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Singapore Stocks: Volume movers in September 2017

 

Investors familiar with the stock market will always keep an eye on the volume of stocks traded, while monitoring the stock’s price levels. High volumes mean that the shares are traded in higher frequency levels and have changed hands more often than the historical trading volume. A high trading volume attracts investors’ interest as much as a spike in stock prices.

Here are some Singapore stocks that had experienced high levels of turnover in the market over the past month in September.

 

Rowsley

This stock has featured consistently in the top volume segment on the Singapore Exchange in recent months. Healthcare stocks have been in the limelight since the dual listing of IHH Healthcare. Rowsley’s claim to fame arose from billionaire Peter Lim’s announced plans to sell hospital operators Thomson Medical and TMC Life Sciences in exchange for Rowsley shares back in July 2017.

This will make Rowsley a healthcare stock with hospital assets post acquisition. The stock volume surged in recent months. Detailed financials for the target companies are still scant and pending further disclosures. Investor interest remains strong however. IHH Healthcare and Raffles Medical, potentially Rowsley’s closest healthcare peers, are currently trading at premium valuations with P/E multiples of between the 20s and 30s.

 

Genting Singapore

Genting Singapore is another strong performer and is a consistent feature as one of the most traded stocks in September 2017.

Its recent quarter earnings release was positive, as net profit experienced a 10-fold growth from S$18 million to S$173 million. The gaming sector is slowly recovering as evidenced by a 24% jump in gross gaming receipts. Investors are also positive on its planned expansion into Japan and closely monitoring the gaming license bidding. This stock may be on the rise and has certainly attracted many investors.

Cityneon Holdings

Cityneon holdings has seen increasing trading volume in end August to early September, coupled with a rise in its share price.

Strong earnings growth has put the stock on market watchers’ radars, many of whom have issued favourable buy calls. The company is in the business of managing exhibitions of popular franchises in the creative industry, like the Marvel Avengers. Its profit rose 62% as at June 2017, which propelled its stock price to a high since the completion of stake sale by Star Media Group. Its P/E ratio is currently trading at a premium at 27 times historical earnings, but its forecasted earnings remain strong.

Yangzijiang Shipbuilding


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Yangzijiang shipbuilding is another stock experiencing strong trading volume on the SGX. Its share price has seen extreme volatility where a sharp downturn in the industry in 2016 caused its share price to plummet.

The company’s fortunes have turned around since with new contract wins. The maker of dry bulk carriers has a healthy order book projected at US$ 1.2billion. Share price has since recovered strongly with its historical P/E currently at a decent 11 times earnings with a decent dividend yield of 2.75%. Investors can start monitoring the stock and be well positioned on the recovery of the shipping industry.

Frasers Hospitality Trust

Frasers Hospitality Trust has experienced a surge in trading volume compared to its historical average as well, at 10.9 million shares. It posted decent earnings growth back in July where its net property income increased 8.5%. It is one of a handful of pure play hospitality REITs in SGX and boasts a solid dividend yield of 6.5%. Investors can closely monitor for any pending corporate announcement as REIT stypically do not experience sudden jump in trading volume. Barring any external developments, it is a solid REIT stock with strong income yielding hospitality assets.

Singapore Press Holdings

SPH, a media powerhouse in the local print and advertising industry has seen its stock experienced heavy trading volume compared to recent past. It has recently announced a divestment in Mediacorp TV and Mediacorp Press.

It is also still transitioning from traditional print to digital media with a long drawn restructuring plan. Its share price has moved lower for the past year but investor can start to look out for signs of a turnaround with the ongoing restructuring battle plan. Investors may also look to its relatively high dividend yield of 5% as a safety net but future earnings recovery is still key for any support to its share price.

 

Dairy Farm International

The hypermarket chain operator appears to be attracting investor interest from its volume surge. However, the surge in volume was followed by a price drop on 15 September 2017.

Its fundamental earnings looked decent with a 6% growth for period ending 30 June 2017. However, with the e-commerce boom going full steam, retailers may be losing edge to suppliers who may bypass retailers and send their goods directly to consumers. Its P/E may be on the high side at 22 times historical earnings and investors are not too excited about the competition heating up from all fronts.

 

Venture Corporation

Venture Corp experienced a surge in trading volume as well on September 2017 where 2.56 million shares changes hands, almost double its 30 day average of 1.46 million shares. This was accompanied by a strong price increase which attracted the regulator’s attention.

Fundamentally, the company has seen improving earnings. Its revenue and earnings increased 48% and 61% respectively for the quarter ended 30 June 2017 as a result of strong customer demand. Venture Corporation is also in the STI index reserve list in which potential inclusion in the index may increase its public profile. Its P/E ratio is pretty fair at 22 times historical earnings given its market cap size of S$ 4 billion.

 

A word of caution

Trading volume may be a useful indicator, but investors should still continue to be wary as surging volumes may not always serve as a favourable signal. Investors should pay close attention to the market and take appropriate action whenever new market information is released concerning the company. Active monitoring on stock volume may serve an investor well, but fundamental prevails for the most effective investment.

(By Chee Hoong Chan)

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