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The Singapore Market This Week: Thai Beverage Gains While Genting Slumps

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.

For the week of 12 September 2014, the Straits Times Index (SGX: ^STI) gained a mere 3.8 points, or 0.1%, to close at 3,346 points.

One of the biggest losers in the index was Genting Singapore PLC (SGX: G13). It slumped 4% to end the week at S$1.17. The gambling outfit is now trading at 22 times its historical earnings.

On the other hand, Thai Beverage Public Company Limited (SGX: Y92) was one of the largest gainers among the 30 STI component stocks.

At the end of August, Oversea-Chinese Banking Corp. Limited (SGX: O39) and Great Eastern Holding Limited (SGX: G07) released a joint statement stating that they have entered into an “exclusivity agreement” with TCC Top Enterprise Limited, which is owned by Mr. Charoen Sirivadhanabhakdi, Chairman of Thai Beverage. The agreement concerns the potential sale of the shares of United Engineers Limited (SGX: U04) that OCBC and Great Eastern own.

Elsewhere, STATS ChipPAC Ltd. (SGX: S24) surged 6.7% to S$0.635. The company is a leading provider of advanced semiconductor packaging and test services. There were talks about a potential divestment of the company by Temasek Holdings, an investment firm belonging to the Singapore Government.

Early this month, the share price at STATS ChipPAC collapsed by some 12% following an announcement that one of the interested buyers, Jiangsu Changjiang Electronics Technology, may be falling out of the race to acquire the semiconductor firm.

The STI is trading at a price-to-earnings ratio of 14 and has a market capitalisation of S$550.7 billion.

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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.