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4 stocks this week [8 May 2017]: Noble; AEM; IREIT Global; DBS

We look at Noble Group; IREIT Global; AEM Holdings; and DBS Group

May has seen equity markets rise to record levels globally. Our 4 Stocks This Week column tries to look at stocks that are of interest in the market and those that our friends and readers have brought to our attention. If you come across such companies or have interesting ideas, do give us a shout out and let us know why which companies these are via our Facebook page or email.

Market Sentiments

Ray Dalio, founder of the world’s largest hedge fund, thinks the global economy is near its best, with few risks on the horizon. This is a similar sentiment taken by many in the world as equity prices have continued to increase in the first half of 2017.

A common benchmark we use as a proxy for how the global markets are faring is Morgan Stanley Capital International (MSCI) All Country World Index (AWCI), an index made up of 23 developed markets and 23 emerging markets worldwide. This week, it continued to rise to new all-time record levels, closing at 459.60 on Friday (12 May 2017), a pinch above the week before, and close to 8.9% since the start of the year.

Over in Singapore, the Straits Times Index (STI) has performed well too, gaining 14.3% since the start of the year, and about 19.0% in the past 52 weeks. This week, the STI rose to new 52-week highs again on Thursday (11 May 2017), before settling at 3255.29 on Friday (12 May 2017).

Noble Group Limited

Global commodity trader, Noble Group announced its first quarter results on Thursday (11 May). It posted $182 million losses on the back of unexpected movements in coal prices. S&P Global Ratings said that its current earnings path would not be able to sustain its debt-load.

Also Read: 5 Things To Consider Before Buying Any Stock

This set of results was unexpected as the group was thought to be undergoing deep restructuring in its businesses. In the aftermath of it, its share price plunged to $0.665, its lowest level in close to 15 years. The group’s market value, at under $1 billion, is a fraction of the over $10 billion trading giant it was in 2010.

Over the past 52 weeks, it has lost 72.9% of its value. This week alone, after announcing its results, it lost over 47.6%.

Noble Group share price chart (1-week)

Source: Yahoo! Finance/ Google Finance

AEM Holdings Ltd

Delivering a return of 33.3% in the year-to-date, the technology sector has been Singapore’s best performing sector this year. Within this sector, AEM Holdings, providing engineering solutions for equipment systems, precision components and related manufacturing services, was the best performing company.

In its latest results, on 24 April 2017, it reported a 246.3% and 1616.6% rise in its 1st quarter 2017 revenue and profit respectively. This set of stellar results was achieved a wide take-up of the group’s next generation semiconductor handling platform. Its sales orders also stands on very strong levels at $152 million.

Also Read: How You Can Invest In The Technological Disruptions Occurring Worldwide

This has translated in the group’s share price soaring in the past few months. It’s share price has risen 329.1% since the start of the year and over 645.2% in the past 24 months. This momentum has continued into May, with its share price rising 4.2% this week alone.

AEM Holdings share price chart (1-week)

Source: Yahoo! Finance/ Google Finance

IREIT Global

With five office properties in Germany, IREIT Global is the only real estate investment trust (REIT) that focuses on European real estate.

On Thursday (11 May 2017), it released its 1st quarter results, posting marginally lower gross revenue which came it at $9.46 million. However, its distribution per unit came down 8.9% to $0.0144 per share. This was due to the REIT distributing 90% of its income rather than 100%. If it had distributed 100% of its income, like in previous periods, distributed per share would actually have increased 1.9% to $0.0161.

Also Read: 7 Types of REITS In Singapore, And The Reasons Why People Invest In Them

IREIT Global’s properties are also 99.8% occupied. However, the only downside risk is that GMG – Deutsche Telekom rents 52% of its space. While they are a very strong company, this represents a risk to IREIT Global, should they shift out or scale back. In fact, it vacated one of six floors it was occupying in one of its properties, and IREIT Global has to find a suitable replacement tenant for it.

In the past 52 weeks, it has delivered a 12.6% return. This week, it has inched down slightly to $0.750.

IREIT Global share price chart (1-week)

Source: Yahoo! Finance/ Google Finance

DBS Group Holdings

At a market capitalisation of $53.2 billion, DBS is Singapore’s largest bank. At its recent 1st quarter results release, across the board, its businesses managed to put in stable results, which lead to it posting a 1% increase in both income, to $2.9 billion, and net profit, to $1.25 billion.

Also Read: These 10 Listed Companies In Singapore Pretty Much Own Everything: (Part 2: 1-5)

In the week of 1 May 2017, DBS was the most bought stock among institutional investors while it was the most sold stock among retail investors. This piece of information is interesting considering its share price has increased 43.4% in the past 52 weeks, and 19.3% since the start of the year.

This shows that while institutional investors were buying up more of its shares on its good performance and stable upside prospects, retail investors were cashing in. Whether this is too soon, remains to be seen.

In the past week, DBS’ share price continued to eke out gains, rising 1.3% to $20.68.

DBS share price chart (1-week)


Source: Yahoo! Finance/ Google Finance

Also Read: 4 stocks this week [1 May 2017]: Capital World; BreadTalk; StarHub; OUE H-Tr


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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.