Three Shares That Lost to the Market Today

Last night, the United States Federal Reserve released its most recent meeting minutes and it seems that the Fed’s considering further tapering of its bond-buying programme in the months ahead. This is despite weaker numbers recently released regarding job growth and the housing market there.

The major American stock market indexes like the S&P 500 and Dow Jones Industrial Average promptly slipped and ended their trading sessions 0.7% and 0.6% lower respectively.

Here in Singapore, the Straits Times Index (SGX: ^STI) has followed suit with its own, albeit smaller, decline of 0.1% to 3,087 points. Only 11 out of the index’s 30 constituents had ended the day with gains while 15 lost some ground.

Let’s take a look at some shares outside the index that lost to it.

Ryobi Kiso Holdings (SGX: J8O) fell 7.9% to S$0.105. The ground engineering solutions provider announced last week that its 20:80 joint venture with property developer Heeton Holdings (SGX: 5DP) had just purchased the Kensington, London-based Enterprise Hotel for S$48 million.

The joint-venture, named Chatteris Developments Limited, had bought the hotel from Woodley Hotels (Kensington) Limited. Enterprise Hotel currently has around 100 rooms and Chatteris “will be looking into refurbishing [the hotel] to accommodate up to 120 hotel rooms”. The hotel’s located at a strategic location, being only a “few minutes’ walk” from Earl’s Court Exhibition Centre and “a short stroll away” from South Kensington’s museums.

Danny Low, chief operating officer of Heeton Holdings, commented on the acquisition: “This is an attractive hospitality asset in which we are looking to enhance the asset through refurbishment and additions of more room keys. We are confident that we will be able to optimise the current yield and boost higher revenue per average room in the near future.”

Waste management outfit Colex Holdings (SGX: 567) dropped 5.3% to S$0.16. The company just released its full-year results for 2013 yesterday evening and saw profits expand by 38.4% to S$2.73 million while revenue increased by 15.6% to S$52.6 million.

The company had managed to snag new refuse collection contracts in the Jurong sector in Singapore, increased the value of new contracts, and renewed existing contracts during the year. These factors led to its top-line growth and eventually trickled down to its bottom-line, despite expenses rising to meet new business-demands.

Pan-United Corporation (SGX: P52) slipped 1.6% to S$0.905. The company counts the business of supplying cement and ready-mixed concrete as its main driver, though it also owns a fleet of tugboats and barges and has interests in multi-purpose ports in China’s Yangtze River Delta region.

Yesterday, Pan-United revealed that one of its majority-owned subsidiaries (85.5%), Changshu Xinghua Port Co., would be acquiring a 90% stake in another multipurpose port in China for RMB436.5 million (around S$91.3 million).

The acquisition will be paid in cash and is expected to be completed by 25 March 2014. The port in question is named Changshu Changjiang International Port Co., and is located beside Changshu Xinghua Port Co. In particular, the latter is a “key hub for pulp, logs and finished steel products for the Chinese market.”

The acquisition is expected to improve Changshu Xinghua’s operational capabilities in a number of ways. Overall handling capacity can be bumped up by 60% to 16 million tonnes per year; the port’s current berth length would expand by 65% to 2.8km; total land area at the ports will increase by 35% to 1.36 sq km; and, warehousing space will be boosted by 67% to 175,000 sqm.

Pan-United expects to increase its market share and boost its position as “one of China’s key logistics hub serving the industrial hinterland along the Yangtze River” with the acquisition. In addition, the purchase also fits with the company’s aims to “expand its core businesses and raise [its] foreign-sourced income.”

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