A Look at the Local Stock Market this Week

Singapore’s stock market benchmark, the Straits Times Index  (SGX: ^STI), gained 2.8% during the week to end Friday at 2,925 points.

Of the 30 index components, 27 made weekly gains, while one was flat. The remaining two suffered a loss for the week.

Land transport operator Comfortdelgro Corporation Ltd (SGX: C52) was the largest weekly winner in the index as its shares climbed by over 8% to S$3.01. My Foolish colleagues, Esjay and Lawrence Nga, had taken a look at the company’s business fundamentals recently. Their articles can be found here and here.

On the other hand, the biggest loser was beverage company Thai Beverage Public Company Limited (SGX: Y92). Its shares had slipped by 1% to close at S$0.95 on Friday.

Thai Beverage announced this week that its Vice-Chairman, Mr. Komen Tantiwiwatthanaphan, who is 96 years old, has retired as a director of the company due to health reasons. He was the vice-Chairman since 2003 and he holds around 34 million shares of the firm.

The business park and industrial properties owner Ascendas Real Estate Investment Trust (SGX: A17U) was the other loser in the index. Its units dipped slightly by 0.4% to a price of S$2.44.

Last week, the REIT sold a business park property in China, the Ascendas Z-Link, to Cova Beijing ZPark Investment Ltd. for around S$160 million. Ascendas REIT had bought the property for S$62 million in 2011.

The REIT expects net proceeds of S$135 million after taxes and transaction-related expenses are deducted. Ascendas REIT also explained that the capital “may be recycled to fund committed investments, used to repay existing indebtedness, extend loans to subsidiaries, and/or fund general corporate and working capital needs.”

Outside the index, Singapore Post Limited (SGX: S08) was a company that made some headlines. On Thursday, the postal and logistics services provider held its Annual General Meeting for its fiscal year ended 31 March 2016 (FY2016). It was Mr Simon Israel’s first AGM as Singpost’s Chairman since his appointment on May 2016. During the meeting, Israel had given a speech and touched on a number of topics, including:

  1. The disruptive forces that Singpost’s postal business is facing and how these are influencing the firm’s priorities
  2. How the company is addressing the gaps in its corporate governance
  3. The appointment of a new chief executive officer.

For FY2016, Singpost’s revenue had grown by 25.2% to S$1.2 billion while its net profit jumped by 58% to S$249 million. Singpost’s share price had slipped by 2.6%, declining from S$1.555 last Friday to S$1.515 this Friday. Israel’s speech can be found here.

Another local land transport operator, SMRT Corporation Ltd  (SGX: S53), saw its shares gain 3.3% for the week to close at a price of S$1.545.

The Land Transport Authority announced that the firm’s operating assets for the rail business will come under a new rail financing framework from 1 October 2016 onward. SMRT will transfer its rail assets to the Singapore government for S$1 billion, subject to shareholder approval. This will help to transform the firm into an asset-light rail services provider.

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 12.1 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.