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Olam International Ltd Leads the Market Lower 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 saw only four trading days as Monday was a public holiday meant for celebrating Hari Raya Haji. Even though there was a festive mood in the air, the Straits Times Index (SGX: ^STI) wasn’t exactly cooperative as it fell close to 1% for the week to end Friday at 3,224 points.

Of the 30 index components, most of them – 22 to be exact – clocked losses. Only six managed to make some gains while the remaining two blue chips ended the week flat.

The biggest loser was commodity trader Olam International Ltd (SGX: O32). It slumped 4.4% to close at S$2.20 on Friday. On the other hand, Hongkong Land Holdings Limited (SGX: H78), a big owner of prime real estate in Hong Kong, was the best performer in the index with a 2.7% gain to US$6.82.

Outside the blue-chip universe, some notable movers include massage-chair and lifestyle products purveyor OSIM International Ltd. (SGX: O23). At one point this week, it had actually declined by around 9% since last Friday’s close at S$2.55. The company recovered a little in the later part of the week, clocking in at S$2.43 yesterday, down 4.7% for the week. My colleague Stanley Lim gave his take on the price plunge here.

Elsewhere, Tat Hong Holdings Limited (SGX: T03), a firm involved in crane rentals and sales, dropped 1.3% to S$0.755. It announced this week that it is looking to list part or all of its China-based tower crane rental business on a reputable stock exchange. The company feels the listing would unlock shareholder value and also give the company more financial muscle.

Private education provider Raffles Education Corp Ltd (SGX: NR7) has gained 3% to S$0.34 this week. The firm is also intending to list a business it owns. Raffles Education is proposing to list its wholly-owned subsidiary, Oriental University City Holdings (H.K.) Limited, on the Hong Kong stock exchange. The spin-off will help to “increase the overall financial capacity” of the firm and allow better management of other parts of the business.

The STI is currently trading at 13.5 times its historical earnings and has a market capitalisation of S$528.7 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.