Three Shares that Lost to the Market Today


The Straits Times Index (SGX: ^STI) has gained 1% today to 3,151 points. Within the index, there were just two shares that ended the trading session with losses while 23 others managed to clock some gains.

What were some other unfortunate shares that lost to the market today? Let’s find out.

Business management and consultancy services provider Pacific Century Regional Development (SGX: P15) dropped 6% to S$0.235. The company has been on a buying spree recently, buying back some 7.2m of its own shares since December last year for S$1.68m in total.

Super investor Peter Lynch likes seeing companies buy back their own shares, but it’s also important for investors to note that share buybacks can be a waste of shareholder’s money if the shares are being bought at expensive valuations.

Asia Fashion Holdings (SGX: GH3) is down by 4.6% to S$0.103. The maker of synthetic knitted fabrics announced last Friday that it would be purchasing China Construction Material (Hong Kong) Limited for RMB 100m.

China Construction Material, in turn, owns Xuzhou Zhongsen Tonghao New Board, a company that’s involved in the manufacture and sale of base material boards made from wood; floor and grainy boards (which are produced from the further processing of base material boards); decorative boards; and aluminium products.

Xuzhou Zhongsen earned RMB 30.2m in profits after-tax for the year ended 31 Dec 2012, giving it a historical price-earnings multiple of 3 based on the acquisition price.

Asia Fashion would be paying RMB 50m in cash – funded through internal resources and the proceeds from the placement of 100m shares, which was announced on 15 Aug 2013 – with the rest coming from issuing even more new shares.

Sarin Technologies (SGX: U77) slid 3.6% to S$1.86. The company had announced on Monday that it has launched a “radically new version of its polished-diamond quality assurance and polishing process control software – the InstructorTM 3.0.”

The new software can be used on many of Sarin’s existing diamond planning, processing, evaluation, and measurement systems and can be used to “significantly improve the accuracy of polished diamond modelling, in particular for fancy-shaped diamonds.”

Click here now for your FREE subscription to Take Stock Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.  

The Motley Fool’s purpose is to help the world invest, better. Like us on Facebook  to keep up-to-date with our latest news and articles.

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.