Both the Consumer Discretionary and Consumer Staples Sectors have generated gains in the 2017 YTD, with Discretionary leading Staples. The majority of the biggest stocks that make up these Sectors report regional revenue.
Consumer Discretionary heavyweight Dairy Farm International will join the FTSE ST Large & Mid Cap Index on 18 September. The eligibility of Dairy Farm for the STI will be assessed in March 2018, and will be based on comparative market capitalisation in addition to reviews of its liquidity, free float and shares in issue.
This morning, Consumer Staples stock Del Monte Pacific reported 1QFY18 results. The Group generated 1QFY18 net income of US$0.7 million, a turnaround from the US$7.0 million net loss in 1QFY17, as a result of the robust performance of the Asian business.
Hong Kong based Economist and Founder of Asianomics Group, Dr Jim Walker, recently published a report Singapore: Securing the Future with Regional Integration, which provided an analysis on regional domestic-demand and Singapore’s growing financial ties.
Dr Walker noted that Singapore stocks provide deep linkages to the rest of Asia benefitting from regional domestic demand as these economies grow. This sentiment was relayed at a recent event by Head of Asia at Aberdeen Asset Management, Mr Hugh Young, who noted that Singapore businesses have taken an outward-facing strategy to seek out the growth in its neighbours. Dr Walker added that as a service centre for Southeast Asia, Singapore is unparalleled and perfectly positioned to benefit from the region’s growing prominence. For a report synopsis in Smartkarma click here.
Stocks with significant linkages to the rest of Asia are exemplified through Singapore’s Consumer Discretionary and Consumer Staples Sectors. The two Sectors have a multitude of stocks that report regional revenue flows for products and services that span Food & Beverage, Hospitality, Media and Leisure Industries. Other Sector examples with significant regional linkages include Healthcare, Materials, Real Estate and Utilities.
Recent Performance of Consumer Sectors
The Consumer Discretionary and Consumer Staples have performed comparatively differently in the 2017 year-to-date, in addition to 2016.
Last year Singapore’s Consumer Staples ranked the strongest Sector with 26% market capitalisation weighted dividend inclusive returns. For the first eight months of 2017, the Consumer Staples Sector averaged a market capitalisation weighted return of 5%. On the other hand, the Consumer Discretionary Sector has followed on from its market-capitalisation weighted total return of 11% in 2016 with a 15% gain for the first eight months of 2017.
Market Capitalisation Weighted Sector Total Returns
Source: SGX StockFacts & Bloomberg (Data as of 6 September 2017)
Just as consumer preferences are highly diverse – there are a multitude of very different stocks that make up the stocks of Singapore’s two Consumer Sectors. Diversity has in fact driven the expansion of Singapore’s Consumer Discretionary and Consumer Staples Sectors over the past 20 years. The businesses are made up of integrated managers, retailers, media and movies, hotels and restaurants. Many of the integrated F&B managers have businesses that span all phases of the value chain – from farming – to processing - to distribution sales.
Consumer Discretionary Sector
Last Thursday it was announced that Consumer Discretionary heavyweight Dairy Farm International will join the FTSE ST Large & Mid Cap Index on 18 September. The eligibility of Dairy Farm International for the STI will be assessed in March 2018, and will be based on comparative market capitalisation in addition to reviews of its liquidity, free float and shares in issue.
The 20 largest capitalised and active Consumer Discretionary stocks listed on SGX are tabled below. The 20 stocks averaged price returns of 4.9% in 2016, and 16.1% in the 2017 year to date. Of the 20 stocks, the three best performers in the year to date were Centurion Corp (+57.6%), Asian Pay TV Trust (+50.7%) and Mandarin Oriental Intl (+47.0%). Click on the stock name below to see its profile page on StockFacts.
| Consumer Discretionary | SGX Code |
Market Cap S$m |
Price S$ |
Price Change 2016 % |
Price Change YTD % |
Total Return 1 Yr % |
Dvd Ind Yld % |
|---|---|---|---|---|---|---|---|
| Jardine Cycle & Carriage | C07 | 15,758 | 39.590 | 18.3 | -4.0 | -7.4 | 2.6 |
| Genting Singapore PLC | G13 | 13,949 | 1.150 | 17.5 | 27.1 | 56.8 | 3.9 |
| Singapore Press Holdings | T39 | 4,348 | 2.730 | -10.4 | -22.7 | -25.9 | 5.1 |
| Mandarin Oriental Intl | M04 | 3,454 | 2.710 | -16.0 | 47.0 | 55.4 | 2.0 |
| Genting Hong Kong | S21 | 3,098 | 0.370 | -4.3 | -14.5 | 9.4 | 3.8 |
| Hotel Properties | H15 | 2,014 | 3.870 | 0.0 | 1.6 | 16.8 | 1.0 |
| OUE | LJ3 | 1,763 | 1.960 | -2.0 | 11.7 | 26.1 | 1.5 |
| Metro Holdings | M01 | 1,001 | 1.200 | 14.4 | 20.6 | 39.1 | 1.7 |
| GL | B16 | 992 | 0.720 | -13.1 | -5.3 | -6.9 | 3.1 |
| Hotel Grand Central | H18 | 922 | 1.330 | 15.4 | -1.5 | 2.8 | 3.8 |
| Asian Pay TV Trust | S7OU | 826 | 0.560 | -41.4 | 50.7 | 17.2 | 11.5 |
| Accordia Golf Trust | ADQU | 780 | 0.710 | 17.8 | 13.5 | 16.4 | 8.1 |
| Straco Corporation | S85 | 748 | 0.870 | -13.6 | 13.8 | 18.0 | 2.9 |
| mm2 Asia | 1B0 | 558 | 0.480 | 128.9 | 5.5 | 25.5 | N/A |
| Banyan Tree Holdings | B58 | 483 | 0.630 | 18.5 | 32.3 | 44.3 | N/A |
| Breadtalk Group | 5DA | 452 | 1.600 | 2.7 | 37.9 | 65.0 | 1.9 |
| The Hour Glass | AGS | 451 | 0.640 | -19.1 | 0.8 | -7.2 | 3.1 |
| Stamford Land Corp | H07 | 428 | 0.500 | -5.9 | 3.1 | 7.4 | 2.0 |
| Kimly | 1D0 | 423 | 0.370 | N/A | 46.0* | N/A | 0.8 |
| Centurion Corp | OU8 | 390 | 0.520 | -15.4 | 57.6 | 55.0 | 3.9 |
| Average | 4.9 | 16.1 | 21.5 | 3.5 |
* Note from IPO price.
