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. It’s been a good week for the Straits Times Index (SGX: ^STI) so far as it has closed today with a 0.7% increase to 3,341 points following slight gains in both Monday and Tuesday. Within the index, there were 18 shares that had managed to climb higher while seven others slipped into losses. Let’s take a look at some market beaters both within and…
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.
It’s been a good week for the Straits Times Index (SGX: ^STI) so far as it has closed today with a 0.7% increase to 3,341 points following slight gains in both Monday and Tuesday. Within the index, there were 18 shares that had managed to climb higher while seven others slipped into losses.
Let’s take a look at some market beaters both within and outside the index.
Commodities supply chain manager Noble Group (SGX: N21) has climbed by 1.1% to S$1.42. Yesterday, the company announced that it has redeemed US$350 million worth of perpetual securities. Noble’s obliged to pay out an annual interest of 8.5% for these securities so by redeeming them, the company can save up US$29.75 million per year in interest payment. With Noble’s profit of US$223.1 million in the last 12 months, that’s a pretty significant amount of future savings that could add to the company’s bottom-line.
Telco operator M1 (SGX: B2F) has had a nice day with its shares up 4.4% to S$3.83. It was just on Monday when the company released its second quarter earnings and saw its quarterly profit jump by 12.1% year-on-year to S$44 million.
But other than the growth in its bottom-line, there were actually some disappointing figures about its business. For instance, the company’s top-line actually shrank a little from S$245 million a year ago to S$240 million. Elsewhere, M1 actually lost some customers in certain segments and that manifested itself in a decline in market share in Singapore’s mobile market from 25.7% a year ago to 24.6% currently.
An uptick in profit is great – but it’s also important to look at other facets of the business to have a better picture on how sustainable that growth in profit is.
Phosphate miner AsiaPhos (SGX: 5WV) rounds up the trio; its shares have gained 1.9% to S$0.163. The company had announced on Monday that it has signed a letter of intent (LOI) with the Sichuan Mianzhu Economic Development Zone Authority (SMEDZA) regarding investments to be made in the GongXing Industrial Park.
Tentatively, the deal with AsiaPhos and SMEDZA is for the former to bring in up to S$60 million in investments within three years to build a number of different plants for the production of phosphate-based chemical products.
Dr Ong Hian Eng, chief executive of AsiaPhos, commented on the deal:
“With this LOI, we are pleased to receive support from the Sichuan Mianzhu Economic Development Zone Management Authority to put us on track to commence Phase 2 of our Rebuilding Programme. This support will be instrumental in the expansion of our downstream chemical production business through strategic alliances and joint ventures to maximise the value of AsiaPhos. This LOI also reiterates our confidence in the economic development of the Sichuan province as the relevant authorities continue to make it an attractive place for foreign direct investment.”
AsiaPhos is a relatively new face in Singapore’s share market having been listed only last October. At its listing price of S$0.25, the company has been a rather painful bet for its IPO-investors given that its current price is now close to 35% lower. Investors must be hoping such new initiatives can help drive growth in the company’s business in the future.
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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.