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3 Things You Need to Know About the Singapore Stock Market Today

Hello, everyone. Here are three things about the local stock market that you might be interested in today.

1. The Straits Times Index (SGX: ^STI) ended Wednesday at 3,384 points, down 0.7%, or 23 points.

Since last Friday’s close, the benchmark index has lost slightly more than 4%. This seems scary. However, we should always view the stock market with the right perspective; such declines are usually opportunities to buy companies at bargain prices.

Among the 30 constituents of the Straits Times Index, Singapore Airlines Ltd (SGX: C6L) was the blue chip that lost the most group today. The airline’s shares tumbled 3.8% to S$10.76. On the other hand, CapitaLand Commercial Trust (SGX: C61U) emerged as the Straits Times Index’s biggest winner for the day – its unit price climbed 2.3% to S$1.77.

2. Meanwhile, Singapore Exchange Limited  (SGX: S68) reported its market statistics for January 2018 this morning. Here are some of the key highlights:

a) Total securities market turnover value was S$29.4 billion, up 40% year-on-year over 22 trading days. There were 20 trading days in January 2017.

b) Market turnover value of structured warrants and Daily Leveraged Certificates came in at S$1.4 billion, 46% higher compared to a year ago.

c) Total derivatives volume was 18.1 million, up 55% year-on-year.

d) Equity index futures volume stood at 14.5 million, up 51% year-on-year.

e) Total FX futures volume was 1.4 million, representing a whopping 147% year-on-year increase.

f) SGX commodity derivatives volume was 1.3 million, up 14% as compared to January 2017.

Singapore Exchange’s shares ended Wednesday at S$8.01 each, up 1.7% compared to yesterday’s close.

3. Japan Foods Holding Ltd (SGX: 5OI) saw its shares rise 9.5% to end the day at S$0.46. This came after it posted a 73% increase in its fiscal third-quarter net profit earlier today.

For the three months ended 31 December 2017, the Japanese restaurant operator’s revenue rose 11.4% year-on-year to S$18.7 million. Meanwhile, its bottom line grew from S$1.4 million last year to S$2.5 million in the latest quarter. Strong revenue contribution from its Ajisen Ramen, Menya Musashi, and Shitamachi Tendon Akimitsu brands advanced both the top- and bottom-line.

As of 31 December 2017, Japan Foods had 48 restaurants in Singapore, down from 50 restaurants a year ago. Takahashi Kenichi, the executive chairman and chief executive of the company, said that the improvement in earnings despite the lower restaurant count is a “testament to the strength of our brands and the effectiveness of our dynamic restaurant portfolio management.”

He added:

“We are particularly pleased with our ‘Shitamachi Tendon Akitmitsu’ brand, which was launched in July 2017 at Plaza Singapura. Its performance has been so encouraging that we have since added four more stores in Northpoint City, Vivo City, Westgate and the latest one at Changi City Point which opened in January 2018. Our flagship ‘Ajisen Ramen’ brand has also performed strongly partially due to higher same-store sales following the revamp of some outlets into the ‘Den by Ajisen Ramen’ brand.”

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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 Singapore Exchange Limited. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Commercial Trust and shares in Singapore Exchange Limited.