The Singapore Market this Week: Singapore Telecommunications Limited Leads the Big Boys Down

The local stock market, as represented by the Straits Times Index (SGX: ^STI), ended the week at 3326.52, inching down 0.1%. Out of the 30 index components, half were in the red, while the other half ended the week on a positive note.

Telecommunications outfit, Singapore Telecommunications Limited (SGX: Z74), finished Friday at S$3.83, slumping 4.3% for the week. The firm will be reporting its first quarter results on 11 August 2017.

On the other hand, the biggest winner in the index was shipbuilder, Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6). It rang up gains of 11.9% to S$1.46.

A few companies released their quarterly reports during the week so do check out their coverage below:

Other than the companies above, Singapore Post Limited (SGX: S08) announced its first quarter results ended 30 June 2017 on Friday. The postal outfit rose 0.8% to S$1.32 for the week.

The top line for the quarter went north by 6.2% year-on-year to S$354.1 million. This was on the back of growth in the postal and logistics segments.

However, net profit slumped 13.6% to S$31.0 million while underlying net profit tumbled 24.7% to S$26.9 million. Lower domestic mail volumes, costs from planned investments, keen competition in the logistics segment, and associates that are investing for growth primarily caused the net profit decline.

Singapore Post will be paying an interim dividend of 0.5 cent per ordinary share for the quarter, down from 1.5 cents paid out last year.

Mr Paul Coutts, Chief Executive Officer of Singapore Post, commented on the road ahead:

“Our transformation into a leader in postal and eCommerce logistics is in progress to secure new revenues for SingPost. The investments we have made will take a number of years to contribute to profitability, but are necessary as our core domestic mail business faces structural decline. The priority is to integrate what we have acquired into a true network across markets, products and geographies, with a focus on driving synergy benefits. The transition is not without challenge but we have the right people, the right infrastructure and the right technology to succeed.”

Shares of Japan Foods Holding Ltd (SGX: 5OI) dropped 6.5% to S$0.43 for the week. The food and beverage firm released its financial results for the three months ended 30 June 2017 during the week. The Group operates restaurants under various brands, such as Ajisen Ramen, Keika Ramen, Osaka Ohsho, and Menya Musashi.

For the quarter, revenue decreased 3.8% year-on-year S$16.2, mainly due to decay in revenue from restaurants operating under brands not mentioned above. Meanwhile, the firm’s net profit was reduced by 19.9% to S$1.0 million.

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 12.4 times trailing earnings and has a dividend yield of 3%.

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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 owns shares in Raffles Medical Group Ltd. The Motley Fool Singapore has recommended shares of Raffles Medical Group Ltd.