For the 10 years ending 2018, the STI generated annualised total returns of 9.2%, which were one-fifth higher than the regional Asia Pacific benchmark, and in-line with the FTSE ASEAN 40 Index.
The current STI constituents that generated the strongest returns over the period were Venture, SATS, Jardine Cycle & Carriage. The three stocks represent different industries, and averaged similar annualised total returns of 18.5%.
Over the 10 years, global day-to-day market cues have gradually shifted from Central Banks and coordinated expansionary monetary policy to G20 Leaders and their initiatives to reshape economies and address political trends.
Following the financial crisis of 2008, global economic growth took a dip in 2009, recovered in 2010, and has kept above 2.5% for every year since, based on World Bank statistics. Over the 10 years big market drivers have gradually moved from Central Bank’s expansionary and extraordinary measures to stimulate economic growth, to Political Leaders reassessing international paradigms in order to restructure their trade-related growth.
STI Returns Since 2008
Over the 10 years, the Straits Times Index (“STI”) has generated an annualised total return of 9.2%, with all the current constituents of the Index that have been listed for the duration generating positive total returns.
On a non-annualised basis the STI’s total return was 140.5% over the period which spanned the end of 2008 to the end of 2018. Without reinvesting dividends the STI ‘s annualised return over the 10 years would have been 5.7%. Dividends have played a key role in these annualised returns, and following the 6.5% decline in total return for the STI in 2018, the 30 constituents currently average an indicative dividend yield of 3.8%.
The STI’s comparative total returns for the 10 year period are illustrated in the chart below.
Source: SGX StockFacts, Bloomberg, Thomson Reuters (Data spans 31 Dec 2008 to 31 Dec 2018).
STI’s Strongest Stocks Since 2008
As noted above the STI has generated an annualised total return of 9.2% over the 10 year period ending 2018. Over the period, the strongest of the current STI stocks were Venture Corp, SATS, Jardine Cycle & Carriage, CapitaLand Commercial Trust and Thai Beverage PCL.
These five stocks generated similar annualised total returns spanning 19.1% for Venture Corp to 16.6% for Thai Beverage PCL. Of the five stocks, just the one stock, Jardine Cycle and Carriage, was a STI constituent for the full 10 year period. The remaining four stocks joined the STI over the past 10 years. The five least performing STI stocks that have been listed for the full 10 years averaged annualised total returns of 3.3%.
The full list of STI constituents are tabled below.
| STI Constituent | SGX Code |
Market Cap S$Bn |
2018 Total Return % |
10 Year Annualised Total Return % |
Indicative Dividend Yield |
|---|---|---|---|---|---|
| JARDINE MATHESON | J36 | 69.9 | 19.8 | 16.5 | 2.3% |
| DBS GROUP HLDGS | D05 | 60.4 | 1.2 | 15.2 | 5.1% |
| JARDINE STRATEGIC | J37 | 55.5 | -4.6 | 13.9 | 0.9% |
| OCBC BANK | O39 | 47.9 | -6.2 | 12.7 | 3.5% |
| SINGAPORE TELECOMMUNICATIONS | Z74 | 47.8 | -13.2 | 6.6 | 6.1% |
| UNITED OVERSEAS BANK | U11 | 40.9 | -3.3 | 10.6 | 3.9% |
| HONGKONG LAND | H78 | 20.2 | -6.1 | 12.4 | 3.1% |
| WILMAR INTERNATIONAL | F34 | 19.7 | 4.3 | 3.1 | 3.4% |
| DAIRY FARM INTERNATIONAL | D01 | 16.7 | 20.4 | 10.0 | 2.3% |
| THAI BEVERAGE | Y92 | 15.3 | -31.7 | 16.6 | 2.7% |
| JARDINE CYCLE & CARRIAGE | C07 | 14.0 | -10.0 | 18.0 | 3.4% |
| CAPITALAND LTD | C31 | 12.9 | -9.0 | 4.5 | 3.9% |
| GENTING SINGAPORE | G13 | 11.7 | -23.2 | 9.8 | 3.6% |
| SINGAPORE AIRLINES | C6L | 11.2 | -8.2 | 3.0 | 4.1% |
| SINGAP TECH ENG | S63 | 10.9 | 11.8 | 8.8 | 4.3% |
| KEPPEL CORP | BN4 | 10.7 | -16.4 | 9.3 | 4.1% |
| CAPITALAND MALL | C38U | 8.3 | 12.7 | 11.5 | 5.0% |
| ASCENDAS REIT | A17U | 8.0 | 0.3 | 13.8 | 6.2% |
| SINGAPORE EXCHANGE | S68 | 7.7 | 0.4 | 7.5 | 4.5% |
| CITY DEVELOPMENTS | C09 | 7.4 | -33.8 | 4.0 | 1.0% |
| CAPITALAND COMMERCIAL TRUST | C61U | 6.6 | -5.0 | 17.5 | 4.8% |
| UOL GROUP LTD | U14 | 5.2 | -28.8 | 13.7 | 2.9% |
| SATS LTD | S58 | 5.2 | -7.2 | 18.4 | 3.9% |
| YANGZIJIANG SHIPBUILDING | BS6 | 4.9 | -11.4 | 15.1 | 3.5% |
| COMFORTDELGRO CO | C52 | 4.7 | 13.7 | 7.8 | 4.9% |
| SEMBCORP INDUSTRIES | U96 | 4.5 | -15.0 | 4.2 | 1.6% |
| VENTURE CORP LTD | V03 | 4.0 | -29.1 | 19.1 | 5.8% |
| SINGAPORE PRESS HLG | T39 | 3.8 | -6.9 | 3.3 | 3.9% |
| GOLDEN AGRI-RESOURCES | E5H | 3.1 | -33.6 | 3.2 | 0.5% |
| HUTCHISON PORT HOLDINGS | NS8U | 2.9 | -34.7 | N/A | 10.2% |
| Average | -8.4 | 10.7 | 3.8% |
While the STI generated a 6.5% decline in total return in 2018, the non-weighted average return of the 30 STI constituents for the year was a decline of 8.4%. The STI’s five strongest stocks in 2018 were Dairy Farm International, Jardine Matheson, ComfortDelGro Corp, CapitaLand Mall and Singapore Tech Engineering with average total returns of 15.7%.
