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Three Shares that Beat the Market Today

The Straits Times Index (SGX: ^STI) followed up yesterday’s 1% gain with another good day as it moved up 0.8% to 3,013 points.

It was a field of green within the index as 23 of its 30 components had managed to make some headway while only four were unfortunate enough to have clocked losses.

Olam International (SGX: O32) gained 3.5% to S$1.495. The commodities trader would be releasing its second quarter results a week later on 14 Feb 2014. In the company’s first quarter results for the three months ended 30 Sep 2013, revenue had slipped 8% year-on-year to S$4.32b while profits actually inched up 6% to S$45.6m. Olam had seen significant savings to the tune of S$414m in the cost to acquire its goods which trickled down to the bottom line.

The company had commented in its first quarter earnings release that it “remain[s] confident about delivering both earnings growth and generating positive [free cash flow to firm] for the [Financial Year] 2014.” So, that seems to portend well for Olam’s upcoming earnings release.

KrisEnergy (SGX: SK3) inched up 0.8% to S$0.67. Shares of the oil & gas exploration company actually hit an intra-day high of S$0.695 for a 4.5% gain from its closing price of S$0.665 on Thursday before dipping sharply right towards the end of the trading session.

In any case, the company had on Monday, repaid US$120m worth of bonds which would have matured on 21 July 2016. These bonds carried an annual interest of 10.5% and were repaid at US$126.3m (105.25% of the principal amount).

The repayment would save KrisEnergy some US$12.6m in annual interest payments, which would be helpful for the company, considering that it has incurred losses of US$30.2m over the last 12 months.

The company’s latest balance sheet (prior to the bond repayment) showed it carrying total debt of US$119m while having cash worth US$311m. Despite having to spend US$126.3m on the bonds, KrisEnergy would likely still have considerable cash resources at its disposable after making the payment.

Challenger Technologies (SGX: 573) climbed 2.6% to S$0.59. On Tuesday, the retailer of electronics and IT-gadgets had announced the closure of a retail outlet at Mahkota Parade, Malacca, Malaysia.

The company’s always on the look out to “rationalise” the locations of its retail outlets in order to improve overall operating performance and the Mahkota Parade outlet seemed to have fallen on the chopping block for that reason.

Meanwhile, the company made another announcement on the same day regarding two new leases in Singapore that it had signed. The leases are located at Eastpoint Mall and Northpoint Shopping Centre and would commence in the fourth and second quarter of 2014 respectively.

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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.