It wasn’t a good day for the local market as the Straits Times Index (SGX: ^STI) fell 1.3% to 3,015 points. Only four shares out of the 30 components in the STI ended the day in green. Though some shares within the index had rather big moves – most notably Golden Agri-Resources (SGX: E5H) which fell by 4.4% – most of the action had taken place outside the index. Let’s take a look at some of the big movers of the day. Tat Hong’s (SGX: T03) up 4.6% to S$0.91. It seems the market’s cheering its announcement this morning…
It wasn’t a good day for the local market as the Straits Times Index (SGX: ^STI) fell 1.3% to 3,015 points. Only four shares out of the 30 components in the STI ended the day in green.
Though some shares within the index had rather big moves – most notably Golden Agri-Resources (SGX: E5H) which fell by 4.4% – most of the action had taken place outside the index. Let’s take a look at some of the big movers of the day.
Tat Hong’s (SGX: T03) up 4.6% to S$0.91. It seems the market’s cheering its announcement this morning on starting on a programme to optimise its operations here. Tat Hong, a crane & heavy equipment supplier, has signed a 22-year lease from the Jurong Town Corporation for a 16,100 square metre plot of industrial land in the Tuas area for the programme.
The company currently operates out of five other sites in Singapore, but the scale of its business has since outgrown the current sites and management wishes to consolidate these operations in the Tuas area. There are also plans to house operations that are less time-sensitive in Johor, Malaysia to take advantage of cheaper costs there.
In the process, one of its properties located at 11 Gul Crescent will be freed-up and eventually sold through a public tender. The sale is expected to bring in gains for Tat Hong for the financial year ending on 31 March next year.
Manhattan Resources (SGX: L02) fell 8.7% today to S$0.315. The company, which provides managerial services to other companies in the shipping, lumber, and property development industries among others, posted a significant improvement in earnings recently.
Its second quarter results, released three weeks ago, saw profits of S$725,000 for the half-year period. It’s a much better showing from the corresponding period a year ago, when it lost S$4m. Despite an improvement in the company’s operations, its shares have fallen by close to 15% since the release of its earnings.
Perhaps, the market’s unconvinced of any sustained turnaround, which is not really a surprise, given that Manhattan Resources has suffered from chronic losses for a good number of years starting from 2007.
The last big mover for the day would be fashion retailer Ossia International Limited (SGX: O08), who slid by 10.2% to S$0.53. Its decline today broke its incredible streak of five consecutive days of gains, which saw its shares increase by an astounding 195% in that period. Shares of the company had jumped from S$0.20 on 27 August to S$0.59 yesterday.
Along the way, SGX, operator of the stock exchanges in Singapore, had issued a query asking the company if they knew why their shares had moved as such.
Turns out, Ossia had no clue and its Board of Directors issued a statement last Friday to highlight the fact that there were no new material developments within the company that could possibly explain such a stupendous share price increase.
Today’s losses in Ossia is perhaps a reminder for investors that it’s not a good idea to simply jump on any bandwagon just because a share has increased greatly in price. Before any investment in a share is made, careful study has to be done on its underlying business fundamentals.
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