StarHub Ltd Leads the Market Lower This Week

Singapore’s market barometer the Straits Times Index  (SGX: ^STI) has ended the week at 3,450 points, down by 0.4% from where it was last Friday.

In all, 18 of the 30 index components had suffered a weekly loss while 11 were in the green. Media giant Singapore Press Holdings Limited (SGX: T39) was the lone ranger that ended the week unchanged.

Telecommunications outfit StarHub Ltd  (SGX: CC3) was the biggest loser – its shares had slipped by 4.9% to S$4.06.

Starhub had announced its fiscal first-quarter earnings last Friday and the results were mixed. Revenue for the quarter ended 31 March 2015 had grown by 8.1% year-on-year to S$617.9 million on the back of higher headset sales. However, Starhub’s net profit fell by 12.4% to S$73.7 million due to increased operating expenses and lower adoption grants.

Income investors would have some reason to smile with Starhub though as the firm had maintained its quarterly dividend of 5 cents per share (unchanged from a year ago) despite clocking in free cash flow of -S$46.3 million for the quarter; the self-same figure came in at S$104.5 million a year ago.

At the other end of the spectrum, Global Logistic Properties Ltd (SGX: MC0) was the biggest winner in the index. The provider of modern logistics facilities put on 5.6% to end the week at S$2.84.

A week ago, it released its financial results for the full year ended 31 March 2015.

Revenue for the year was at US$708 million, up 13% compared to a year ago. Management had attributed the strong top-line growth to “strong China operational results and further expansion of GLP’s fund management platform.”

In a similar situation to Starhub, the logistics outfit’s net profit had slipped by 29% to US$486.2 million despite the higher revenue. Global Logistic Properties’ bottom-line suffered as a result of fair value losses from investment properties in its joint ventures in Brazil and losses arising from the sale of some investment properties. On a brighter note, the firm’s cash flow from operations had spiked more than 50% from US$291 million a year ago to US$444 million.

Outside the index, oil and gas services provider Ezion (SGX: 5ME) had a rough week; its shares tumbled 8.4% to S$1.085.

Earlier in the week, Bloomberg reported that Ezion had been sued. The company had been accused of a “conspiracy to induce an A.P. Moeller-Maersk A/S unit to breach charter agreements.” Ezion has denied the claims and said that they are “frivolous and without merit.”

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