Three Shares That Lost to the Market Today

The Straits Times Index (SGX: ^STI) had slipped by 0.7% today to 3,222. That’s not a particular good result for the overall share market, but some companies had it even worse. Let’s take a look at three in particular.

First up, we have Golden Agri Resources (SGX: E5H), which dropped 3.7% today to S$0.525. Earlier in the morning, the vertically-integrated palm-oil producer announced that its Indonesian subsidiary, PT Sinar Mas Agro Resources and Technology Tbk had released its half-yearly results.

Golden Agri owns 97.2% of PT Sinar (as of 31 Dec 2012), which is also a palm oil producer and is listed on the Indonesian Stock Exchange. PT Sinar’s half-yearly results saw sales for the six month period ended 30 June 2013 decline by 18% year-on-year to Rp11,183b (approximately S$1.34b). Meanwhile, profits for the same period dropped by 28% to Rp795.4b (approximately S$95.5m).

As PT Sinar’s main business interests are similar to Golden Agri, investors seemed to have been spooked by the implications of the former’s poor showing in regard to the latter’s own results.

In any case, investors will get a better picture of Golden Agri’s results soon. The company’s set to announce its second quarter earnings on 2 August after the market closes.

Soilbuild Construction Group (SGX: S7P) is up next as its shares slipped by 8.3% to S$0.275. The company, which only just made its debut on the Mainboard stock exchange on 27 May this year, provides turnkey construction project services, in addition to acting as consultants for project management work.

Yesterday was a busy time for the company. First, the company sent out a press release to clarify certain business developments described in The Business Times in an article titled “Soilbuild inks condo venture in Yangon”.

The article stated that “while the construction contract, which is estimated to be about US$50m, has not yet been awarded, Ho Toon Bah, executive director at [Soilbuild] said there is a “good expectation” that [the company] will clinch it”.

SCG’s board wished to clarify, through the press release, that “the company is in the process of submitting a proposal to Soilbuild Group Holdings with respect to the construction contract and [as of 30 July 2013], the construction contract has not been awarded to the group.”

Next, SCG had filed a preliminary prospectus for a real estate investment trust with the Monetary Authority of Singapore dated 30 July 2013. The REIT’s named as Soilbuild Business Space REIT and according to the prospectus, will be priced at S$0.77 to S$0.80 per unit. A total of seven properties – a mixture of business parks and industrial properties – will be bought by the REIT for a combined price of S$921m.

Rounding up the trio of market-losers, we have Cogent Holdings (KJ9). The logistics, ware-housing, and transportation company’s shares had dropped by 4.6% to S$0.21. Yesterday evening, Cogent announced a proposal to sell a piece of property for S$10m to Crane World Asia Pte Ltd.

The property’s located at No.1 Chia Ping Road, Singapore and occupies a land area of approximately 14,900 square metres. According to Cogent, the sale was made to “consolidate and rationalise [the company’s] logistics operations… The [sale] will also enable the [company] to unlock shareholders’ value, improve its cash flows and gearing, thereby resulting in a more efficient use of capital.”

The market apparently did not seem to agree with Cogent’s rationale of the sale, judging from the company’s share price movement.

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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 Chong Ser Jing doesn’t own shares in any companies mentioned.