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Three Shares that Lost to the Market Today


The first trading day of 2014 has seen the Straits Times Index (SGX: ^STI) move up 0.2% to 3,175 points. The index is now on a nine-day winning streak that started on 19 Dec 2013.

While the index managed to make some headway today, not every share was that lucky. For instance, within the STI’s 30 constituents, only 10 shares had gains while 13 others had made losses.

What were some of the shares that had fared worse than the STI today? Let’s find out.

GKE Corporation  (SGX: 595) has slid by 18.9% to S$0.15. The logistic services outfit had issued a profit warning on last Thursday. The company is “expected to report a net loss” for the six months ended 30 Nov 2013.

GKE laid the blame for the losses on a number of factors, including: 1) costs related to acquisitions made during the financial period, and 2) increase in staff costs and depreciation of its fixed assets.

Investors can find out more when the company releases its results “on or before” 14 Jan 2014.

Real estate developer and hotel manager City Developments (SGX: C09) is down 0.8% to S$9.52. The company’s majority-owned and London-listed subsidiary, Millennium & Copthorne Hotels (M&C) has been busy of late.

Last Monday, M&C reported that it would be recognising revenues of S$537m for the fourth quarter of 2013 in relation to the sales from its Glyndebourne residential development project that was built on the site of the former Copthorne Orchid Hotel in Singapore.

The Glyndebourne project had been granted a temporary occupation permit (TOP), which finally allowed M&C to recognise the revenues and costs associated with it. As a result of the recognition, M&C’s pre-tax profits for the entire financial year 2013 would increase by around £130m to £140m (approximately S$273m to S$294m).

On Christmas Eve, 24 Dec 2013, M&C then announced that it would be acquiring a new hotel in the Chelsea district of London, England. The hotel, which would cost £65m (around S$136m), “is a luxury property that borders the River Thames and offers 154 suites and 4 penthouses”. It has 98 years remaining on its lease term.

Kwek Leng Beng, chairman of M&C, commented that the acquisition would “fit very efficiently into [M&C]’s existing portfolio of London properties.” He also added that the hotel is located in an area that “will be going through further transformation and improvement in the near future.”

Aptly-named engineering outfit Singapore Technologies Engineering (SGX: S63) is last on the list with a 1.0% drop to S$3.92. The company’s marine engineering arm, Singapore Technologies Marine, announced on Monday that it has bought a 10% stake in the new ferry cruise operator Nova Star Cruises Limited.

Quest Navigation Inc. would own the remaining stakes in the Canada-based Nova Star, which would be operating a cruise ferry service between Yarmouth (Nova Scotia, Canda) and Portland (Maine, USA).

It’s a strategic move by ST Engineering, as its marine arm has also secured a 3 year bareboat charter from Nova Star for a Roll-on/Roll-off Passenger Vessel (Ropax). The charter has been in effect since late Dec 2013, and has an option to be extended for up to seven years.

Under a bareboat charter, the renter (Nova Star) would be responsible for providing all crew and provisions needed for the operation of the Ropax from the owner (ST Engineering).

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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.