MENU

2 Shares That Beat the Market Today

With 19 of its 30 constituents clocking losses today, it’s perhaps no surprise to find the Straits Times Index (SGX: ^STI) slipping by 0.3% to 3,244 points.

Let’s dig into a couple of market beaters which are both within and outside Singapore’s benchmark index.

Brooke Asia Ltd (SGX: 5OY) has spiked by 15.7% to S$0.125 following its announcement last Friday that it might be acquiring a new operating business. The acquisition target’s based in the Fujian province of China and is “primarily focused on cultivation, research, development, production, and sales of sweet potato snack food products.”

Brooke Asia does not currently have any operating businesses and had been considered a “cash company” under Singapore’s listing rules since 23 January 2014. If its status as a “cash company” persists till 23 January 2015 without it finding suitable operating businesses to acquire, it could be delisted from the share market.

The company believes that its acquisition target “is likely to enhance the long term interests of [its] shareholders” given the target’s “proven track record” and “potential for growth.” Interestingly, Brooke Asia intends to fund the purchase by issuing new shares of itself to owners of the China-based sweet potato producer – that’s a move which “may result in a reverse takeover” of Brooke Asia.

The aptly-named logistics facilities provider Global Logistic Properties Ltd (SGX: MC0) has climbed by 1.9% to S$2.72. The company revealed last Thursday that it would be releasing its second quarter results (for the three months ended 30 September 2014) on 4 November 2014.

In Global Logistic Properties’ first quarter results, it saw quarterly revenue grow by 19% year-on-year (on a pro-forma basis) while profit actually climbed by 8%. The company also commented on its outlook for the year:

“China, Japan and Brazil have attractive supply and demand dynamics for logistics facilities in the medium and long-term. While we remain mindful of the near-term challenges in the local and global economic environments, our market leading positions, strong management team and solid balance sheet position us well for continued profitable growth.

China, Japan and Brazil have attractive supply and demand dynamics for logistics facilities in the medium and long-term. While we remain mindful of the near-term challenges in the local and global economic environments, our market leading positions, strong management team and solid balance sheet position us well for continued profitable growth.”

In short, Global Logistic Properties seems very optimistic about its progress and hinted that the demand for its kind of modern logistic spaces in its key markets of China, Japan, and Brazil are still very healthy. Investors might want to keep an eye out on this trend when Global Logistic Properties hands in its upcoming financial report card to see if there are any positive or negative changes.

To keep up to date on the latest financial and stock market news, sign up now for a FREE subscription to The Motley Fool's weekly investing newsletter, Take Stock Singapore. It will teach you how you can grow your wealth in the years ahead. Also, like us on Facebook to follow our latest hot articles.

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 company mentioned.