SGX Market Updates

Defensive Nature of SGX Consumer Staples Stocks Draws Fund Flows


PUBLISHED ON |

14 June 2019

  • In Jan-May 2019, the Consumer Staples sector attracted net institutional inflows of S$112.4 million. The sector was among the top net buy sectors for institutional investors in the month of May, garnering net inflows of S$46.1 million.

  • In May 2019, the five stocks in the Consumer Staples sector that garnered the highest net institutional inflows were: ThaiBev (+S$12.1 million), Sheng Siong (+S$10.2 million), Wilmar (+S$9.3 million), Golden Agri-Resources (+S$7.2 million) and Dairy Farm (+S$5.4 million).

  • In the YTD, these five top institutional net buy Consumer Staples stocks have averaged a total return of 11.0%. Among them, the three best performers were: ThaiBev (+38.3%), Golden Agri-Resources (+14.5%) and Wilmar (+11.5%).




SGX lists more than 40 Consumer Staples stocks with a combined market capitalisation of about S$80 billion. Consumer staples stocks are typically regarded as defensive in nature, as the businesses of food manufacturing and the processing of agricultural products tend to be less impacted by economic cycles and overall demand is more inelastic.

In January-May 2019, the Consumer Staples sector attracted net institutional inflows of S$112.4 million. The sector was among the top net buy sectors for institutional investors during the month of May, garnering net inflows of S$46.1 million, after Communications Services (+S$135.8 million) and REITs (+S$78.5 million).



SGX Institution Flows for Consumer Staples Sector


Source: SGX data



In the month of May, the five stocks in the Consumer Staples sector that garnered the highest net institutional inflows were: Thai Beverage (+S$12.1 million), Sheng Siong Group (+S$10.2 million), Wilmar International (+S$9.3 million), Golden Agri-Resources (+S$7.2 million) and Dairy Farm International (+S$5.4 million).


SGX Top Institution Net Buy Consumer Staples Stocks in May19


Source: SGX data



These five top institutional net buy Consumer Staples stocks have a combined market capitalisation of more than S$60 billion, and averaged a total return of 11.0% in the 2019 year-to-date. This brings their one-year and three-year average total returns to 0.8% and 9.6% respectively. Among the five, the three best performers in the YTD were Thai Beverage (+38.3%), Golden Agri-Resources (+14.5%) and Wilmar International (+11.5%).

The table details May’s five top institutional net buy stocks in the Consumer Staples sector, sorted by YTD total return.

Name SGX
Code
Market Cap
(S$B)
Total
Return
YTD
%
Total
Return
1 Yr
%
Total
Return
3 Yr
%
12M Div
Ind Yld
(%)
THAI BEVERAGE Y92 21.1 38.3 5.4 -1.6 2.0
GOLDEN AGRI-RESOURCES E5H 3.5 14.5 -11.0 -23.2 2.1
WILMAR INTL F34 21.5 11.5 7.8 9.8 3.1
SHENG SIONG GROUP OV8 1.7 4.6 11.5 37.3 3.1
DAIRY FARM INTL D01 14.2 -13.6 -9.7 25.7 2.8
Average 11.0 0.8 9.6 2.6

Source: Bloomberg & StockFacts (data as of 12 June 2019)







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