Sinotel Tech +17.6% On Hopes Of China 3G Business

Sinotel Technologies (D3W.SG) +17.6% at S$0.30, off high of S$0.32, on strong volume as traders bet wireless telecom services provider will benefit from China''s push to roll out 3G services. Beijing this week urged country''s phone companies to merge into three large groups in bid to restructure industry, and said 3G licenses will be awarded once mergers completed. Move expected to result in huge new orders for telecom equipment suppliers. "The China government wants 3G to be up before Aug. 8, so Sinotel is a key beneficiary," says local house trader. Sinotel spokesman says "there isn''t anything that the management is aware of" driving share gains, but notes investors may be chasing up stock because of China''s restructuring; "I do believe that, to a certain degree, this could be an implication because of the recent announcement from the (China) telco sector." Near-term resistance at S$0.34 (April 28 high).