Updates On The SGX
This week, the SGX announced two changes. Firstly, lunch break will be introduced again, allowing stock traders and remisiers a noon break. The market will be closed from 12pm to 1pm everyday starting from November 13. This comes 6 years after the lunch break was halted in 2011.
There will also be a change to the equities market structure. Stocks within the $1.00 and $1.99 price range will see their minimum bid price increased to 1 cent, doing away with the current 0.5 cent minimum bid price.
This week saw the listing of 2 new IPOs – NetLink NBN Trust (SGX: CJLU) and Union Gas Holdings (SGX: 1F2). Despite the hype around Singapore’s largest IPO in 6 years, NetLink NBN Trust opened flat at $0.81 with a lackluster performance closing at $0.805 on Friday.
This period is also the reporting season of 2Q results. A few of the companies that have reported their 2Q results this week include: Keppel Corp, CapitaLand Commercial Trust, Ascott REIT, Keppel REIT, HC Surgical and CapitaLand Mall Trust. Hyflux also announced that they are expecting to report a loss for 2Q. Overall, the Straits Times Index (STI) moved 0.82% to 3314.12 points.
Here are 4 stocks that have seen share price fluctuations due to announcements made this week.
Rowsley (SGX: A50)
Rowsley, a real estate and investment firm, saw its share price this week skyrocketing an astounding 93% from $0.073 at closing last Friday to $0.141 at opening on Wednesday (Trading for Rowsley was halted on Monday and Tuesday). Within the day itself, Rowsley improved from $0.115 at opening to $0.141 at closing.
This comes on the back of Peter Lim’s unveiling of his plans to inject the company with 100% of Thomson Medical Pte Ltd and 70.63% TMC Life Sciences (listed on Bursa Malaysia). Peter Lim is a billionaire and controlling shareholder of Rowsley. These medical assets are said to be valued at up to S$1.9 billion. Financing for this proposal will be done through up to 25.3 billion new shares issued to Peter Lim at S$0.075 per share.
On Thursday, Rowsley’s share price touched 0.198, the highest in more than a year. Rowsley closed at $0.174 on Friday.
M1 (SGX: B2F)
M1 posted a 20.8% decline in their 2Q earnings to $32.5million, from the $41million recorded in the corresponding quarter in 2016. M1 saw its share price plunge about 8% on the day after the release of the 2Q earnings report from $2.1 at closing the previous day to $1.935 at opening.
A strategic review raised questions whether M1 would be acquired. However, the 3 majority shareholders (Axiata Group, SPH and Keppel T&T) have decided not to proceed with their strategic review to dispose of their takes in M1.
M1 has also declared dividends of 5.2cents per share, a drop from the 7cents paid last year. Dividends will be paid on 8 August 2017. The company also expects to post a decline in net profit after tax for the year ending 2017.
HC Surgical (SGX: 1B1)
HC Surgical reported a 52% decrease in 2Q earnings, attributed to higher expenses. Earnings fell more than half to $1.3million from $2.8million in FY2016. This comes despite a 19.8% increase in revenue from revenue contributions from its subsidiaries. However, expenses went up with the increase in employee benefits to $3.3million and other expenses such as IPO expenses and operating expenses for new subsidiaries. The group declared dividends of 0.7 cents for FY2017.
On Friday, the day after the announcement, HC Surgical’s share price remained unchanged at $0.69.
CapitaLand Mall Trust (SGX: C38U)
CapitaLand Mall Trust, Singapore’s largest retail REIT, saw its net property income rise 1.2% year-on-year for 2Q 2017 to $117.5 million, up from $116.1 million for 2Q 2016. Gross revenue decreased 2.9%, mostly due to Funan mall ceasing their operations on 1 July 2016. Distribution per unit (DPU) rose to 2.75 cents, from 2.74 cents in 2Q 2016.
After the reporting, CapitaLand Mall Trust opened at $2.010 on Friday, matching the closing price on Thursday. During the trading day on Friday, CapitaLand Mall Trust reached 2.050 before closing at $2.030.
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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.