THE Straits Times Index fell 1.2 per cent or 38.03 points to 3,184.91 on Friday (Feb 23) amid weak earnings results.
Across the broader market, losers beat gainers 326 to 252 after 1.7 billion securities worth S$1.3 billion changed hands.
The biggest loser on the Straits Times Index was Genting Singapore. The company shed 9.7 per cent or S$0.10 to S$0.93 after it delivered weaker-than-expected Q4 financials on Thursday. The integrated resort operator’s Q4 core net profit fell 5 per cent year on year and 41 per cent quarter on quarter to S$127.1 million.
DBS analyst Jason Sum said the earnings fell below expectations due to “an unforeseen surge” in bad debt losses.
“The rise in bad debt losses stems primarily from management’s strategy of extending credit to VIP gamblers.
“The group adheres to a conservative accounting policy, whereby bad debts are recorded if payments are not received within a specified period, irrespective of the potential for future collection,” he said.
Meanwhile, Venture Corporation shares fell 2.7 per cent or S$0.38 to S$13.72.
CGS-CIMB analyst William Tng noted that the company’s full-year net profit was below a Bloomberg consensus. Furthermore, its pre-tax margin also fell due to decline in revenue and a higher cost base from inflationary conditions.
“We reiterate our ‘Add’ call on Venture given its 5.32 per cent dividend yield (over FY24 to FY26) and potential for earnings per share growth resumption in FY24 to FY26,” he said.
Emperador was the only counter in the black on the STI, gaining 1 per cent or S$0.005 to S$0.505.
Across the broader region, markets were mixed. Japan’s Nikkei 225 rose 2.2 per cent, while South Korea’s Kospi gained 0.1 per cent and Hong Kong’s Hang Seng Index shed 0.1 per cent.
