MENU

2 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.

With 20 of its 30 constituents clocking losses for the day, the Straits Times Index (SGX: ^STI) has slipped by 0.28% to 3,282 points.

Given that most of the blue chips are in the red, let’s venture outside the index for a closer look at two market-beating shares.

China Sunsine Chemical Holdings Ltd. (SGX: CH8) has jumped by 6.25% to S$0.510 after announcing an expansion in is business capacity yesterday. As it turns out, some of the specialty chemicals and rubber accelerator manufacturer’s subsidiaries had either completed or are expanding their capacities in China.

Once the new facilities are built, China Sunsine would see its annual production capacity increase to 152,000 tons (87,000 tons of accelerators; 20,000 tons of insoluble sulphur; and 45,000 tons of antioxidants) by the end of 2014. For some perspective, the company had sold 98,345 tons of chemicals in 2013. So, there’s significant room for growth if the company’s increase in capacity is met with a commensurate increase in demand.

Shipping outfit Cosco Corporation (Singapore) Limited (SGX: F83) has climbed by 2.50% to S$0.615 after releasing its third quarter earnings yesterday. For the quarter ended 30 September 2014, Cosco saw a 17% year-on-year jump in revenue to S$1.159 billion on the back of growth in its shipyard and dry bulk shipping business.

The top-line growth was overwhelmed by an increase in costs however, as Cosco’s net profit got slashed by 54% to S$7.51 million. But interestingly, the profits attributable to Cosco’s shareholders had increased by 69% to S$7.15 million as the company’s share of net profit to non-controlling interests had declined tremendously.

But despite the increase in revenue and profit, investors might want to note the comments about Cosco’s outlook given by Wu Zi Heng, the company’s Chairman and President:

“For the remainder of 2014, our Group maintains a cautious outlook given the persistent weakness in the state of the global economy and global economic growth.”

For more details, let’s look at the company’s different business segments, starting with the dry bulk shipping segment. In its earnings release, Cosco added that the segment does not look particularly bright as “the positive impact from any rebound in BDI [Baltic Dry Index – an indicator of shipping rates] to be subdued as expansion in the global bulk carrier fleet continues to outpace demand.”

As for the shipyard business, things look better as the company’s order book as at 30 September 2014 had grown by 9.9% from 30 June 2014 (US$8.9 billion versus US$8.1 billion).

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 does not own shares in any companies mentioned.