How did the Singapore Market Fare 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 Singapore market bellwether, the Straits Times Index  (SGX: ^STI), ended the week flat at 3,324 points. Of the 30 shares which make up the Straits Times Index, half clocked gains for the week, 12 ended with losses, and the rest finished the week unchanged.

Our city state’s flag carrier, Singapore Airlines Ltd. (SGX: C6L), was the largest winner in the index as it flew up by 5.9% to S$11.63 over the week. On 5 December, the company announced that it had converted all of its non-voting perpetual convertible capital securities issued by Tiger Airways Holdings Limited (SGX: J7X) into new Tiger Airways shares. SIA holds around 56% of the budget airline now. The conversion was actually first made public in October this year. Tiger Airways closed at S$0.29, up 1.8% for the week.

Elsewhere, firms involved in the oil and gas sector such as Ezra Holdings Limited (SGX: 5DN) and Ezion (SGX: 5ME) plunged 11.6% and 10.2% to close at S$0.535 and S$1.06, respectively. Ezra is an “offshore contractor and provider of integrated offshore solutions”. Meanwhile, Ezion develops, owns and charters offshore assets, and provides offshore marine logistics and support services. The two firms have been badly hit due to the weakening price of oil. US crude oil prices slid to new lows on Friday due to fears of oversupply. The tumbling oil price may bode well for airline stocks though.

The STI is currently going at 13.5 times its historical earnings.

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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.