Three Shares That Lost To The Market Today

The Straits Times Index (SGX: ^STI) had a relatively quiet day, dropping only 0.1% to 3,202 points. Within the index’s 30 constituents, there were nine that ended the trading session with gains, while 15 had lost some ground.

Let’s take a look at some companies outside the index that ended the day in the red.

Advanced semiconductor packaging and test services provider STATS ChipPAC (SGX: S24) dropped 3% to S$0.325 after announcing third quarter results yesterday evening. Quarterly revenue came in 2% lower at US$401m compared to a year ago while profits surged 320% year-on-year to US$13.3m from US$3.2m.

In the second quarter of 2013, the company had made quarterly losses of S$52.2m so that’s a big reversal in fortunes at first glance. Unfortunately, the bulk of the company’s profits for its third quarter came from a one-off insurance payment of S$19.6m (that had nothing to do with the company’s daily operations) related to the flooding of its Thailand plant in the fourth quarter of 2011.

In any case, the market’s not too happy with those results judging from the mild sell-off.

Retailer Dairy Farm International Holdings (SGX: D01) slipped 2.8% to US$10.81 after releasing an Interim Management Statement yesterday evening. In it, management discussed the company’s business for the period from 1 July to 5 Nov.

They commented that “sales growth was achieved in most of [Dairy Farm’s] major businesses… although cost pressures and margin investment in certain businesses led to earnings continuing to be slightly lower than in the previous year.”

The market probably didn’t like to see lower earnings at the company, hence the slight decline in share price.

Finally, we have CWT (SGX: C14), which dropped 5% to S$1.33 after releasing its third quarter earnings yesterday evening. The company, a logistics solutions provider, saw its quarterly profits get slashed by 53% to S$19m compared to a year ago despite a 52% jump in revenue to S$2.2b.

The shrinking profit margins could be attributed mainly to increases in administrative expenses (due to higher salaries and business expansion) and finance costs.

Despite the ostensibly poorer profit figures, CWT’s chief executive Loi Pok Yen commented that “[the company] had achieved decent financial results this quarter, which mirror the ongoing execution of [its] business model.”

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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.