Singapore stock market update

DBS comments on Raffles Education :

Post our conference, we are more confident that management will be able to convert part of the upcoming installment for OUC (Oriental University City) to interest bearing loan. This should re-instill confidence on the counter and boost share price. Student enrollment remains firm. Reiterate Buy, TP: S$0.80.

Scrip Dividend Scheme should be approved. Raffles Ed’s management representative appears confident that the proposed SDS to be put before shareholders’ approval on 12 Jan 09 will be approved. The SDS provides alternative to shareholders to opt for cash or scrip. Investment banks
and/or strategic investors will underwrite un-subscribed scrips.

Operations stable. Management shared that they have not witnessed any significant impact to operations and student enrollment continues to trend well. While they have seen some rise in private students asking for payment
of fees in installment, management indicates that the proportion is insignificant to total student population. 1H09 results will be released on 5 Feb.