So, the US debt-ceiling crisis has been temporarily averted. Weeks of squabbling between lawmakers resulted in a deal that allowed the government to keep borrowing until around 7 Feb.
While the global economy might yet see another round of US government shutdowns as well as a replay of the debt-ceiling debacle in a few months’ time, the chances of it happening again are likely to be lower.
But that shouldn’t matter to us as investors in businesses. In times like these, we should, to borrow from my fellow Fool Scott Phillips, “ignore the political argy bargy in the US, and just focus on investing in great companies at attractive prices.”
Speaking of investing and the stock market, the Straits Times Index (SGX: ^STI) moved up 0.2% to 3,193 points. There were seven losers and 21 winners within the index’s 30 constituents.
The biggest mover among the blue-chips was Noble Group (SGX: N21), with a 2.1% gain to S$1.00, suggesting that most of the action had taken place outside.
Sysma Holdings Limited (SGX: 5UO) rose 20% to S$0.42 after announcing it had sold 19.5m shares at S$0.312 each in a private placement to 14 individual investors.
The deal represents an 8.9% dilution to existing shareholders’ stake in the building construction services provider as it had 218m shares outstanding..
The dilutive element didn’t stop the market from cheering the move however, judging from the company’s share price jump.
Net proceeds for Sysma from the sale of shares would be approximately S$5.8m. The company has earmarked 70% of the money to fund possible business expansion opportunities while the remainder will be used as general working capital.
Del Monte Pacific Limited (SGX: D03) dropped 3.1% to S$0.93. Last Friday, the fruit and vegetables processor announced a major US$1.7b acquisition of the consumer food business of US-based Del Monte Foods.
It’s a huge acquisition for the company, given that the size of the deal is almost twice its market value of S$1.05b just prior to the announcement.
The market was really excited about it, as Del Monte Pacific’s share price jumped by 17% to a high of S$0.95 in the few days following the announcement. That excitement seemed to have died down a little today, as the company’s share price fell.
Nordic Group Limited (SGX: MR7) fell 0.9% to S$0.108, but was at one point sitting on an 11.9% loss. The company’s business includes systems integration, precisions engineering, and scaffolding services, among others.
Its recent second-quarter results saw a 10% dip in quarterly revenue to S$15.6m while profits slipped by 39% to S$1.17m.
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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.