Three Shares That Lost To the Market Today

StockMarketBoard The Straits Times Index (SGX: ^STI) is down 1% to 3,004 points. Today’s losses marked the 10th consecutive day at which the STI has lost ground.

The fear du jour that’s heavily entrenched in most of the financial market’s minds lately would likely be the possible outbreak of war in Syria as USA threatens military action against the country.

Singapore probably has next to nothing to do with the conflict between those two countries, so there’s always the possibility that stocks here are falling as part of a ‘contagion’ effect with other markets that have more direct exposure to it. While war is itself a grave issue, investors in the stock market would probably do well to focus on what’s important over the long-term in investing – the intrinsic value of a business.

Before we digress further, let’s take a look at three companies that have logged bigger losses than the STI.

Karin Technology Holdings (SGX: K29) dropped 8.3% to S$0.33. The company, which distributes electronic and industrial components in addition to IT solutions, had released its full-year results yesterday evening after the market closed and it appears the market’s far from impressed.

The company had posted an 18.4% increase in annual sales to HK$3.8b compared to a year ago but the top-line growth did not boost its bottom-line. Karin’s profit fell by 7.5% year-on-year to HK$55.7m.

Healthcare provider IHH Healthcare Berhad (SGX: Q0F) slipped by 5.4% to S$1.48. Its second quarter results were also released yesterday evening and they aren’t pretty. Quarterly revenue declined by 38% year-on-year to RM1.68b while profits sank 61% to RM157m.

In the earnings release, management shared some of their concerns for the company’s profitability in the future. These include: increased staff costs (due to shortage of qualified healthcare professionals in its home markets of Singapore, Malaysia, and Turkey); up-front costs related to new operations; and currency risks due to the company’s international operations.

Despite the manifold concerns the company has regarding its profitability, it is still “cautiously optimistic that it would achieve satisfactory performance for the year.”

Civmec’s (SGX: P9D) the last on the list of losers. The company operates within Australia and provides engineering services to the oil & gas, mining, and infrastructure industries among others. Its shares dropped 7.7% to S$0.60.

The company had announced its full-year earnings results on Monday evening after the market closed and posted double-digit growth in both its top and bottom-line. Annual revenue was up 23.5% year-on-year to S$405.9m while profits were up 19% to S$36m.

Despite the healthy-looking numbers for its earnings release, it seems to not be enough to please the market.

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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.