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.
|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|
|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|
|PARKWAYLIFE REAL ESTATE||C2PU||1.74||6.7||33.2||-7.9||10.4||4.5|
|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|
|STARHILL GLOBAL REIT||P40U||1.53||4.7||11.6||-6.5||4.6||6.4|
|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|
|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|
|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|
|BEST WORLD INTERNATIONAL||CGN||1.25||416.0||101.7||105.7||-13.3||2.4|
|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|
|PACIFIC CENTURY REGION DEVEL||P15||1.13||-15.5||4.2||1.3||19.7||N/A|
|CHINA AVIATION OIL SINGAPORE||G92||1.11||104.0||18.9||-32.7||21.7||3.5|
|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|