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The Straits Times Index Falls 1.5% for the Week

The Singapore stock market, as represented by the Straits Times Index (SGX: ^STI) tumbled by 47.3 points, or 1.5%, to end Friday at 3,209.8.

Most of the index components finished in the red, including all three banks. Oversea-Chinese Banking Corp Limited (SGX: O39), or OCBC for short, was the bank that fell the most at 2.2% to S$11.19.

On Monday, OCBC announced that a planned sale of Hong Kong Life Insurance to First Origin International Limited had been called off as the buyer failed to meet certain conditions before a September 30 deadline. Hong Kong Life Insurance is 33.33%-owned by OCBC Wing Hang Bank Limited, a subsidiary of OCBC.

Another loser for the week was industrial real estate investment trust (REIT), Ascendas Real Estate Investment Trust (SGX: A17U). Its units declined by 3.4% to S$2.55.

The REIT said on Thursday that it had completed its acquisition of 26 logistics properties in the UK for £253.25 million (around S$451.67 million). Following the acquisition, Ascendas REIT owns 98 properties in our country, 35 properties in Australia and 38 properties in the UK.

On the other hand, Dairy Farm International Holdings Ltd (SGX: D01) ended the week in the green after its shares added 1.7% for the week to US$9.15.

The pan-Asian retailer has agreed to buy the remaining 51% interest in Rose Pharmacy from BRG Realty Corporation. Following the transaction, which is subject to regulatory approval, Dairy Farm will own 100% of Rose Pharmacy. Completion of the deal is expected to take place in the next six months.

Out of the blue-chip universe, StarHub Ltd (SGX: CC3) shares surged 5.3% to S$1.97 after the telco revealed on Wednesday that it is undertaking a strategic transformation programme to improve operational efficiencies and productivity. The effort is expected to save S$210 million over a three-year period from 2019.

Wheelock Properties (Singapore) Ltd (SGX: M35) is to be delisted after the privatisation offer by its Hong Kong-listed parent, Wheelock and Company, closed on Tuesday. The parent firm, through Star Attraction Limited, held a 90.1% stake in Wheelock Properties at the offer close. The offer was made at S$2.10 per Wheelock Properties share.

The SPDR STI ETF (SGX: ES3), an exchange-traded fund (ETF) which tracks the fundamentals of the Straits Times Index, was valued at a price-to-earnings ratio of 11.1 and had a distribution yield of 3.5% on Friday.

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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 Oversea-Chinese Banking Corp Limited, Ascendas Real Estate Investment Trust, Dairy Farm International Holdings Ltd, and Wheelock and Company. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.