SGX Market Updates

SGX Mid-Cap Stocks that Averaged 10% Gains over the Past 10 Weeks


PUBLISHED ON |

08 March 2019

  • In Singapore, approximately 80 stocks are regarded as “mid-cap” stocks on their relative market capitalisation, which ranges from S$1 billion to S$6 billion. Of the group, 39 stocks currently maintain a market capitalisation between S$1 billion and S$2 billion.

  • These 39 stocks have averaged a 10.4% total return in the 2019 YTD, following an average decline of 5.3% in 2018. In the 2019 YTD, performances of the 39 stocks ranged from -13.3% for Best World International to +76.3% for Hi-P International. 

  • Of the 39 stocks, two technology stocks, Hi-P International & Silverlake Axis, were the strongest segment in the 2019 YTD, averaging a 55.5% return, while the Real Estate Sector with 22 of the 39 stocks, averaged an 8.0% total return. 




From the perspective of market capitalisation, the next tranche of stocks beyond the large cap stocks that form the majority of the Straits Time Index (“STI”)  are mid-cap stocks. In Singapore, these mid-cap stocks typically maintain market capitalisation that range from S$1 billion up to S$6 billion. This is based on the capitalisation size of the stocks that currently make up the FTSE ST Mid Cap Index.

In the 2019 year through to 7 March, the STI generated a total return of 5.4%, while the FTSE ST Mid Cap Index almost doubled this performance, generating a 10.6% total return.

While the FTSE ST Mid Cap Index consists of 42 stocks (including 8 STI constituents), there are approximately 80 stocks with market capitalisations that correspondingly ranges from S$1 billion up to S$6 billion. Of this group of stocks, 39 stocks currently maintain a market capitalisation between S$1 billion and S$2 billion. These 39 stocks have averaged a 10.4% total return in the 2019 year through to 7 March. This was in-line with the FTSE ST Mid Cap Index and hence indicates that the performance of the FTSE ST Mid Cap Index was not simply attributed to a few of its biggest weights.


Three key takeaways from the make-up and performance of these 39 stocks since 2015 are as follows:

  • The three stocks with an agriculture or food focus, Bumitama Agri, Sheng Siong Group and Japfa were among the most defensive stocks, with median and average double digit total returns in both 2016 and 2018 when the 39 stocks posted an overall median total return of 3.8% and decline of 7.0% respectively. 

  • The two technology stocks, Hi-P International and Silverlake Axis, were amongst the most cyclical of the 39 stocks, with Silverlake Axis in-line and Hi-P International outpacing the median total return of the 39 stocks in 2017, underperforming in 2018 and then outpacing again in the 2019 year-to-date.

  • The majority of the 39 stocks represent the Real Estate Sector with the 22 stocks averaging a 4.6% dividend yield on account of 14 trusts.  The trusts which comprise of 9 Real Estate Investment Trusts, 4 stapled trusts and 1 Business Trust performed similar to the Real Estate Developers in 2017, however were more defensive in 2016 and 2018.  



The full list of the 39 stocks with a market capitalisation between S$1 billion and S$2 billion, sorted by market capitalisation are tabled below. In addition to the 39 stocks averaging a 2019 year-to-date gain of 10.4%, the 39 stocks average a 12 month Return on Equity of 10.5%.

4 of the stocks, Ho Bee Land, Sheng Siong Group, SBS Transit and Ascendas India Trust generated gains for all of the four time periods detailed in the table below. 

