Last week the Singapore Government increased its Fiscal Stimulus to S$55 billion, equivalent to 11% of Singapore’s GDP, while the United States Congress also passed a US$2.2 trillion Stimulus Package, similarly proportioned to its US$20 trillion GDP. STI stocks have been mixed in March (through to 27 March) with the STI declining 16%.
On 24-March, S-REITs lodged one of their five strongest sessions since their inception in 2002, with an 8% gain, after trading at 8 years lows on Monday. 3 S-REITs that were recipient to the highest net institutional inflow, proportionate to market value on 24 March, were Manulife US REIT, Mapletree Industrial Trust & Mapletree Logistics Trust. The trio averaged 16.2% price gains on 24 March
In the month of March (through to 20 Mar), 53 SGX primary-listed stocks bought back shares for a total consideration of S$448 million. This has brought the consideration for the month to date to the highest level since S$544 million in consideration for the month of August 2015.
In Singapore, hi-tech manufacturers, 2 REITs investing in Data Centres, a Business Trust investing in India IT parks, have maintained median 17% annualised total returns over the past 5 years, ranging from 10% for Valuetronics and Ascendas India Trust to 87% for AEM Holdings.
Singapore lists 5 property trusts exclusively investing in China – CapitaLand Retail China Trust, Sasseur REIT, Dasin Retail Trust, EC World REIT and BHG Retail REIT. The average P/B ratio for the 5 property trusts is now 0.64x, converging with 150 property stocks listed in Singapore, Hong Kong, Japan, Australia and Taiwan, that generate all their revenue in China.
As many as 20 of Singapore’s most actively traded 50 stocks were recipient to net institutional inflows for sessions spanning 9 to 10 March that saw the STI decline 4.3%, bringing its 2020 YTD decline to 11.9%.
The FTSE Value-Stocks ASEAN Index consists of 50 stocks subject to Contrarian, Quality and Valuation screenings. With a sharp 9% decline on Monday, the FTSE Value-Stocks ASEAN Index has declined 18% in the 2020 YTD, reducing its 3-year total return to a 3% decline. The first two sessions of this week saw the Index P/B ratio trade at 1.06x, a record low of since the Index launch in Nov 2013.
The 3 largest telecommunications service providers on SGX – Singtel, NetLink NBN Trust and StarHub – have a combined market cap of about S$55 billion. Over a 12M period, the 3 telcos have averaged a total return of 14.5%.
SGX lists 3 rubber glove plays – Top Glove Corp, Riverstone Holdings and UG Healthcare Corp – which have a combined market cap of more than S$5 billion. Global demand for rubber gloves is expected to increase as countries step up efforts to contain the spread of the COVID-19.
Over the last few years, Singapore’s three banks have been expanding their wealth management income, which now accounts for an increasing share of non-interest income. For FY19, the trio averaged 18% YoY growth in their wealth management income, ranging from 16% for DBS to 20% for OCBC.
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