MENU

Three Shares That Lost To The Market Today

StockMarketBoard Singapore’s stock market bellwether, the Straits Times Index (SGX: ^STI) fell 0.5% to 3,108 today. It couldn’t keep up with its momentum yesterday, where it gained 1.2% to 3,124 points following positive economic data coming from China.

The Asian giant had reported that its factory output for August had grown by 10.4% year-on-year, while retail sales jumped by 13.4% and fixed asset investment rose by 20%.

Turning back to the STI, there were slightly more losers (14) than gainers (10) for the day. Though a 0.5% fall in the index might seem as though the markets were quiet, there were shares that did fall harder. Let’s take a look at some of them.

Jardine Strategic Holdings (SGX: J37) holds the dubious honour of being the worst performer in the index with a 4.8% drop to US$33.80. The conglomerate has been having a poor time lately, falling by close to 9% over the past three months.

The company derives the majority of its revenues from South-East Asia – particularly Indonesia – through its 72% ownership of corporate cousin Jardine Cycle & Carriage (SGX: C07), which in turn derives almost all its profit and revenue from Indonesian conglomerate Astra International.

With the economic difficulties that Indonesia is facing lately, it’s perhaps no wonder that investors are keeping their distance from JSH.

Real estate investment fund manager ARA Asset Management (SGX: D1R) is up next with a 3.5% decline to S$1.635. The fund manager was kept busy recently when Fortune REIT (SGX: F25U), one of the real estate investment trusts that it manages, proposed a hefty property acquisition that amounted to HK$5.965b (approximately S$950m).

ARA stands to benefit from the transaction itself through a fee payment of HK$58.5m. In addition, if the acquisition improves Fortune REIT’s operational metrics and asset values in the future, it would also allow ARA to earn larger recurring management fees going forward.

The company’s latest quarterly earnings release, for its second quarter, certainly had room for improvement as revenues for the half-year inched up by 1% year-on-year to S$64.1m while profits sunk 9% to S$32m.

Ascendas Hospitality Trust (SGX: Q1P) rounds up the trio as its units slipped 3.2% S$0.755. The trust owns 11 hotels located across four countries, namely Australia (seven), China (two), Japan (one), and Singapore (one).

It’s recent first quarter results were likely to have disappointed investors who had bought into the trust during its initial public offering. In its IPO prospectus, it had forecasted a distributable income of S$12.4m respectively first quarter. Instead, the actual figure came out to be S$10.9m, some 12% lower than predicted.

My fellow Fool Sudhan, wrote about the trust’s poorer-than-forecasted results previously and used it as an example to gently warn investors to “always take forecasting with a pinch of salt.” I couldn’t agree more with.

Click here now  for your  FREE subscription to Take Stock Singapore, The Motley Fool’s free investing newsletter. Written by  David Kuo ,   Take Stock Singapore  tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.  

The Motley Fool’s purpose is to help the world invest, better. Like us on Facebook  to keep up-to-date with our latest news and articles.

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.