Singapore Hot Stocks-Keppel drops on fund selling

SINGAPORE, Aug 28 (Reuters) - Shares of Keppel Corp (KPLM.SI: Quote, Profile, Research, Stock Buzz) fell as much as 2.6 percent to hit a five-month low of S$9.81 with more than 5.4 million shares changing hands.

A local dealer said this was possibly due to selling by unit trusts that are facing redemption pressures.

The world's top offshore oil rig maker posted a 16 percent rise in second quarter net profit last month and said the outlook for its rigs and infrastructure businesses remain robust.

Rival Sembcorp Marine (SCMN.SI: Quote, Profile, Research, Stock Buzz) also slipped 2.3 percent.

0741 - Straits Times Index was down 0.47 percent.

PLANTATION STOCKS CLIMB ON PALM OIL

Shares of plantation firms Wilmar (WLIL.SI: Quote, Profile, Research, Stock Buzz) and Olam (OLAM.SI: Quote, Profile, Research, Stock Buzz) climbed on a rebound in crude palm oil prices, dealers said.

Wilmar, the world's biggest palm oil refiner, rose as much as 5.1 percent to S$3.72 with 7.8 million shares changing hands, after benchmark Malaysian palm oil prices rose 3.8 percent on Wednesday and were seen following crude oil prices higher [nKLR86080].

Olam gained as much as 4.7 percent to S$2.02 with 6.6 million contracts traded, rebounding from Wednesday's five-month low ahead of its earnings later on Thursday.

Olam is expected to post full year 2008 earnings up 28 percent from the previous year, according to a Reuters poll of 11 analysts.

Olam shares fell last week after broker CLSA started coverage of the stock with a "sell" recommendation, citing limited prospects.

0401 GMT - Straits Times Index was up 0.14 percent.

HAI LECK SHARES FALL ON DEBUT

Shares of Singapore-based scaffolding and insulation provider Hai Leck Holdings (HLHL.SI: Quote, Profile, Research, Stock Buzz) fell below their initial public offering at the start of trade in Singapore on Thursday.

By 0142 GMT, the stock was trading at S$0.245, or 5.7 percent below its IPO price of S$0.26.

"Looking at the current market climate it's hard for IPOs to perform well," a local trader said.  Continued...