The Singapore Market this Week

The Straits Times Index  (SGX: ^STI), the most widely followed benchmark for how stocks move in Singapore, increased by 0.3% for the week to end Friday at 3,463 points.

Of the index’s 30 components, 10 clocked weekly losses, 19 enjoyed gains while one – StarHub Ltd (SGX: CC3) – ended the week unmoved.

Casino operator Genting Singapore PLC (SGX: G13) was the biggest loser with its shares slumping by 6.8% to S$0.955.

The firm reported that its first-quarter revenue had dropped by more than 23% year-on-year to S$639.2 million while its net profit sunk by 64% to less than S$100 million. A weak premium gaming market and adjustments to a “new norm” in the Asian gaming industry had contributed to the firm’s lower revenue.

On the other hand, Golden Agri-Resources Ltd  (SGX: E5H), a palm oil producer, was the biggest winner in the Straits Times Index – its shares gained 3.6% to S$0.43.

Golden Agri released its fiscal first-quarter results on 12 May and reported that its revenue of US$1.6 billion for the quarter was 18.9% lower than the previous year’s. The company’s management attributed the revenue decline to “lower average crude palm oil (CPO) prices and lower production output.” These, as well as large foreign exchange losses, caused Golden Agri’s net profit to fall some 83.5% to US$17.2 million.

Despite the poor performance, Golden Agri’s Chairman and Chief Executive, Franky Widjaja, remained positive about the company’s prospects. He commented in the earnings release:

“Long-term fundamentals of the industry remain promising, notwithstanding periods of volatility. While there may be resistance from the current large soybean production and low crude oil prices, slower CPO output growth and the biodiesel policy in Indonesia bode well for future CPO prices. Moreover, we view that global demand of palm oil both for food and non-food continues to be strong, especially in developing countries.”

Outside the blue chip universe, SATS Ltd  (SGX: S58) saw its shares put on 3.1% during the week to last change hands at S$3.30 on Friday.

The firm, which supplies food to airlines and provides gateway solutions (like baggage handling at airports), released its full year earnings earlier this week. For the fiscal year ended 31 March 2015, SATS’s top-line declined slightly by 1.9% year-on-year to S$1.8 billion but its profit had climbed 8.5% to S$195.7 million due to lower raw material costs.

The SPDR STI ETF (SGX: ES3), a proxy for the Straits Times Index, is now valued at 13.9 times its historical earnings and sports a dividend yield of 2.7%.

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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.