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 right note with a 0.2% gain to 3,356 points despite having only 10 out of its 30 constituents making some headway today. There were 12 other blue chips which clocked losses.

Let’s take a look at some market-beaters within the index.

The conglomerate Jardine Cycle & Carriage (SGX: C07) is up 0.9% to S$46.70. Last Thursday, the company’s subsidiary Astra International released its half-year results for 2014 and saw revenue grow by 8% year-on-year to Rp101,528 billion while profit increased by 11% to Rp9,815 billion.

Given that Indonesia-listed Astra makes up almost 90% of Jardine Cycle & Carriage’s overall revenue and profit, investors in the latter should be happy to see an improvement in the former’s business.

Prijono Sugiarto, President Director of Astra International, commented on the half-year performance:

“[Astra’s] businesses produced mixed results in the first half, despite generally strong operating volumes. While the outlook for the remainder of the year is for a satisfactory operating performance, it is expected that there will continue to be heightened competition in the car market and a subdued outlook for coal prices.”

CapitaMall Trust (SGX: C38U) has inched up by 0.5% to S$2.01. The real estate investment trust, which has interests in 16 retail malls island-wide, had announced its second quarter earnings last Wednesday. There was healthy year-on-year growth across the board for the REIT: Gross revenue for the quarter grew by 2.5% to S$164.3 million; net property income increased by 4.4% to S$114 million; and distributions per unit (DPU) came in 6.3% higher at 2.53 Singapore cents.

But despite all that growth, there were still pockets of disappointment. For instance, the REIT saw quarterly shopper traffic in its retail malls fall by 2% compared to a year ago; similarly, its tenants’ sales had also declined by 3.7%. Future changes to these two metrics might be worth watching for investors in CapitaMall Trust as a retail REIT’s long-term health would be ultimately dependent upon the health of its tenants.

Logistics facilities provider Global Logistic Properties (SGX: MC0) rounds up the trio with its shares gaining 1.1% to S$2.79. Just last week, BMW Brilliance Automotive Ltd. had inked a deal to lease 19,000 sqm (205,000 sq feet) worth of logistics space in Southern China from Global Logistics Properties. This is an extension of a partnership between both companies.

Previously, BMW Brilliance Automotive had “utilized the facility to distribute auto parts through a third party logistics provider to meet increasing demand for auto parts from its authorized dealers in Southern China.” Now, BMW Brilliance Automotive has “chosen to sign a larger, direct leasing agreement with [Global Logistic Properties] to facilitate their business expansion in China.”

In Global Logistic Properties’ announcement regarding the new lease, the company commented on the Chinese car market:

“According to McKinsey, the Chinese private car market is forecast to grow at a compound annual growth rate of 8% through 2020 when overall sales would reach 22 million vehicles. This is expected to continue driving demand for the auto parts and after-sales service in China.”

If the automobile segment in the country does indeed grow, Global Logistic Properties might be well-positioned to capture some of that.

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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.