Price rise boosts Singapore Media

SINGAPORE Press Holdings, the city-state's dominant media player, delivered a second helping of good news today.

A day after its quarterly results beat analysts' expectations, it followed up by saying the cover price of all newspapers in the group would be raised.

Its shares rose 20 cents, or 1%, to S$19.70, standing in contrast to a broader market subdued by Wall Street's backward step yesterday. Analysts believe the State-linked SPH, as it is known locally, has the potential to reach S$25.

It is in effect the media arm of the country's powerful Government, which has been run by the authoritarian People's Action Party since Singapore's independence in the mid-1960s.

Control of the company is vested in 'golden shares', the distribution of which is determined by the State. It usually hands them out to the domestic banks.

SPH's flagship publication is the pro-Government newspaper The Straits Times, which will now cost 70 cents, up from 60 cents. The cover price was last raised in 1995.

SPH also controls virtually every other daily newspaper in the country, a raft of periodicals and two television channels.

The stock is regarded as a convenient play on the wider Singapore economy. Hammered by the killer Sars bug last year, economic growth stagnated and SPH shares dropped as low as S$16.

This year, with most economists forecasting expansion of up to 6%, its shares are seen as a way of riding the recovery as its advertising revenues swell once more.

In the three months to last November, the company earned S$83.8m (£26.8m), against S$82.8m a year ago. But analysts had expected a decline to the mid-S$60m range.

After their decent recent run, investors were reluctant to push Singapore bank stocks any higher. State-linked DBS Group held its ground at S$16, while family-run rival United Overseas Bank was static at S$13.50.

Singapore Telecom, the dominant phone company, suffered mild profit-taking, easing one cent, or 0.5%, to S$1.93. The shares have struggled after a recent placing by majority investor Temasek, the State's main investment arm.

The Straits Times index was up 3.48 points, or 0.2%, at 1865.04. It has risen close on 40% since bottoming out last year.

Sony, the Japanese consumer electronics player, was star of the day in Tokyo after a pat on the back from Goldman Sachs, which raised its rating on the widely-held share to outperform from in line.

It gained 110 yen, or 2.8%, to 4040. Goldman reckoned it enjoyed solid sales over the Christmas period, securing earnings targets for the final quarter of last year.

But elsewhere there were continued jitters about the yen's bullish performance against the dollar. Reflecting that unease, exporter Mitsubishi Motors was down 10 yen, or 3.9%, at 250. Fuji Heavy Industries, which yesterday warned about yen strength, was level at 522. The Nikkei 225 Average rose 13.32, or 0.1% at 10,863.00.

Hong Kong heavyweight HSBC dropped HK$1.50, or 1.2%, to HK$124.50 after a fall in its London-listed shares yesterday. Developer Cheung Kong strengthened further amid optimism about rising apartment prices. It added HK$1.50, or 2.1%, to HK$72. Henderson Land Development traded at HK$41.50, up 60 cents or 1.5%. The Hang Seng index eased 30.4 to 13,366.25, a 0.2% decline.