Hock Lian Seng Holdings Limited - Annual Report 2015 - page 86

Notes to the Financial Statements
31 December 2015
35. Financial risk management objectives and policies (cont’d)
(c) Market price risk
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investment in quoted securities investment which is exposed to equity price risk. These investment are
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have exposure to commodity price risk.
The Group’s objective is to manage investment returns and equity price risk using a mix of investment
grade shares with steady dividend yield and non-investment grade shares with higher volatility.
Sensitivity analysis for equity price risk
At the end of the reporting period, if the underlying quoted securities prices had been 1% (2014: 1%)
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S$32,000 (2014: S$27,000) higher/lower, as a result of higher/lower fair value gains on quoted investment
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would have been S$17,000 (2014: S$13,000) higher/lower, as a result of higher/lower fair value gains on
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obligations due to shortage of funds. The Group’s and the Company’s exposure to liquidity risk arises
primarily from mismatches of the maturities of financial assets and liabilities. The Group’s and the
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use of stand-by credit facilities.
To manage liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed
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HOCK LIAN SENG HOLDINGS LIMITED 84