The STI’s performance in 2H20 will largely be determined by the performance of its two biggest Sectors - Banks and Real Estate. While both of these Sectors lagged globally for much of 1H20 - they have led STI stocks in the first four sessions of July, seeing similar sized net institutional inflows.
Of Singapore’s most 100 traded stocks in 1H20, the 20 most defensive stocks included 4 current STI constituents, with Technology and Healthcare stocks also amongst the strongest performers in the local stock market. The 4 STI stocks that ranked amongst these 20 most defensive stocks included Mapletree Industrial Trust, Mapletree Logistic Trust, Ascendas REIT & Venture Corporation.
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.
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