials.Japan's Ministry of Trade and Industry issued a statement late week detailing the poisonings... [Read more]

Where is Iraq's radical Shi'ite cleric Sadr?
BAGHDAD - A ROW has broken out over the whereabouts of cleric Moqtada Al-Sadr, the leader of one of the most dangerous factions in the vicious sectarian war gripping Iraq. American officials insist the firebrand cleric has fled to Iran, ahead... [Read more]

Tears from Best Player
NOH Alam Shah broke into tears as he spoke to The Straits Times moments after winning the Asean Football Championship in Bangkok yesterday. The joy of retaining the trophy, being named the tournament's Best Player, and being crowned Top Scorer with... [Read more]

Sports world
FANDI OFF TO WINNING STARTPURWAKARTA (Indonesia): Former Singapore soccer star Fandi Ahmad started his coaching career here on a high note. His Pelita Jaya Purwakarta side defeated Persikabo Bogor 1-0 on Sunday. A delighted Fandi told PA Sport: 'With this opportunity,... [Read more]

Trouble ahead in the property market?
THE property market is starting to give off that scent of money once again.With prices shooting up at the luxury end of the market, talk that a small number of people have made paper gains worth millions of dollars is now... [Read more]

BOJ officials meet on rates as govt pressure eases
TOKYO - BANK of Japan (BOJ), still smarting from criticism it bowed to government pressure last month, was due to hold a meeting yesterday to discuss an interest rate rise amid an apparent easing of the political heat. Market watchers see... [Read more]

Sailor dad dies while watching son sail
A PROUD father who set out to sea to watch his youngest son take part in a sailing contest was found slumped on a nearby beach on Sunday. The boy came in fourth out of 178 participants, but the thrill of... [Read more]

Court turns down 2nd bid to throw out lawsuit
THE Far Eastern Economic Review failed in a second attempt to throw out a defamation suit brought against it by Prime Minister Lee Hsien Loong and Minister Mentor Lee Kuan Yew.The Hong Kong-based magazine's publisher, Review Publishing, and its editor Hugo... [Read more]

News Today

Envoys told to rebut Thaksin
BANGKOK - THE Thai government has asked its diplomats to counter the comments made by deposed prime minister Thaksin Shinawatra in interviews with international news organisations.In a number of interviews with newspapers, magazines and TV channels - the latest being an... [Read more]

IN: GST hike to 7%; OUT: 1% Cess tax
THE two percentage point GST hike that will be slapped on to your restaurant bill will be a bit easier to swallow because the 1 per cent Cess tax is getting the chop. Cess is paid by people dining and drinking... [Read more]

Presidential palace safe from flooding
JAKARTA - FOR several hours, Indonesians watched to see if the flooding that has hit the capital would sweep into the presidential palace as well. Also at risk was the upmarket Menteng area where top politicians like Vice-President Jusuf Kalla and... [Read more]

Malaysian paper blames S'pore for Johor floods
KUALA LUMPUR - THE finger-pointing at Singapore over the Johor floods is not over yet.Three days after Johor Menteri Besar Abdul Ghani Othman sought to pin the blame on the land reclamation on Pulau Tekong for causing Johor's worst floods in... [Read more]

Blair 'doesn't have the discipline to keep diary'
BRITISH Prime Minister Tony Blair admitted that he has not kept a private diary during his nine years in power, raising questions about how complete his memoirs will be. Mr Blair, who has pledged to leave office by September, said simply... [Read more]

The New Paper
The New Paper will not be published tomorrow. It will be the only English paper on sale on Monday, at the usual outlets from 7am.... [Read more]

Study to find out if masks keep flu at bay
ANN ARBOR (MICHIGAN) - HUNDREDS of university students here are taking part in a study that could change the way the world looks at flu. They walk around the campus wearing surgical masks as part of a test to see if... [Read more]

FairPrice to absorb GST hike for 6 months
SHOPPERS with rice and about 400 other essential items in their baskets at NTUC FairPrice supermarkets will not feel the pinch when the Goods and Services Tax (GST) is raised on July 1. This is because, for six months from that... [Read more]

