In April 2019, 19 primary-listed stocks on SGX repurchased close to 30 million shares with a total consideration of S$36 million. 6 stocks commenced new buyback mandates in the month of April 2019: Keppel REIT, Global Investments, Tuan Sing Holdings, Ecowise Holdings, Kim Heng Offshore & Marine Holdings and Axcelasia Inc.
The 51-member FTSE ST Small Cap Index tracks the performance of small-cap companies that pass size, free float and liquidity screens and trade on SGX Mainboard. As the Index has a significant Real Estate weighting – with 19 REIT constituents – it maintains a relatively high average dividend indicated yield of about 4.5%, above the STI’s 3.9% yield.
Of the 42 SGX listed trusts, 19 – with a combined market cap of over S$30 billion – own more than half their assets in markets outside Singapore. Single-market REITs include Fortune REIT, Lippo Malls Indonesia Retail Trust, and Ascendas India Trust. Pure China plays are CapitaLand Retail China Trust, Sasseur REIT, EC World REIT, Dasin Retail Trust and BHG Retail Trust. Manulife US REIT and Keppel KBS US REIT are US-based trusts, while IREIT Global and Cromwell European REIT are focused on Europe.
Singapore’s 10 largest capitalised stocks that are distributing dividends on a quarterly basis now have a combined market capitalisation of S$118 billion and span the Financial and Real Estate Sectors with average indicative dividend yields of 5%. These 10 stocks, now distributing dividends every quarter, have beat the local benchmark every year since 2015.
The STI Reserve List is wholly comprised of 5 REITs: Mapletree Commercial Trust, Suntec REIT, Mapletree Logistics Trust, Keppel REIT, and Mapletree North Asia Commercial Trust. In the 2019 YTD, these 5 trusts have averaged a total return of 12.5%, bringing their 1Y and 3Y total returns to 15.0% and 48.7% respectively.
In 1Q2019, Consumer Staples was the second-best performing sector with +13.9% total return, reversing the -2.9% total return in calendar year 2018. It was also amongst the top net buy sectors for the quarter, garnering total institutional inflows of S$61.5 million. The 5 best performers in the YTD were: Indofood Agri Resources (+46.6%), QAF Ltd (+44.4%), Thai Beverage PCL (+38.0%), Golden Agri-Resources (+20.4%), and First Resources (+19.5%).
In 1Q19, IT was the best-performing sector on SGX with a total return of 28.6%, after registering a total return of -16.3% in calendar year 2018. It was also among the top net buy sectors for the quarter, garnering total institutional inflow of S$100.5 million. Among the 20, the 5 best performers in the YTD were: Hi-P (+65.0%), TPV Tech (+46.2%), Innotek (+41.0%), Venture (+37.9%), and CSE Global (+36.8%).
Singapore’s 10 largest capitalised stocks that report majority revenue to China, have all gained in 2019 YTD, averaging 25% total returns. The strongest of the 10 stocks in 2019 YTD were Hi-P International, China Aviation Oil Singapore and Yangzijiang Shipbuilding. The three stocks are also amongst Singapore’s largest stocks in the Information Technology, Energy and Industrials Sector.
The constituents of the benchmark STI are expected to report their latest quarterly or full-year results in the coming weeks. The STI has generated total returns of -6.5% and 9.6% in 2018 and in the 2019 YTD respectively. With a combined market capitalisation of S$535 billion, the 30 constituents of the index have averaged Price-to-Earnings (P/E) and Price-to-Book (P/B) ratios of 18.9x and 1.9x respectively.
SPH REIT kick-started the latest quarterly reporting season for S-REITs earlier this month with the release of its fiscal second quarter results ended 28 February 2019. This was followed by First REIT and Keppel DC REIT, which unveiled their results last week and yesterday respectively. Soilbuild Business Space REIT will announce its results today. The rest of the S-REITs and Business Trusts are expected to release their earnings over the next few weeks.
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.