Three Shares that Beat the Market Today


Singapore’s flagship stock market bellwether, the Straits Times Index (SGX: ^STI), is essentially flat at 3,173 points. Within the 30 blue chips that make up the index, there were 16 shares that ended the day with gains, while 11 others lost some ground.

Let’s take a look at some shares – both within and outside the index – that did better than average.

Biosensors International Group (SGX: B20) is up 4.3% to S$0.98. The medical device maker announced today that a substantial shareholder, Shandong Weigao Group Medical Polymer Company, would be selling all of its shares of Biosensors to CB Medical Holdings for a total of US$312.3m at S$1.05 per share.

Shandong owned slightly more than a fifth of Biosensors prior to the announcement. Interestingly, CB Medical’s purchase price of Biosensors was 11.7% higher than its closing price of S$0.94 on Thursday. That fact that an informed buyer was willing to purchase Biosensor’s shares at a premium to its market price was probably the reason for today’s gains.

The sale by Shandong was deemed “strategically important” as it needed to focus on its medical consumables, blood purification, and orthopaedic products businesses in China due to the “increasingly competitive” business environment in the country.

CapitaMalls Asia’s (SGX: JS8) shares rose 1.5% to S$2.03. A few days back, the shopping mall developer and owner announced the acquisition of its first shopping mall in Guangzhou, the capital city of Guangdong province in China.

The total investment cost is estimated to be around RMB2.646b and it is targeted for opening in 2014 in phases.

The acquisition would enable the company to stake a claim in Guangzhou, one of the first-tier cities in the south of China, and which can boast of the most developed economy in the Pearl River Delta.

Sarin Technologies (SGX: U77) gained 1.6% to S$1.88. Just last week, the company had announced a strategic collaboration with the New York Diamond Dealers Club (NYDDC), a leading diamond trade organisation in the USA.

Sarin, which develops and sells precision technology products for the planning, processing, evaluation and measurement of precious stones and diamonds, would be working with the NYDDC for up to five years.

Under the collaboration, Sarin would provide the NYDDC’s members with its latest rough and polished diamond technology and the latter would in turn help “exclusively promote and market those solutions to the U.S. diamond industry.”

Ohad Axelrod, a vice president of Sarin’s US arm, commented:

We are excited to have signed the strategic alliance with the DDC. As leading organizations in our respective fields, we believe that the collaboration will benefit the diamond industry community in the U.S., allowing them direct access to our latest technologies that improve diamond sourcing, increase manufacturing yield, assess and grade the resultant polished stones and aid in the online and retail trade.”

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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.