The Singapore Market for the Week


The Straits Times Index (SGX: ^STI) closed at 3,350 points for the week, up 1.2% from last Friday. This marks the fifth straight weekly gain for the local share market benchmark.

Out of the index’s 30 constituent shares, 23 ended the week in the green, five were in the red, while two others finished flat. The blue chip with the biggest gain within the index was commodities outfit Olam International (SGX: O32); the share moved up by 4.1% to S$2.54.

On the red end of the spectrum, we have aero engineer SIA Engineering (SGX: S59), which declined by 3.3% to S$4.95. It released its first quarter earnings after the market closed on Friday. Revenue improved by 1.6% from S$289.4 million a year ago to S$294.1 million, mainly due to “higher fleet management revenue, offset by a reduction in airframe and component overhaul revenue”. However, net profit plunged 22.5% to S$53.5 million.

This was because the company’s share of profits from its associated and joint venture companies had slumped by 28.8% to S$30.6 million. SIA Engineering commented that the outlook for its businesses “has become more challenging with the decline in heavy checks and reduction in engine shop visits.” That said, the company would still persist in pursuing collaborations with strategic partners so as to take advantage of long-term growth opportunities in the region. An example of that is the recent link-up with aircraft manufacturer Boeing.

In the Catalist exchange, 800 Super Holdings (SGX: 5TG), gained some 2% to S$0.26. The firm is an environmental services provider that deals with waste management, cleaning and conservancy, and horticultural services for both the public and private sectors in Singapore. It is among the three locally-listed waste management companies.

800 Super Holdings announced on Monday that it had been awarded a S$204.9 million contract by the National Environment Agency to provide integrated public cleaning services for the south-west region of Singapore. The contract would run for seven years from 1September 2014 to 31 August 2021, with an option to extend the contract for a further year.

The STI is currently trading at 14.2 times its historical earnings.

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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 contributor Sudhan P doesn’t own shares in any companies mentioned.