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Hot stock: Sheng Siong shares fall on profit taking
SHARES of supermarket chain Sheng Siong Group fell on Thursday following profit taking, with the counter climbing in recent weeks after it posted record margins in its latest results.
The stock was down 2.5 Singapore cents or 2.3 per cent to S$1.055 at 10.46am.
"Investors can consider taking some profits at current share price levels," said an OCBC Investment Research report on Thursday, referring to Sheng Siong's share performance. Shares of Sheng Siong - a top pick for the brokerage - have risen [BUY, S$1.07]6 per cent over the past three trading days.
The brokerage is "neutral" on the consumer sector, noting a subdued outlook for the local macro environment, and on consumer spending. It cited data from Nielsen showing that consumers have reduced certain discretionary expenditures, and some may switch to cheaper grocery brands.
Sheng Siong's second-quarter net profit jumped to S$15.2 million on record-high gross margin that was driven by suppliers' rebates, bulk handling and continued efficiency gains from its central distribution centre, analysts said.