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Three Shares That Beat the Market Today

The Straits Times Index (SGX: ^STI) started the week on a bright note as it climbed 0.6% to 3,092 points with 21 out of its 30 constituents having made some headway. Meanwhile, seven other blue chips suffered losses for the day.

While majority of the blue chips ended the trading session in the green, most of the positive action took place outside the index. Let’s take a look at some shares that managed to log some eye-catching share price increases.

Biscuit manufacturer Khong Guan Flour Milling (SGX: K03) gained 8.5% to S$2.17 after releasing its latest half-year results last Friday evening. The company’s revenue for the six months ended 31 Jan 2014 had dropped by 10.2% year-on-year to S$30.5 million mainly due to a shortage of edible oil for its business in addition to facing increased competition.

Meanwhile, its profits had dropped precipitously from S$13.5 million a year ago to S$167,000. In the corresponding six month period in the previous year, Khong Guan had sold certain financial assets, leading to a one-off profit of S$11.9 million. If that were stripped away, the company’s profits for the six months ended 31 Jan 2013 would have fallen to S$1.59 million instead. But while this meant that the collapse in profits weren’t as drastic as previously thought, there’s certainly room for improvement in the company’s latest results.

Adverse currency movements stemming from the weakening ringgit, competition in the sale of wheat flour, and fair value losses in some of its financial assets had all contributed to Khong Guan’s decline in profits. Nonetheless, the company’s directors think that profit in the next half of the financial year “will be better”.

TT International (SGX: T09) rose sharply by 8.7% to S$0.175 and at one point during the day, even sat on a 11.1% gain at S$0.179. The company had recently made a splash with the announcement of a new wholesale retail mall called BIG BOX in the Jurong area of Singapore. It then followed that up shortly by revealing that it had signed a master franchise agreement with Habitat, a French manufacturer of designer homeware and interior decoration.

However, the company’s sharp increase in share price today prompted the Singapore Exchange to issue a query to TT International on a possible reason for the rally. Turns out, the company wasn’t aware of any reasons for such trading activity and this has led to the SGX issuing a “Trade With Caution” warning for the company’s shares at 3:24pm today.

The semiconductor testing services provider Sunright (SGX: S71) rounds up the trio with its shares up 4.2% to S$0.125. Revenue for the six months ended 31 Jan 2014 had dipped by 5% year-on-year to S$43.9 million while its losses narrowed from S$3.39 million a year ago to S$570,000. “Weaker demand, across all business segments”, was attributed as a main cause for the decrease in revenue.

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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.