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The Singapore Market This Week: Venture Corporation Ltd Leads the Pack Higher

The Singapore stock market, as represented by the Straits Times Index (SGX: ^STI), ended the week at 3,550 points, inching up 0.8% from last Friday.

Of the 30 index components, 19 made gains. Venture Corporation Ltd (SGX: V03) was the largest winner, with its shares up 7.3% to S$24.30.

On Thursday, the contract manufacturer announced that it has entered into an agreement with S&S (Barber) to purchase a freehold property in California, United States, for US$29.4 million. Venture believes that the property will strengthen its presence and image in the country.

The proposed acquisition will be fully paid for through internal resources. As of 30 September 2017, Venture had S$599.6 million in cash and equivalents, and zero debt. So, the property purchase should not be an issue for the company.

Venture replaced Global Logistic Properties Ltd (SGX: MC0) in the Straits Times Index after the latter was bought out by a consortium of investors. Global Logistic Properties will be delisted from the local stock market on 22 January 2018.

Meanwhile, seven index components were in the losers’ camp. The remaining four blue-chips ended the week unchanged.

CapitaLand Commercial Trust (SGX: C61U) was the index component that lost the most ground during the week as its units tumbled by 3% in price to S$1.92. The REIT will be announcing its financial results for 2017 on 25 January 2018 before the market opens. For the nine months ended 30 September 2017, the REIT’s gross revenue rose by 20.3% year-on-year to S$251.2 million, while net property income grew 23.1% to S$197.5 million. Its DPU increased by 3.4% to 6.92 Singapore cents.

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 price-to-earnings ratio of 11.6 and a distribution yield of 2.8%.

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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 in CapitaLand Commercial Trust.