Last night, the American stock market shrugged off worries about the economic impact from the shutdown of the US government. The S&P 500 Index and the Dow Jones Industrial Average posted gains of 0.8% and 0.4% respectively.
However, the Singapore stock market did not follow suit. The Straits Times Index (SGX: ^STI) declined 0.9% to 3,153 points today. There were significantly more losers than winners – 21 in the red compared to just four in the black.
Conglomerate Jardine Cycle & Carriage (SGX: C07) dipped 2.7% to S$36.10. The company has gained some 14.6% from its recent bottom at S$31.50 on 28 Aug 2013 after economic troubles in Indonesia and worries over a US tapering caused investors to steer clear.
The bulk of Jardine C&C’s revenue and profits comes from its 50%-owned Indonesian conglomerate Astra. Because of the latter’s large exposure to the Indonesian economy, shares of Jardine C&C most likely fell in tandem.
The market seems to have regained some confidence in the company after the US Federal Reserve decided to keep its stimulus programme unchanged. Additionally, recent signs appear to suggest that the worst might be over for Indonesia’s beleaguered economy. Only time will tell if the market’s confidence in Jardine C&C is justified.
Global Logistic Properties (SGX: MC0) fell 1.7% to S$2.90. The logistic facilities provider was a market-beater only yesterday, but has given up most of the gains today. There’s nothing new happening at the company, apart from its announcement yesterday regarding the sale of properties to GLP J-REIT.
This is perhaps a good example of the futility of fixating on daily share price movements. Day-to-day movements can happen for no reason at all – such is the nature of the stock market. Investors might be better off focussing on the businesses that GLP is involved in rather than try to fathom the reasons for its downward movement today.
Singapore Exchange Limited (SGX: S68), operator of the Mainboard and Catalist stock exchange, dropped 1.2% to S$7.21. Last week, the company announced that it had won two gongs at the Futures and Options World (FOW) Awards for Asia 2013. It bagged the titles of “Clearing House of the Year” and “Most Innovative New Contract Launch.”
While the market doesn’t seem to like SGX’s shares very much today, investors should take heart in the fact that the company seems to be doing just fine with its business execution and operations, judging by the award it has won.
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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.