Global Logistic Properties Ltd Leads the Market Lower for the Week

This week, the Straits Times Index  (SGX: ^STI) shed 54 points, or 2%, to end Friday at 2,577. Of the 30 index components, 16 ended the week with loses, three were unchanged, while the rest finished in positive territory.

The biggest loser in the Straits Times Index for the week was Global Logistic Properties Ltd (SGX: MC0). The provider of modern logistics facilities had slumped by 10.4% to S$1.725.

On Wednesday, the firm said that it had signed new leases totalling 79,000 square meters (sqm) with five leading third-party logistics (3PL) companies in China. One of the end-users is China Post and all of the customers cater to domestic consumption across industries such as food and retail.

A week earlier, Global Logistic Properties announced that it had inked three new lease agreements totalling 35,000 sqm in Greater Tokyo and Osaka, Japan. The company will be extending its collaboration with one of its top customers, Senko, a leading 3PL provider. It added that two new customer relationships have also been established.

The biggest winner in the index was surprisingly Sembcorp Marine Ltd (SGX: S51).

Just a week ago, the rig builder was the second-worst performer in the Straits Times Index. But this week, its shares ballooned by 12.3% to S$1.555. Sembcorp Marine’s performance was better than that of another firm involved in the oil and gas sector, Keppel Corporation Limited (SGX: BN4). Keppel Corp’s shares had gained “just” 3.7% to S$5.02.

Sembcorp Marine might have performed well on the back of speculation that Sembcorp Industries Limited  (SGX: U96) may take the company private. The latter owns 61% of the former at the moment. There’s been no official word on the matter from either company so far, however.

Outside the index, health and wellness firm OSIM International Ltd (SGX: O23) fell like a brick. It dropped by 16.2% to S$0.80. Currently, OSIM is trading at just 9 times historical earnings and provides a dividend yield of 7.5% thanks to its dividend of S$0.06 per share in 2014.

The company will be announcing its financial results for the year ended 31 December 2015 on 28 January. For the quarter ended 30 September 2015, OSIM’s quarterly revenue had tumbled by 11% year-on-year to S$142 million, while net profit had plunged by 62% to S$6 million.

The SPDR STI ETF (SGX: ES3), an exchange-traded fund which can be considered as a proxy for the Straits Times Index, is now valued at 10.5 times trailing earnings and has a dividend yield of 3.7%. It is priced at just 1 times book value.

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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 owns shares in Sembcorp Industries Limited.