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Three Shares That Lost To The Market Today

StockMarketBoard The Straits Times Index (SGX: ^STI) closed the day with the slightest of dips by dropping only a single point to 3,055.

Indonesia, the southern neighbour of Singapore which has been one of the hot topics of discussion around town because of its troubled economy, saw its currency fall past 11,000 rupiah per dollar today, the weakest it’s been since Apr 2009. But, that did not really trouble our local stock market.

While the STI remained essentially flat, not all companies did the same. Let’s look at some that fared worse.

Jardine Strategic Holdings (SGX: J37) slipped by 1.4% to US$32.45. The conglomerate has fallen by more than 17% over the last three months, almost in concert with Jardine Cycle & Carriage (SGX: C07), which has dipped by a quarter. JSH owns 72% of Jardine C&C with the latter accounting for almost two-thirds of the former’s revenue in 2012. So, it’s no real surprise that these two shares might move in sympathy with each other from time to time.

Singapore’s flagship carrier Singapore Airlines (SGX: C6L) fell 0.8% to S$9.50. The company announced last Friday that it has committed to setting up a term loan facility for Australian airlines Virgin Australia to access funding. SIA owns 19.9% of Virgin and is working in concert with Air New Zealand and Etihad Airways to set up the facility, which will amount to A$90m.

Each airline will contribute toward the facility in proportion to their ownership stakes in Virgin. The Australian carrier has been having a hard time lately, posting annual after-tax net losses of A$98.1m during its full-year earnings release last Friday.

According to Motley Fool Australia, Virgin had cited reasons such as “tough economic times, increasing competition, restructuring/transformation costs, and… carbon tax[es]” for its poor showing.

Metal packaging and trading company Novo Group (SGX: MR8) declined by 10% to S$0.17. The company, headquartered in Hong Kong, had released a profit warning last Wednesday that’s related to its upcoming first quarter results scheduled for release on 9 Sep 2013.

Novo warned the market that it “expects to record an increase of loss for the first quarter ended 31 July 2013 as compared to that for 2012” where it had posted a loss of US$1.58m. The company cited a fall in revenue stemming from a slowing global economy, commodity price volatility, and weaker demand for its steel products as main reasons for the upcoming expected-loss.

The company has been facing very tough times as it also released a profit warning just three months ago on 11 Jun 2013 for the financial year ended 30 April 2013. It eventually posted an annual loss of US$6.36m for the year in question.

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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.