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A Quick Snapshot Of The Local Stock Market This Week

The Singapore market, as represented by the Straits Times Index  (SGX: ^STI), inched down by around 8 points, or 0.3%, to end the week at 2,829. Of the 30 stocks within the index, 16 ended the week with a loss while the rest had managed to earn some gains.

Thai Beverage Public Company Limited (SGX: Y92) happened to be the biggest loser in the index with its shares falling by 3.9% to S$0.74.

The firm, which prides itself as “Thailand’s largest and regional leading beverage company,” posted its earnings for the year ended 31 December 2015 around two weeks back. Sales for the year were THB 172 billion, up 6% while net profit increased by 22% to THB 26 billion. But, the majority of Thai Beverage’s earnings growth came from one-off gains.

The biggest winner of the week within the index was property firm Hongkong Land Holdings Limited (SGX: H78). Shares of the company gained 3.1% to end the week at US$6.30.

Just like Thai Beverage, Hongkong Land posted its results for the year ended 31 December 2015 recently. It said that revenue for 2015 went up by 3% to US$1.9 billion. Net profit slumped from US$930 million in 2014 to US$905 million for the latest period though.

Telecommunication operators, Singapore Telecommunications Limited (SGX: Z74) and StarHub Ltd  (SGX: CC3), which are both part of the Straits Times Index, saw weak share price performances for the week. Their shares came down by 1.3% and 2% to end Friday at S$3.76 and S$3.36, respectively. But M1 Ltd (SGX: B2F), which is a fellow telco but not part of the Straits Times Index, had managed to put on 0.4% to S$2.57. A price war had emerged among the incumbent trio of telcos earlier in the week.

What may exacerbate the situation is the potential entry of a new telco. MyRebublic, a company that wants to be the new fourth telco in Singapore, has the intention of introducing a mobile data plan with unlimited data, giving consumers more choices.

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 11.6 times its trailing earnings and has a dividend yield of 3.5%.

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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.