Last night, the US Federal Reserve’s new chair, Janet Yellen, made her first testimony in front of the US Congress, bringing the message that the Fed will likely continue to slowly decrease its monthly US$65 billion asset purchasing programme. In addition, she also mentioned that the Fed would now have a soft target of 6.5% for the unemployment rate in the USA before the central bank would consider higher interest rates. The American stock market apparently liked what it heard as the S&P 500 and Dow Jones Industrial Averages – two major market indexes there – both…
Last night, the US Federal Reserve’s new chair, Janet Yellen, made her first testimony in front of the US Congress, bringing the message that the Fed will likely continue to slowly decrease its monthly US$65 billion asset purchasing programme.
In addition, she also mentioned that the Fed would now have a soft target of 6.5% for the unemployment rate in the USA before the central bank would consider higher interest rates.
The American stock market apparently liked what it heard as the S&P 500 and Dow Jones Industrial Averages – two major market indexes there – both gained more than 1%.
The Straits Times Index (SGX: ^STI) here in Singapore has followed suit as it inched up 0.2% to 3,035. While those gains aren’t exactly inspiring, it’s also the fifth consecutive day where the index has managed to make some headway.
Nine of the index’s 30 constituents had unfortunately made some losses however, with 16 others ending the trading session in the green. But despite the blue chips having a relatively good day on average, most of the action had taken place outside the index. Let’s take a look at some shares that saw particularly strong price increases.
Gallant Venture (SGX: 5IG) jumped some 26.4% to S$0.34 today. The company, which has interests in industrial parks and resorts in the Indonesian islands of Batam and Bintan, announced yesterday evening that it would be partnering with Garuda Indonesia to “develop Bintan Island into a tourism and aviation hub.”
Garuda’s the national airline of Indonesia and the collaboration would see both parties working together to develop the island into a new airline hub for Garuda in addition to building a new aircraft maintenance centre that would be part of the 177 hectare Bintan Aerospace Industry Park. The aerospace industry park is in turn located within the Bintan Industrial Estate, in which Gallant Venture has interests in.
As part of the collaboration, Gardua would also “promote Bintan as an international tourism destination, and support to develop its connectivity both outbound and inbound.”
Eugene Park, chief executive of Gallant Venture, also spoke of the company’s commitment to “invest providing the necessary infrastructure to serve the growing number of visitors to [Bintan]” as both parties work towards developing the island into a “choice destination for travellers” and growing Bintan Industrial Estate into a “world class centre for the aerospace industry”.
China-based towercrane manufacturer Yongmao Holdings (SGX: E6A) gained 8.5% to S$0.205. It released its third quarter earnings results on Monday and saw strong growth in both sales and profits. For the nine months ended 31 Dec 2013, Yongmao’s top-line rose by 27% year-on-year to RMB689 million while profits were up by 142% to RMB40.3 million.
Yongmao saw “strong demand for [its] towercranes across all [its] markets” and that was the major reason for its growth. In its earnings release, the company mentioned that China would remain its biggest market and it “foresee[s] ongoing domestic demand” in the country. In addition, Yongmao also saw “significant improvements” in its export markets in the United States and Europe.
Lastly, the company “hope[s] to sustain this positive momentum” by setting its sights on higher growth in Southeast Asia and emerging markets such as Myanmar.
Spindex Industries (SGX: 564) rose by 8% to S$0.475 after it announced its second quarter earnings yesterday evening. The precision-machined components provider saw its half-yearly revenue increase by 8% from S$45.2 million a year ago to S$49 million. Meanwhile, its profits actually more than doubled from S$2.1 million to S$5 million.
The company’s revenue had grown on the back of higher business volumes despite challenging economic conditions and cautious business sentiment. Its profit margins also swelled, primarily due to “better product mix, lower prices of raw materials and better cost management.”
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