Three Shares that Beat the Market Today


Singapore’s stock market continued its downward momentum that carried over from last Friday with a 0.2% dip to 3,124 points for the Straits Times Index (SGX: ^STI).

There were 17 shares within the index’s 30 constituents that ended today with some gains. 11 others weren’t as fortunate as they made losses.

Let’s take a look at some shares that had managed to beat the index.

CapitaMall Trust (SGX: C38U) inched up some 0.5% to S$1.885. Last Friday the retail mall real estate investment trust had announced, together with real estate companies CapitaLand (SGX: C31) and CapitaMalls Asia (SGX: JS8), that the three outfits might be selling Westgate Tower for up to S$579m.

The potential buyers are a consortium that’s made up of Sun Venture Homes Pte. Ltd. and Low Keng Huat (Singapore) Limited and they have been offered options, which would expire on 24 Jan 2014, to purchase Westgate Tower by the trio of CapitaLand, CapitaMalls Asia, and CapitaMall Trust.

The property, located at Jurong East, is the office component of Westgate integrated development which also contains the Westgate shopping mall. Westgate Tower is slated for completion late this year, and would be a 20-storey prime office tower with 304,963 square feet of net saleable area.

The entire Westgate development is owned by CapitaMall Trust, CapitaMalls Asia, and CapitaLand in a 30:50:20 ratio.

The Mainboard and Catalist stock exchange operator Singapore Exchange (SGX: S68) gained 1.1% to S$7.26. The company had some pleasing news for investors this morning when it announced that “derivatives trading reached new heights in 2013” even though securities trading had declined, with securities daily average value dropping 20% year-on-year to S$951m.

For the whole of last year, some other highlights included a slight 0.6% decline in total stock market capitalisation to S$940b; a 40% increase to S$6.3b in equity fund-raising with 27 IPOs; a 200% gain in ETF turnover to S$3.2b; and a 40% jump in derivatives total volume and daily average volume to 112 million and 459,362 contracts respectively.

Meanwhile, the volume of SGX AsiaClear commodities doubled to 660,372 contracts and the “volume of iron ore swaps, futures, and options cleared more than doubled to 590,648 contracts” in 2013. SGX announced in October last year that it’s pushing to develop the commodity derivatives markets in both China and Singapore and investors can keep a lookout for progress on that front by looking at growth in the exchange’s derivatives volume.

Sino Construction (SGX: F3V) jumped 29.1% to S$0.173. The construction company had announced on 30 Dec 2013 that it would be selling its subsidiary Daqing Xinyuan Construction Installation Company for S$10m to Calcourt Limited.

Daqing Xinyuan is responsible for the operation of thermal heating plants and provision of heating services in China. Sino Construction has seen the heating business underperform since acquiring it in Sep 2011 and the sale would allow the company to “unlock the value of an underperforming asset”, improve its balance sheet, and allow it to focus on its core competencies as part of its restructuring plans.

The market seems really positive about the whole deal as Sino Construction has gained some 73% in five trading days since it closed at S$0.10 on 30 Dec 2013. Investors should note that the company has not made a profit in the last 12 months and are currently worth 24 times its book value.

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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.