The Singapore Stock Market For The Week: A Blue-Chip Recap
Over the past week, Singapore’s stock market benchmark, the Straits Times Index (SGX: ^STI), climbed by 0.6% to close at 3,240 points.
SATS, which provides institutional and airline food catering services as well as airport and cruise terminal services, has been busy over the past two weeks. On 24 May, the company unveiled its new technology and innovation centre, TechnIC@SATS, in partnership with the Civil Aviation Authority of Singapore and Singapore Economic Development Board.
The three partners have committed S$110 million to TechnIC@SATs, which provides technological solutions to SATS’s various business units to raise productivity and develop new capabilities. SATS has been using robots and automation technologies to improve its productivity since 2014. An interesting example of a new technology SATS is working on is Roboto, a robot chef that prepares a Singaporean favourite, the laksa dish.
SATS also celebrated the fifth anniversary of Marina Bay Cruise Centre Singapore on 26 May 2017. In its first five years of operation, the centre has received its two millionth passenger and 500th ship call. The cruise centre is a young business for SATS and the company mentioned in its latest earnings presentation that it still has room to grow.
There hasn’t been much developments with Thai Beverage since it released its fiscal second quarter earnings (for the three months ended 31 March 2017) on 11 May 2017. During the quarter, the alcoholic and non-alcoholic beverages manufacturer saw its revenue decline by 8.8% year-on-year to THB 55.18 billion. The company had suffered from the effects of the mourning period in Thailand due to the unfortunate passing of King Bhumibol Adulyadej in October 2016.
Meanwhile, two of the Straits Times Index’s biggest losers were the palm oil companies, Wilmar International Limited (SGX: F34) and Golden Agri-Resources Ltd (SGX: E5H). The former slipped by 3.0% while the latter fell by 5.2%. As palm oil producers, the business results of Wilmar and Golden Agri-Resources are heavily tied to changes in the price of crude palm oil. In the first quarter of 2017, both companies saw strong double-digit revenue and profit growth due to higher average crude palm oil prices. According to Markets Insider, the price of palm oil had fallen by 2.7% over the past week.