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AP Oil and UOL Group make gains; technology stocks take a tumble

Trinity Chua Published on Fri, Jun 16, 2017 / 9:59 AM GMT+8

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(June 16): Our Singapore Market Portfolio has delivered a mixed bag of results this week. The biggest winners — lubricant maker AP Oil International and property developer UOL Group — gained 7.8% and 7.3%, respectively, over the period of June 6 to 13. On the flipside, gold miner CNMC Goldmine Holdings continued to be a drag, falling 5.3% in the past week. Memtech International, which makes rubber parts for automobiles and consumer electronics, fell 5.1%. Overall, our portfolio gained 0.4% for the week between June 6 and 13. The benchmark Straits Times Index gained 0.7% over the period.

AP Oil was one of the first few stocks we added to our portfolio. Its shares have been rising steadily since January and have gained 19.6% in total. The company makes oil-and-petrochemical-related products, including lubricants.

It is also branching out into new fields and has formed a joint venture with Shenzhen-listed Chongqing Zhongshen Power Machinery Co, Singapore-listed MoneyMax Financial Services and Free Trade Port Co. The JV will provide financial leasing services through hire-purchase contracts with companies in Chongqing. According to reports, the financial leasing market is expected to grow at an annual rate of 30% in the next four years, fuelled by Chinese firms that want to tap cheap credit.