MENU

The Singapore Market this Week

The local stock market bellwether, the Straits Times Index (SGX: ^STI), dropped 4.6% to 2,971 points for the week. This was the lowest for the STI since February 2014.

Out of the 30 index stocks, only one company – casino operator, Genting Singapore PLC (SGX: G13) – finished in the green. It put on 0.6% to S$0.80.

For every day of the week, the firm bought back 10 million of its outstanding shares each, at a price range of S$0.79 to S$0.81. It spent around S$40 million in total for the share buybacks.

Of the 29 losers in the index, the biggest faller was Sembcorp Marine Ltd (SGX: S51). The oil and gas outfit went down by 11.4% to end the week at S$2.33. It is one of the many companies which has “fallen by more than 20% over the past six months” as seen here.

Elsewhere, Silverlake Axis Ltd (SGX: 5CP), a software solutions provider, plummeted 24% to S$0.635 for the week. This was on the back of a 42-page short-sell report released by a “razor99”.

Among other things, the report alleged that the firm “has a complicated history and group structure, with numerous related party transactions with opaque private entities controlled” by founder and Chairman Goh Peng Ooi.

The huge decline in the share price prompted stock market operator and regulator, Singapore Exchange Limited (SGX: S68) to issue a query on its “unusual price movements”. Shortly after, the software company called for an immediate trading halt, “pending release of an announcement”. At the market close on Friday, it was still halted from trading.

Other than Silverlake, Pacific Andes Resources Development Ltd (SGX: P11) and its indirectly owned subsidiary, China Fishery Group Limited (SGX: B0Z) also saw huge share price declines. The former nose-dived by 37.5% to S$0.03 while the latter crashed 54.4% to S$0.072.

The two firms are being probed by Monetary Authority of Singapore (MAS) and Commercial Affairs Department (CAD) for an offence under the Securities and Futures Act. They were told to “provide to MAS and CAD certain information and documents for the period from 1 October 2011 to the present” that are needed for investigation.

The SPDR STI ETF (SGX:ES3), a proxy for the Straits Times Index, is now trading at 11.8 times its trailing earnings and has a dividend yield 3.2%.

To keep up to date on the latest financial and stock market news, sign up now for a FREE subscription to The Motley Fool's weekly investing newsletter, Take Stock Singapore. It will teach you how you can grow your wealth in the years ahead.

Also, like us on Facebook to follow our latest hot articles.

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.