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

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

For the month, the local stock market benchmark declined by 0.9% to end at 3402.9 points on 29 December 2017. Out of the 30 STI components, 18 were in the red; eight were in the green while the rest were unchanged.

The top three winners of the STI were CapitaLand Mall Trust (SGX: C38U), City Developments Limited (SGX: C09) and Ascendas Real Estate Investment Trust (SGX: A17U).

Source: S&P Global Market Intelligence

City Developments Limited (CDL) announced earlier in the month that it has put forward a final offer to acquire the remaining shares of its London-listed subsidiary, Millennium & Copthorne Hotels (M&C), that is not owned by CDL. As of 7 December 2017, CDL held around 65.2% of M&C. The offer is a revised one from the possible offer announced in October 2017.

Shareholders of M&C will receive an increased cash amount of 600 pence (previously 545 pence) per M&C share and an improved special dividend of 20 pence (previously 7.5 pence) per M&C share.

M&C shareholders have until 23 January 2018 to respond.

Ascendas Real Estate Investment Trust acquired a suburban office property located at No 108 Wickham Street, Fortitude Valley, in Queensland, Australia for A$106.2 million (around S$109 million). The freehold property is fully occupied, and the leases have annual rental escalations of between 3% and 4%.

The industrial REIT also entered into a sale and purchase agreement with Axxel Marketing Pte Ltd to sell off No 84 Genting Lane for S$16.68 million. The sale price is 66.8% higher than the purchase price of S$10 million.

On the other hand, the top three losers of the index were Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6), Jardine Strategic Holdings Limited (SGX: J37) and Thai Beverage Public Company Limited (SGX: Y92).

Source: S&P Global Market Intelligence

Thai Beverage’s indirectly associated company, Vietnam 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 about 110 trillion Vietnamese dong (S$6.5 billion).

Sabeco has the largest market share in Vietnam’s beer sector and owns famous brands such as Saigon Beer and 333 Beer. The country is the biggest beer market in Southeast Asia and the third largest in Asia.

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

The SPDR STI ETF (SGX: ES3), an exchange-traded fund which can be taken as a proxy for the Straits Times Index, was valued at 11.1 times trailing earnings and had a dividend yield of 2.9%, as at 29 December 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 units of CapitaLand Mall Trust. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Mall Trust and SPDR STI ETF.