The Singapore Market this Week: Sembcorp Marine Ltd Leads the Pack Down

During the week, the Straits Times Index  (SGX: ^STI), which represents the Singapore stock market, fell by 1.4% to 2,828 points.

Of the 30 stocks that make up the index, 14 had clocked a weekly loss with oil rig builder Sembcorp Marine Ltd (SGX: S51) leading the pack down. The company saw its share price drop by some 6% from S$1.41 last Friday to close this week at S$1.325.

Sembcorp Marine released its second-quarter earnings near the end of July. It said that revenue had fallen by 24.8% year-on-year to S$908.5 million. The bottom-line was worse as profit tumbled by 89.5% to S$11.5 million. The lower profitability was largely due to the curtailing of offshore exploration and production projects by customers.

Casino and resort operator Genting Singapore PLC (SGX: G13) was another big loser in the index. Its shares slumped 3.8% to S$0.755 each. In the second-quarter of 2016, the firm saw its revenue drop by 17% year–on-year to $480.9 million while clocking a net loss attributable to shareholders of S$10.5 million.

14 other stocks in the Straits Times Index saw their share price climb for the week. The biggest winner is Jardine Cycle & Carriage Ltd (SGX: C07). This happened despite Jardine Cycle & Carriage reporting on Monday that its second-quarter revenue and profit had both declined.

Outside the group of blue chips, Noble Group Limited (SGX: N21), which incidentally used to be part of the Straits Times Index, saw its share price fall by 4.9% to S$0.154, giving it a market capitalisation of S$1 billion. The price had sank to a low of S$0.122 during the week.

Due to the “unusual share price movements,” Noble was queried by stock market regulator Singapore Exchange Limited  (SGX: S68) during the week. In reply, Noble said that it is not aware of any possible explanation for its share price changes.

Once a huge company in Singapore’s stock market with a market cap of over S$14 billion, Noble is now at a risk of breaching the minimum trading price (MTP) rule. The global supply chain manager of industrial and energy products will be reporting its financial results for the six months ended 30 June 2016 on Thursday, 11 August 2016.

The SPDR STI ETF (SGX: ES3), an exchange-traded fund that tracks the fundamentals of the Straits Times Index, is now trading at 11.7 times trailing earnings and has a dividend yield of 3.2%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.