Singapore shares rose slightly on Monday, but transport provider SMRT Corp Ltd fell to the lowest in about four years after it warned of a net loss in the fourth quarter.
The Straits Times Index was 0.1 percent higher at 3,311.15, while the MSCI index of Asia-Pacific shares outside Japan was down 0.2 percent.
SMRT shares slid as much as 2.5 percent to S$1.54, the lowest since May 2009. About 2.7 million shares were traded, 2.2 times the average full-day volume over the past 30 days.
SMRT said on Thursday it expected a net loss in the fourth quarter due to rising operating costs without corresponding fare adjustments and a S$17 million ($13.7 million) impairment of goodwill for its associate Shenzhen ZONA Transportation Group. But it said it expects to have remained profitable for the full financial year.
"Cost inflation will continue to erode profit margins in the absence of fare hikes," CIMB Research said in a report, cutting its target price to S$1.53 from S$1.59 with an 'underperform' rating.
Phillip Securities cut its target price to S$1.20 from S$1.41 and kept its 'sell' rating. The brokerage firm expects cost items, such as repair and maintenance expenses, to be higher than usual and estimates a lower final dividend per share of 4.5 Singapore cents to reflect a payout of almost all its profits in the year.
1150 (0350 GMT)
To read SMRT statement, click