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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 started the week on the back-foot after it slipped by 0.1% to 3,289 3,291 points today. Within the index, 12 shares out of its 30 constituents had managed to make some headway while the same number of blue chips had clocked losses.

Oversea-Chinese Banking Corporation (SGX: O39) has gained 0.9% to S$9.48. The bank’s S$6.2 billion acquisition offer for Hong Kong-listed Wing Hang Bank was first made known this April. The process had gone rather smoothly these past few months with the bank steadily acquiring more than 50% control of Wing Hang Bank.

But just last week, business newswires revealed that OCBC’s plans to take Wing Hang private may have hit a snag after a hedge fund, Elliott Capital Advisors, run by billionaire Paul Singer, had established a stake of around 7.8% in the Hong Kong bank.

OCBC has to control more than 90% of Wing Hang by 29 July 2014 in order to be able to take it private. Otherwise, Wing Hang has to remain as a publicly-listed entity in which OCBC can control no more than 75%. These two dynamics can create a host of problems for OCBC, as shared in here by my colleague, Stanley Lim.

Precision hard-disk drive (HDD) parts maker Cheung Woh Technologies (SGX: C50) is up by 6.9% to S$0.17 after releasing its first quarter earnings last Friday. For the three months ended 31 May 2014, Cheung Woh’s revenue jumped by 35.5% year-on-year to S$19.1 million on the back of higher demand from its customers, which drove a 58.4% increase in sales for the HDD segment.

But those aren’t the really impressive figures: The company’s bottom-line is what really shone through as it improved from a meagre S$189,000 a year ago to S$2.25 million. Cheung Woh’s much higher gross profit margin of 13.8% (it was 8.8% in the corresponding period a year ago), along with cost savings across the board, had helped push the company’s profit higher.

Offshore support vessels builder Triyards Holdings (SGX: RC5) has gained 3.0% to S$0.69. The market’s enthusiasm for the company’s recent third quarter earnings, which was released last Thursday, does not seem to have waned much.

The company, which saw its quarterly top- and bottom-line grow by 11% and 1% respectively compared to a year ago, saw its share price climb by 3.9% to S$0.67 last Friday.

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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.