The Singapore Market This Week: Almost All Blue Chips End in the Red

The local stock market benchmark, the Straits Times Index (SGX: ^STI), lost 4.3% over the week to end Friday at 3,377 points. The Singapore market took a beating, along with a volatile week for major market indices in the US.

With the S&P 500 index and the Dow Jones Industrial Average index in the US slumping by 3.8% and 4.2%, respectively, on Friday morning (Singapore time), both indices officially entered correction territory, defined as a decline of over 10% from a recent high. The S&P 500 and the Dow Jones Industrial Average had fallen by more than 10% percent from their record highs reached on 26 January 2018. However, they both made gains on Friday night (US time; Saturday morning Singapore time), and have made it out of the correction zone.

Almost all the 30 Straits Times Index components ended the week in the red. The only company that escaped the wrath was DBS Group Holdings Ltd (SGX: D05).

DBS reported its earnings for 2017 on Thursday. Total income for the year grew 4% year-on-year to a record S$11.92 billion. The increase was due to broad-based growth in loans and fee income, which was offset by a lower net interest margin and poorer trading performance.

Net interest income saw a 7% increase while net fee and commission income went up 12%. Other non-interest income fell by 18%. Net profit climbed by 4% to S$4.39 billion, a new high.

The non-performing loans ratio went up from 1.4% one year back to 1.7% in 2017. However, on a quarterly basis, it was stable.

A final dividend of 60 cents per share was proposed, bringing the full-year dividend to 93 cents per share, a rise of 55% as compared to 2016. Also, DBS proposed a special dividend of 50 cents per share for the year. From 2018 onwards, the bank said that it will dish out $1.20 per share in yearly dividends.

DBS’s shares added 0.1% to close at S$26.71 on Friday.

Another company that announced its financial results during the week was telecommunications outfit, Singapore Telecommunications Limited (SGX: Z74).

For its fiscal third quarter, Singtel’s revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) rose 4% to S$4.6 billion, and 6% to S$1.3 billion, respectively. The better showing came on the back of robust contributions from its core and digital businesses. However, the bottom-line was affected by falling voice revenues and higher infrastructure investments. This led to a 9% year-on-year decline in net profit to S$890 million. Singte’s stock ended the week in the red, falling 3.2% to S$3.38 apiece.

Singapore Telecommunications was not the worst performer of the week. Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6) unwittingly took the top spot. The shipbuilder’s shares plunged 11.5% to S$1.39.

Elsewhere, Japan Foods Holding Ltd’s (SGX: 5OI) shares added 6.8% to last change hands at S$0.47 on Friday.

For its fiscal third quarter ended 31 December 2017, Japn Foods’ revenue rose 11.4% year-on-year to S$18.7 million. Meanwhile, its bottom-line grew from S$1.4 million a year ago to S$2.5 million in the latest quarter, soaring 73%. Strong revenue contribution from its Ajisen RamenMenya Musashi, and Shitamachi Tendon Akimitsu brands improved both revenue and earnings.

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 11.3 and a distribution yield of 3%.

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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 DBS Group Holdings Ltd. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.

Editor's note: The article has been edited for clarity.