Chiam: Difficult to fulfil lift promise
OPPOSITION MP Chiam See Tong is finding it a struggle to fulfil an election promise to provide his HDB residents with lifts on every floor.Lift upgrading was a carrot the People's Action Party (PAP) dangled in the last general election.The opposition... [Read more]

Durai's $25k monthly salary 'not excessive'
FORMER National Kidney Foundation (NKF) chief T.T. Durai was worth the money he was paid, said the board's former chairman Richard Yong. In his 'humble opinion', $25,000 a month was 'not excessive' for a man who had 1,000 staff under his... [Read more]

More Singapore aid for victims of Jakarta floods
JAKARTA - MORE Singapore companies have pitched in for Jakarta's flood relief efforts. Singapore Ambassador to Indonesia Ashok Mirpuri yesterday handed over 200 million rupiah (S$34,000) worth of relief supplies to Indonesian Minister of Health Siti Fadilah Supari. The aid is... [Read more]

News Today

SME clinic
AFTER months of research, my newly formed company will produce biodiesel on a small commercial scale. We need technical and financial assistance to jump-start this venture. What assistance can we expect from Spring? You may wish to explore the following programmes.... [Read more]

Attacking football paid off for the hosts, says ST panel
'The Singapore team did well and denied the Thais space and time. We did not allow them to settle down or get any kind of rhythm going.'The one time that they did get going, they scored a goal, so it shows... [Read more]

Only badminton, no song, says Yeh
RONALD Susilo found a new partner on the badminton court yesterday - Hong Kong diva Sally Yeh. They came up against tough opponents - world No 9 pair Li Yujia and Hendri Kurniawan Saputra - who eventually won 21-19 in a... [Read more]

S'porean helping Chia
DANNY Chia, the 'forgotten man' of Malaysian golf, is seeing a Singapore sports psychologist as he tries to get back into international reckoning.He was the first Malaysian pro to win a title - the Taiwan Open in 2002 - on the... [Read more]

What's the deal?
BEIJING - PRESIDENT George Bush said late last night that a deal struck with North Korea was a 'step in the right direction' towards getting the rogue state to permanently dismantle its nuclear weapons programme.He cautioned, however, that 'there's a lot... [Read more]

Airline high-handed and of no help to my sick niece
My niece who is studying in England took a flight on KLM back to Singapore on Jan 13. She had a confirmed flight back to England on Jan 22 (KL838) at 11.15pm. Two days before her departure, she fell ill and... [Read more]

UBS moves top wealth manager to S'pore
UBS has relocated its vice-president of global wealth management, Mr Carlo Grigioni, from Switzerland to Singapore.The move reflects the growing importance of the Asia-Pacific region to the Swiss private banking giant. Mr Grigioni, a Swiss national who had previously worked in... [Read more]

Fed officials see no rate cut, citing inflation risks
WASHINGTON - UNITED States Federal Reserve officials, armed with figures showing inflation picking up, made it clear that they are not close to cutting interest rates. Hours after the government reported on Wednesday that consumer prices rose more than forecast last... [Read more]

Crisis talks in Italy after PM Prodi resigns
ROME - ITALIAN President Giorgio Napolitano has started crisis talks with political leaders following the shock resignation of Prime Minister Romano Prodi after just 10 months in office.The Prime Minister, whose fragile centre-left coalition narrowly won elections last April, tendered his... [Read more]

Climate change already affects lives
DHAKA - IN SOME parts of the world, people have long suspected what the world's top climate scientists concluded in a report yesterday - that climate changes are already endangering their ways of life. Kivalina, one of an estimated 200 villages... [Read more]

Critical that we spend well on military hardware to protect our sovereignty
I refer to Mr Quek Soo Beng's letter, 'Examine the old sacred cow of defence spending' (ST, Jan 27).While I agree with Mr Quek on the point that many of Singapore's sacred cows have died, he failed to note that many... [Read more]