The Singapore Market This Week: Sembcorp Marine Ltd Sees Huge Gains

Singapore’s stock market, as represented by the Straits Times Index  (SGX: ^STI), had a great week as it gained 4.1%, or around 116 points, to end Friday’s trading session at 2,924 points.

Of the index’s 30 constituents, 27 stocks managed to clock a weekly gain. Oil and gas outfit Sembcorp Marine Ltd (SGX: S51) was the biggest winner with its shares jumping by 14.3% from S$1.575 last Friday to S$1.80 this Friday.

Over the course of the week, two investment funds from Franklin Resources, Inc. announced that they had increased their stakes in Sembcorp Marine. They became substantial shareholders in the company as a result of their stock purchases after their interest in the firm increased to and/or above the threshold figure of 5%. The two funds had bought around S$3.6 million shares of Sembcorp Marine during the week.

Moving on, another winner in the index is newspaper publisher and property developer Singapore Press Holdings Limited (SGX: T39). The company’s shares had stepped up by 2.5% in the week to finish Friday at S$4.10.

Singapore Press Holdings, or SPH for short, reported its fiscal second-quarter earnings (for the three months ended 29 February 2016) on Tuesday. For the reporting quarter, SPH’s top-line had declined by 4.1% year-on-year to S$264 million largely on the back of lower revenues from its media business. Moving down the income statement, the company’s net profit declined by 22.3% to S$54 million due to much lower net income from investments and losses from associates and joint ventures.

At the other end of the spectrum is Thai Beverage Public Company Limited (SGX: Y92), the biggest weekly loser in the Straits Times Index. Shares of the Thailand-based alcoholic beverages manufacturer had slipped by 0.7% to S$0.715.

Outside of the blue chip universe, telecommunications services provider M1 Ltd (SGX: B2F) saw its shares slump by 7.3% to end the week at S$2.42.

M1 announced its fiscal first-quarter earnings  on Wednesday. The reporting period was for the three months ended 31 March 2016. Revenue came in at S$258 million, some 12.6% lower compared to a year ago. This was largely due to a fall in handset sales.

The telco’s net profit also slipped by 6.9% to S$42.5 million because of higher upfront customer acquisition costs. The latest Samsung S7 mobile phone was launched in the first quarter of this year instead of the second quarter, which was the case last year with the Samsung S6. Therefore, the impact was accounted for in this quarter instead of the upcoming quarter.

M1 said that going forward, it will be investing in new technologies, such as in early stage companies, which will complement its core business. But, the “benefits may only accrue in future years,” it added.

The SPDR STI ETF (SGX: ES3), an exchange-traded fund which tracks the fundamentals of the Straits Times Index, is now going at 11.9 times trailing earnings and has a dividend yield of 3.4%.

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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.