Source: SGX StockFacts & Bloomberg (Data as of 6 September 2017)
Consumer Staples Sector
This morning, Consumer Staples stock Del Monte Pacific reported 1QFY18 results. The Group generated 1QFY18 net income of US$0.7 million, a turnaround from the US$7.0 million net loss in 1QFY17, as a result of the robust performance of the Asian business.
The 20 largest capitalised and active Consumer Staples stocks listed in Singapore are tabled below. The median price return of these 20 stocks in 2016 was 10.4%, and they have since returned an average of 4.2% in the 2017 year to date. Of these stocks, the three best performers in the year thus far were Best World International (+84.3%), GP Batteries (+60.5%) and Food Empire Holdings (+31.1%).
Click on the stock name below to see its profile page on StockFacts.
| Consumer Staples | SGX Code |
Market Cap S$m |
Price S$ |
Price Change 2016 % |
Price Change YTD % |
Total Return 1 Yr % |
Dvd Ind Yld % |
|---|---|---|---|---|---|---|---|
| Thai Beverage PCL | Y92 | 23,101 | 0.920 | 23.2 | 8.2 | -3.0 | 3.5 |
| Wilmar Intl | F34 | 20,807 | 3.270 | 22.1 | -8.9 | 5.7 | 2.0 |
| Dairy Farm Intl Hldgs | D01 | 14,856 | 10.780 | 20.7 | 3.6 | 9.4 | 2.7 |
| Olam Intl | O32 | 5,550 | 2.000 | 8.2 | 1.5 | -1.6 | 3.3 |
| Golden Agri-Resources | E5H | 5,030 | 0.390 | 26.5 | -9.3 | 7.3 | 1.6 |
| Fraser And Neave | F99 | 3,646 | 2.530 | 0.5 | 21.1 | 21.3 | 1.8 |
| First Resources | EB5 | 2,978 | 1.910 | -1.0 | 0.5 | 3.6 | 1.8 |
| Sheng Siong Group | OV8 | 1,383 | 0.920 | 12.5 | -2.7 | -9.7 | 3.7 |
| Bumitama Agri | P8Z | 1,274 | 0.720 | 18.4 | -13.8 | 0.3 | 3.1 |
| Delfi | P34 | 1,125 | 1.830 | 5.2 | -17.8 | -19.5 | 1.6 |
| Japfa | UD2 | 1,011 | 0.560 | 92.6 | -37.6 | -32.1 | 1.7 |
| Yeo Hiap Seng | Y03 | 733 | 1.280 | -0.8 | -3.8 | 4.7 | 1.6 |
| QAF | Q01 | 701 | 1.220 | 31.8 | -12.2 | 3.0 | 4.1 |
| Best World Intl | CGN | 677 | 1.240 | 400.0 | 84.3 | 68.6 | 2.6 |
| Indofood Agri Resources | 5JS | 656 | 0.470 | 7.1 | -11.4 | 1.3 | 1.4 |
| Del Monte Pacific | D03 | 602 | 0.310 | -11.7 | -8.8 | -14.9 | 2.8 |
| Mewah Intl | MV4 | 458 | 0.300 | -21.4 | 9.1 | 28.3 | 2.7 |
| Food Empire Holdings | F03 | 320 | 0.590 | 114.3 | 31.1 | 92.3 | 1.0 |
| GP Batteries Intl | G08 | 199 | 1.260 | -15.1 | 60.5 | 68.8 | 2.0 |
| Sino Grandness Food Industry | T4B | 188 | 0.190 | -34.3 | -10.7 | -57.1 | N/A |
| Average | 34.9 | 4.2 | 8.8 | 2.4 |
Source: SGX StockFacts & Bloomberg (Data as of 6 September 2017)
Did you Know?
The Global Industry Classification Standard (GICS®) categorise the Consumer Discretionary Sector as a Cyclical Sector and the Consumer Staples Sector as a Defensive Sector. Over the first eight months of 2017, a number of so-defined Cyclical Sectors performed stronger than the Defensive Sectors.
