Singapore Market’s Big Movers of the Day


It’s been one of the least volatile years so far for the Straits Times Index (SGX: ^STI) and its price-action today continued the tradition as Singapore’s stock market benchmark slipped by 0.9% to 3,161 points.

The index, perhaps unsurprisingly, was awash in a sea of red as 26 out of the index’s 30 constituents ended the trading session with losses. Only two blue chips managed to eke out some gains for the day.

But enough about the blue chips. Let’s take a look at some of the movers and shakers outside the index.

Offshore engineering solutions provider SBI Offshore (SGX: 5PL) jumped 9.7% to S$0.125 after announcing this morning that it has proposed an issue of 22m new shares at S$0.125 each in a private placement.

The new shares would be bought up by Pheim Asset Management, a fund management company based in Malaysia which previously did not own any shares of SBI Offshore. The private placement would make Pheim a substantial shareholder of the offshore engineering firm with a 12.4% stake.

SBI Offshore would receive around S$2.7m in net proceeds from the sale of new shares and has plans to utilise half the amount for working capital and funding for existing projects. The remaining 50% of the sale-proceeds would go toward market expansion, new projects and business development plans.

Next up is Vallianz Holdings (SGX: 545), another big winner today with a 7.9% gain to S$0.11. The integrated offshore marine solutions provider had won US$150m worth of chartering contracts a week ago from a “leading company” in the Middle East.

The contracts are for the charter of Platform Supply Vessels (PSVs) for five years starting from the first quarter next year and it includes an option for an extension. Following the contract win, Vallianz now has an order book worth S$485m, a record for the firm.

In the contract-announcement, Darren Yeo, executive director and chief executive of the company, also talked about Vallianz’s plan to boost its fleet of offshore marine vessels from a current count of 26 to 50 by 2016 to meet rising demand.

Finally, we have instant beverage maker Super Group (SGX: S10). Shares of the company fell 2.4% to S$3.32. The ongoing political unrest in Thailand, where protestors are aiming to oust Prime Minister Yingluck Shinawatra, seems to have given investors some pause about Super’s shares.

In yesterday’s edition of the daily newspaper The Straits Times, it was reported in the article titled “Few SGX firms affected directly: Analysts” that Super derives about a fifth of its revenue from Thailand.

Brokerage firm Maybank Kim Eng’s analyst James Koh also mentioned in the article that the unrest in the country could potentially create distribution and logistical difficulties for the company.

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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 owns shares of Super Group.