Sembcorp Marine Ltd Leads the Market Lower This Week

This week, the Straits Times Index  (SGX: ^STI) declined by 1% to 3,338 points. Of the 30 index components, 21 ended the week in the red, eight clocked gains and one – Golden Agri-Resources Ltd  (SGX: E5H) – was flat.

The stock that lost the most ground was marine outfit Sembcorp Marine Ltd (SGX: S51). This week saw the price of oil dropping below the US$50 threshold. This might have led to Sembcorp Marine slumping 7% to S$3.06. SembCorp Industries Limited (SGX: U96), which owns 60.6% of Sembcorp Marine, didn’t perform well for the week as well. It fell by 6.1% to S$4.19

At the other end of the spectrum, we have Hongkong Land Holdings Limited (SGX: H78). The Hong Kong-based real estate owner and developer was the index’s largest winner as it gained some 8.8% to US$7.40. Full-service carrier Singapore Airlines Ltd. (SGX: C6L) also did well with a 5.3% gain to S$12.16. Lower oil prices can lead to lower fuel prices, which may in turn help to increase profits at the airline. Outside the index, we have Hyflux Ltd. (SGX: 600), which went went up 9% to S$0.91. The water treatment outfit had bought back more than S$2.5 million worth of its shares this week. Its market capitalisation currently is at S$741 million.

Food and beverage firm, Sakae Holdings Ltd (SGX: 5DO), has diversifed its business recently – it’s now providing corporate advisory services. On that note, Sakae had signed up private dental services provider Q & M Dental Group (Singapore) Limited (SGX: QC7) as a corporate advisory services client for a period of two years.

To know what Q & M will gain out of this partnership, we can turn to the founder of Sakae Holdings, Mr Douglas Foo. He commented on Sakae’s corporate advisory services:

Our programme is a three part, two year programme where the first part is centered on making sure that the investment merits of our clients are highlighted in the right way to our targeted investors. Secondly, we will then work with analysts and various European brokerages to further explore any possible growth-drivers that are available internationally for our client. Thirdly, we will then bring our clients individually to “custom-made” investment roadshows in more than ten major European and American cities.”

Shares of Q & M increased 12.1% to S$0.465 during the week while Sakae dipped by 0.9% to S$0.56.

The Straits Times Index is currently v 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.