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.

The Straits Times Index (SGX: ^STI) has reversed yesterday’s 0.4% loss by gaining 0.7% to 3,264 points today. It was a field of green within the index with 26 out of its 30 constituents making some headway. Meanwhile, only two blue chips had clocked losses.

Let’s take a look at some market beaters.

Ascendas Real Estate Investment Trust (SGX: A17U) has climbed by 1.8% to S$2.32. The REIT, which is focused on industrial real estate and business parks in Singapore, announced on Monday that it had completed the acquisition of Hyflux’s (SGX: 600) headquarters, the Hyflux Innovation Centre, for S$193.9 million.

Ascendas REIT had used its existing debt facilities to pay for the property. As of 31 March 2014, the REIT had an asset base of S$7.36 billion and a gearing ratio (total debt/total assets) of just 31%. In light of that, taking on an additional S$193.9 million in borrowings to purchase Hyflux’s headquarters would probably not result in the REIT’s finances being stretched excessively.

Chemical products manufacturer SunVic Chemical Holdings (SGX: A7S) also makes the cut here with its shares up 4.1% to S$0.505. Just yesterday, the company had revealed that it had suffered a fire incident at its factory in Yancheng City, China, on 26 June 2014. Fortunately, there was no casualty or injury and the costs to replace damaged equipment “is not significant.”

Parts of the factory are temporarily closed and would resume production progressively. The impact of this incident to the company’s financials would likely be small given the company’s estimates that “less than 5%” of its total revenue would be negatively affected due to the fire.

Fast-growing offshore support vessels builder Nam Cheong (SGX: N4E) is last in line. Its shares have gained 3.7% to S$0.42.

Following last Monday’s announcement about the company clinching US$84 million worth of contracts, the company has made known yesterday that it had clinched four more sales contracts for four vessels that are worth a total of US$92 million. This has brought Nam Cheong’s order book to 25 vessels worth around S$660 million. The new contracts are pencilled in for delivery between 2014 and 2015 and “are expected to contribute positively to the [company’s] earnings” for those 2 years.

In a separate announcement yesterday, Nam Cheong also revealed some changes at its helm with the appointment of John Tiong Chiong Hiiunng as Group Executive Vice Chairman. Tiong would be assisting current Chairman Datuk Tiong Su Kouk in “reviewing Board matters and in supporting the implementation of growth and business strategies.” Tiong had been a Non-Executive Director at Nam Cheong since April 2011.

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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.