Singapore’s market bellwether, the Straits Times Index (SGX: ^STI), zoomed up 2% to 2,629 points for the week. In all, of the 30 index stocks, 22 ended the week with gains, six came away with losses, while two – Keppel Corporation Limited (SGX: BN4) and Sembcorp Marine Ltd (SGX: S51) – remained unchanged. Keppel Corporation said this week that it is looking to consolidate its interests in its business trust management, real estate investment trust (REIT) management, and fund management businesses under Keppel Capital Holdings Pte Ltd, a wholly-owned subsidiary. Loh Chin Hua, the chief executive of Keppel Corporation, said that the consolidation of its asset…
Singapore’s market bellwether, the Straits Times Index (SGX: ^STI), zoomed up 2% to 2,629 points for the week.
Keppel Corporation said this week that it is looking to consolidate its interests in its business trust management, real estate investment trust (REIT) management, and fund management businesses under Keppel Capital Holdings Pte Ltd, a wholly-owned subsidiary.
Loh Chin Hua, the chief executive of Keppel Corporation, said that the consolidation of its asset management businesses under one umbrella is part of the company’s “continuing plan to grow [its] assets under management and expand [its] capital platform for co-investing.” Keppel’s asset management arms currently manage S$26 billion of assets and brought in S$60 million of profit in 2015.
A big gainer in the index this week was one of Southeast Asia’s largest beverage companies, Thai Beverage Public Company Limited (SGX: Y92). It put on 1.5% to S$0.68.
On Monday (25 January 2016), Reuters reported that Thai Beverage is using Fraser and Neave Limited (SGX: F99) to bid for SABMiller‘s Peroni and Grolsch beer brands, in a transaction that could be worth up to US$3.2 billion. Fraser and Neave, which is 28% owned by Thai Beverage, confirmed on Tuesday that it has “expressed an interest” for the acquisitions. But, Fraser and Neave also mentioned that there is “no certainty of any transaction materialising and it will make appropriate announcements if and when there are any material developments in this matter.”
For the three months ended 31 December 2015, SMRT’s revenue increased by 4.6% year-on-year to $327.6 million on the back of broad-based revenue growth across different business segments. Meanwhile, net profit ballooned 63.5% year-on-year to $36.9 million due to improved operating profit.
Apart from SMRT, OSIM International Ltd (SGX: O23) also put on a good showing this week as its shares jumped 27% to S$1.015.
It announced its financial results for the 12 months ended 31 December 2015 on Thursday. Revenue fell 10% year-on-year to S$620 million while its earnings slumped 50% to S$51 million. OSIM said that retail sales across its core markets had weakened, bringing about the poor performance for the year.
Despite the decreased profitability, shareholders will still receive a final dividend of 2 Singapore cents per share, making it a total dividend of 6 cents per share for 2015, unchanged from 2014. OSIM, which is perhaps most well-known for selling luxury massage chairs, is now valued at around 15 times trailing earnings.
The SPDR STI ETF (SGX: ES3), an exchange-traded fund which can be taken as a proxy for the Straits Times Index, is now valued at 10.9 times trailing earnings and has a dividend yield of 3.7%.
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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.