Golden Agri-Resources Ltd Leads the Market Down this Week

For this week, the Straits Times Index (SGX: ^STI), Singapore’s stock market benchmark, had lost 2.1% to close Friday at 2,763 points.

Of the 30 index constituents, 22 ended the week with losses, seven had made some gains and StarHub Ltd. (SGX: CC3) was the lone company that ended the week unchanged at S$3.57.

The biggest loser in the index was Golden Agri-Resources Ltd (SGX: E5H), one of the world’s largest palm oil plantation companies. Its share price ended Friday at S$0.345, down by over 9% from the previous Friday.

Around a month back, the firm posted its fiscal first-quarter earnings for the three months ended 31 March 2016.

For the period, the company’s revenue declined by 3.8% year-on-year to US$1.49 billion. But, the firm’s core net profit ballooned by 65% to US$40 million, mainly on the back of growth in the company’s downstream business, which was partially offset by softer average crude palm oil prices.

Other losers in the Straits Times Index include the three banks –  DBS Group Holdings Ltd (SGX: D05), Oversea-Chinese Banking Corp Limited (SGX: O39), and United Overseas Bank Ltd (SGX: U11). UOB suffered the biggest decline of the trio with its share price down by 3.7% to S$17.92.

  At the other end of the spectrum, SATS Ltd (SGX: S58) was the best performer in the Straits Times Index. The firm, which provides catering services to airlines as well as other forms of airport terminal services, saw its shares climb by 3% from S$4.05 a week ago to S$4.17

SATS announced on Tuesday that it has “established a secure temperature-controlled, quality corridor between Singapore and Zurich” together with Swiss WorldCargo and Cargologic and itself. Swiss WorldCargo is the airfreight division of Swiss International Air Lines while Cargologic is Switzerland’s top provider of airfreight handling services.

The partnership will see the three firms synchronise their “cargo handling facilities and procedures between Singapore and Zurich, to deliver the most accurate, reliable handling on the ground and in the air, with full paperless cargo acceptance processes that enhance visibility and transparency for shippers.” The partnership’s main focus is on the pharmaceutical industry.

  The SPDR STI ETF (SGX: ES3), an exchange-traded fund which tracks the fundamentals of the Straits Times Index, is now valued at 11.4 times trailing earnings and has a dividend yield of 3.6%.

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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.