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The Singapore Market this Week: Yangzijiang Shipbuilding Holdings Ltd Leads the Pack Down

Photo credit: Rafael Matsunaga. Licence: http://creativecommons.org/licenses/by/2.0/

Singapore’s stock market bellwether, the Straits Times Index (SGX: ^STI), tumbled 1.5% during the week to finish at 3228.6 points. This compares to the previous week’s close of 3277.3 points.

Out of the 30 index components, 25 were in the negative region, and the rest were in the green, with Ascendas Real Estate Investment Trust (SGX: A17U) being the best performer. Its units rose 2.3% to S$2.72.

The biggest loser of the index was Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6). The shares of the shipbuilding firm slipped 5.7% to S$1.41. Over the two weeks, the company had declined more than 10%, after it announced that it would be undertaking a private placement exercise.

DBS Group Holdings Ltd (SGX: D05) won the approval from Reserve Bank of India to convert its existing franchise in India to a locally incorporated wholly-owned subsidiary. With that, DBS India can expand its footprint in the country.

DBS Group’s Chief Executive Officer, Piyush Gupta, said:

“DBS has been present in India for over 20 years. Over this time, we have grown to become the fifth-largest foreign bank in India. As we look into the future, I believe India’s consumption boom, investment and export drive, as well as positive policy action, will further fuel its growth, making it one of the biggest stories in Asia by 2030. With this local incorporation, DBS will be able to build greater scale in India, enabling us to better participate in India’s rise.”

DBS is currently the largest Singapore bank in the country and its fifth-largest foreign bank by assets.

The bank’s shares closed at S$20.47 on Friday, down 0.7% for the week.

DBS Group’s rivals, United Overseas Bank Ltd (SGX: U11) slipped 2.2% to S$23.50 while Oversea-Chinese Banking Corp. Limited (SGX: O39) shed 2.6% to S$10.88.

Elsewhere, Rowsley Limited (SGX: A50) saw its share price drop 2.6% to S$0.112. The firm announced in July that it would be “purchasing a 100% stake in Thomson Medical Pte Ltd and a 70.36% stake in TMC Life Sciences Berhad (0101.KL), a company listed in Malaysia”.

The STI ETF (SGX: ES3), an exchange-traded fund which tracks the fundamentals of the Straits Times Index, is now valued at 11.5 times trailing earnings and has a dividend yield of 3.1%.

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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 United Overseas Bank Ltd. Motley Fool Singapore contributor Sudhan P owns units of STI ETF.