The Singapore Market this Week: Wilmar International Limited Charges Ahead

The Singapore market benchmark, the Straits Times Index (SGX: ^STI), ended Thursday at 3277.26 points, edging up 0.5% for the week. The market was closed yesterday due to Hari Raya Haji public holiday.

Out of the 30 index components, 18 were in the green; ten were in the red while two ended the week unchanged. Commodity firm, Wilmar International Limited (SGX: F34), was the biggest winner in the index, adding 3.1% to S$3.32.

Meanwhile, the biggest loser was shipbuilder, Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6). It slumped 6.3% during the week to end Thursday at S$1.495.

On the last trading day of the week, the firm announced that it would be doing a private placement exercise of 137 million shares to institutional investors and other investors at a price of S$1.53 per share. The placement shares represent around 3.6% of the existing share capital.

The net cash proceeds will be around S$208.8 million. The shipbuilder said that it “intends to use up to 50% of the net proceeds to fund new investments and business expansion through acquisitions, joint ventures and/or strategic alliances as and when opportunities arise, with the remainder to be used for working capital and general corporate purposes of the Group, including the repayment of bank borrowings and loans”.

A new company will be joining the STI come 18 September 2017.

The index’s co-creators made public that SIA Engineering Company Ltd (SGX: S59) would be dropped from the index and will be replaced by Jardine Strategic Holdings Limited (SGX: J37).

For the past four years, SIA Engineering’s shares had declined more than 20%. At its peak, the company was selling at S$5 per share. Keen competition in the industry its operating in and technological advancements in new aircraft have hampered its business.

On Thursday, SIA Engineering’s shares closed at S$3.52, up 1.1% for the week.

Elsewhere, Venture Corporation Ltd (SGX: V03) rose 4.9% to S$15.80. The provider of technology services could rub shoulders with Wilmar, Yangzijiang and Jardine Strategic after making its way into the STI reserve list.

The STI ETF (SGX: ES3), an exchange-traded fund which tracks the fundamentals of the Straits Times Index, is now valued at 11.6 times trailing earnings and has a dividend yield of 3.04%.

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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 units in STI ETF.