3 Shares That Beat the Market Today


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.

With 19 out of its 30 constituents clocking losses for the day and only six shares making gains, the Straits Times Index (SGX: ^STI) has somewhat unsurprisingly dipped by 0.5% to 3,256 points.

Let’s take a look at some market beaters.

Olam International (SGX: O32) is up 4.9% to S$2.58. Last Friday night, the commodities trader had made two separate announcements regarding some of its African operations. Firstly, it would be selling one of its Gabonese subsidiaries to a Gabon-based timber company for US$6 million. Olam’s sale “is in line with the Company’s strategy to restructure the Wood Products portfolio.” The sale sees Olam completely exit the timber business in Gabon and the company would now focus on its Forest Stewardship Council certified forestry business in the Republic of Congo.

In the second announcement, Olam International had sold a 20% share of its stake in Gabon Special Economic Zone SA to the country’s government. The sale is “in line with [Olam’s] strategy to jointly invest with partners in projects that involve large capital expenditure and long gestation.”

These changes to Olam’s African operations have certainly excited the market, given the company’s share price jump.

The logistics, real estate, and financial services outfit Vibrant Group (SGX: F01) climbed 6.8% to S$0.11. The company, which had recently made a hefty S$110 million purchase of a commercial property in Singapore’s Central Business District, had released its full-year results last Friday.

For the financial year ended 30 April 2014, Vibrant Group saw an 8.4% increase in revenue to S$191.4 million. That helped drive profit growth of 11.2% to S$42.7 million. During the year, the company had seen broad-based growth in all its business segments. In particular, its logistics business, which is still the main revenue driver, had seen its revenue increase by 5.9% to S$172.6 million.

Hotel Grand Central (SGX: H18) rounds up the trio with a 3.2% gain to S$1.28. The hotel manager and owner had announced today that it would be selling one of its hotels, the Hotel Grand Chancellor, for S$248 million. The transaction’s expected to be completed on 15 January 2015 or earlier.

The hotel, which is located in the vicinity of Singapore’s Little India area, was first opened in 2010 and contains 328 rooms. Shareholders of Hotel Grand Central might be happy to note that the last appraised value for the hotel (as of 18 September 2012) was ‘only’ S$201 million, almost a fifth lower than its selling price. Hotel Grand Central has no clear plans for the use of the sale proceeds and it would be placed in “interest bearing bank term deposits pending a decision by the Directors on future investment opportunities.” 

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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.