Jardine Matheson Holdings Limited Leads the Market Higher This Week

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.

This week, the Straits Times Index (SGX: ^STI) edged up by 0.4% to 3,342 points since last Friday’s close at 3,327.

16 of the 30 STI constituents had finished in positive territory, while 10 were in the red. The remaining four shares ended the week flat. Jardine Matheson Holdings Limited (SGX: J36) put on the best show in the index after gaining 4.1% to close at US$62.70. On the other hand, just like last week, Oversea-Chinese Banking Corp. Limited (SGX: O39) was the biggest loser in the index. The bank had slipped 2.4% to S$9.76.

Elsewhere, Sheng Siong Group Ltd (SGX: OV8) ended the week at $0.675, a fall of 3.6% from last week’s close of S$0.70. On Thursday, the company announced a private placement exercise to raise S$80.4 million in capital for its future local expansion plans.

The market did not take well to the news, sending Sheng Siong’s shares down by as much as 5.6% on Thursday. Private share placements can come at a detriment to existing shareholders as their holdings in the company will get diluted. That’s especially so if the company fails to put the capital to good use.

Sheng Siong’s placement shares represented about 8.7% of its existing share count of 1.38 billion. After the new shares are issued, they would make up 8% of the company’s enlarged share count of 1.5 billion.

The firm also said that it currently does not have a formal dividend policy but it wishes to continue to distribute up to 90% of its post-tax profit to its shareholders for the financial years ending 31 December 2015 and 31 December 2016. Sheng Siong’s current dividend yield stands at 4.3%.

The Singapore market bellwether is currently going at 14 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.