Jardine Strategic Holdings Limited Leads the Market Lower for the Week

Singapore’s market barometer the Straits Times Index  (SGX: ^STI) has lost 53 points, or 1.6%, during the week to end Friday at 3,301.

Of the 30 index constituents, 25 ended the week with a loss with Jardine Strategic Holdings Limited  (SGX: J37) leading the losers’ pack. Shares of the conglomerate saw a 5.7% slump to US$30.

Meanwhile, three of the Straits Times Index’s components finished the week flat while the remaining two – Noble Group Limited (SGX: N21) and Genting Singapore PLC (SGX: G13) – saw gains of 2.2% to S$0.70 and 3.3% to S$0.935 respectively.

Over the past two weeks, Noble Group has bought back a total of S$71.1 million worth of its own shares. The latest purchase happened on 18 June, when the commodities trader spent S$28.4 million on its owns shares.

On Wednesday, Noble had released an open letter to Michael Dee, a former senior managing director of Temasek Holdings, in response to a memo written by Dee on 29 May that was addressed to all of Noble’s 15,000 employees.

In its open letter to Dee, Noble reiterated the following:

  • It has responded to all questions raised about its business and the involved parties are pleased with the answers;
  • Yancoal is not overvalued on its balance sheet; and
  • It does not have off-balance sheet repos (off-balance sheet repurchasing agreements)

Noble’s full letter can be accessed here.

Outside the index, Singapore Post Limited (SGX: S08) announced on Wednesday said that it has bought a 30% stake in Hubbed Holdings Pty Ltd, an Australian e-commerce outfit, for around S$4.6 million.

Singapore Post, whose main business is currently in the provision of postal services, then revealed on Friday that it will be selling its stake in DataPost Pte Ltd, along with certain participatory rights, to Jing King Tech Solutions Pte Ltd for a total sum of S$39.3 million. Singapore Post ended the week at S$1.91, up 1.9% from its close last Friday.

Mapletree Greater China Commercial Trust (SGX: RW0U) revealed during the week that it has bought Sandhill Plaza, a premium business park located in Shanghai, China, for around S$412.2 million.

Ms Cindy Chow, Chief Executive Officer of the Manager of Mapletree Greater China Commercial Trust, had the following comments regarding the acquisition:

“We are pleased to announce our first acquisition since listing, with the purchase of Sandhill Plaza – a premium quality business park located in Zhangjiang Hi-tech Park in Shanghai.

With its good location, quality building specifications, high occupancy rate, strong tenancy profile, and attractive rental growth opportunity within a strong rental market, the acquisition of Sandhill Plaza is in line with MGCCT’s strategy to invest in best-in-class real estate assets for commercial purposes in the Greater China region. This marks the start of growing MGCCT through accretive acquisitions in addition to organic growth and asset enhancement initiatives.”

Following the purchase, Mapletree Greater China Commercial Trust now has three properties in its portfolio (with the other two being Festival Walk in Hong Kong and Gateway Plaza in Beijing) which are collectively valued at S$5.92 billion. The trust closed at S$1.03 on Friday and is valued at just 0.9 times its last-reported book value at that price.

The SPDR STI ETF  (SGX: ES3), a proxy for the Straits Times Index, is now trading at a historical price-to-earnings ratio of 13.3 and has a dividend yield of 2.8%.

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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.