It’s a Wrap: The Top 3 and Bottom 3 Blue-Chip Stocks in Singapore for October

The Straits Times Index (SGX: ^STI), which tracks the performance of the top 30 largest and most liquid companies listed in Singapore, performed well for the month of October.

For the month, the local stock market benchmark rose 4.8% to end at 3374.08 points on 31 October 2017.

Out of the 30 components, 26 were in the green; three were in the red, while one – Hutchison Port Holdings Trust (SGX: NS8U) – was flat.

The top three winners of the STI were Keppel Corporation Limited (SGX: BN4), City Developments Limited (SGX: C09) and SembCorp Industries Limited (SGX: U96).Source: S&P Global Market Intelligence

Keppel Corporation Limited announced its third quarter earnings results during the month where revenue grew 10.8% year-on-year to S$1.62 billion. All of its business segments, except Offshore & Marine, reported higher turnover. Meanwhile, net profit climbed 30% to S$291.8 million.

At the end of October, it was made public that Keppel-KBS US Reit, jointly sponsored by the asset management arm of Keppel Corporation and KBS Pacific Advisors, will be filing for an initial public offering at US$0.88 per unit. We initially covered a piece of news on this in September’s “It’s a Wrap” edition, which can be found here.

City Developments Limited has offered to buy the remaining shares of its London-listed subsidiary,  Millennium & Copthorne Hotels, that it does not own at 552.5 pence per share. You can read more about the news here.

SembCorp Industries Limited will be announcing its third quarter results on 2 November 2017 after market close. On the last day of October, its subsidiary, Sembcorp Marine Ltd (SGX: S51), announced its quarterly earnings where net profit came in at S$2.7 million, overturning a loss of S$21.8 million seen one year ago.

On the other hand, the three losers of the index were Jardine Strategic Holdings Limited (SGX: J37), Comfortdelgro Corporation Ltd (SGX: C52) and Singapore Press Holdings Limited (SGX: T39).Source: S&P Global Market Intelligence

Recent STI “debutant”, Jardine Strategic Holdings Limited, is not having it easy in terms of stock price movement. However, in terms of business performance, it posted a 9% revenue growth to US$15.6 billion for the six months ended 30 June 2016. Its profit attributable to shareholders surged 105% to US$2.2 billion.

Sir Henry Keswick, chairman of the conglomerate, said:

“Good trading is expected to continue in a number of the Group’s businesses in the remainder of the year, although the level of profit growth in the second half is likely to be tempered due to fewer residential completions expected in Hongkong Land and price competition in a number of the Group’s automotive markets.”

Unlike Jardine Strategic’s strong quarterly performance, Comfortdelgro is struggling. The firm has been affected mostly by the proliferation of ride-hailing apps such as Uber and Grab.

For the second quarter ended 30 June 2017, its revenue tumbled 3.4% year-on-year to S$987.2 million while net profit dropped 6.8% to S$79.4 million. All of its business segments brought in lower sales, except for Public Transport Services division and Driving Centre division.

The company ended off its second quarter results announcement by citing that its “operating environment remains challenging”.

It will be interesting to watch how Comfortdelgro does for the third quarter, which will be announced on 10 November 2017 after trading hours.

Singapore Press Holdings Limited, or SPH for short, belongs to the same camp as Comfortdelgro. While Comfortdelgro’s business has been affected by Uber and Grab, SPH’s business has been affected by companies providing online advertisements and digital news.

For the financial year ended 31 August 2017, SPH’s total revenue tumbled 8.2% year-on-year to $1.03 billion while its operating profit slumped 32.7% to S$205.4 million. You can learn more about the results here.

The STI ETF (SGX: ES3), an exchange-traded fund which can be taken as a proxy for the Straits Times Index, was valued at 11.4 times trailing earnings and had a dividend yield of 2.95%, as of 31 October 2017.

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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 Hongkong Land Holdings Ltd. Motley Fool Singapore contributor Sudhan P owns shares of SembCorp Industries Limited and units of STI ETF.