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Three Blue Chips That Fell More Than The Market

Ser Jing - How to No Longer Fear Falling Markets (pic)In the past month, the Straits Times Index (SGX: ^STI) dropped 199 points, from 3,383 to 3,184 , shedding 5.8% of its value, and wiping out gains from the past six months.  Unfortunately, some blue-chips have seen its share prices fall by an even larger percentage than the STI.  We take a look at three of them.

Singapore Technologies Engineering (SGX: S63)
Shares of the engineering company slipped 12.4% from its high of $4.42 to $3.87 last Friday, the largest price decline for a blue chip company in the past month. This price drop was in spite of buy recommendations from five brokerage firms following the company’s first quarter earnings release on 7 May.  Singapore Technologies Engineering closed its trading today at $3.86, with a price-earnings multiple of 20, and a dividend yield of 1.8%.

M1 (SGX: B2F)
Shares of the telecom operator experienced an 8.3% price fall, from a high of $3.34 to close at $3.06 last Friday.  The Motley Fool Singapore’s David Kuo covered M1’s falling share price two weeks ago, highlighting the company’s plight as a victim of brokers’ downgrades of its peers Singtel (SGX: Z74) and Starhub (SGX: CC3).  Since then, M1’s share price has fallen by another 2 cents to close at $3.03 today, working out to 19 times profits, with a dividend yield of 4.1%.

Singapore Airlines (SGX: C6L)
Singapore Airlines’ shares lost 7.9% of its value from a high of $11.35 to $10.45 following the announcement of its full year results on May 16.  Despite a 13% year-on-year again in net profit, the company’s share price fell by 4.5% the day after its earnings release.  At the close of market today, Singapore Airlines shares were trading at $10.40, 32 times earnings, with a 2.2% dividend yield.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Ivan Looi doesn’t own shares in any companies mentioned.