SGX Market Updates

SGX Liquidity-themed Consumer Sector Index Posts 10% YTD Gain


PUBLISHED ON |

19 February 2019

  • The FTSE ST Consumer Goods & Services Liquid 20 Index comprises the 20 most liquid Consumer Goods & Services stocks within the FTSE ST All Share Index. Constituent liquidity is assessed at periodical Index reviews and ranked by preceding 12M traded values. 

  • For 2019 YTD, the FTSE ST Consumer Goods & Services Liquid 20 Index generated a 9.9% total return, a turnaround from its 9.2% decline in 2018. In 2019 YTD, as many as 18 of the 20 stocks have generated gains, with performances led by ThaiBev, Olam Int & Genting SG.

  • The median P/E of the Liquid 20 constituents is 17.6x and compares to 17.3x for the top quartile of Consumer Goods & Services stocks by Market Cap, across the stock markets of Japan, Hong Kong, Taiwan, Korea, Australia and New Zealand.




Singapore’s offering of listed companies that represent the Consumer Goods & Services Industries are highly diversified by their scope of consumer business, in addition to their geographical exposures. As discussed here, Singapore Exchange lists more than 140 consumer stocks with a combined market capitalisation of over S$130 billion.

Within the Consumer Goods & Services industries are 20 stocks that have passed free float, capitalisation and liquidity screens at the last FTSE ST All-Share Index and FTSE ST Consumer Goods & Services Liquid 20 Index  rebalance. The relevant 20 stocks must have been selected as constituents of the FTSE ST All-Share Index and aside from the Sector representation, maintained the highest median traded values for the past 12 months at the time of the previous Index review.

For the 2019 year through to 18 Feb, the FTSE ST Consumer Goods & Services Liquid 20 Index generated a 9.9% total return, a turnaround from its 9.2% decline in 2018.

In the 2019 year-to-date, as many as 18 of the 20 stocks have generated gains, with performances led by Thai Beverage PCL, Olam International and Genting Singapore. These 3 stocks averaged a gain of 22.2%. The 3 least performing stocks of the Index in the 2019 year-to-date were mm2 Asia, Dairy Farm International Holdings and Mandarin Oriental International with an average decline of 2.7% (in SGD terms).


The 10 largest of the 20 stocks of the FTSE ST Consumer Goods & Services Liquid 20 Index are tabled below.

10 Largest Weights of the
FTSE ST Consumer Goods & Services
Liquid 20 Index
SGX
Code
Market
Cap
S$m
2016
Total
Return
(%)
2017
Total
Return
(%)
2018
Total
Return
(%)
2019 YTD
Total
Returns
(%)
Div Yld
(%)
Wilmar International F34 21,259 25.0 -12.1 4.3 7.7 3.2
Thai Beverage PC Y92 20,593 27.2 11.3 -31.7 36.3 2.0
Dairy Farm International D01 16,472 21.5 3.5 20.4 -1.3 2.4
Jardine Cycle & Carriage C07 14,517 21.6 1.0 -10.0 3.9 3.2
Genting Singapore G13 13,249 22.0 48.6 -23.2 12.8 3.2
Singapore Airlines C6L 11,777 -10.0 12.5 -8.2 5.6 3.8
Olam International O32 6,174 12.2 6.5 -15.9 17.6 3.9
ComfortDelGro C52 5,218 -16.3 -16.4 13.7 12.1 4.4
Singapore Press Holdings T39 4,011 -6.1 -21.0 -6.9 6.8 3.6
Golden-Agri Resources E5H 3,247 28.0 -10.8 -33.6 4.1 0.5
Average 12.5 2.3 -9.1 10.6 3.0

Source: SGX StockFacts and Bloomberg (Data as of 18 February 2019)



The median Price-to-Earnings (“P/E”) ratio of the 20 FTSE ST Consumer Goods & Services Liquid 20 Index is 17.6x. This compares to 17.3x for the top quartile of Consumer Goods & Services stocks by market capitalisation, across the stock markets of Japan, Hong Kong, Taiwan, Korea, Australia and New Zealand.

By the same measure, the FTSE ST Consumer Goods & Services Liquid 20 Index constituents also maintain comparatively similar median 12 month Return On Equity (“ROE”) ratios to the region.



FTSE ST Consumer Goods & Services Liquid 20 Index Methodology

The key steps for Index inclusion are explained in more detail here, however in summary involves the following:

  • The FTSE ST Consumer Goods & Services Liquid 20 Index is comprised of 20  stocks that represent either the ICB Consumer Goods or the ICB Consumer Services Industries that are also a part of the FTSE ST All-Share Index.
  • For inclusion at the March and September review a stock must have traded for at least 60 or more days in the last 252 trading days prior to the data cut-off date to be considered for inclusion.
  • For each stock in the underlying index, the traded value for the last 252 trading days is calculated and includes days on which a stock is suspended. The median value is then taken with the Median Traded values of potential stocks sorted in descending order, the top 20 liquid stocks are then selected.






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