The Singapore Market This Week


Commodity companies surged. Golden Agri-Resources Limited (SGX: E5H) added 5.2% to $0.605, Wilmar International put on 5% to $3.55 and Olam International (SGX: O32) climbed 4.1% to $1.53, most probably on the back of speculation. There were concerns that the typhoon in the Philippines might tighten supplies of coconut oil and indirectly shift demand to crude palm oil (CPO).

The crude CPO futures for January 2014 contract surged RM72 per metric tonne (mt) to RM2,600 per mt on Tuesday. The jump was the biggest single daily rise since early January.

Some STI components lost ground this week. They include Singapore Technologies Engineering (SGX: S63) and Singapore Telecommunications (SGX: Z74). The former fell 1% to close at $4.01, while the latter slipped 1.1% to close at $3.76.

In fact, ST Engineering has lost around 4% for the past two weeks. It released its latest quarter results on 7 November 2013. Net profits in the third quarter were down 10% year-on-year to S$131m. As for SingTel, it released its second-quarter results on 14 November. Operating revenue was down 9% to S$4.2b while profit increased slightly – up 0.3% to S$870m.

The STI is currently trading at a PE ratio of 13.7 and sports a market capitalisation of S$156b.

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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 Sudhan P doesn’t own shares in any companies mentioned.