On Wednesday, trading volume of COSCO Corporation (Singapore) was almost triple its three month average volume, and trading volume of Yangzijiang Shipbuilding Holdings was more than double its three month average volume. On the close, the two stocks delivered respective session gains of 5.9% and 5.2%.
These two stocks are two of four stocks that make up the FTSE ST Maritime Index. The remaining two stocks of the Index - Nam Cheong and PACC Offshore Services Holdings also generated gains of 6.8% and 4.9% on Wednesday. The FTSE ST Maritime Index generated an one-day gain of 5.3% reducing its YTD decline to 20.6%.
The broader SGX Maritime and Offshore (MOE) Index is made up of 19 constituents which include oilfield and offshore services stocks, four of which are STI constituents. The Index has generated a month-to-date total return of 3.0%, reducing its YTD decline to 27.4%.
The FTSE ST Maritime Index tracks the performance of companies listed on Singapore Exchange (SGX) that earn a substantial proportion of their revenue from maritime-related activities. These include manufacturing, ownership, operation and the reparation of vessels.
The FTSE ST Maritime Index has a combined market capitalisation of S$4.2 billion and is made up of four stocks - Yangzijiang Shipbuilding Holdings, COSCO Corporation (Singapore), PACC Offshore Services Holdings and Nam Cheong. All four constituents of the FTSE ST Maritime Index were gainers yesterday with the one-day total return ranging from Nam Cheong (+6.8%) to PACC Offshore Services Holdings (+4.9%). The index generated an average one-day total return of 5.3% taking its year to date decline to 20.6%.
The four constituents have averaged a total return of 7.7% in the month-to-date bringing their average year-to-date total return to a decline of 27.2%. Together, the four stocks maintain an average dividend yield of 1.8%.
The table below details the four constituents of the FTSE ST Maritime Index, sorted by market capitalisation. Note that clicking on a stock name will take you to its profile page on StockFacts.
| Name | SGX Code | Market Cap in S$M | Total Return 1 day % | Total Return MTD % | Total Return YTD % | Total Return 1 Yr % | Total Return 3 Yrs % | Dvd Ind Yld % | GICS® Sub Industry Name |
|---|---|---|---|---|---|---|---|---|---|
| Yangzijiang Shipbuilding Hldgs | BS6 | 2970 | 5.2 | 9.4 | -22.3 | -25.0 | -21.4 | 5.7 | Industrials |
| COSCO Corp Singapore | F83 | 571 | 5.9 | 5.9 | -41.3 | -28.0 | -61.9 | N/A | Industrials |
| PACC Offshore Services Hldgs | U6C | 553 | 4.9 | 4.9 | 8.1 | -3.2 | N/A | 1.5 | Energy |
| Nam Cheong | N4E | 124 | 6.8 | 10.5 | -53.3 | -59.4 | -76.3 | N/A | Industrials |
| Average |
|
| 5.7 | 7.7 | -27.2 | -28.9 | -53.2 | 1.8 |
Source: SGX, Bloomberg & SGX StockFacts (data as of 16 November 2016)
With Yangzijiang Shipbuilding Holdings a heavyweight of the free float capitalisation weighted FTSE ST Maritime Index, the Index has generated a total month-to-date return of 8.7% bringing its year-to-date total return to -20.6%.
COSCO Corporation (Singapore) and Yangzijiang Shipbuilding Holdings were also amongst the 10 most actively traded stocks with the biggest volume increases. Wednesday’s trading volume of COSCO Corporation (Singapore) was almost three times its three month average. Meanwhile trading volume of Yangzijiang Shipbuilding Holdings was almost two and a half times its three month average.
| Name | SGX Code | 3 Month Avg Vol Traded | Last Vol Traded | Vol Variance | Last Price (SGD) | Price Variance | 3 Month SDAV (S$) |
|---|---|---|---|---|---|---|---|
| COSCO Corp Singapore | F83 | 2,872,283 | 8,255,100 | 187.41% | 0.270 | 5.88% | 770,834 |
| Yangzijiang Shipbuilding Hldgs | BS6 | 13,355,818 | 33,811,300 | 153.16% | 0.815 | 5.16% | 10,145,668 |
Source: SGX, Bloomberg & SGX StockFacts (data as of 16 November 2016). For the purposes of this report, a stock qualifies to be actively traded if it has been listed on Singapore Exchange (SGX) for at least three months and maintains a three-month historical daily turnover of at least S$500,000.
COSCO Corporation (Singapore) provides ship repairing, ship building, and marine engineering services primarily in the People’s Republic of China and Singapore. The company’s services include ship repair, conversion, and jumbolisation; new builds; and oil rig repair and construction services. It also transports dry bulk cargos and provides container repairs, fabrication works services, as well as produces marine outfitting components. It is also involved in owning and chartering ships; providing shipyard financing; and marketing and selling shipbuilding and offshore project activities.
