Wednesday, 28 September 2011

MIDAS (Lim&Tan)

S$0.40-MIDS.SI

􀁺 2 months after Wenzhou’s high speed train collision which killed 40 passengers, 2 metro trains have collided in Shanghai yesterday, injuring more than 500 passengers.

􀁺 The same reason was cited as the first accident, being the failure of a signalling device made by a joint venture between a Chinese and French company when the first train stalled, causing another to rear-end into it.

􀁺 And what’s likely to bring even more controversy into the situation is that Reuters reported that some railway staff beat to death a victim of the metro train crash after the victim and another passenger argued with them over the accident.

􀁺 The railway ministry had put a stop to new orders for high speed trains amidst investigations over Wenzhou’s crash 2 months ago and Midas and its customers were counting on the metro train projects to help fill the void.

􀁺 Unfortunately, the latest metro train accident means that the worse may not be seen for the railway industry where stocks including Midas have already lost between 60-70% of their stock market value this year.

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