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.
Singapore’s most traded primary-listed stocks that represent medical equipment manufacturing, biotech and pharmaceuticals all generated gains in the 2020 year to 15 May, averaging 37% gains: Biolidics (+80%), iX Biopharma (+13%) and Hyphens Pharma (+17%).
As many as 16 of Singapore’s 20 most traded stocks with double-digit ROE ratios are trading at discounts to their 5 year P/B ratios. These 16 stocks maintain P/B ratios that are on average 25% below respective 5 year averages, while most ROEs are inline or higher than 5 year averages. The 5 stocks that were at the biggest discount to their 5 year average P/B ratios on 13 May were Jardine Cycle & Carriage, SATS, ComfortDelGro Corporation, Dairy Farm International and Jardine Matheson Holdings.
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