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Three Shares That Beat the Market

Today’s the day when Ascendas Real Estate Investment Trust (SGX: A17U) replaces CapitaMalls Asia in the Straits Times Index (SGX: ^STI). Unfortunately, the index hasn’t been able to extend a warm welcome as it declined by 0.5% to 3,280 points. Ascendas REIT itself had also fallen by 2.9% to S$2.32.

While it was a bad day collectively for the blue-chips, the same can’t be said for individual shares that are both within and outside the index. Let’s take a look at three market beaters in particular.

Commodities trader Olam International (SGX: O32) has moved up by 1.8% to S$2.33. Interestingly, that’s some 4.5% higher than the price of S$2.23 which Temasek Holdings had sought to acquire Olam’s shares at.

Earlier this March, Temasek had led a consortium to purchase shares of Olam at S$2.23 in order to “provide Olam with a stronger long term shareholder base to support Olam’s strategy and growth plans over the medium to long term.” The consortium, which consisted of Temasek, Aranda Investments Pte Ltd., Olam’s executive committee, and founding family, had together owned 52.5% of Olam’s shares prior to the announcement.

Two weeks ago on 23 May 2014, the purchase exercise had finally ended, resulting in the consortium owning a total of 78.8% 80.4% of the commodity trader.

Semiconductor test equipment maker STATS ChipPAC (SGX: S24) has spiked by 25.5% to S$0.615. The sharp jump in the company’s shares had prompted the stock exchange operator Singapore Exchange to issue a “Please Explain” at 4:43pm today. As of the time of writing (6:30pm, 4 June 2014), there’s been no response from STATS ChipPAC yet.

It was less than a month ago on 15 May 2014 when the company had been queried by SGX after it had gained some 14.9% that day. Turns out, the company has received a possible privatisation offer from a third-party.

But while no new information has been released since (a possible price tag, and even the identity of the buyer remains unknown), shares of the company have been on a massive tear. STATS ChipPAC ended 14 May 2014 at S$0.335 a share and with today’s sharp rise, is now 83.6% higher than where it was back then; it seems that the market is really exuberant about the deal.

STATS ChipPAC might present some unique advantages for an acquirer if the latter’s within the same industry. But at the same time, it also pays to note that the company has been facing huge challenges in its business, even clocking cumulative losses of US$33 million in the three years between 2011 and 2013.

Kian Ho Bearings (SGX: K22) is another share that’s up big today with a 13.6% gain to S$0.25. The maker of ball bearings and seals had requested for a trading halt 10 minutes before 5pm today shortly after its price had spiked. The halt was due to a “pending announcement” that the company’s going to make. No official details are out yet though.

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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.