The 6 Biggest Stock Market Blue Chip Losers In 2016: No. 1 to No.3

Singapore’s stock market barometer, the Straits Times Index (SGX: ^STI), closed 2015 at 2,883 points. A year later, the index ended 2016 marginally lower at 2,881 points.

Although the index had a flat year, the same can’t be said for many of its 30 constituents. In fact, there were stocks that clocked big gains as well as huge losses.

I thought it would be interesting to look back at six of the index’s biggest winners as well as six of the biggest losers. In this article, I will be covering the losers in the first to third position. For the rest of the losers, you can head here. As for the stocks in the winners list, you can check them out here and here.

With that, let’s get going!

The third worst performer

This spot belongs to ComfortDelGro Corporation Ltd (SGX: C52). In 2016, the company’s stock price declined by 19.0%.

ComfortDelGro is one of the world’s largest land transport companies. In Singapore, it provides taxi, bus, and train services. The company is the majority owner of two Singapore-listed companies, namely, the vehicle and non-vehicle testing and inspection outfit Vicom Limited (SGX: V01), and the bus and rail services operator SBS Transit Ltd (SGX: S61).

Beyond Singapore, ComfortDelGro also provides land transport services in the United Kingdom, Ireland, Australia, China, Malaysia, and Vietnam.

2016 has so far been a mixed year for ComfortDelGro. In the first nine months of the year, its profit had managed to increase by 5.2% year-on-year despite its revenue dipping by 0.5%.

One of the big geopolitical events pertaining to ComfortDelGro in 2016 would be Brexit. In June, citizens of the United Kingdom voted to leave the European Union. The pound sterling has been falling since.

At its current stock price, ComfortDelGro is valued at 17.3 times trailing earnings and 2.3 times book value.

The second worst performer

In second spot is Singapore’s second-largest telecommunications company, StarHub Ltd (SGX: CC3). Its stock price had slid by 24.1% in 2016.

To put it simply, StarHub has delivered a lacklustre set of results in 2016 thus far. For the first nine months of the year, StarHub reported a 2.7% decline in revenue and a 1.4% dip in profit.

Some of you may already know that Singapore’s mobile market has a fourth player now in TPG Telecom. In December 2016, the Australia-based telco won a spectrum auction organised by the Infocomm Development Authority.

StarHub’s shares carry a price-to-earnings (PE) and price-to-book (PB) ratio of 13.4 and 21.1 right now.

The worst performer

Holding ‘pole’ position with a 25.9% decline in its stock price in 2016 is Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6).

The company runs shipyards that builds commercial vessels such as container vessels, bulk carriers, and multi-purpose vessels.

The shipbuilding industry has faced significant challenges in the past few years due to an oversupply of ships in the shipping industry. An oversupply of ships results in a decline in shipping rates, which in turn causes ship owners to postpone or cancel new orders for ships.

Yangzijiang has felt the chill in 2016, judging by its results for the first nine months of the year: A 25.7% year-on-year decline in revenue had led to a 52.7% fall in profit.

Currently, Yangzijiang’s shares have a PE ratio of 13.2 and a PB ratio of 0.7.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.