In 1H20, 81 Singapore primary-listed stocks conducted buybacks with a total consideration of S$663 million, up from S$325 million in 1H2019, and less than S$836 million in 1H2018. The S$663 million buyback consideration represented less than 0.1% of the total market value of all stocks listed in Singapore, which stood at S$817 billion on 30 June. DBS, OCBC and UOB led the buyback consideration.
Singapore’s IMDA issued Final Awards to SingTel and the JV Consortium formed by StarHub and M1, at the close of a rigorous and holistic 5G Call for Proposal process. Returns of SingTel and StarHub, together with NetLink’s abbreviated returns for the past 3 years were more defensive than telecommunication peers, with the trio averaging an 10% decline in total return, versus APAC’s median decline of 22% and a global median decline of 18%.
With 3 sessions remaining in 2Q20, the STI’s best performing companies (excl. REITs) in the quarter were Wilmar (+29%), Venture Corp (23%), Sembcorp Industries (+22), Yangzijiang Shipbuilding (+19%), Keppel Corp and City Developments (both +16%). The companies averaged a 21% total return outpacing the STI’s 6%.
Amongst the World’s 160 REITs with a market value above S$3 billion, Mapletree Industrial Trust, Keppel DC REIT and Ascendas REIT have been amongst the 20 strongest performers in the 2020 YTD, averaging a 14% total return, adding to their average 45% total return in 2019.
Singapore’s 5 most traded stocks with a manufacturing focus - Yangzijiang Shipbuilding, Wilmar International, ST Engineering, Venture Corp and AEM Holdings - have all performed stronger than the STI in the 2020 year to 16 June, with total returns ranging from -10.2% for ST Engineering to +57.0% for AEM.
Effective the June 22 open, Mapletree Industrial Trust will join the STI with an indicative index weight of 1.6%. This will bring the total of number of REITs in the STI to six, with an indicative combined weighting near 12.5%. Since listing in October 2010, Mapletree Industrial Trust has generated average annualised total returns of 19%.
Rubber glove manufacturers and distributors Top Glove Corporation, Riverstone Holdings and UG Healthcare Corp have all seen triple digit percentage gains in the 2020 year to date, with average daily turnover up close to 30-Fold from 2019 levels. The trio of rubber glove makers expects increased glove demand in the coming quarters on the back of COVID-19, with all three manufacturers progressively boosting production lines and capacity to meet the surge in sales.
After seeing its unit price decline to S$0.785 on 23 March, NetLink NBN Trust has revisited its S$1.03 all-time high on 29 May. For the March Quarter, NetLink Trust reported stronger earnings than SingTel and StarHub. With a 12% total return, the Trust also outpaced the two companies in 2020 YTD.
For the first 2 trading sessions of June, the STI rallied 4% to 2611.6, trimming its 2020 YTD total return to a decline of 18%. Since the 23 March low, the STI has traded as high as 2671.6 on 17 April. One of the simplest indications of potential portfolio rebalancing is when laggards become leaders and vice-versa. Such activity has been clearly evident across the Straits Times Index (‘STI’) constituents for the first two sessions of June.
In May 2020, 18 SGX primary-listed stocks bought back shares for a total consideration of S$15 million. ST Engineering led the May buyback consideration tally, buying back 2 million shares on a new mandate which began on 15 May. Singapore Press Holdings and Global Investments also led the May consideration tally.
These articles are provided by SGX My Gateway.
SGX's investor education portal with market, product and investment information and events. Sign up now at sgx.com/mygateway to receive our investment updates and economic calendar.
These articles are not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Singapore Exchange Limited (“SGX”) to any registration or licensing requirement. This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document is for general circulation only. It does not address the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a financial adviser regarding the suitability of any investment product before investing or adopting any investment strategies. Use of and/or reliance on this document is entirely at the reader’s own risk. Further information on this investment product may be obtained from www.sgx.com. Investment products are subject to significant investment risks, including the possible loss of the principal amount invested. Past performance of investment products is not indicative of their future performance. Examples provided are for illustrative purposes only. While each of SGX and its affiliates (collectively, the “SGX Group Companies”) have taken reasonable care to ensure the accuracy and completeness of the information provided, each of the SGX Group Companies disclaims any and all guarantees, representations and warranties, expressed or implied, in relation to this document and shall not be responsible or liable (whether under contract, tort (including negligence) or otherwise) for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind, including without limitation loss of profit, loss of reputation and loss of opportunity) suffered or incurred by any person due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information, or arising from and/or in connection with this document. The information in this document may have been obtained via third party sources and which have not been independently verified by any SGX Group Company. No SGX Group Company endorses or shall be liable for the content of information provided by third parties. The SGX Group Companies may deal in investment products in the usual course of their business, and may be on the opposite side of any trades. SGX is an exempt financial adviser under the Financial Advisers Act (Cap. 110) of Singapore. The information in this document is subject to change without notice. This document shall not be reproduced, republished, uploaded, linked, posted, transmitted, adapted, copied, translated, modified, edited or otherwise displayed or distributed in any manner without SGX’s prior written consent.