The Singapore Market this Week: SIA Engineering Company Limited Leads the Pack

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. 

For this Christmas week, the market was in a jubilant mood as the Straits Times Index  (SGX: ^STI) gained 2.3% since last Friday to close at 3,354 points.

Of the index’s 30 components, just two – Olam International Ltd  (SGX: O32) and Hongkong Land Holdings Limited  (SGX: H78) – made weekly losses.

Within the blue chips which managed to put on gains, aircraft maintenance, repair and overhaul outfit SIA Engineering Company Limited  (SGX: S59) put on the best showing as it clambered close to 6% to S$4.14, after hitting a 52-week low of S$3.91 a week ago. In the firm’s latest second quarter results, it was revealed that its quarterly revenue declined 3% year-on-year to S$285 million while net profit plunged 41% to S$42 million.

Outside the Straits Times Index, another firm which is involved in the airline industry, SATS Ltd  (SGX: S58), increased 3.9% to S$2.97. SATS provides ground handling services in airports and covers airline catering, among other things.

The firm has been vigorously buying back its own shares. Over the past two weeks, it has bought back around S$4.3 million worth of shares; since the start of the year, SATS has clawed back around S$45 million worth of its own shares from the market. For some perspective, SATS has a market cap of S$3.33 billion currently.

SATS’ buy backs year to date is much higher than the amount of shares it bought back in total for all of 2013 and 2012 combined; in those two years, the company had bought S$11 million worth of shares. SATS is now trading at 19 times its historical earnings and sports a dividend yield of 4.4%.

Currently, the Straits Times Index is valued at a price-to-earnings ratio of 13.6, with a market capitalisation of S$545 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.