MENU

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 inched up by 0.14% to 3,199 points with 17 of its 30 constituents clocking gains for the day.

Let’s take a closer look at three market beaters which come from both within and outside the index.

Ascendas Real Estate Investment Trust (SGX: A17U) has stepped up by 1.82% to S$2.24. The REIT, which has a focus on business spaces and industrial real estate, would be releasing its latest quarterly results (for the three months ended 30 September 2014) on 23 October 2014.

In Ascendas REIT’s last earnings release for the financial year ended 30 June 2014, the trust gave some positive comments about its ability to grow its net property income in the current financial year. A noteworthy snippet follows:

“There could be potential upside in net property income when the 11.9% vacant space in our portfolio is leased up, the speed of which will largely depend on prevailing market conditions. In addition, the average passing rental rates of leases in our portfolio due for renewal in FY14/15 are still below the market spot rental rates; hence, positive rental reversion can be expected when leases are renewed.”

Investors should keep an eye out on the growth of the REIT’s net property income when it announces its earnings next week.

BBR Holdings (S) Ltd. (SGX: KJ5) is up next with its shares climbing by 3.51% to S$0.295. The company had just revealed new contract wins yesterday night which would see it install solar photovoltaic (PV) systems in Singapore. This comes after a similar contract win which was announced last week.

These are interesting developments for BBR as it’s a departure from its usual construction business. The solar PV system contracts can help generate steady and recurring revenue for BBR as its clients would be paying the company for the power generated over 20-year to 25-year periods.

As my colleague Stanley Lim noted, the potential revenue contributions from the solar PV systems are still tiny in scale for the company. But, they can be a stepping stone for BBR to branch off into an entirely new line of business and create new opportunities.

Cheung Woh Technologies Ltd (SGX: C50) rounds up the trio. Its shares are up 2.86% to S$0.180. The precision hard-disk drive (HDD) parts maker had just released its second quarter results last Friday.

For the three months ended 31 August 2014, the company’s sales had jumped by 32.3% year-on-year to S$21.2 million on the back of “higher demand from customers.” A much better control of costs (the company’s gross margin jumped from 10.3% a year ago to 17.7%) had enabled a marked improvement in Cheung Woh’s bottom-line – quarterly losses of S$56,000 a year ago had turned into a profit of S$3.13 million.

Barring unforeseen circumstances, the company expects to be profitable for its current financial year.

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.