The Straits Times Index (SGX: ^STI) finally breaks its 10 day losing streak by gaining 1.1% to 3,038. It?s an overall positive for the local market as there were 19 shares out of the 30 blue-chips within the STI that ended the trading session in the green.
Let?s take a look at some of the big movers of the day.
Ossia International (SGX: O08) rose by an astounding 60% to S$0.44. The fashion retailer had already gained close to 40% yesterday to S$0.275, which meant that investors in the company…
The Straits Times Index (SGX: ^STI) finally breaks its 10 day losing streak by gaining 1.1% to 3,038. It’s an overall positive for the local market as there were 19 shares out of the 30 blue-chips within the STI that ended the trading session in the green.
Let’s take a look at some of the big movers of the day.
Ossia International (SGX: O08) rose by an astounding 60% to S$0.44. The fashion retailer had already gained close to 40% yesterday to S$0.275, which meant that investors in the company have more than doubled their money in two days.
Wednesday’s sharp rise already prompted the Singapore Exchange to issue an official query on that morning itself regarding any previously unannounced information about the company that could lead to such strong gains. Turns out, the company’s “not aware of any information not previously announced” and is basically at a loss as to why its shares jumped.
There wasn’t any query today, but there was also nothing new happening with the company as far as official announcements were concerned as of the time of writing at 5:30pm.
Investors would probably do well to not jump on the bandwagon unless they have a good handle on the intrinsic value of Ossia’s business. After all, the share price of any company can have the tendency to move way higher or way lower than its underlying intrinsic value in unpredictable fashion over the short-term,
Beer brewer Thai Beverage (SGX: Y92) was another big mover today with its shares up 23.8% to S$0.52. On Tuesday, Fraser & Neave (SGX: F99), which Thai Bev owns 28.6% of, announced that it would be spinning off its property arm into a company Frasers Centrepoint Limited.
Under the current arrangement for the spin-off, F&N will distribute two shares of FCL for every F&N share that’s held by an investor. After the exercise, F&N will no longer have any interest in FCL. This would mean that Thai Bev will end up with a 28.6% ownership stake in FCL, assuming its stake in F&N remains unchanged prior to the spin-off.
The beer brewer has hired a financial advisor to undertake a strategic review of the implication of F&N’s plans and would update the investing public appropriately in due course, though it seems the market has already given the spin-off a happy verdict.
The last big mover is Australia-based engineering services provider Civmec (SGX: P9D). Yesterday, its shares fell by 7% to S$0.60 and it has continued the downward slide today by falling 6.7% to S$0.555.
Shares of the company have fallen by more than 50% over the past six months and even the release of healthy earnings results recently with annual profits up by 19% year-on-year to S$36m can’t seem to arrest the fall.
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