As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,135.76 points, down 1.54% points last week.
During the last 5 trading days, $Wing Tai(W05.SI)$, $YZJ Shipbldg SGD(BS6.SI)$, $Cromwell Reit SGD(CWCU.SI)$, $Olam Group(VC2.SI)$ and $Airports of Thailand NVDR(TATD.SI)$ are the top 5 weekly gainers, up 12.40%, 7.83%, 5.56%, 4.81% and 3.42% respectively.
$UOL(U14.SI)$, $IFAST(AIY.SI)$, $Riverstone(AP4.SI)$, $Top Glove(BVA.SI)$ and $CityDev(C09.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.
Below are key analyses of the TOP 5 gainers:
1. $Wing Tai(W05.SI)$
Increased Stake by Chairman’s Wife: Helen Chow, the wife of Wing Tai’s chairman Cheng Wai Keung, has increased her stake in the group by acquiring 104,900 shares. This has likely boosted investor confidence, leading to a rise in the stock price.
Financial Performance: Despite a reported decrease in earnings for its 1HFY2024, Wing Tai Holdings still managed to generate a net income. This could have reassured investors about the company’s financial stability.
2. $YZJ Shipbldg SGD(BS6.SI)$
Strong Financial Performance: YZJ Shipbldg reported a net profit of 2.4 billion Chinese yuan (S$443.2 million) for the second half of the financial year ended Dec 31, 2023, up 64.7 per cent from the corresponding year-ago period. Despite delivering fewer vessels, revenue in the same period was up 16.5% to RMB24.1 billion.
Increased Demand: The company was contracted by customers to build larger and bigger ticket ships. This suggests a strong demand for their services, which could have positively impacted the stock price.
Positive Market Sentiment: The stock has surged to a record high amid brisk trading. This indicates positive market sentiment towards the company, which could have contributed to the rise in the stock price.
3. $Cromwell Reit SGD(CWCU.SI)$
Distribution Per Unit (DPU) Announcement: Cromwell European REIT announced a DPU of 15.693 Euro cents for FY2023, which is 4.1% lower than the 16.366 Euro cents posted in FY2022. Despite the decrease, the announcement of a DPU can often lead to a positive reaction in the stock market.
Office Redevelopment: The Nervesa21 office redevelopment in Milan, Italy, which is owned by Cromwell European REIT, is largely completed and has been pre-let to three businesses, Universal Music, Scalapay, and Edelman. The building is now 70% leased. This successful redevelopment and leasing could have positively impacted investor sentiment, leading to a rise in the stock price.
4. $Olam Group(VC2.SI)$
Profit Increase: Olam Group posted a 15.4% rise in net profit for its second half ended Dec 31, 2023. This increase in profit could have positively impacted investor sentiment, leading to a rise in the stock price.
Share Buyback: Olam Group has launched a share buyback. This could have created a positive market sentiment, contributing to the rise in the stock price.
Investigation Outcome: Olam Group recently concluded investigations into Olam Nigeria, which turned up no evidence of involvement in a multi-billion-dollar fraud.
5. $Airports of Thailand NVDR(TATD.SI)$
Financial Performance: Airports of Thailand reported a significant increase in revenue and net income for the fiscal quarter ended on September 30, 2023. The company’s revenue rose by 135.99%, and its net income increased by 357.55%. This strong financial performance could have positively impacted investor sentiment, leading to a rise in the stock price.
Trading on SGX: In 2023, Airports of Thailand began trading on the Singapore Exchange (SGX) via the Depository Receipt (DR) linkage. This could have increased the visibility and accessibility of the company’s stock to a broader range of investors, potentially contributing to the rise in the stock price.
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