Last night, the American markets were down, with the S&P 500 Index and Dow Jones Industrial Average losing 0.9% and 0.8% respectively. Singapore’s stock market gamely followed suit today as the Straits Times Index (SGX: ^STI) broke its nine-day winning streak with a 1.4% decline to 3,131 points. None of the index’s 30 constituents made any gains, and only container port operator Hutchison Port Holdings Trust (SGX: NS8U) managed to not make any losses as it stayed flat at US$0.68. So while the blue chips weren’t doing so well, that does not mean that other shares had…
Last night, the American markets were down, with the S&P 500 Index and Dow Jones Industrial Average losing 0.9% and 0.8% respectively. Singapore’s stock market gamely followed suit today as the Straits Times Index (SGX: ^STI) broke its nine-day winning streak with a 1.4% decline to 3,131 points.
None of the index’s 30 constituents made any gains, and only container port operator Hutchison Port Holdings Trust (SGX: NS8U) managed to not make any losses as it stayed flat at US$0.68.
So while the blue chips weren’t doing so well, that does not mean that other shares had a bad day. In fact, there were more than a handful of shares outside the index that had some meaningful gains. Let’s take a look at some of them.
Logistics and data centre solutions provider Keppel Telecommunications & Transportation (SGX: K11) leaped 14.6% to S$1.77. Shares of the company started rising around the time when it made an announcement near 12:30pm today that it could be setting up a data centre real estate investment trust.
The new REIT would be listed on the Mainboard exchange in Singapore, but most other details – which include the properties that would be bought by the REIT – aren’t set in stone yet. The listing is also subjected to regulatory approval and “market conditions”, among others.
Keppel T&T would be making further announcements regarding the matter in due course.
RH Petrogas (SGX: T13) is up 3.4% to S$0.615. Yesterday, the oil & gas exploration and production outfit released updates on the drilling of its Koi-2 appraisal well in the Salawati Kepala Burung PSC (Production Sharing Contract), Indonesia.
The well’s located in shallow water depths of 32m, and the drilling reached a vertical depth of 1,428 metres. Oil shows (an indication of oil) were found from various samples from the well and logging operations (collection of detailed data and records from the drilling activities) are currently underway.
Production testing would follow if further analysis “confirms the presence of hydrocarbon zones.”
RH Petrogas has an effective 33.21% interest in the Salawati Kepala Burung PSC with the other partners being PetroChina International Kepala Burung Ltd and PT Pertamina Hulu Energi Salawati.
Rounding up the trio is Aspial Corp. (SGX: A30), which gained 2.4% to S$0.435. The company wears many hats. It’s a jewellery retailer; property developer; and pawnbroker through its subsidiary Maxi-cash Financial Services Corporation (SGX: 5UF).
Aspial recently – yesterday, to be exact – announced that it had acquired its first major overseas property for A$41.5m (around S$47m), which would be funded through “internal resources and borrowing”. The freehold property, located at 383 King Street Melbourne, Australia, is a commercial development with nine upper office levels and two basement carpark levels.
It’s also conveniently situated 300m away from Flagstaff station, the fifth busiest station in Melbourne’s metropolitan network and one of the five stations that circles the central business district of Australia’s capital.
“We see great potential in Australia’s property market and firmly believe that this Property presents a tremendous opportunity for [Aspial]”, commented the company’s chief executive Koh Wee Seng.
He added that Aspial’s “currently exploring options for the Property, including redevelopment for mixed commercial and residential use.” Finalised plans regarding the property would only be confirmed at a later date.
On a final note, Aspial’s latest financials showed it having S$50m worth of cash while having S$835m in debt. On that front, it would appear that the company might be stretching it a little with their finances in making the acquisition. Investors might want to keep an eye on its balance sheet going forward.
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