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A Quick Snapshot of the Singapore Stock Market this Week

This week, Singapore’s stock market, as represented by the Straits Times Index  (SGX: STI), had slipped by 0.3% to end Friday at 2,649 points.

Of the 30 index components, 16 had clocked a weekly loss, with oil rig builder Sembcorp Marine Ltd (SGX: S51) losing the most ground. Its shares had slumped by 9.1% to end the week at S$1.545.

On the other hand, the rest of the index stocks had finished the week with gains. The biggest winner in the index happened to be Genting Singapore PLC (SGX: G13) – the casino and resort owner’s shares had gained 5.6% in value to S$0.76.

Earlier in February, Sembcorp Marine had released its financial results for the year ended 31 December 2015. Revenue had tumbled by 15% to S$4.97 billion while its bottom-line had suffered with a loss of S$290 million. The firm had posted its first quarterly loss in at least 12 years in the fourth-quarter of 2015.

The price of oil had plunged from more than US$100 per barrel in mid-2014 to around US$30 today. That fierce decline has taken a huge toll on Sembcorp Marine’s business. But, the firm said in its earnings release that it “remains optimistic on the longer term prospects of its business as its facilities have been built to cater to the industry’s demand for the long term.” The company added:

“As an integrated Sembcorp Marine, we will optimise our capabilities and capacities, as well as increase our efficiency and productivity to better serve our partners and customers.”

Still focusing on the 30 stocks within the Straits Times Index, stock market operator and regulator Singapore Exchange Limited (SGX: S68) announced this week that it is looking to buy the Baltic Exchange.

With 600 member firms, the Baltic Exchange is “the world’s only independent source of maritime market information for the trading and settlement of physical and derivative shipping contracts.” Singapore Exchange’s shares had stepped down by 2.2% to S$7.14 during the week and the company is now valued at around 21 times its trailing earnings.

On Friday morning, engineering conglomerate Singapore Technologies Engineering Ltd (SGX: S63) annouced its earnings for the 12 months ended 31 December 2015. Revenue for the year had declined slightly by 3% year-on-year to around S$6 billion while net profit inched down by 1% to S$529 million.

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 11.1 times trailing earnings and has a dividend yield of 3.8%.

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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.