The FTSE ST Fledgling Index consists of close to 250 stocks with an average market cap of S$110 million. In 2017 YTD, the FTSE ST Fledgling Index has generated a 12.4% price gain, similar to the STI which has gained 11.4%.
The 10 biggest FTSE ST Fledgling Index weights as of the end of 2016 have also averaged a 12.4% price gain in 2017 YTD. Of these 10 stocks, six stocks - Poh Tiong Choon Logistics, Tianjin ZhongXin Pharmaceutical Group Corp, MYP, CSE Global, Singapore Reinsurance Corp and Sunningdale Tech - are still amongst the 10 biggest Index weights.
The four stocks that have joined the current 10 biggest weights of the FTSE ST Fledgling Index include BHG Retail REIT, Lung Kee (Bermuda) Holdings, Sing Investments & Finance and Food Empire Holdings. Together the four stocks have averaged a 30.7% price gain in 2017 YTD.
FTSE ST Fledgling Index
The FTSE ST Fledgling Index is made up of SGX Mainboard-listed stocks that do not meet the size criteria for inclusion in the FTSE ST Small Cap Index. As of May 2017, there were 245 constituents of the Index.
In its weighted form, the FTSE ST Fledgling Index has generated a 12.4% price gain in the 2017 year-to-date while the current 10 biggest weights of the Index have averaged a 16.4% price gain.
However a caveat to the performance of the Index stocks that currently maintain the biggest weights is that with close to 250 constituents, the Index weights can change over time. So much so, that at the end of 2016, the 10 biggest weights of this Index included not all, but just six of the 10 current biggest weights of the Index.
Nevertheless the 10 biggest weights, as they stood at the end of 2016 have, still averaged a 12.4% price gain in the 2017 year-to-date. This was in-line with the overall FTSE ST Fledgling Index returns. At the same time the Straits Times Index (STI) has rallied 11.6% in the 2017 year through to the 28 June close.
Of the 10 biggest weights at the end of 2016, Poh Tiong Choon Logistics, Sunningdale Tech, Tianjin ZhongXin Pharmaceutical Group Corp, Singapore Reinsurance Corp, MYP and CSE Global are still amongst the 10 biggest weights. Last year’s 10 biggest Index weightings are tabled below, and are sort according to their Index weight as of 30 December 2016. Within the table, the respective market capitalisations and price changes are as 28 June 2017. Clicking on a stock name will take you to its relevant page on StockFacts.
Ten Biggest Weights of the FTSE ST Fledgling Index as of 30 December 2016
|Poh Tiong Choon Logistics||P01||286||1.350||-2.5||91.0||2.0|
|Tianjin ZhongXin Pharmaceutical Group Corp||T14||2,377||1.282*||1.0*||-17.3*||4.8|
|Singapore Reinsurance Corp||S49||188||0.310||1.6||-6.2||3.5|
|Health Management Intl||588||558||0.680||5.5||85.5||0.4|
Source: FTSE ST Index Series Monthly Report (December 2016) & SGX StockFacts (data as of 28 June 2017).
Note the current 10 biggest weights of the Index do not include Sunpower Group, Innovalues (delisted), Health Management Intl or BreadTalk Group.
*note price change for TZXP shown in SGD terms.
Changes to the 10 Biggest Stocks of the Index since 2016
Sunpower Group has gained 33.3% in the 2017 year-to-date and moved to the FTSE ST Small Cap Index on 20 March. The business of Sunpower Group has three core segments: Green Investments, EPC Integrated Solutions and Environmental Equipment Manufacturing. In May, the Group reported that for 1QFY17 net profit attributable to the shareholders increased by RMB 9.6 million or 60.1% from RMB 16.0 million in 1QFY16 to RMB 25.7 million in 1QFY17. The 2016 Annual Report can be read here.
Innovalues delisted in March, following a S$331 million offer on its equity by Northstar Advisors in October. Over the past 12 months the deal value of completed and pending takeovers of publicly listed companies across the world reached S$3 trillion. This total deal value is based on Bloomberg data with deal value taking into account both equity value plus target net debt.
Health Management International and BreadTalk Group were also removed from the FTSE ST Fledgling Index at the March rebalance, effective 20 March. These two stocks ranked above 98% of Index Universe in March 2017, which meant they were not eligible for inclusion in the FTSE ST Fledgling Index.
The four stocks that have replaced Sunpower Group, Innovalues, Health Management International and BreadTalk Group in the 10 biggest weights of the FTSE ST Fledgling Index are:
BHG Retail REIT – which has gained 10.7% in price in the 2017 year-to-date, an maintains an indicative dividend yield of 6.9%. BHG Retail REIT is the first retail REIT sponsored by an established PRC homegrown retail property operator, Beijing Hualian Department Store Co., Ltd., to list on SGX. For more information click here.
Lung Kee (Bermuda) Holdings – which has gained 43.5% in price in the 2017 year-to-date. The group is principally engaged in the manufacturing and marketing of mould bases and related products. Its basic EPS for FY2016 was 30.35 Hong Kong cents, compared to 19.89 Hong Kong cents in FY2015. For more information click here.
Sing Investments & Finance - which has gained 25.1% in price in the 2017 year-to-date. Sing Investments & Finance is a finance company, with its activities covering the acceptance of fixed and saving deposits from the public and the provision of loans and credit facilities to individuals and corporations. The company has also actively participated in events organized by SPRING Singapore and SCCCI to promote our local entrepreneurs. For more information click here.
Food Empire Holdings - which has gained 43.3% in price in the 2017 year-to-date. Food Empire is a global branding and manufacturing company in the food and beverage sector. Its products include instant beverage products, frozen convenience food, confectionery and snack food. For more information click here.