Three Shares That Beat the Market Today

With a 0.5% gain to 3,189 points, the Straits Times Index (SGX: ^STI) has made a good start to the week. Within the index, there were 17 shares that managed to make some headway while only six others suffered losses.

Let’s take a look at some shares outside the index that had market-beating performance today.

Nam Cheong (SGX: N4E) rose by 3.1% to S$0.34. The offshore support vessel (OSV) builder revealed in the morning today that it had sold two vessels for US$43.1 million (around S$54.4 million). With the new sales announced, Nam Cheong has made it a “record sale” of seven vessels within the first quarter of the year. In addition, the sale of the two new vessels has increased the company’s overall order book to RMB1.4 billion (roughly S$539.8 million).

Leong Seng Keat, chief executive of Nam Cheong, commented during the announcement that the company “expect[s] to see an increase in replacement activities” in its industry-space. In addition, exploration & production spending in the oil & gas industry is expected to reach a “new record of US$723 billion” in 2014, leading to increased demand for OSVs. If those expectations do pan out, that could be news that bodes well for Nam Cheong.

Second Chance Properties (SGX: 528) gained 2.15% to S$0.475 after releasing its second quarter results last Friday. The company, which is involved with gold and Malay fashion apparel retailing in addition to having property and securities investments, saw revenue for the six months ended 28 Feb 2014 tick up by 1.1% year-on-year to S$19.7 million. Meanwhile, its profits grew slightly by 3.2% to S$6.58 million.

Much of its growth can be attributed to higher dividends and coupon payments from its securities portfolio (which consist of bonds and shares, among other types of financial securities) while its gold, apparel, and property-rental operations all slipped a little.

Despite middling growth during the quarter, Second Chance had declared an interim dividend of S$0.02 per share. There were no interim dividends for the corresponding period in the previous year.

Back in early Feb this year, the company had announced that it had entered into an option deal with an end in mind to sell 45 properties – the bulk of its real estate portfolio in Singapore – for a collective S$175.4 million. During Second Chance’s earnings release, the company touched upon the subject in relation to certain accounting treatments, but there were no updates on the progress of the potential sale itself.

Hanwell Holdings (SGX: DM0) had increased by 2.0% to S$0.25. The company, which provides household consumer products in addition to having an investment arm that’s named as “Strategic Investments”, revealed on 21 March 2014 that it had finally closed the sale of a golf club-related property development project that was first announced on 23 April 2013.

The golf club, known as Sanya Yalong Bay Sum Valley Golf Club, Yalong Bay National Resort Area, Sanya City, Hainan Province, China, would be sold for HKD307 million (approximately S$50.1 million) to Kang Cheng Holdings Limited.

Hanwell sought the sale to “realize the gain of [the golf club investment] and unlock the value thereof” for its shareholders. The company has the intention of utilising the proceeds from the sale for “general working capital purpose”.

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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 owns shares of Second Chance Properties.