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 fourth to sixth position. For the…
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 fourth to sixth 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 sixth worst performer
The conglomerate Keppel Corporation Limited (SGX: BN4) captures the sixth spot with the 11.1% decline in its stock price in 2016.
Keppel Corp derives the bulk of its revenue and profit from its Offshore & Marine and Property business segments. The Offshore & Marine segment is one of the largest oil rig builders in the world and its business performance has suffered given the sharp decline in the price of oil seen in recent years.
Keppel Corp’s stock-price-decline in 2016 might have been worse if not for a doubling in the price of oil from a low of around US$25 per barrel seen in February to around US$55 at the end of the year.
One big development concerning the oil & gas industry is the December 2016 deal between OPEC (Organisation of Petroleum Exporting Countries) and non-OPEC members to cut their output of oil.
In any case, 2016 has so far been a horrible time for Keppel Corp’s business. In the first nine months of the year, the company saw its revenue and profit suffer big year-on-year declines of 38.2% and 42.8%, respectively.
Right now, Keppel Corp’s shares have a price-to-earnings (PE) ratio of 10.2. It also has a price-to-book (PB) ratio of 0.9.
The fifth worst performer
Singapore’s national carrier Singapore Airlines Ltd (SGX: C6L) is the fifth worst performer amongst the blue chips. Its stock price had fallen by 13.7% in 2016.
As a brief introduction, Singapore Airlines owns other airline brands, Scoot and Silk Air, in addition to its namesake full-service airline. Aside from flying passengers and cargo around the world, Singapore Airlines also has a majority-owned subsidiary, namely, SIA Engineering Company Ltd (SGX: S59). It specialises in providing aircraft maintenance, repair, and overhaul (MRO) services.
In the first nine months of 2016, Singapore Airlines had enjoyed a 58.6% jump in profit despite suffering a 3.8% decline in revenue. It should be noted that Singapore Airlines’ bottom-line had been boosted by one-off gains from SIA Engineering’s sale of a subsidiary.
It’s worth pointing out too that fuel is a large portion of Singapore Airlines’ expenses (in the company’s latest quarter, fuel costs were over a quarter of revenue). Although oil prices are today still around half of what they were back in mid-2014, there has been a strong rebound in 2016 – oil prices actually reached a low of less than US$30 per barrel earlier in the year.
At its current stock price, Singapore Airlines is valued at 13.9 times trailing earnings and has a PB ratio of 0.87.
The fourth worst performer
In fourth spot we have Hutchison Port Holdings Trust (SGX: NS8U), whose unit price declined by 17.9% in 2016.
Hutchison Port Holdings Trust, or HPHT for short, is a business trust that has stakes in deep-water container ports in Hong Kong and Shenzhen. The container ports include Hongkong International Terminals (HIT), COSCO-HIT Terminals (CHT), and Asia Container Terminals (ACT) in Hong Kong as well as Yantian International Container Terminals (YICT) in Shenzhen, China.
Hutchison Port Holdings Trust has had a mixed time in 2016 thus far. The first nine months of the year saw the business trust report a 6.5% year-on-year decline in revenue but a 9.6% jump in profit. That being said, the trust’s bottom-line had benefitted from some one-off items – if those were stripped away, Hutchison Port Holdings Trust’s profit would have been 12.2% lower instead when compared to the previous year.
The trust attributed its weaker financial performance mainly to lower throughput in its ports.
Hutchison Port Holdings Trust has a PE and PB ratio of 16.9 and 0.7 at the moment.
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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.