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Three Shares that Beat the Market Today

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The Straits Times Index (SGX: ^STI) moved up 0.3% to 3,070. Last night, the US Federal Reserve had announced that it would be reducing its monthly bond-buying programme from US$85b per month to US$75b per month.

Most market commentators might want to pinpoint the reason for the STI’s move on the Fed’s announcement, but in the world of finance, things aren’t always that clear cut.

Coming back to our local stock market, out of the STI’s 30 constituents, we have 18 shares that managed to clock some gains for the day. 10 others weren’t so lucky though, as they ended the trading session in the red.

Let’s look at some of the shares that managed to beat the market average from both outside and within the index.

Tai Sin Electric (SGX: 500) is up 3.2% to S$0.325. The cable and wire maker announced yesterday evening that it had sold off its New Zealand-based majority-owned subsidiary Vynco Industries, an importer and wholesaler of electrical equipment and componentry.

Tai Sin’s selling its stake for NZ$2.5m (approximately S$2.6m) to the current minority-owners of Vynco, Vale Investments Limited.

The cable and wire maker “has been spending considerable amount of time and effort to manage Vynco.” In addition, the geographical distance between Tai Sin, which is based in Singapore, and Vynco, made it all the more difficult for the former to manage the latter.

In light of the above, Tai Sin thus felt that its resources could be better deployed elsewhere for better returns.

Ship charterer and shipyard services provider Marco Polo Marine (SGX: 5LY) is up 1.3% to S$0.38. The company’s Indonesia-listed subsidiary PT Pelayaran Nasional Bina Buana Raya Tbk had announced on Monday that it had won time-charter contracts for two of its 8,080 BHP AHTS (brake horse power, anchor handling tug supply) vessels, the MP Prelude and MP Premier.

The MP Prelude’s contract, worth more than an estimated US$13m, started on 1 Dec 2013 and would last for 26 months. Meanwhile, the MP Premier’s contract-value is pegged at around US$6.8m and would last for 13 months starting late Dec this year.

Both contracts are awarded by a “significant oil and gas exploration and production company with an entrenched position in Indonesia.”

Marco Polo’s chief executive, Sean Lee, who also happens to be a Director of Bina Buana Raya, commented on the contract-wins:

These contract awards give us immense satisfaction which incidentally also represent our longest contract duration awarded secured-to-date with regard to MP Prelude and MP Premier. It affirms our firm belief that the offshore oil and gas exploration in Indonesia is only at its nascent stage of development with the majority of drilling concessions awarded in Indonesia over the past 3 years being located offshore…

…Whilst we are forging ahead with our own building programme to steadily increase our fleet of modern and efficient offshore support vessels, this positive development is expected to continue to bolster our ability to generate stable revenue stream at enhanced profit margins going forward.”

Finally, we have Keppel Corporation (SGX: BN4). The conglomerate moved up 1.6% to S$10.73. On Monday, Keppel Offshore & Marine (the O&M division of the conglomerate) revealed that its subsidiaries, Keppel Shipyard and Keppel Nantong Shipyard had won five contracts worth a total of S$150m.

Keppel Shipyard’s contracts are for Floating Production Storage and Offloading (FPSO) and Floating Storage and Offloading (FSO) conversions, upgrades, and repairs, while Keppel Nantong’s contract deals with the construction of submersible barges.

Michael Chia, managing director of Keppel O&M, commented on the contracts:

We are glad to have the support of repeat and new customers for a range of offshore and marine projects. Keppel Shipyard’s latest contracts bear testament to its extensive expertise and experience in [FPSO and FSO] conversion, upgrading and repair works. Meanwhile, Keppel Nantong’s two new projects reflect its growing newbuilding and fabrication capabilities.”

Counting these new contracts, Keppel O&M has inked almost S$7b worth of new deals for the year.

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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 writer Chong Ser Jing doesn’t own shares in any companies mentioned.