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The Worst-Performing Blue Chip Shares In 2018 (Part 2)

2018 was a challenging year for Singapore investors. The Straits Times Index (SGX: ^STI), Singapore’s stock market barometer, was down by 9.8% in 2018.

There are a number of stocks, however, that saw poorer performance in 2018. This article shows the remaining worst performers for 2018 (for the sixth to fourth worst performers, you can head here).

The third worst performer

This spot belongs to Golden Agri-Resources Ltd (SGX: E5H). In 2018, the company’s share price declined by 33.8%.

For those who are new to the company, Golden Agri is an integrated palm oil company with large oil palm plantations in Indonesia. The firm has a presence in the entire value chain of the palm oil industry.

The first nine months of 2018 have not been a good time for Golden Agri as it experienced declines in both its top-line and bottom-line; revenue was down by 1% whereas underlying profit fell by 63%. The weak performance was mainly due to lower crude palm oil price, even though Golden Agri’s palm product output was up by 8% year-on-year.

The second worst performer

In second spot, we have City Developments Limited (SGX: C09), or CDL. As a quick introduction, CDL is a real estate company. Its segments include property development, hotel operations, rental properties and others.

While its stock price was down by 35.0% in 2018, CDL had a strong quarterly performance lately. For the quarter ended 30 September 2018, revenue was up 18% while gross profit grew 14% as compared to the same period last year. Consequently, profit attributable to owners improved by 10.4% year-on-year. Moreover, net asset value per share was 6.5% higher at S$11.20.

Nevertheless, the drop in CDL’s share price was not without reasons. Here’s what the company’s management said in its earnings release:

“Against this challenging backdrop for Singapore private residential market, the Group is cognisant that sales volume for new residential launches will likely be impacted by the cooling measures as certain buyers adopt a wait-and-see approach, becoming more selective and price sensitive in their purchases.”

In other words, the company is expecting weaker sales in the near future due to the additional property cooling measures put in place in July 2018.

The worst performer

Holding ‘pole’ position with a 41.0% decline in its share price in 2018 is Hutchison Port Holdings Trust (SGX: NS8U).

Hutchison Port Holdings Trust, or HPHT for short, is a business trust that has stakes in deep-water container ports in Hong Kong and Shenzhen. The container ports include Hongkong International Terminals, COSCO-HIT Terminals, and Asia Container Terminals in Hong Kong, as well as Yantian International Container Terminals in Shenzhen, China.

Hutchison Port Holdings Trust has had a challenging time in 2018. The first nine months of the year saw the business trust report a 2.4% year-on-year decline in revenue and a 5.0% drop in net profit. Worse still, profit after tax plunged 21.4% year-on-year. The trust attributed its weaker financial performance mainly to lower throughput in its ports.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.