Three Shares that Beat the Market Today


The Straits Times Index (SGX: ^STI) fell 0.2% to 3,145 today.

Within the index’s 30 constituents, only 10 shares had managed to end the trading session in the black. The others, all 20 of them, lost some ground. But while it wasn’t a particular good day for the blue chips, there were still plenty of other shares outside the index that managed to make some significant headway.

Let’s check out some of them.

AusGroup (SGX: 5GJ) jumped 8.7% to S$0.25. The company, a marine and offshore service provider, announced last Friday that DBS Bank would be helping it raise up to S$16.1m in gross proceeds from the private placement of 96.1m new shares at S$0.168 each.

Deducting the relevant expenses for the placement would leave AusGroup with proceeds of around S$15.2m. The new shares represent almost one-fifth of the company’s total share count as of 3 Jan 2013.

AusGroup intends to use half the proceeds as collateral for future bonding requirements, while the other half’s earmarked for use as general working capital. Stuart Kenny, chief executive of the company, commented that the placement “is a great way to the start the year, boosting working capital as we work closely with new and existing customers to target opportunities in a changing market.”

The placement is expected to be completed by the end of the month.

Civil engineering outfit Swee Hong (SGX: QF6) is up next with a 4.6% gain to S$0.115. Yesterday night, the company announced that it has teamed up with OKP Holdings (SGX: 5CF), Ho Lee Construction Pte Ltd, Chye Joo Construction Pte Ltd, and Hwa Seng Builder Pte Ltd in a local joint venture to bid for and work on future Mass Rapid Transit (MRT) projects.

According to Swee Hong’s press release, the Ministry of Transport here in Singapore intends to spend up to S$60b over the next decade to double the local rail network from 138km in 2008 to 278km. With such huge sums of money being bandied around, it’s only natural that construction and civil engineering companies would want to vie for a piece of the pie.

The joint venture, named United Singapore Builders Pte. Ltd. is owned equally by all five parties.

Plastic foam and hard-disk drive maker Broadway Industrial (SGX: B69) rounds up the trio as its shares moved up 2.3% to S$0.23. On Tuesday, the company had announced that it has granted an individual, Chew Poh Guan, the option to purchase a property for S$4.2m.

The property’s located at The Central, 8 Eu Tong Sen Street, Singapore. Chew Poh Guan has paid 1% of the purchase price of S$4.2m as a fee for the option to purchase the property. The fee would be forfeited if no agreement for a purchase is set-up by the time the option expires in three weeks from 7 Jan 2014.

The particular property in question “is not being used by [Broadway] for any business operations, and is not expected to have a significant effect on the operating performance of the [company]”, hence the possibility of it being sold. In addition, the cash received from the sale, if it happens, would allow the company to improve its working capital position and reduce its debt.

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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.