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Singapore Market’s Big Movers of the Day

StockMarketBoardIt’s been yet another down-day for Singapore’s blue chips – marking seven consecutive days of losses – as the Straits Times Index slips 0.7% to 3,061 points.

It was a sea of red within the index as 24 out of its 30 components had lost ground, while only two managed to make some gains. That said, most of the index’s movements were small, with the biggest loser being Golden Agri-Resources’ (SGX: E5H) 2.7% decline to S$0.54.

What were some of the big movers in our local market today? Let’s find out.

Scorpio East Holdings (SGX: 5HW) is up 3.9% to S$0.16 following its half-year earnings release yesterday evening. Interestingly, the film and home video entertainment distributor had a rather poor showing in its numbers for the six months ended 31 Oct 2013.

Revenue was down 6% year-on-year to S$3.3m while the company suffered a loss of S$2.3m, some 810% higher than the loss of S$257,000 it had made in the corresponding period a year ago.

A 78.5% year-on-year increase of administrative expenses to S$2.4m was the main drag on the company’s bottom-line. Scorpio East attributed the development to an increase in professional fees and an increase in depreciation expenses as the company had acquired new equipment back in April this year.

Scorpio East has had trouble with its profitability for a number of years, as the last time it turned in a profit was for the financial year ended 30 April 2009.

China Yuanbang Property Holdings (SGX: B2X) is down 11.3% to S$0.235. It was revealed yesterday that the property developer would be issuing a total of 39m new shares at S$0.245 each to a group of 22 investors comprising of mostly individuals with one company.

China Yuanbang had requested for a trading halt on Friday – due to the share placement exercise – that was only lifted this morning. Its shares opened today’s trading session with a 3.7% decline to S$0.26 before subsequently dropping further throughout the course of the day.

The company’s proceeds from the placement would be around S$9m and it has the intention to utilise around 80% of it for the development of commercial and residential properties in China. The remaining sums would be used for working capital purposes.

Prior to the placement, China Yuanbang had around 655m shares existing.

AusGroup (SGX: 5GJ) slipped 8% to S$0.23. The mining and oil & gas services firm had announced yesterday that it has repaid the senior debt facilities it has with the Australia & NewZealand Banking Group and HSBC Australia.

In addition, AusGroup is also in discussion with the banks to amend its lending agreements to resolve all breeches of lending covenants and limit the banks’ security over the company’s assets.

The breech of lending covenants – covenants are promises in a debt agreement that certain activities would not be carried – was revealed back in October this year when AusGroup issued a profit warning for its first quarter results.

Turns out, the company had breached lending covenants when its earnings before interest, taxes, depreciation, and amortisation (EBITDA) had fell and affected various financial ratios. In turn, AusGroup has started to manage its costs “to ensure an improvement in margin quality.”

With today’s announcement, it seems most of the major kinks related to the covenant-breach have been ironed out or are in the process of being resolved.

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