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The Singapore Market this Week

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Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on changes — just in case they’re material to our investing thesis.

During the week, our local stock market barometer, the Straits Times Index (SGX: ^STI), went up around 12 points, or 0.4%, to close at 3,271 points.

The Straits Times Index consists of 30 of some of the shares with the highest market capitalisations in Singapore. Out of those 30, 16 finished in the green, 10 made losses, while the rest were flat.

The “flyer” within the index was Olam International (SGX: O32), which surged 4.2% to finish the week at $2.46. The commodities trader said on 23 June that it had formed a partnership with Mitsubishi Corporation of Japan (MC) which will see MC investing US$64 million for an 80% interest in Olam’s wholly-owned subsidiary, Olam Grains Australia. Olam believes the “partnership will leverage growth opportunities in the Australian Grains business”.

Somewhat ironically, the “falling knife” of the index this week was another commodities company, Noble Group (SGX: N21). It fell 1.8% to $1.37 for the week. On 25 June, Noble had listed in Singapore US$350 million worth of perpetual capital securities which carries a 6% coupon rate.

Zooming out of the blue-chip universe, one of the biggest declines in the mid-cap sector was recorded by Yangzijiang Shipbuilding (SGX: BS6). The aptly-named shipbuilder had dropped to $1.09, shedding 3.1% for the week. It was just last week when the share had surged 6.6%. Nothing material was released by the shipping company for this week.

Meanwhile, shares of real estate developer Fragrance Group (SGX: F31) grew 4.7% to end the week at $0.225. On 17 June, it made public that it had “entered into a Sale & Purchase agreement to acquire a property located at 134-160 Spencer Street, Melbourne, Victoria, Australia” at a price of AU$44.5 million.

The property is located on a free-hold site has a land area of around 1,800 square metres and sits in a “unique corner site” in the central business district of Melbourne, Australia. Fragrance Group wishes to redevelop the existing real estate into a high-rise mixed-use development.

The Straits Times Index is currently valued at a historical price/earnings (PE) ratio of 13.8 and sports a market capitalisation of S$536.4 billion.

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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 contributor Sudhan P doesn’t own shares in any companies mentioned.