SGX Market Updates

FTSE ST Small Cap Index’s 5 Non-REIT Best Performers Returned 37% in YTD


PUBLISHED ON |

07 October 2019

  • The FTSE ST Small Cap Index is a free float-adjusted, market cap-weighted index, representing the performance of small-cap companies that pass size, free float and liquidity screens and trade on SGX Mainboard.

  • The Index's 49 constituents – comprising 20 REITs and 29 companies – have a combined market cap of about S$37 billion. REIT constituents carry a weighting of approximately 71.9% in the Index, with companies accounting for the remaining 28.1%.

  • In the YTD, the FTSE ST Small Cap Index has generated a total return of 7.2%, compared with total returns of 3.9% and 5.8% for the benchmark STI and broader FTSE ST All-Share Index respectively.

  • In the YTD, the five best-performing, non-REIT constituents of the Index were: Indofood Agri Resources (+71.7%), Hi-P (+33.8%), QAF (+33.8%), Hong Leong Asia (+23.5%) and Koufu Group (+19.7%). They averaged a total return of 36.5% over the period.




The FTSE ST Small Cap Index is a free float-adjusted, market capitalisation-weighted index, representing the performance of small-cap companies that pass size, free float and liquidity screens and trade on SGX Mainboard. The Index’s 49 constituents – comprising 20 Real Estate Investment Trusts (REITs) and 29 companies – have a combined market cap of about S$37 billion, ranging from S$45 million to nearly S$3 billion.

REIT constituents in the Index carry a weighting of approximately 71.9%, with companies accounting for the remaining 28.1%. More broadly, beyond the Index are approximately another 300 stocks listed on SGX that fall within this market cap range.

In the 2019 year-to-date, the FTSE ST Small Cap Index has generated a total return of 7.2%, compared with total returns of 3.9% and 5.8% for the benchmark Straits Times Index (STI) and broader FTSE ST All-Share Index respectively.

YTD Total Returns FTSE STI

Source: Bloomberg (data as of 4 Oct 2019) 



In the YTD, the 5 best-performing, non-REIT constituents of the FTSE ST Small Cap Index were: Indofood Agri Resources (+71.7%), Hi-P International (+33.8%), QAF Ltd (+33.8%), Hong Leong Asia (+23.5%) and Koufu Group (+19.7%). They have averaged a total return of 36.5%, bringing their one-year total return to 17.0%.

These 5 stocks are categorised to the consumer staples (specifically the sub-segments of food manufacturing and restaurant operations), electronics manufacturing and construction machinery sectors. They either derive growing revenues from the Asia-Pacific, ex-Singapore markets, or are building their presence beyond domestic shores.

Note that for Indofood Agri Resources, its parent Indofood Sukses Makmur – controlled by Indonesian tycoon Anthoni Salim – has been acquiring shares of the subsidiary in the open market since its buyout offer lapsed in June.


The table below details the 10 best-performing, non-REIT constituents of the FTSE ST Small Cap Index, sorted by YTD total returns.

Name SGX
Code
Market
Cap
S$m
Total
Return
YTD
%
Total
Return
1 Yr
%
Total
Return
3 Yr
%
INDOFOOD AGRI RESOURCES 5JS 454 71.7 39.6 -24.5
HI-P INTL  H17 925 33.8 14.1 204.2
QAF LTD Q01 434 33.8 3.7 -31.0
HONG LEONG ASIA H22 445 23.5 10.0 -13.0
KOUFU GROUP  VL6 399 19.7 17.8 NA
CHINA AVIATION OIL G92 998 13.2 -23.1 -8.8
UMS HOLDINGS LTD 558 333 10.9 -12.6 47.9
LIAN BENG GROUP L03 242 10.2 -5.1 20.4
SHENG SIONG GROUP OV8 1,684 9.1 1.4 15.1
HONG LEONG FINANCE S41 1,158 7.8 5.7 33.6
Average 23.4 5.2 24.4

Source: Bloomberg & StockFacts (data as of 4 Oct 2019)



In the YTD, the 5 least-performing non-REIT constituents of the FTSE ST Small Cap Index were: Japfa Ltd (-35.8%), mm2 Asia (-30.2%), Breadtalk Group (-25.4%), CITIC Envirotech (-22.2%) and Duty Free International (-20.2%). These 5 stocks have averaged a total return of -26.7% over the period.







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