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.

After spending most of the day underwater, the Straits Times Index (SGX: ^STI) finished strongly and ended up with a 0.1% gain to 3,311 points. Within its 30 constituents, 19 shares had made some headway while eight others weren’t as fortunate as they had clocked losses.

Let’s take a look at some market beaters both within and outside the index.

Singapore Technologies Engineering (SGX: S63) is up 0.8% to S$3.77. The engineering and defence systems outfit had announced on Wednesday that its electronics arm had clinched S$580 million worth of contracts in the second quarter of 2014. That’s a substantial jump over the S$207 million in contracts that the company had signed in the corresponding period a year ago.

My colleague Sudhan had recently written about the significance of the latest contract win for ST Engineering and the main takeaway was this:

“Given that present contracts represent future revenue for the company, it’s a good thing for ST Engineering’s business to see larger contracts being signed if profit margins can be maintained.”

InnoTek (SGX: M14) has jumped by 10.8% to S$0.41 after revealing this morning that one of its substantial shareholders, Gazelle Capital Pte Ltd, is in talks currently which may result in a takeover offer for InnoTek. It should be noted however that the discussions are in the preliminary stages only and that nothing’s set in stone.

In any case, InnoTek was queried yesterday by stock exchange operator Singapore Exchange after the latter noticed that there were “unusual volume movements” in the company’s shares on the same day. InnoTek’s initial response was that it was unaware of any possible reasons which might explain the trading activity. But as it turns out, InnoTek had been informed by Gazelle today about a potential takeover offer and the company then promptly updated the investing public with this new information.

As of 25 March 2014, Gazelle controls a 6.01% stake in InnoTek.

Starburst Holdings (SGX: 40D) rounds up the trio with its shares up 1% to S$0.515. The company, which designs and engineers defence training facilities, is a really new share given that it started trading on the Catalist exchange only last Thursday.

The company’s offering was really popular with its listing shares being 9.5 times oversubscribed. Early investors who got in during the IPO would likely be very happy as the share’s now some 66% higher than its listing price of S$0.31.

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