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Singapore’s Market for the Week: City Developments Limited Leads the Market Higher

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) gained 55 points in total, or 1.7%, to 3,223. There were only four trading days for the week as Wednesday marked a public holiday for Deepavali, or what’s otherwise known as the Festival of Lights.

Of the 30 STI constituents, 25 finished in positive territory, four clocked losses, while one – Thai Beverage Public Company Limited (SGX: Y92) – was flat for the week.

Real estate giant City Developments Limited (SGX: C09) was the best performer in the index after gaining 3.4% to close at S$9.63. On the other hand, the conglomerate Jardine Cycle & Carriage Limited (SGX: C07) was the biggest loser in the index – it slipped by 2.5% to S$39.79.

Outside Singapore’s market benchmark, we have postal service company Singapore Post Limited (SGX: S08) gaining 6.6% to S$1.945.

Last week, SingPost announced that it is going to develop a fully integrated eCommerce Logistics Hub in Singapore, which will be a first in the region. The 3-storey building, to be located at Tampines LogisPark, will cost around S$182 million. Construction is slated to be completed by the end of January 2016 and the facility would be fully operational in the second half of 2016. For some perspective, the value of SingPost’s total assets as of 30 June 2014 was S$1.38 billion – so, this new eCommerce Logistics Hub is not exactly a trivial investment for the company.

One of the biggest losers this week was Sino Grandness Food Industry Group Ltd (SGX: T4B). It slumped by 12.5% during the week to finish at S$0.49.

A damning report of the firm, which started surfacing on the internet a few days ago, was released early last month by an online investment club. Sino Grandness, a food and beverage outfit, has since strongly refuted the “baseless and unsubstantiated assertions” that were made in the report. The company also allayed shareholders’ fears by saying that the firm is in a “sound financial position and had complied with all the statutory and listing requirements”.

The STI is currently going at 13.5 times its historical earnings and has a market capitalisation of S$529.8 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.