SGX Market Updates

YTD Performance Highlights of FTSE ST Small Cap Index Constituents


PUBLISHED ON |

22 December 2016

  • The FTSE ST Small Cap Index is a free float-adjusted, market capitalisation-weighted index representing the performance of small-capitalised companies listed on the SGX Mainboard. A component stock of the FTSE ST Small Cap Index has an average market capitalisation of S$563 million.

  • In the YTD, the five best-performing constituents of the FTSE ST Small Cap Index were Best World International (+377.5%), Japfa (+96.1%), Geo Energy Resources (+60.7%), Super Group (+56.4%) and PEC (+51.2%). These five stocks have a combined market capitalisation of S$3.8 billion, and represent 6.3% of the Index. Together, they averaged a 128.4% total return over the period.

  • Three of the five best performers – Best World International, Japfa and Super Group – belong to the Consumer Staples sector, while the other two – Geo Energy Resources and PEC – are from the Energy and Industrial sectors respectively.



The FTSE ST Small Cap Index comprises Singapore-listed stocks that are below the top 90% of the broad Index Universe by full market capitalisation. The FTSE ST Small Cap Index is a free float-adjusted, market capitalisation-weighted index representing the performance of small-capitalised stocks listed on Singapore Exchange’s Mainboard, which pass the size, free float, and liquidity screens.

Following the most recent quarterly rebalance, effective from today’s open, there are 64 constituents that make up the Index. This compares to a total of 30 stocks that make up the benchmark Straits Times Index (STI).

The FTSE ST Small Cap Index has a combined market capitalisation of S$35.5 billion, which implies an average size of S$563 million for each constituent. The FTSE ST Small Cap Index registered a decline of 1.34% in the 2016 year through 21 December, taking its five-year total return to 18.2%. The YTD total decline of 1.34% for the FTSE ST SmallCap Index compares with a 4.9% total return for the MSCI AC Asia Pacific Small Cap Index in Singapore Dollar terms.

In the year thus far, the five best performing constituents of the FTSE ST Small Cap Index were Best World International (+377.5%), Japfa (+96.1%), Geo Energy Resources (+60.7%), Super Group  (+56.4%) and PEC (+51.2%). These five stocks have a combined market capitalisation of S$3.8 billion, and represent 6.3% of the Index. Together, they averaged a 128.4% total return over the period.


Consumer Staples Outperformed Other Sectors

Consumer Staples stocks are focused on food, beverage and other non-durable products and services. This can include plantations, manufacturers and packagers, as well as food retailers, according to the Global Industry Classification Standard (GICS®). GICS® also maintains that the Consumer Staples Sector tends to be less sensitive to economic cycles than the Consumer Discretionary Sector. A caveat to the former is that just because a Consumer Staples stock provides a staple or necessity product, it does not make the business immune to competition.

Consumer staples stocks in the Index outperformed other sectors in the YTD, with three of the five best performers – Best World International, Japfa and Super Group – from the sector. This reflects the industry’s continued momentum, which began in late November (for more details, click on the Market Update published 13 December). The trio averaged a total return of 176.7% in the year thus far, with Best World achieving the highest total return of 377.5% in the year-to-date and 826.6% over a three-year period.

Best World International

Best World International, an investment holding company, develops, manufactures, and distributes skincare, personal care, nutritional, and wellness products worldwide. The company operates through Direct Selling, Export Sales, and Manufacturing/Wholesale segments.It offers inner, outer and lifestyle harmony products and distributes them through a network of approximately 402,422 independent distributors in Singapore.

For a kopi-C profile on the founders of Best World International Dora Hoan and Doreen Tan, click here.

Japfa

Japfa, an industrial agri-food company, produces and sells dairy products, protein staples, and packaged food products. It is involved in animal feed production and breeding, as well as commercial farming and food processing activities. The company, produces animal feed and multiple animal proteins, such as poultry, beef, and aquaculture. In addition, the company produces raw milk in China, as well as produces raw milk that is used downstream for its Greenfields dairy products in Indonesia. Further, Japfa produces processed foods by using its animal protein products, such as chicken nuggets, meat balls, and shelf-stable sausages, as well as UHT liquid milk.

For a kopi-C profile on Japfa CEO Tan Yong Nang, click here.

