Olam International Ltd Leads the Market Higher 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.

The Straits Times Index (SGX: ^STI) put on 0.9% for the week to close at 3,316 points. Last week, the index finished at 3,286 points.

Out of the 30 STI constituents, 18 finished in the green, 10 were in the red while two – Genting Singapore PLC (SGX: G13) and Hutchison Port Hldg Trust (SGX: NS8U) – ended the week flat. Genting Singapore saw a fall in its latest quarter earnings. My Foolish colleague, Ser Jing, gives his analysis of the company here.

The biggest winner in the index was Olam International Ltd (SGX: O32), gaining 6.2% to S$2.25, while Golden Agri-Resources Ltd (SGX: E5H) was the share that lost the most, as it slumped close to 10% to S$0.465. My other Foolish colleague, Adam, wonders if Benjamin Graham himself will buy Golden Agri-Resources.

Olam saw its first quarter revenue decline 0.5% year-on-year to S$4.3 billion while Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) came down 11.9% year-on-year to S$219.4 million mainly due to adverse price movements in the hazelnuts and dairy businesses, coupled with execution challenges in upstream dairy.

Meanwhile, Golden Agri, another commodity company, also saw a dismal quarter. For the third quarter ended 30 September 2014, total revenue went up 17.4% year-on-year to US$1.8 billion but net profit slumped by 85.7% to US$4.4 million.

Elsewhere, property outfit, Frasers Centrepoint Ltd (SGX: TQ5) gained 4.4% to end the week at S$1.66. It released its financial results for the year ended 30 September 2014 where revenue went north by 33% to S$2.73 billion while profit (before fair-value changes and exceptional items are included) increased around 25% to S$501 million.

The STI is currently trading at 13.5 times its historical earnings and has a market capitalisation of S$543.5 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.