The Utilities Sector is typically made up of stocks that provide gas, electricity or water, with population growth the underlying driver of demand for these services. As a result, the sector has traditionally been seen as more defensive than cyclical in nature.
SGX’s Utilities Sector was the top performing sector in September 2019, generating a total return of 3.7%. It outperformed total returns of 2.2% for Banks, 1.4% for Real Estate (excluding REITs), 1.3% for Technology and 1.0% for REITs for the month.
In the YTD, the 3 largest, best-performing Utilities stocks were: China Jinjiang Environment (+28.3%), Keppel Infrastructure Trust (+21.5%) and China Everbright Water (+8.7%). The trio averaged a YTD total return of +19.5%, bringing their 1Y total return to +12.5%.
The Utilities Sector is typically made up of stocks that provide gas, electricity or water, with population growth the underlying driver of demand for these services. As a result, the sector has traditionally been seen as more defensive than cyclical in nature. Against a backdrop of increasing geopolitical uncertainty, market volatility and slowing global growth, analysts are recommending that investors include high-yielding, defensive stocks in their portfolios.
SGX’s Utilities Sector was the top performing sector in September 2019, generating a total return of 3.7%. It outperformed total returns of 2.2% for Banks, 1.4% for Real Estate (excluding REITs), 1.3% for Technology and 1.0% for REITs.
Source: SGX data
Between January and September 2019, Utilities was the fourth-best performing sector on SGX with a total return of 14.8%, after total returns of 42.1% for Technology, 24.2% for REITs, and 17.8% for Consumer Non-Cyclicals.
Source: SGX data
SGX’s largest capitalised Utilities plays are Sembcorp Industries (whose Energy and Power operations account for more than 60% of group revenue), Keppel Infrastructure Trust, China Everbright Water, China Jinjiang Environment, CITIC Environment and SIIC Environment. These 6 stocks have a combined market capitalisation of almost S$10 billion.
In the 2019 year-to-date, the 3 largest, best-performing Utilities stocks were: China Jinjiang Environment (+28.3%), Keppel Infrastructure Trust (+21.5%) and China Everbright Water (+8.7%). The trio have averaged a YTD total return of +19.5%, bringing their one-year total return to +12.5%.
The table below details the 6 largest Utilities stocks on SGX, sorted by YTD total return.
| Name | SGX Code |
Market Cap S$m |
Total Return YTD % |
Total Return 1 Yr % |
|---|---|---|---|---|
| CHINA JINJIANG ENVIRONMENT | BWM | 859 | 28.3 | 25.5 |
| KEPPEL INFRASTRUCTURE TRUST | A7RU | 2,747 | 21.5 | 21.3 |
| CHINA EVERBRIGHT WATER | U9E | 886 | 8.7 | -9.4 |
| SIIC ENVIRONMENT | BHK | 638 | -11.6 | 3.4 |
| SEMBCORP INDUSTRIES | U96 | 3,753 | -16.8 | -28.4 |
| CITIC ENVIROTECH | CEE | 742 | -19.5 | -36.2 |
Source: Bloomberg & StockFacts (data as of 18 Oct 2019)
In July 2017, SGX’s Utilities Sector saw a new addition with the Catalist listing of Union Gas Holdings. Union Gas, with a market cap of S$56 million, is an established provider of fuel products in Singapore, with over 40 years of operating track record in the business of Retail LPG, CNG and Diesel. In the YTD, the stock has generated a total return of 8.4%.
