Three Shares That Beat The Market Today


Many eyes in the financial markets will be trained on Janet Yellen tonight. She’s set to appear before the US Senate in a confirmation hearing before she’s named as the new chairperson of the US Federal Reserve to replace the outgoing Ben Bernanke.

The US Fed has been buying US$85b worth of financial assets per month for awhile now, with some market commentators stating that the Fed’s money printing is what’s propping up financial markets around the world.

This naturally leads many to wonder what the Fed will do next with their asset-purchase programme, also known as quantitative easing (or “QE” for short).

Yellen has prepared some remarks for the hearing, in which she said that the American economy and labour markets are “performing far short of their potential.”

Those remarks have led some to believe that the Fed will continue with its QE programme without any tapering of asset purchases.

It’s likely that many market watchers, fretting about the future of QE, will be tuning in to Yellen tonight. But in the midst of all these, the better thing for investors to do might be to ignore the noise, and just focus on businesses.

And speaking of businesses, the Straits Times Index (SGX:^STI), a collective measure of the aggregate price movements of 30 of the largest publicly-listed companies in Singapore, rose 0.8% to 3,191 points today.

Within the index’s 30 constituents, 22 shares had ended the trading session in the black, while five others had lost some ground.

With so many winners within the index alone, it’s likely that there will be more than a handful of shares outside the STI that have made some gains.

Let’s take a look at some shares that managed to beat the index.

Asia Power Corporation (SGX: A03) jumped 39.6% to S$0.148 after announcing yesterday evening that it had received a buy-out offer from Asiasons WFG Capital Pte Ltd to purchase the former’s shares at S$0.16 each in cash.

Asia Power will be appointing an independent financial adviser to advise the company regarding the acquisition and the appointment will be announced in due course.

Frencken Group (SGX: E28) gained 7.8% to S$0.275 following its third quarter earnings release yesterday evening.

The high-technology capital and consumer equipment service provider’s revenue for the nine months ended 30 Sep 2013 had increased 26% year-on-year to S$335m while profits came in at S$13.9m. Frencken’s profits were a big improvement over the loss of S$1.03m it made in the corresponding period a year ago.

Finally, we have Silverlake Axis (SGX: 5CP), whose shares were up by 3% to S$0.87. The company, which provides software solutions to banks and other financial institutions, saw high double-digit gains in both revenue and profits for its recent first quarter earnings release for the financial year (FY) 2014.

Revenue grew by 27% year-on-year to RM101m while profits jumped 29% to RM51m. The company commented that it “expects modest economic growth in the Western developed countries to coincide with continued steady economic performance in most of the Asian economies in FY2014.”

Raymond Wong, Silverlake’s managing director, added that “the [company] expects to secure new software implementation services contracts as it recognises revenue from the contracts on hand in FY2014 and FY2015. [Management] also expect the recurrent revenue from maintenance and enhancement services to benefit from the completion of these new software projects in FY2014.”

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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.