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Three Shares That Beat the Market Today

It was a bad day for Singapore’s blue chips. Within the Straits Times Index’s (SGX: ^STI) 30 constituents, some 19 shares had made losses for the day while only nine others had managed to make some headway. Given that the magnitude of increases for the index’s constituents had been small, the Straits Times Index was thus dragged down by 0.9% to 3,238 points.

But even if the index hadn’t performed well, the same can’t be said for other shares. Let’s take a look at some market beaters today.

Singapore Telecommunications (SGX: Z74) has risen by 0.5% to S$3.77. Over the past week, Singapore’s largest telecommunications service provider has been busy. The company had managed to set up credit facilities last Tuesday worth a total of S$3.5 billion with more than a dozen banks for “general corporate purposes and refinancing of existing facilities.”

It should be noted that the setting up of the facility does not necessarily mean that SingTel now owes third-parties an additional S$3.5 billion; SingTel has to draw upon those funds for it be considered to have borrowed additional capital. In any case, as of 31 Dec 2013, the telco has S$1.63 billion worth of debt coming due within the next 12 months. With only S$1.28 billion worth of cash on hand, the credit facility has arrived at a rather convenient time.

That’s not all with SingTel however. On Thursday, the company announced that it would be buying 189,931 shares of Kai Square Pte Ltd for S$1.95 million in total. According to SingTel’s press release, Kai Square’s based in Singapore and offers analytical services for video and other data from monitoring devices. SingTel had previously owned 19% of Kai Square, but with the latest purchase, the former now owns 39% of the latter.

Supermarket operator Sheng Siong Group (SGX: OV8) continues its climb with a 1.6% gain to S$0.63 today. Last Thursday evening, the company had released its first quarter results for 2014 which saw it clock a 19% year-on-year jump in quarterly profit. The market seems to really like what it has seen as Sheng Siong’s shares had already went up by 3.3% last Friday.

Sheng Siong’s quarterly results had been helped by an increase in same stores sales of 3%; in other words, Sheng Siong’s outlets that are at least a year old had managed to increase revenue by 3% on average during the quarter.

QAF (SGX: Q01) rounds up the trio with its shares up 1.1% to S$0.88. The food producer and distributor had turned in its latest report card for the first quarter of 2014. Quarterly revenue had dropped by 3% year-on-year to S$243 million but profits went up by 11% to S$12.7 million.

As QAF has significant operations outside Singapore, the strengthening of the Singapore dollar in relation to the currencies of the other countries it does business in had affected its top-line. If currency swings were stripped away, sales had in fact grown across all the company’s business segments, namely Bakery, Primary Production, and Trading & Logistics. Meanwhile, the company had experienced profit growth mainly as a result of much better cost controls which helped expand its profit margins.

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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.