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

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 November.

For the month, the local stock market benchmark rose 1.8% to end at 3,433.54 points on 30 November 2017. Out of the 30 STI components, 14 were in the green; while the rest were in the red. The STI market capitalisation rose 0.7% month-on-month to S$601.9 billion.

The top three winners of the STI were SATS Ltd (SGX: S58), Genting Singapore PLC (SGX: G13) and CapitaLand Commercial Trust (SGX: C61U).Source: S&P Global Market Intelligence

SATS Ltd has two business segments – Food Solutions and Gateway Services. The former covers services such as airline catering and food distribution, while the latter is involved in ground handling services of passengers, flights, ferries, and cargo.

For the second quarter ended 30 September 2017, revenue inched down 0.8% year-on-year to S$434.8 million, but profit attributable to shareholders rose 16.3% to S$72.2 million. To know more about the quarterly performance, you can head here.

Just like SATS Ltd, Genting Singapore PLC saw a net profit improvement. Its net profit for the third quarter increased 35% year-on-year to S$143.8 million on the back of an 8% improvement in revenue to S$629.9 million. Stronger VIP and premium mass business volume helped to prop up the casino operator’s top line.

On the other hand, the top three losers of the index were Wilmar International Limited (SGX: F34), SembCorp Industries Limited (SGX: U96) and City Developments Limited (SGX: C09).

Source: S&P Global Market Intelligence

Wilmar International saw its third-quarter revenue go up by 0.4% year-on-year to US$11.13 billion, but net profit slumped 5.7% to S$370.03 million. The top line improved due to increased sales from Oilseeds and Grains segment.

Despite the fall in stock price in November, SembCorp Industries Limited has seen its share price go up more than 10% for the past 12 months. My colleague, Chong Ser Jing, explored if there’s still more room for the conglomerate to run using a checklist formulated by the renowned investor, Peter Lynch. You can check out his take here.

City Developments Limited, which offered to buy the remaining shares of Millennium & Copthorne Hotels that it does not own for 552.5 pence per share, posted a 6.5% year-on-year decline in third-quarter revenue to S$863.1 million. Net profit tumbled 8.3% to S$156.4 million.

The STI ETF (SGX: ES3), an exchange-traded fund which can be taken as a proxy for the Straits Times Index, was valued at 11.3 times trailing earnings and had a dividend yield of 2.9%, as of 30 November 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 SATS Ltd. Motley Fool Singapore contributor Sudhan P owns shares of SembCorp Industries Limited, and units of CapitaLand Commercial Trust and STI ETF.