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

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

For the month, the local stock market benchmark fell 0.5% to end at 3,517.94 points on 28 February 2018. Towards the later part of the month, the index recovered some of the declines seen in early February. On 9 February 2018, the index was trading at a low of 3,340.55 points.

Of the 30 index components, eight were in the green while 22 were in the negative territory.

The top three winners of the STI were Venture Corporation Ltd (SGX: V03), DBS Group Holdings Ltd (SGX: D05) and Jardine Matheson Holdings Limited (SGX: J36).Source: S&P Global Market Intelligence

Venture announced record revenue and net profit for its full year ended 31 December 2017. Revenue for the year improved 39.3% year-on-year to S$4 billion while net profit ballooned 106.3% to S$372.8 million. A final dividend of 60 cents per share was declared, up 20% as compared to the previous year.

The electronics services provider said that the “financial year 2017 marked a year of excellent execution of customers’ programmes across the Group’s diversified customer base and further deepening of complementary and collaborative partnerships”.

DBS also reported record revenue and earnings for 2017. Total income for the year rose 4% year-on-year to a high of S$11.92 billion. The improvement was due to broad-based growth in loans and fee income, which was partially offset by a lower net interest margin and poorer trading performance. Net profit soared 4% to a record S$4.39 billion.

A final dividend of 60 cents per share and a special dividend of 50 cents per share were proposed, a 267% year-on-year increase.

Would Jardine Matheson follow in the footsteps of Venture and DBS? The question will be answered when Jardine Matheson announces its 2017 financial results on 8 March.

On the other hand, the top three losers of the index were Genting Singapore PLC (SGX: G13), StarHub Ltd (SGX: CC3) and Hutchison Port Hldg Trust (SGX: NS8U).Source: S&P Global Market Intelligence

Genting Singapore’s 2017 net profit increased 78% year-on-year to S$685.6 million on the back of a 7% increase in revenue. A final dividend of 2.0 Singapore cents per share was declared, up from 1.5 cents a year ago.

The casino operator said that during the year, it tweaked its credit policy and commission structure for the VIP gaming business. This is bearing fruit and is “proving to be a sustainable growth strategy”. It added that it is now seeing lower impairment on gaming receivables and higher operating margins.

Unlike Genting Singapore, StarHub and Hutchinson Port had a miserable 2017. StarHub’s earnings plummeted 27.1% to S$249 million while Hutchinson Port’s net profit tumbled 30% to HK$944.2 million.

The SPDR STI ETF (SGX: ES3), an exchange-traded fund which can be taken as a proxy for the Straits Times Index, had a trailing price-to-earnings ratio of 11.8 and a dividend yield of 2.9%, as of 28 February 2018.

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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.