The Singapore Market this Week: Noble’s Gain and Jardine’s Lost

Singapore’s stock market bellwether the Straits Times Index  (SGX: ^STI) had inched up by 0.6% to close Friday at 3,321 points.

Of the 30 index components, 18 finished the week in positive region, with Noble Group Limited (SGX: N21) leading the pack. The commodity firm gained close to 9% to come in at S$0.76. Even though its shares had made a rather significant gain this week, it may still be one of the cheapest blue chips in our shores. Find out why here.

Meanwhile, seven of the blue chips ended the week in the red while five were unmoved. The company that lost the most ground during the week was Jardine Cycle & Carriage Ltd (SGX: C07). The conglomerate’s shares slumped 4.4% toUS$34.04.

Jardine Cycle & Carriage recently announced that it will be undertaking a renounceable rights issue of 39.5 million new ordinary shares, at an issue price of S$26 for each rights share. The rights issue will be on the basis of one rights share for every nine existing ordinary shares held by shareholders.

The firm will receive net proceeds of S$1 billion from the exercise and most of the money will go towards paying off term loans of US$626 million. The term loans were used by Jardine Cycle & Carriage to acquire a 24.9% stake in Siam City Cement Public Company Limited on 2 April this year. Following the investment, Siam City Cement has become an associate of Jardine Cycle & Carriage.

Outside the index, OSIM International Ltd (SGX: O23) had declined by 3.4% to S$1.695. The firm said this week that it will be upping its investment in thumbdrive maker Trek 2000 International Ltd (SGX: 5AB) from 1.1% to 8.8%. The health and wellness firm will be forking out a total of S$10.9 million for the purchase. OSIM is currently valued at 15 times its historical earnings.

Shares of Ezra Holdings Limited (SGX: 5DN) plunged from S$0.30 last Friday to S$0.177 this Friday, a fall of 41%. Recently, the oil & gas support services provider announced that it’s undertaking a rights issue and convertible bonds issue to refinance its loans. The shares went ex-all yesterday. Prior to this week’s shellacking, Ezra had also seen its shares suffer a painful fall and my Foolish colleague, Ser Jing, has pointed out that the company may actually deserve its fate. You can read more about his views here.

Currently, the SPDR STI ETF (SGX: ES3), a proxy for the Straits Times Index, is trading at 13.4 times its trailing earnings and has a dividend yield 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.