ComfortDelGro, Wilmar, Thai Bev, Dairy Farm: Mid-week stock wrap
Here are the top five STI Index share price gainer and losers so far this week.
Straits Times Index on the rise this week
Singapore stock benchmark Straits Times Index (STI Index) is slightly up this week, thanks to positive Covid-19 treatment developments and improved US-China trade updates.
Of the 30 blue-chip stocks tracked by the STI, only a handful of companies experienced share price losses as of Wednesday 26 August 2020, as market sentiment picked up.
Here are the Singapore Exchange’s (SGX) top gainers and losers so far this week.
Jardine Matheson Holdings (JMH) share price: +5.52%
Hong Kong-headquartered investment group Jardine Matheson Holdings (JMH) saw the largest increase in share value so far this week, closing Wednesday’s proceedings at US$42.30 (S$57.84) per share.
This represents an increase of 5.52% from Monday’s buy-in rate of US$40.09 (S$54.82).
Last month, the company reported a 49% plunge in underlying profit to US$373 million (S$510 million), while guiding that its business outlook remains uncertain amid volatility caused by the Covid-19 pandemic.
Despite the profit drop, the group still declared an interim dividend of US$0.44 (S$0.60) – equivalent to the amount paid out a year prior.
IG data showed that ‘sells’ made up 58% of all trades on the STE counter this week. Meanwhile, 100% of client accounts with open positions expect the share price to rise in the near term.
ComfortDelGro (CDG) share price: + 5.05%
Land transport group ComfortDelGro Corp (CDG) managed to see its stock price rebound this week, increasing 5.5% so far this week to finish Wednesday at S$1.46.
The group recently posted a 21% decline in revenue to S$1.53 billion in its latest financial update for the first half of fiscal 2020.
Net profit also fell a massive 99.1% to just S$1.6 million for the six months ended 30 June 2020. As a result of the poor performance, the group did not declare any interim dividend.
IG’s market analysis shows that ‘sells’ form 73% of all trades on the CDG counter this week.
Meanwhile, 93% of IG client accounts with open orders in this market currently hold ‘buy’ (long) positions, indicating an expectation for a price increase in the near term.
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Dairy Farm share price: +4.3%
Regional retail group Dairy Farm International, which operates over 9,700 outlets across Asia, was the third biggest gainer on the STI Index this week.
The group’s shares managed to finish 4.3% higher by mid-week at US$4.35 (S$5.95) per share.
This is a contrast from a week ago, when share price had fallen 3.3% on the back of weaker US economic recovery outlook.
In late-July, the group also saw its stock value retreat, after posting a 40% drop in underlying profit for the first half of fiscal 2020.
IG data showed that ‘sells’ comprised 75% of all trades on the Dairy Farm counter this week. In terms of client outlook, 100% of opened client accounts currently hold ‘buy’ (long) positions.
Wilmar share price: ↓3.0%
Palm oil producer Wilmar International experienced the largest share price decline for the second straight week, as it finished Wednesday’s market at S$4.35 a share – a 3% drop from Monday’s starting bid of S$4.48.
The company recently posted a 50% improvement in net profit for the first six months of fiscal 2020. As a result, Wilmar had raised interim dividends by 33% to S$0.04 a share, up from S$0.03 a year ago.
Consequently, we included the company in our latest ‘Top Singapore Dividend Stocks to Watch’ list.
IG data showed that ‘sells’ formed 56% of all trades on the Wilmar counter on Wednesday, while ‘buys’ form 64% of all trades so far this week.
Additionally, 80% of IG client accounts with open positions in this market currently anticipate further price increases (long orders), with the remaining 20% holding ‘sell’ (short) positions.
Thai Bev share price: ↓1.63%
Beverage and beer producer Thai Beverage (Thai Bev) is also down this week, as it concluded Wednesday’s session 1.63% lower than Monday’s opening price at S$0.605 per share.
Two weeks ago, the group reported a 7.4% decline in sales revenue year-on-year for the nine months ending 30 June 2020. Earnings before interest, taxes, depreciation and amortisation, however, rose 2.2%.
IG’s market analysis showed that ‘sells’ formed 100% of all Thai Bev trades on IG today, with ‘buys’ making up 60% of the week’s total trades.
Additionally, 97% of opened client accounts currently hold a ‘buy (long)’ outlook on the stock, as compared to 3% banking on ‘sell’.
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