SGX Market Updates

SGX MOE Index Gains 12.5% in a Month as Crude Rallies on OPEC Cuts


PUBLISHED ON |

06 December 2016

  • The SGX MOE Index gained 12.5% in the past month, mainly due to crude prices which rallied 16.4% after OPEC announced production cuts.

  • The five best-performing SGX MOE Index constituents are Ezion Holdings (+26.7%), IEV Holdings (+24.5%), Vard Holdings (+22.4%), AusGroup (+22.0%) and Yangzijiang Shipbuilding (+16.6%). These five stocks averaged 22.4% total return in the past month.

  • The SGX MOE Index consists of 18 constituents and has a combined market capitalisation of over S$29 billion. Index constituents include shipyard operators, shipping companies and companies providing offshore services.



WTI Crude Rallies on OPEC Output Cuts

West Texas Intermediate (WTI) Crude closed at US$51.28/bbl yesterday, one of the highest levels seen in the year-to-date. Oil prices have rallied 16.4% in the past month and are now almost double that seen in mid-February this year. The recent momentum in crude was mainly due to the Organization of Petroleum Exporting Countries’ (OPEC) decision to cut production from January 2017 by around 1.2 million barrels per day (bpd) to 32.5m bpd. OPEC has also invited non-OPEC oil producers for a meeting on December 10, where details of the coordinated production cuts will be finalised. Over the past month, the SGX Maritime & Offshore (MOE) Index has gained 12.5% in tandem with crude’s rally (and outperforming the STI’s 5.6% rise), implying a rebound of 15.5% off the lows of 299.56 set in early September this year.

Five Best-Performing SGX MOE Index Constituents

The five best-performing constituents in the SGX MOE Index for the month-to-date are: Ezion Holdings, with a total return of 26.7%, IEV Holdings (+24.5%), Vard Holdings (+22.4%), AusGroup (+22.0%) and Yangzijiang Shipbuilding (+16.6%). These five constituents averaged a total return of 22.4% in the past month. These five companies have a combined market capitalisation of S$4.4 billion and trade at a price-to-book (P/B) ratio of 0.6x.

Two Index Constituents Amongst Last Week’s Volume Leaders

Based on SGX’s data, Keppel Corp and Sembcorp Marine, both constituents of the SGX MOE Index, were also amongst the top 10 volume leaders last week. These two companies have averaged a total return of 5.4% last week. Keppel Corp was also the stock that saw the highest level of net inflows from institutional investors last week at S$42.2 million. Please click here for more information.

The SGX Maritime & Offshore (MOE) Index is a free-float, market capitalisation-weighted index that measures the performance of listed maritime and offshore companies in Singapore. It consists of 18 constituents with a combined market capitalisation of over S$29 billion. Constituents in the index include shipyard operators, shipping companies and companies providing offshore services. Index methodology information is provided below in the tables.

The tables below details the 18 SGX MOE Index constituents, and are sorted by one-month return. Click on each stock to visit its profile page on SGX StockFacts.

Name SGX
Code
Market Cap
in S$M
Total
Return
1 Mth
%
Total
Return
YTD
%
Total
Return
1 Yr
%
Ezion Holdings 5ME 757 26.7 -31.1 -30.6
IEV Holdings 5TN 19 24.5 20.0 4.8
Vard Holdings MS7 283 22.4 0.0 -17.2
AusGroup 5GJ 36 22.0 -67.5 -68.9
Yangzijiang Shipbuilding Hldgs BS6 3296 16.6 -19.4 -19.4
Sembcorp Industries U96 5269 16.3 -0.9 -2.5
Sembcorp Marine S51 3071 14.0 -14.1 -20.0
Keppel Corp BN4 10764 12.8 -4.2 -3.9
First Ship Lease Trust D8DU 105 9.7 5.6 1.8
Nordic Group MR7 92 9.1 34.2 37.1
Triyards Holdings RC5 96 7.4 -33.3 -32.6
Nam Cheong N4E 143 6.7 -52.6 -53.3
Ezra Holdings 5DN 132 4.8 -55.6 -58.9
Pacific Radiance T8V 109 2.6 -48.4 -49.2
Hutchison Port Holdings Trust NS8U 5198 1.4 -11.7 -12.0
Singapore Shipping Corp S19 109 0.0 -15.0 -15.0
Vallianz Holdings 545 65 -10.5 -61.6 -64.0
Rickmers Maritime B1ZU 23 -23.5 -73.5 -81.8
Average 9.0 -23.8 -27.0

Source: SGX, Bloomberg & SGX StockFacts (data as of 5 December 2016)




Name SGX
Code
P/E P/B ROE
%
Dvd Ind
Yld %
GICS® Sector Name
Ezion Holdings 5ME N/A 0.4 -1.4 N/A Energy Equipment & Services
IEV Holdings 5TN N/A 0.5 1.0 N/A Energy Equipment & Services
Vard Holdings MS7 N/A 0.7 -5.6 N/A Machinery
AusGroup 5GJ N/A 0.6 -131.2 N/A Construction & Engineering
Yangzijiang Shipbuilding Hldgs BS6 13.4 0.7 5.4 5.4 Machinery
Sembcorp Industries U96 19.6 0.9 5.5 3.4 Industrial Conglomerates
Sembcorp Marine S51 N/A 1.2 -17.9 2.4 Machinery
Keppel Corp BN4 10.3 1.0 9.6 5.1 Industrial Conglomerates
First Ship Lease Trust D8DU 6.5 0.3 4.0 N/A Diversified Financial Services
Nordic Group MR7 7.6 1.5 20.3 4.9 Construction & Engineering
Triyards Holdings RC5 3.8 0.3 8.2 N/A Machinery
Nam Cheong N4E N/A 0.3 -4.3 N/A Machinery
Ezra Holdings 5DN N/A 0.4 -132.8 N/A Energy Equipment & Services
Pacific Radiance T8V N/A 0.2 -17.3 6.5 Energy Equipment & Services
Hutchison Port Holdings Trust NS8U 15.2 0.7 4.5 8.5 Transportation Infrastructure
Singapore Shipping Corp S19 8.4 1.1 15.7 4.0 Marine
Vallianz Holdings 545 3.0 0.2 8.2 4.0 Energy Equipment & Services
Rickmers Maritime B1ZU N/A 0.1 -72.3 N/A Marine
Average 9.8 0.6 -16.7 4.9

Source: SGX, Bloomberg & SGX StockFacts (data as of 5 December 2016)




Index Methodology

The SGX MOE Index is part of a suite of equity indices representing four key segments of the SGX Securities market. Business activities within the maritime & offshore (MOE) sector include, but are not limited to, shipyard operators, shipping companies and companies providing offshore services. Existing and new constituents must derive at least 40% and 50% of sales revenue from the MOE industry respectively.






This article is provided by SGX My Gateway.



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