Super Group

Super Group manufactures and distributes instant food and beverage products primarily in Singapore, Southeast Asia, East Asia, and internationally. It operates in two segments, Branded Consumer and Food Ingredients. In addition, it is involved in the wholesale, import, and export of pre-packed non-dairy creamers and other food ingredients; and distribution of beverages and food products, as well as operation of cafes.



The table below details the five best performers of the Index. Click on each stock to visit its profile page on SGX StockFacts.

Name SGX
Code
Market Cap
in S$M
Total
Return
YTD
%
Total
Return
3 Yrs
%
Dvd Ind
Yld %
GICS® Sub Industry Name
Best World Intl 5ER 341 377.5 826.6 2.3 Personal Products
Japfa * UD2 1623 96.1 N/A 0.5 Packaged Foods & Meats
Geo Energy Resources RE4 279 60.7 -27.4 N/A Coal & Consumable Fuels
Super Grp S10 1432 56.4 -20.8 1.7 Packaged Foods & Meats
PEC IX2 144 51.2 14.1 3.5 Construction & Engineering
Average     128.4 198.1 2.0  

Source: SGX, Bloomberg & SGX StockFacts (data as of 21 December 2016)
*Listing date of 15 August 2014



The components of the FTSE ST Small Cap Index with the 10 biggest weights averaged a weighted year-to-date total return of 3.2% . Apart from Ezion Holdings, which is categorised by the Global Industry Classification Standard (GICS®) as an Oil & Gas Equipment & Services provider, the other nine component stocks are in Real Estate, in particular, the sub-industry of Real Estate Investment Trusts (REITs).


The table below details the 10 constituent stocks with the biggest weights, sorted by index weighting. Click on each stock to visit its profile page on SGX StockFacts.

Name SGX
Code
Weight
%
Market Cap
in S$M
Total Return
YTD
%
Dvd Ind
Yld %
GICS® Sub Industry Name
Frasers Logistics & Ind Trust * BUOU 4.9 1306 3.6 2.0 Industrial REITs
Keppel DC REIT AJBU 4.3 1367 28.2 5.5 Specialised REITs
Lippo Malls Indonesia Retail Trust D5IU 3.9 1023 25.6 9.3 Retail REITs
Frasers Commercial Trust ND8U 3.8 998 6.2 7.8 Office REITs
Ascendas India Trust CY6U 3.8 967 25.7 5.3 Real Estate Operating Companies
Cache Logistics Trust K2LU 3.7 741 -2.3 9.0 Industrial REITs
Cambridge Ind Trust J91U 3.6 691 1.6 7.4 Industrial REITs
Manulife US Real Estate Investment Trust ** BTOU 3.6 753 9.8 N/A Office REITs
Ezion Hldgs 5ME 3.6 778 -32.0 N/A Oil & Gas Equipment & Services
First Real Estate Investment Trust AW9U 3.4 968 11.7 6.7 Health Care REITs
Average 7.8 6.6

Source: SGX, Bloomberg & SGX StockFacts (data as of 21 December 2016)
* Listing date of 21 June 2016
** Listing date of 20 May 2016



In the year thus far, the five least-performing constituents of the FTSE ST Small Cap Index were OKH Global (-90.7%), Nam Cheong (-55.6%), Pacific Radiance (-53.5%), Ezra Holdings (-51.7%), and Swiber Holdings (-48.1%). These five stocks averaged a decline of 59.9% in the 2016 year-to-date.


The table below details the five least-performing constituents of the Index. Click on each stock to visit its profile page on SGX StockFacts.

Name SGX
Code
Market Cap
in S$M
Total
Return
YTD
%
Total
Return
3 Yrs
%
Dvd Ind
Yld %
GICS® Sub Industry Name
OKH Global S3N 68.8 -90.7 -88.3 N/A Construction & Engineering
Nam Cheong N4E 125.8 -55.6 -77.8 N/A Construction Machinery & Heavy Trucks
Ezra Hldgs 5DN 144.0 -53.5 -94.3 N/A Oil & Gas Equipment & Services
Pacific Radiance T8V 102.7 -51.7 -81.4 6.9 Oil & Gas Equipment & Services
Swiber Hldgs* BGK N/A -48.1 -90.7 N/A Oil & Gas Equipment & Services
Average -59.9 -86.5 6.9

Source: SGX, Bloomberg & SGX StockFacts (data as of 21 December 2016)
*Swiber Holdings filed for judicial management in July 2016






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