Three Shares that Lost to the Market Today


The Straits Times Index (SGX: ^STI) is up 0.8% today to 3,094 points with 19 of its 30 constituents ending the trading session in the black. Meanwhile, six others had made losses for the day.

What were some of the shares that did poorly compared to the benchmark index? Let’s find out.

UPP Holdings (SGX: U09) slipped 2% to S$0.24. The paper products maker had announced on Wednesday that its joint venture with Myanmar-based Myan Shwe Pyi Limited has been terminated by mutual agreement.

The joint-venture was initially intended to engage in business activities in Myanmar that included the provision of engineering services; provision of consultancy and management services to companies in quarrying activities; and distribution of quarrying-related machinery and equipment, among others.

Vehicle-tire retailer and distributor Stamford Tyres (SGX: S29) is up next. Its shares went down by 2.4% to S$0.40. The company’s half-year results, released two Thursdays ago, saw revenue for the six months ended 31 Oct 2013 decrease 9.8% year-on-year to S$148m while profits actually jumped 37% to S$5.3m.

Stamford Tyres’ top-line had suffered due to weaker export sales of Sumo Firenza tyres and mining tyres. On the other hand, profits had increased due to a number of factors. Chief among those was a one-time gain of S$5.6m from the sale of a property at Balestier Tower in Singapore. In addition, operating expenses were 4.5% lower than the corresponding period last year due to the company’s cost reduction efforts.

GP Batteries International (SGX: G08) rounds up the trio with a 8.3% decline to S$0.77. Two Fridays ago, the battery manufacturer had announced a profit warning where it “is likely…to report a net loss” for the third quarter of its financial year ending 31 March 2014.

The reason for the expected-loss stems from the impairment of the company’s investment for a 45% stake of the Vectrix group of companies. In particular, the value of Vectrix group recorded on GP Batteries’ books is likely to be higher than the cash that can be recovered based on the former’s latest cash flow projections.

In light of that, GP Batteries’ board thinks it will be “prudent” to make further provisions for impairment losses, hence the profit warning.

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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.