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Three Shares that Beat the Market Today

Last Friday night, the American markets did rather poorly as the S&P 500 Index and Dow Jones Industrial Average fell by 2.1% and 2.0% respectively. The Singapore stock market has decided to follow suit as the Straits Times Index (SGX: ^STI) declined 1.1% to 3,042 points today

Within the index, it was a sea of red as 25 shares out of the 30 components ended the trading session with losses. Meanwhile, only two blue chips had managed to post some gains.

What were some of the shares in our local market that did better than the index? Let’s find out.

Talk about a wild swing in prices. Last Thursday (23 Jan 2014), SunVic Chemical Holdings (SGX: A7S) had dropped 15.8% in a single day from S$0.76 to S$0.64. Today, it has swung up 9.5% to S$0.69.

I had previously written about a huge sale – relative to the company’s market cap – that SunVic had made recently regarding some of its chemical plants. The sale was announced on 23 Jan 2014, the same day where SunVic saw its price plummet by 15.8%. There’s no new material information released regarding the company, but it seems the market’s now changing its views on the transaction.

Natural Cool Holdings (SGX: 5IF) jumped 18.5% to S$0.16. The company, which is involved with the air-conditioning and switch gear business, announced last Friday that it has entered into an option to purchase a property from Cambridge Industrial Trust (SGX: J91U).

The property’s located at 81 Defu Lane 10, Singapore, and the price being discussed amounts to S$7.8m. If Natural Cool decides to go ahead with the acquisition, it would be paying 20% of the purchase price in cash, with the remaining sums coming from bank borrowings.

On that front, the company’s balance sheet would likely not look too stretched given that it has S$16.6m in cash with S$14.9m in total debt in its latest financials.

The acquisition of the property’s subjected to approval from the Housing and Development Board (HDB) as well as shareholders of Natural Cool.

The company’s currently using said property on a lease-basis which would expire on 14 Nov 2014. Natural Cool views the property as being a “strategic location” for its distribution centre in the Eastern part of Singapore and would thus like to be able to have “greater certainty” in its ability to make use of the real estate.

Stock exchange operator Singapore Exchange (SGX: S68) rounds up the trio on an otherwise down day in the markets with a 0.7% uptick to S$7.00.

The company had announced its second quarter results last Wednesday and saw growth in both its top and bottom line. For the three months ended 31 Dec 2013, the company had reported a 2% year-on-year increase in operating revenue to S$165m while profits slipped 2% to S$75m.

The company’s chief executive, Magnus Brocker, commented on the results:

Our derivatives business saw sustained growth and now accounts for 32% of total revenue. The securities market had a challenging quarter due to lower participation by both retail and institutional investors. The global economy is showing moderate signs of recovery. We will continue to invest in new products and services, expand international distribution, and strengthen our regulatory and risk management capabilities.”

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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.