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 a bright note with a 0.1% increase to 3,314 points. Last Friday’s close at 3,311 points marked a 14-month high for the index, so this slight gain today would represent another new high in more than a year.
In any case, there were only 12 shares within the index that had made some headway; nine others had unfortunately suffered losses. Let’s take a look at some market beaters.
Commodities trader Olam International (SGX: O32) has gained some 1.6% to S$2.48. Last week, the company announced that it would be issuing S$400 million worth of notes (i.e. debt) under its US$5 billion Euro Medium Term Note Programme. These notes carry an annual interest rate of 4.25% and would mature in seven years from its date of issue. The company expects to issue the notes on 22 July 2014.
According to the company’s executive director of finance & business development, Shekhar Anantharaman, Olam’s latest bond issue “is another step in [Olam’s] journey towards optimising [its] capital structure and achieving the right mix of debt maturity and pricing.” This could be beneficial for the company’s investors as that could mean more stability in the company’s finances and more efficiency in terms of generating returns on invested capital.
Specialist engineering services provider Koyo International (SGX: 5OC) is up 2.8% to S$0.146 following the company’s announcement last Friday that it has clinched a contract that is expected to “contribute positively” to its financial performance for 2014.
The contract, which involves the supply and delivery of around 170,000 metric tonnes of reclamation material, would last for 2 months and end in August 2014.
Tee International (SGX: M1Z) rounds up the trio with its shares having climbed by 1.8% to S$0.28. At the start of the month, the construction and engineering company’s chief executive, CK Phua, expressed his optimism regarding his company’s ability to clinch yet more construction/engineering contracts. He had said that in his company’s announcement of a S$70 million contract win to build an education facility in Malaysia.
Phua seems to be right; on 17 July 2014 (last Thursday), the company announced that it had won a S$42 million contract from the Changi Airport Group to construct underground ducts for high tension cables and fibre optic cables, amongst other types of construction activity.
Tee International’s latest contract win brings its outstanding order book to “almost S$400 million” with S$58 million of that value coming from contracts based in Singapore. As the company’s revenue over the last 12 months came up to only S$245 million, the size of its current order book is pretty significant for the scale of its business.
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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.