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Singapore Market Portfolio off to mixed start; adds Chew’s Group

Jeffrey Tan Published on Mon, Jan 16, 2017 / 8:15 AM GMT+8

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SINGAPORE (Jan 16): Since we started the Singapore Market Portfolio a week ago, the Straits Times Index has set a blistering pace, rising 2.7% and punching through the 3,000 level in the process. With most of the portfolio still in cash, we are at an obvious disadvantage. To make matters worse, one of our three initial holdings — Venture Corp — has fallen 2.8% in the past week.

On the other hand, AP Oil International, which is thinly traded, is up 4.3%. Meanwhile, CapitaLand has climbed 2.9% since being included in the portfolio. On Jan 10, the company said one of its units had signed a contract to manage a shopping mall in La Botanica, a township located in Xi’an, China. The contract was signed by CapitaLand Mall Asia, the wholly-owned shopping mall business of CapitaLand. This will increase the number of shopping malls managed by CapitaLand in western China to 14 — as part of the property developer’s asset-light expansion strategy.

Under the contract, CapitaLand Mall Asia will oversee asset planning, pre-opening and retail management of the five-storey shopping mall, which has four levels above ground and one basement level. It has total gross floor area of about 50,000 sq m, excluding the car park. The mall is expected to commence operations in 2019.