Jardine Strategic Holdings Limited Leads the Market Higher this Week

This week, which had only four trading days due to a public holiday on Friday for the celebration of Hari Raya Puasa, saw the Straits Times Index  (SGX: ^STI) putting on 2.2% to close at 3,353 points on Thursday.

Of the 30 index constituets, 23 ended the week with gains with Jardine Strategic Holdings Limited (SGX: J37) leading the pack. Meanwhile, three other blue chips finished the week unchanged while one had clocked a weekly loss. The unfortunate sole loser was Olam International Ltd (SGX: O32), which slumped by 1.9% to S$1.79.

An index component that finished in positive territory was retail mall real estate investment trust, CapitaLand Mall Trust (SGX: C38U). The REIT had made a weekly gain of 0.9% to S$2.15. During the week, it announced that it wants to acquire Bedok Mall from its sponsor, CapitaLand Limited (SGX: C31), for a total of S$795 million (including all expenses).

The property yield of the mall located near Bedok MRT Station is around 5.1%, which is in line with the REIT’s current distribution yield. The trust added that the “proposed acquisition will grow the income of [its] portfolio and increase its revenue diversification.”

In a separate announcement, CapitaLand Mall Trust said that it’s considering a sale or redevelopment of the Funan DigitaLife Mall. This is “in line with its policy of continually evaluating [its] portfolio of assets and exploring opportunities to maximise the value [of the assets].” But as of now, nothing material has emerged and the necessary announcements will be made in due course.

Outside the index, transport provider SMRT Corporation Ltd (SGX: S53) had slipped by 1.4% to S$1.46. The company, which recently captured the attention of Singapore’s public due to a major train breakdown which happened last week, said that it will be announcing its financial results for the quarter ended 30 June 2015 on 30 July.

Investors might be interested to know if SMRT’s balance sheet has managed to improve. As noted here by my colleague, Stanley Lim, the firm’s total debt-to-equity ratio has surged from 19% at the end of the financial year ended 31 March 2012 (FY2012) to almost 100% in FY2015.

Currently, the SPDR STI ETF (SGX: ES3), a proxy for the Straits Times Index, is trading at 13.5 times its trailing earnings and has a dividend yield 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.