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Global Logistic Properties Ltd Leads the Market Lower this Week

For this week, the local stock market, as represented by the Straits Times Index  (SGX: ^STI), lost 3.1% to close at 2,864 points.

Of the 30 index constituents, logistics facilities provider Global Logistic Properties Ltd (SGX: MC0), or GLP, was the biggest loser. It is among the 28 stocks that lost ground this week.

The other two – Noble Group Limited (SGX: N21) and Jardine Cycle & Carriage Ltd (SGX: C07) – finished the week in positive territory. The former put on 1% to S$0.525 while the latter added around 2% to step up to S$29.49.

GLP announced on Tuesday that it had completed the sale of five properties to GLP J-REIT for JPY38.1 billion (US$316 million). GLP J-REIT, which is listed on the Tokyo Stock Exchange, is a real estate investment trust that operates logistics properties in Japan. GLP is the property and asset manager of the trust.

Another big news that came out of the local market this week is that there would be changes to the constituents of the Straits Times Index and its reserve list come 21 September 2015. An enhanced liquidity rule prompted the latest changes.

The trio of Jardine Matheson Holdings Limited (SGX: J36)Jardine Strategic Holdings Limited (SGX: J37), and Olam International Ltd  (SGX: O32), would be dropped from the index. Taking their place will be shipbuilder Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6), property giant UOL Group Limited (SGX: U14), and ground-services handler SATS Ltd (SGX: S58).

The reserve list for the index also saw some shuffling. The new list will now consist of Singapore Post Limited (SGX: S08), Keppel REIT (SGX: K17)CapitaCommercial Trust  (SGX: C61U)Suntec Real Estate Investment Trust  (SGX: T82U) and M1 Ltd (SGX: B2F). Companies on this list will substitute any Straits Times Index components that become ineligible for inclusion into the index due to corporate actions.

The SPDR STI ETF (SGX: ES3), a proxy for the Straits Times Index, is now trading at 11.4 times its trailing earnings and has a dividend yield 3.3%.

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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.