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Three Shares that Beat the Market Today

The Straits Times Index (SGX: ^STI) had spent much of the day in the green before dipping at the last stretch of the trading session to finish with a 0.2% decline to 2,961 points. It seems that even a 0.8% rebound in the American stock markets last night from the S&P 500 Index couldn’t bring Singapore’s market barometer out from its funk.

15 out of the index’s 30 constituents had ended today with losses while only 10 had made some headway. Let’s take a look at some shares that managed to better the index.

Real estate outfit City Developments (SGX: C09) gained 2.2% to S$8.87. The company had announced last week on 29 Jan 2014 that it had been awarded a plot of land at Canberra Drive, Singapore for its joint-tender bid with TID Residential Pte Ltd.

TIDR is a subsidiary of Hong Leong Investment Holdings through the latter’s ownership of Hong Leong Holdings Limited. Both Hong Long Investment Holdings and Hong Leong Holdings happen to be controlling shareholders of City Development.

The plot of land, which is owned by City Development and TIDR in a 70:30 ratio, was acquired for a total of S$226m from The Housing and Development Board with the intention of building an Executive Condominium housing development on it.

SembCorp Industries (SGX: U96) rose 1.7% to S$5.28. The utilities and marine engineering firm revealed on Monday that it has signed a conditional agreement to acquire a 45% stake in NCC Power Projects for Rs. 848 crores (around S$175m).

NCC Power Projects’ currently constructing a 1,320 megawatt coal-fired power plant along the coast of Nellore, Andhra Pradesh, India. According to SembCorp’s press release, the Nelloe power plant that’s in-progress would “double Semcorp’s power generation capacity in India and increase its footprint in the country’s growing power market.”

SembCorp would be funding the acquisition with “a mixture of internal funds and borrowings” and on that front, the company would likely not find itself financially over-stretched in any significant way given that its latest balance sheet shows it having S$2.27b worth of cash with total borrowings amounting to only S$1.77b.

The company believes that there are structural factors in India that will lead to sustained growth in energy demand in the country and this particular investment “strengthens Sembcorp’s position in India’s power sector, which is expected to grow substantially over the next decade.”

Yongnam Holdings (SGX: Y02) has surged 8.9% to S$0.245. Yesterday evening, the construction and engineering services provider announced that Myanmar’s Department of Civil Aviation (DCA) had approached the company and its partners to “enter into negotiation on the design, construction, operation and maintenance of Hanthawaddy International Airport and its facilities on the basis of a public-private partnership agreement for a 30-year concession period.”

On February 2013, Yongnam’s partners – Changi Airport Planners and Engineers, and JGC Corporation – and itself had formed a consortium and submitted a tender to Myanmar’s government to bid for the airport project. But, the group was informed on August last year that they would be back-ups for the project, which had been awarded to other parties.

Turns out, the latest twist of events has the government from Myanmar now approaching Yongnam’s consortium to possibly take up the airport project. But, Yongnam’s board cautioned that nothing’s set in stone yet and there’s no guarantee the project will eventually be awarded to the consortium.

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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.