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.
Real Estate Developers (excluding REITs) was the 3rd best-performing sector in March, with a total return of +2.7%. March was also the 3rd straight month of positive returns for the sector, after it registered total returns of +0.7% and +7.8% in Feb and Jan respectively. In the 2019 YTD, the 5 best-performing, largest capitalised real estate developers were: Hong Fok (+34.6%), OUE (+23.8%), CapitaLand (+18.6%), Yanlord Land (+17.2%), and UOL Group (+16.0%).
Last week DBS, OCBC & UOB led the STI’s 3.4% gain, with the 3 banks averaging a 6.1% gain. This has brought the average 2019 YTD total return of the 3 banks to 8.6%, and their 5 year average annualised total return to 10.3%. Shareholders have been rewarded with the 3 banks maintaining an average dividend yield of 4.0% for the past 6 months, which represents the longest period of time in their recent history that their yields remained at or above the key 4.0% level.
In its January report, the World Gold Council said it expects increased market uncertainty, expansion of protectionist policies, and the Fed's more neutral monetary policy stance to make gold increasingly attractive to investors as an effective portfolio diversifier and hedge against systemic risk. SGX offers investors opportunities to participate in the gold sector through 3 mining stocks – CNMC Goldmine, Wilton Resources and Anchor Resources – and the SPDR Gold Shares ETF.
In March 2019, 27 SGX primary-listed stocks repurchased as many as 50 million shares with a total consideration of S$54 million. 5 stocks commenced new buyback mandates in the month of March 2019: Hong Fok Corporation, Kimly, Aspen (Group) Holdings, MDR & GRP. Relative to outstanding shares, Hong Fok Corporation bought back 0.77% of its shares during the month.
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