CapitaLand Limited Leads the Local Market Lower this Week

This week, the local stock market, as represented by the Straits Times Index (SGX: ^STI), slipped by 0.5% to 2,956 points.

Of the index’ 30 components, three ended the week unchanged while 13 were in the red, with property giant CapitaLand Limited (SGX: C31) declining the most. CapitaLand closed at S$2.85 on Friday, some 5% lower than a week ago.

Some simple number-crunching will reveal that 14 of the index’s constituents had enjoyed weekly gains. The standout performer was Olam International Ltd (SGX: O32), which saw its shares spike by 18% to S$2.07.

The commodities trading firm announced earlier this week that it has entered into a strategic partnership with Mitsubishi Corporation by issuing more than 333 million new shares of itself to Mitsubishi at S$2.75 per share.

The deal will help raise S$915 million of “new growth capital” for Olam. Mitsubishi is also looking to establish a new joint venture in Japan with its latest investment target; the joint venture will “act as an importer and marketer of [an] agreed list of products from Olam into Japan.”

Mitsubishi is an integrated conglomerate with subsidiaries in 90 countries. The firm’s businesses span a variety of sectors, such as finance, metal resources, power generation, petrochemical, and daily essentials.

Elsewhere, F J Benjamin Holdings Ltd  (SGX: F10), a distributor and retailer of fashion labels like Raoul, Tom Ford and Guess in certain parts of the region, rose 1.1% to S$0.095.

FJ Benjamin had released its financial results for the fiscal year ended 30 June 2015 earlier during the week. Revenue tanked by 20% year-on-year to S$293.4 million. There’re still positives to take away though as FJ Benjamin’s loss of S$17 million for the year was an improvement over the larger loss of S$22 million suffered a year ago. The firm said that it had repositioned its operations to focus on its core Southeast Asia portfolio of Singapore, Malaysia and Indonesia.

The SPDR STI ETF (SGX:ES3), a proxy for the Straits Times Index, is trading at 11.7 times its trailing earnings currently and sports a dividend yield 3.2%.

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.