Name SGX
Code
Market
Cap
S$Bn
2016
Total
Return
(%)
2017
Total
Return
(%)
2018
Total
Return
(%)
2019 YTD
Total
Return
(%)
Div Yld
(%)
RAFFLES MEDICAL GROUP BSL 1.98 4.4 -20.5 0.2 0.0 2.3
KEPPEL DC REIT AJBU 1.97 26.1 27.0 -0.7 10.9 5.0
HOTEL PROPERTIES H15 1.95 2.3 5.0 -5.7 4.2 1.1
CDL HOSPITALITY TRUSTS J85 1.94 8.7 39.9 -8.6 13.6 5.8
KEPPEL INFRASTRUCTURE TRUST A7RU 1.93 0.5 29.8 -9.5 5.0 7.4
M1 B2F 1.90 -23.6 -3.9 25.5 -1.9 5.5
PARKWAYLIFE REAL ESTATE C2PU 1.74 6.7 33.2 -7.9 10.4 4.5
ESR-REIT J91U 1.68 3.6 12.0 -1.8 5.6 7.3
CROMWELL EUROPEAN REIT* CNNU 1.68 N/A N/A 13.3 13.5 7.8
HO BEE LAND H13 1.67 3.8 24.3 0.1 5.9 3.2
SHENG SIONG GROUP OV8 1.64 16.9 1.4 18.4 2.8 3.1
WING TAI HOLDINGS W05 1.53 -6.1 47.1 -11.8 3.6 1.5
UNITED ENGINEERS U04 1.53 33.3 7.6 -2.7 -5.1 1.3
STARHILL GLOBAL REIT P40U 1.53 4.7 11.6 -6.5 4.6 6.4
OUE LJ3 1.51 0.5 8.2 -22.2 17.5 1.2
CAPITALAND RETAIL CHINA TRUST AU8U 1.50 -1.0 29.4 -12.5 15.6 6.7
MANULIFE US REIT BTOU 1.47 N/A 18.3 -7.2 13.4 6.6
SILVERLAKE AXIS 5CP 1.47 -15.6 18.8 -24.7 34.7 2.3
BUKIT SEMBAWANG ESTATES B61 1.45 6.7 47.1 -7.0 -0.9 0.7
OUE COMMERCIAL REIT TS0U 1.43 14.6 11.0 -22.6 11.5 7.0
FRASERS HOSPITALITY TRUST ACV 1.38 -1.8 29.3 -4.7 4.3 6.5
OXLEY HOLDINGS 5UX 1.34 1.0 71.9 -44.7 12.1 3.8
FRASERS COMMERCIAL TRUST ND8U 1.33 7.0 27.1 -1.7 9.8 6.5
OUE HOSPITALITY TRUST SK7 1.31 -1.1 38.2 -16.0 8.6 7.0
JAPFA UD2 1.31 94.0 -42.8 44.6 -4.1 1.4
BEST WORLD INTERNATIONAL CGN 1.25 416.0 101.7 105.7 -13.3 2.4
HI-P INTERNATIONAL H17 1.25 4.6 326.5 -50.8 76.3 3.2
FAR EAST HOSPITALITY TRUST Q5T 1.22 -3.1 27.9 -10.8 9.1 6.2
ASCENDAS INDIA TRUST CY6U 1.22 23.3 19.1 0.2 8.3 5.9
HONG LEONG FINANCE S41 1.21 -4.1 32.4 -2.0 6.7 5.5
SBS TRANSIT S61 1.19 10.9 21.3 11.7 41.5 3.4
BUMITAMA AGRI P8Z 1.18 19.2 -8.0 -13.4 9.7 N/A
PACIFIC CENTURY REGION DEVEL P15 1.13 -15.5 4.2 1.3 19.7 N/A
CITIC ENVIROTECH CEE 1.13 -0.1 7.5 -47.5 22.4 1.6
CHINA AVIATION OIL SINGAPORE G92 1.11 104.0 18.9 -32.7 21.7 3.5
SINARMAS LAND A26 1.06 -8.2 -3.6 -36.1 0.0 0.8
KEPPEL TELECOM & TRANSPORT K11 1.05 21.3 -6.1 21.2 1.1 N/A
PERENNIAL REAL ESTATE HOLDING 40S 1.05 -14.9 8.6 -27.9 1.6 0.6
UOB-KAY HIAN HOLDINGS U10 1.01 -7.0 9.8 -10.9 6.8 3.8
Average 19.8 27.1 -5.3 10.4 4.1
Median     3.8 18.9 -7.0 8.3 3.8

Source: SGX StockFacts, Bloomberg (Data as of 7 March 2019)
* Note Cromwell European REIT has an Euro-denominated counter (CNNU) and a Singapore Dollar denominated counter (CSFU).







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