As announced yesterday (click here) the Board of Directors of COSCO Corporation (Singapore) announced that the Company has been informed that Sembcorp Marine has entered into a sale and purchase agreement to dispose of its 30% equity interest in COSCO Shipyard Group Co. (“CSG”), the Company’s 51% owned subsidiary, to China Ocean Shipping (Group) Company (“COSCO Group”). Following the completion of this transaction, Sembcorp Marine will cease to have any interest in CSG except via its investments of 4.98% shareholdings in the Company. The completion of the disposal is conditional upon the fulfilment of certain conditions. Upon completion of this transaction, the equity interest of COSCO Group in CSG will increase from 3% to 33%, the equity interest of the Company in CSG will remain unchanged at 51%, and the equity interests of Shanghai Ocean Industrial Company and Guangzhou Ocean Investment Management Company (which are also subsidiaries of COSCO Group) in CSG will remain unchanged at 8% each.
Yangzijiang Shipbuilding Holdings provides agency services for ship building and related activities. It produces a range of commercial vessels. The company also engages in the building, repair, maintenance, and dismantling of vessels. The company operates in the People's Republic of China, Taiwan, Germany, other European countries, Other Asian countries, Canada, and the United States.
On 9 November, Yangzijiang Shipbuilding Holdings announced unaudited group earnings results for the third quarter and nine months ended September 30, 2016. For the quarter, the company reported net profit attributable to equity holders of the company was RMB 281,219,000 or 7.3 cents per diluted share against RMB 680,665,000 or 17.8 cents per diluted share for the same period a year ago.
Performance of the SGX MOE Index Constituents
The broader SGX Maritime and Offshore (MOE) Index has generated a month-to-date total return of 3.0%, reducing its YTD decline to 27.4%. The five best-performing constituents in the month-to-date were Vard (+26.3%), Nam Cheong (+10.5%), IEV (+9.8%), Yangzijiang Shipbuilding (+9.4%) and Vallianz (+5.9%). These five plays averaged a total month-to-date return of 12.4%. The five least-performing stocks in the month-to-date were Ezra, Triyards, AusGroup, First Ship Lease Trust and Hutchison Port Trust.
The table below details the constituents of the SGX MOE Index, sorted by market capitalisation. Note that clicking on a stock name will take you to its profile page on StockFacts.
| Name | SGX Code | Market Cap in S$M | Total Return 1 day % | Total Return MTD % | Total Return YTD % | Dvd Ind Yld % | GICS® Industry Name |
|---|---|---|---|---|---|---|---|
| Keppel Corp | BN4 | 9603 | 0.6 | 0.8 | -13.9 | 5.6 | Industrial Conglomerates |
| Hutchison Port Trust | NS8U | 4992 | -1.3 | -8.7 | -17.2 | 8.8 | Transportation Infrastructure |
| Sembcorp Industries | U96 | 4645 | 0.4 | 3.2 | -11.4 | 3.8 | Industrial Conglomerates |
| Yangzijiang Shipbuilding | BS6 | 2970 | 5.2 | 9.4 | -22.3 | 5.7 | Machinery |
| Sembcorp Marine | S51 | 2768 | 1.9 | 4.2 | -21.1 | 2.6 | Machinery |
| Ezion | 5ME | 643 | 0.0 | 3.3 | -43.8 | 0.0 | Energy Equipment & Services |
| Vard | MS7 | 283 | -2.1 | 26.3 | -2.1 | 0.0 | Machinery |
| Nam Cheong | N4E | 124 | 6.8 | 10.5 | -53.3 | 0.0 | Machinery |
| Ezra | 5DN | 123 | 2.4 | 0.0 | -56.6 | 0.0 | Energy Equipment & Services |
| Singapore Shipping Corp | S19 | 114 | 0.0 | 4.0 | -11.6 | 3.8 | Marine |
| Pacific Radiance | T8V | 106 | 1.4 | 0.0 | -50.0 | 6.7 | Energy Equipment & Services |
| First Ship Lease Trust | D8DU | 96 | -0.7 | -6.8 | -6.8 | 0.0 | Diversified Financial Services |
| Nordic Group | MR7 | 87 | 2.3 | 2.3 | 25.9 | 5.3 | Construction & Engineering |
| Triyards | RC5 | 83 | 0.0 | -1.9 | -41.4 | 0.0 | Machinery |
| Vallianz | 545 | 65 | 0.0 | 5.9 | -59.3 | 3.8 | Energy Equipment & Services |
| Swissco** | ADP | 35 | N/A | N/A | -76.8 | 1.9 | Energy Equipment & Services |
| AusGroup | 5GJ | 31 | 0.0 | -2.3 | -72.7 | 0.0 | Construction & Engineering |
| Rickmers Maritime** | B1ZU | 23 | N/A | N/A | -73.5 | 0.0 | Marine |
| IEV | 5TN | 16 | 0.0 | 9.8 | 1.8 | 0.0 | Energy Equipment & Services |
| Average | 1.0 | 3.5 | -31.9 | 2.5 |
**Both Swissco (ADP) and Rickmers Maritime (B1ZU) are currently suspended.
Source: SGX, Bloomberg & SGX StockFacts (data as of 16 November 2016)
