𝐌𝐚𝐫𝐤𝐞𝐭 𝐖𝐫𝐚𝐩 (𝐖𝐞𝐞𝐤 𝐞𝐧𝐝𝐞𝐝 𝟐/𝟏𝟎/𝟐𝟔)
The $STI(STI.SI) has basically been range-bound since August, and this week didn’t change that story much.
After touching a weekly high of 5,749, the index slipped back below 5,700 and was around 5,654 as of Friday morning. A dip, yes, but still very much within the same broad range we’ve been stuck in.
What caught my attention was some of the bigger names.
$CityDev(C09.SI) concluded its strategic review, with plans to recycle capital, divest non-core assets and target more than S$1 billion of annual divestments, while keeping property development and hospitality as its core businesses.
Sounds quite sensible on paper. The market, however, wasn’t impressed. 😅 CDL plunged after the announcement and is now testing its 200MA.
And CDL wasn’t alone.
$SGX(S68.SI) also took a hit on Friday after J.P. Morgan downgraded the stock from overweight to neutral, with a S$23 price target.
So while the STI looked relatively quiet, some of the bigger names definitely weren’t.
Interestingly, I thought the small and mid-cap space had more action.
$UMS(558.SI) resumed trading after its placement exercise, which could raise up to S$140.8 million gross to expand manufacturing capacity in Penang, Vietnam and Singapore. Yes, there is dilution, but the bigger question is whether that fresh capital can eventually translate into stronger earnings. The market seems willing to give it some benefit of the doubt for now, with UMS touching S$2.83 on Friday morning.
$Geo Energy Res(RE4.SI) also had an interesting week. The company expects to return to profit in 3Q and secured a strategic investor for a 25% stake in its MBJ integrated infrastructure for US$75 million. The share price initially jumped to S$0.63 before cooling back to around S$0.60.
$Oiltek(HQU.SI) was another one. Its proposed Bursa Malaysia listing sent the stock as high as S$1.52, before the excitement faded and it came back to around S$1.30. Still above last week’s S$1.25 close though.
So the STI may still be stuck in traffic.
But look beyond the index, and there are still quite a few cars changing lanes. 😄
Rgds,
Dan
tinyurl. com/TTP-dan
tinyurl. com/dan-disclaimer
3
