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The Singapore Market This Week: Thai Beverage Public Company Limited Leads the Pack Lower

The Straits Times Index pared 0.9% to end at 3,385.71 points for the week. Out of the 30 index components, 15 were in the negative territory, 11 were in the positive while the rest were flat.

Thai Beverage Public Company Limited (SGX: Y92) was the biggest loser of the index, slumping 6.2% to S$0.91.

Vietnam Beverage, which is 49% owned by Thai Beverage, won a bid to buy over a 53.6% stake in Saigon Beer Alcohol Beverage Joint Stock Corp (Sabeco), a state-owned Vietnamese brewer, for around 109.97 trillion Vietnamese dong (S$6.5 billion).

Sabeco, which has the largest market share in Vietnam’s beer sector, owns famous brands like Saigon Beer and 333 Beer. The country is the biggest beer market in the Southeast Asian region and the 3rd largest in Asia, after China and Japan.

The acquisition will give Thai Beverage an access to extensive local distribution networks and diversify its products geographically. Sabeco’s addition will also help to solidify Thai Beverage’s position as the largest beverage company in Southeast Asia, in line with its Vision 2020.

On the other hand, Singapore Press Holdings Limited (SGX: T39) led the winners’ camp. It added 2.7% to S$2.66 for the week, even though it hit a low of S$2.56 on Monday.

MindChamps PreSchool Limited (SGX: CNE), which is 20% owned by Singapore Press Holdings, announced on Tuesday that Vietnam’s Evergrande Group had signed a master franchise agreement with the educator, with plans to open 20 preschools and reading centres in the country.

MindChamps holds the top position in terms of market share for premium range preschools in Singapore. For the week, its shares rose 3.3% to S$0.78.

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 a trailing price-to-earnings ratio of 11 and has a dividend yield of 2.9%.

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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 of SPDR STI ETF.