SGX Market Updates

10 Biggest Mid Cap Index Constituents Averaged 16% Returns in 2016


PUBLISHED ON |

05 January 2017

  • The FTSE ST Mid Cap Index is made up of 40 mid-capitalised stocks with a combined market capitalisation of S$100 billion. Like the larger capitalised STI, it is a free float-adjusted market capitalisation-weighted Index.

  • For the 2016 year, the FTSE ST Mid Cap Index generated a 6.5% total return, taking its five-year total return to 44.5%. The 10 biggest weights of the Index have averaged a 15.6% total return in 2016 and include six Real Estate plays.

  • For the 2016 year, the five best performers of the FTSE ST Mid Cap Index were ARA Asset Management, United Engineers, Yanlord Land Group, SATS and Venture Corporation. The five stocks have a combined market capitalisation of S$14.1 billion, and averaged a total return of 35.2% in 2016.



The FTSE ST Mid Cap Index is a free float-adjusted, market capitalisation-weighted index representing the performance of mid-capitalised stocks trading on the Mainboard. The constituents pass size, free float, and liquidity screens.

There are currently 40 constituents that make up the Index. This compares to a total of 30 stocks that make up the Straits Times Index (STI), which includes six constituents common to both Indices.

The FTSE ST Mid Cap Index has a combined market capitalisation of S$99.7 billion, which implies an average size of S$2.5 billion for the constituents. Real Estate makes up more than half the weight of the FTSE ST Mid Cap Index.

The FTSE ST Mid Cap Index generated a 6.5% total return in the 2016 calendar year, taking its five-year total return to 44.5%. The FTSE ST Mid Cap Index’s 6.5% total return compared with a total return of 5.6% for the MSCI AC Asia Pacific Mid Cap Index in SGD terms.

In the 2016 year, the five best performers of the FTSE ST Mid Cap Index were ARA Asset Management (+50.9%), United Engineers (+33.3%), Yanlord Land Group (+33.1%), SATS (+30.9%) and Venture Corporation (+28.0%). These five stocks have a combined market capitalisation of S$14.1 billion and averaged a 35.2% total return in 2016. The table below details the five best performers of the Index. Click on each stock to see its profile page on SGX StockFacts.

Name SGX
Code
Market Cap
in S$bln
Total
Return
2016
%
Total
Return
3 Yrs
%
Dvd Ind
Yld %
GICS® Sub Industry Name
ARA Asset Management D1R 1.7 50.9 5.2 2.9 Asset Management & Custody Banks
United Engineers U04 1.6 33.3 58.3 3.1 Construction & Engineering
Yanlord Land Group Z25 2.6 33.1 11.6 1.2 Real Estate Development
SATS S58 5.4 30.9 68.3 3.3 Airport Services
Venture Corp V03 2.8 28.0 55.5 5.1 Electronic Manufacturing Services
Average 35.2 39.8 3.1

Source: SGX, Bloomberg & SGX StockFacts (data as of 30 December 2016)



The five least-performing constituents of the FTSE ST Mid Cap Index in the year were Noble Group (-43.8%), M1 (-23.6%), SIIC Environment Holdings (-23.5%), Yangzijiang Shipbuilding Holdings  (-22.3%) and Sembcorp Marine (-19.3%). These five stocks averaged a decline of 26.5% in 2016.



10 Biggest Index Weights

The current ten biggest weights averaged a 15.6% total return in 2016. The 10 stocks comprise of six Real Estate plays, two Industrial stocks, a Consumer Staple stock and Singapore’s biggest Information Technology stock.

The 10 biggest weights of the FTSE ST Mid Cap Index as of January 2016 averaged a total return of 13.5% over the ensuing calendar year. Nine of those constituents still make up the ten biggest weights of the Index. Yangzijiang Shipbuilding Holdings is no longer amongst the 10 biggest weights, with UOL Group now in the ten biggest FTSE ST Mid Cap Index weights. The current 10 biggest constituent weights of the Index are tabled below.

Click on each stock to see the profile page on SGX StockFacts.

Name SGX
Code
Wgt
%
Market Cap
in S$bln
Total
Return
2016
%
Dvd Ind
Yld %
GICS® Sub Industry Name
Suntec REIT T82U 7.5 4.2 13.2 6.1 Diversified REITs
SATS S58 5.8 5.4 30.9 3.3 Airport Services
CapitaLand Commercial Trust C61U 5.6 4.4 16.6 5.9 Office REITs
UOL Group U14 5.4 4.8 -1.5 2.5 Diversified Real Estate Activities
Golden Agri-Resources E5H 5.2 5.5 28.0 1.2 Agricultural Products
Mapletree Commercial Trust N2IU 5.0 4.0 14.9 3.8 Retail REITs
Venture Corp V03 4.7 2.8 28.0 5.1 Electronic Manufacturing Services
Singapore Post S08 4.0 3.2 -6.6 4.4 Air Freight & Logistics
Mapletree Industrial Trust ME8U 3.9 3.0 15.8 6.9 Industrial REITs
Keppel REIT K71U 3.7 3.4 17.0 6.3 Office REITs
Average 15.6 4.5

Source: SGX, Bloomberg & SGX StockFacts (data as of 30 December 2016)



The 10 stocks tabled above average a 4.5% indicative dividend yield, with Mapletree Industrial Trust, Keppel REIT and Suntec REIT maintaining the highest indicative yields.






This article is provided by SGX My Gateway.



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.


This document is 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 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 has been published 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. 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. While SGX and its affiliates have taken reasonable care to ensure the accuracy and completeness of the information provided, they will not be liable for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind) suffered due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information. Neither SGX nor any of its affiliates shall be liable for the content of information provided by third parties. SGX and its affiliates 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












Stock / REIT Search


Advertisement

Advertisement