The Straits Times Index (SGX: ^STI) is up by 1.9% today to 3,249. The index has been slowly regaining lost ground after slipping in recent weeks from its 52-week high of 3,465 set on 22 May 2013. The index’s fall came after the US Federal Reserve gave hints that it might be pulling back on its stimulus efforts. But, it seems that those fears have been assuaged a little as the index has started to show sustained upwards momentum after bottoming at 3,065 points on 21 June 2013. In any case, despite the index being a general barometer for…
The Straits Times Index (SGX: ^STI) is up by 1.9% today to 3,249. The index has been slowly regaining lost ground after slipping in recent weeks from its 52-week high of 3,465 set on 22 May 2013.
The index’s fall came after the US Federal Reserve gave hints that it might be pulling back on its stimulus efforts. But, it seems that those fears have been assuaged a little as the index has started to show sustained upwards momentum after bottoming at 3,065 points on 21 June 2013.
In any case, despite the index being a general barometer for the market, there will be individual shares that moves almost independently of it at any given day. Let’s take a look at four big movers today, with two market beaters and two losers.
We can start with Yoma Strategic Holdings (SGX: Z59). The property and farming company’s shares gained 3.3% to $0.935. Around two weeks ago on 27 June 2013, Yoma announced that its joint venture with Digicel, YSH Finance and Quantum Strategic Partners – known as the Digicel Consortium – had failed in their bid to secure one of the two nationwide telecommunication licenses on offer in Myanmar.
It was a disappointment for Yoma, which has been focusing its business on the country. Besides being involved with the Myanmar’s agricultural efforts, it also owns the country’s first gated community; shopping complexes; apartment buildings; and a golf course. Yoma also announced on Tuesday that it’s entering into a joint venture with third parties to provide automotive related services and parts in Myanmar.
Telecommunication operator SingTel’s (SGX: Z74) up next with a 4.5% jump to $3.92. Last month, SingTel announced plans to develop the telecommunications industry in Myanmar in a joint-venture with KBZ Group and Myanmar Telephone Company.
Part of the plan involves building a mobile network covering 95% of Myanmar’s population within the next three years. The press release about the plans also mentioned that “besides infrastructural development, the consortium is also committed to creating employment opportunities and imparting global best practices in people development, marketing, customer service, operations and corporate governance to grow the local business.”
After looking at the market beaters, let’s turn our attention to big movers at the unfortunate end of the spectrum.
Restaurant operator Tung Lok (SGX: 540) fell by 8.6% today to $0.192. Last Friday, the company announced a two-for-five renounceable rights issue at an issue price of $0.16 per share. Tung Lok hopes to raise up to $8.9m (after fees and expenses) from the rights issue for its working capital needs.
Tung Lok has been facing difficulties in its business, clocking cumulative losses of $4.96m for its last two completed financial years. Its balance sheet, before the rights issue, showed negative working capital of $9.3m. That could be a necessitating factor in pushing the company to carry out the rights issue to secure funds for its working capital needs.
Rounding up the quartet’s Full Apex Holdings (SGX: F18), a manufacturer of polyethylene terephthalate (PET) beverage-bottles and paper products. Its shares dropped 4.8% to $0.10 today. Last month, the company announced that it had taken up loans of US$46m to refinance existing debts and for general capital needs. Full Apex’s latest balance sheet – prior to the debt-announcement – showed the company carrying net-debt (i.e. debt net of cash) of RMB400m, roughly equivalent to US$64m.
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