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Noble Group Leads The Market Higher This Week

The Straits Times Index (SGX: ^STI) went up from 2,999 points a week ago to 3,031 points this week, a rise of 32 points or 1%. Of the 30 STI stocks, 22 finished the week in the green, while the rest ended in the red.

The biggest winner in the index, as suggested in the title, was commodity trader, Noble Group Limited (SGX: N21). The firm, which came under a short attack by Iceberg Research in February this year, added 7.5% to end the week at S$0.505.

Bloomberg reported on Wednesday that the embattled firm’s Chief Executive Officer (CEO), Yusuf Alireza, felt that he “should have been more forceful in pushing Asia’s biggest commodities trader to boost transparency as the company fended off attacks over its accounting practices and battled a share-price slump”.

He added that it’s a challenge to find the balance between revealing too much in the name of transparency, and revealing less so that its competitors, which are mostly privately-held, will not know what it’s up to.

Apart from Noble, another winner in the index was Capitaland Mall Trust (SGX: C38U). It announced on Thursday that it will be selling off one of its properties, Rivervale Mall, to a private equity fund for S$190.5 million.

The sale price is a 64% premium over the latest independent valuation conducted in June this year. The sale, which is expected to be completed by 15 December 2015, will add around S$72 million to its coffers, after deducting the divestment fee and other divestment related expenses.

Wilson Tan, CEO of the manager of the trust, CMTML, said, “The optimal option for Rivervale Mall after our evaluation was a sale of the asset, as it would unlock the highest value for our unitholders.”

As Rivervale Mall only makes up about 1% of CMT’s total deposited property value, its divestment presents minimal impact to CMT’s financial performance and distribution per unit. The net sale proceeds of about S$188.0 million will enhance CMT’s financial flexibility”.

The biggest loser in the index was SATS  (SGX: S58). The firm, which was just recently added into the STI, lost around 3% to S$3.69. It will announce financial results for the second quarter 4 November 2015 after market closes.

Elsewhere, shares of postal service provider, Singapore Post Limited (SGX: S08), rose 5.1% to S$1.87 following an announcement this week that it is buying around 96% of US eCommerce provider, TradeGlobal Holdings for some S$236 million. TradeGlobal is a “leading U.S. end-to-end eCommerce provider that offers best-in-class services to the world’s premier fashion, beauty and lifestyle brands”.

Currently, the SPDR STI ETF (SGX: ES3), a proxy for the Straits Times Index, is trading at 12.2 times trailing earnings and it has a dividend yield 3.2%.

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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.