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SIA Engineering Company Limited Leads the Market Higher For the Chinese New Year Week

Singapore’s stock market benchmark, the Straits Times Index  (SGX: ^STI), ended the Year of the Horse on Wednesday at 3,436 points, representing an increase of 0.3% from last Friday’s close.

Of the 30 index components, shares of SIA Engineering Company Limited (SGX: S59) increased the most as it put on 2.6% to S$4.32; it was one of the 18 companies that saw gains for the week. Earlier in February, the aircraft engineering firm saw its fiscal third quarter net profit drop by 23.5% partly due to lower revenue.

Meanwhile, 10 of the index’s components ended the holiday-shortened trading week in the red. Commodities trader Noble Group Limited (SGX: N21) was the biggest casualty.

Noble’s shares plunged 11.2% to S$1.07 from last Friday after reports which criticised the firm’s accounting emerged.

Iceberg Research, a relatively unknown investment research outfit, said that Noble had been exploiting the “accounting treatment of its associates to avoid large impairments and fabricate profit,” among other things. Iceberg even likened Noble to Enron, an American energy company that went bust more than 10 years ago due to accounting fraud.

To maintain its innocence, Noble countered that it reports its financial results according to International Financial Reporting Standards, and that its annual financial statements for 2013 and prior years have been audited by a reputable auditor, Ernst & Young. The Monetary Authority of Singapore said that it is now reviewing the report splashed out by Iceberg.

Elsewhere, logistics firm CWT Ltd  (SGX: C14) lost 7.1% during the week to end Wednesday at S$1.57. This happened despite the company announcing record earnings for the financial year ended 31 December 2014 on Monday.

For the year, CWT’s revenue surged 67% year-on-year to S$15.2 billion while its net profit increased by 6% to S$112.4 million. It is paying out a dividend of 4.0 Singapore cents per share for 2014, up 14% from 2013’s 3.5 cents.

The STI is now trading at 13.9 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.