SGX Market Updates

SGX Stocks with Consistent Momentum in Recent Years


PUBLISHED ON |

10 December 2019

  • Multiple methods exist to gauge momentum in a stock, which entails both short term and long term positive returns. For the past 3 months the STI has generated a 1.5% total return, bringing its 3 year return to 20%.

  • Keppel Corp and Mapletree Logistics Trust (joins STI on Dec 23) are 2 of 30 Singapore stocks with a market value above S$100M that generated the highest momentum in total returns. This is based on the observing comparative minimum total returns for the past 3 months, 1 and 3 years.

  • With market values above S$100M, Rex International, GS Holdings, AEM, UMS and Penguin International generated the highest minimum total returns over the 3-month, 1-year and 3-year time frames. Penguin International generated respective total returns of 49%, 150% and 232% over the 3 timeframes.




Over the past 3 months, the STI generated a 1.5% total return, bringing its 3-year total return to a competitive 20.1% that doubled the gains of the FTSE ASEAN All-Share Index. Multiple stocks generated consistent total returns over the 3 years that spanned regional and synchronised growth acceleration and deceleration. However, the 30 Singapore-listed stocks that generated some of the most consistent and highest momentum over the 3 years, mostly reside out of the STI.

Momentum stocks are generically defined as those stocks which generated positive returns over multiple time periods, typically in the short term and long term. Singapore lists 100 stocks that maintain a market value of more than S$100 million, which did not generate a decline in total return over the 3 timeframes of the past 3 months, past year and past 3 years.

The 30 Singapore-listed stocks that have set a bar in generating the highest minimum total returns in either of the 3 timeframes are tabled below. For instance the minimum return generated by Rex International in either the past 3 months, past 1 year and past 3 years was 107% (for the past 3 months).  Likewise, the minimum total return generated by Valuetronics across the 1 timeframes was 23% (for the past 1 year).

The 30 stocks are ranked by the highest minimum total return generated in either of the 2 timeframes.

Name SGX Code Market Cap
S$M
11M19
Turnover
Ranking
3-Month
Total
Return
%
1-Year
Total
Return
%
3-Year
Total
Return
%
Min
Return
%
Recent
Financials
Rex International 5WH 216 45 107 144 137 107 Click here
GS Holdings 43A 137 221 78 311 121 78 Click here
AEM AWX 515 30 72 111 1,404 72 Click here
UMS 558 523 53 61 71 140 61 Click here
Penguin International BTM 168 144 49 150 232 49 Click here
Frencken Group E28 399 73 44 146 336 44 Click here
Accordia Golf Trust ADQU 769 110 37 54 37 37 Click here
Hi-P International H17 1,248 39 34 57 263 34 Click here
Tiong Woon BQM 107 247 32 65 89 32 Click here
Valuetronics BN2 341 61 28 23 88 23 Click here
Fu Yu F13 188 126 20 42 67 20 Click here
Oxley 5UX 1,475 91 19 24 17 17 Click here
Sunpower 5GD 462 84 25 97 17 17 Click here
Hanwell DM0 119 217 17 35 20 17 Click here
Micro-Mechanics 5DD 256 251 20 17 152 17 Click here
CSE Global 544 272 102 16 33 40 16 Click here
Isetan I15 206 220 16 45 47 16 Click here
Keppel DC REIT AJBU 3,310 32 15 58 94 15 Click here
BRC Asia BEC 351 104 14 16 198 14 Click here
Food Empire F03 324 206 17 13 28 13 Click here
Cortina C41 245 561 13 48 126 13 Click here
Mapletree Industrial Trust ME8U 5,722 27 13 45 88 13 Click here
Manulife REIT USD BTOU 2,176 57 12 45 61 12 Click here
Procurri BVQ 127 189 37 65 12 12 Click here
Ascendas-iTrust CY6U 1,795 64 11 54 76 11 Click here
Keppel Corp BN4 12,206 13 11 13 26 11 Click here
Mapletree Logistics Trust M44U 6,531 18 11 43 103 11 Click here
ValueMax T6I 175 330 11 18 47 11 Click here
UOA EH5 1,117 456 9 22 44 9 Click here
Pacific Century P15 835 199 9 26 43 9 Click here

Source: Thomson Reuters, Bloomberg, SGX (accumulative total returns as of Dec 11, 2019).



By comparison, the STI generated a 1.5% total return over the past 3 months, 6.5% over the past 1 year and 20.1% for the past 3 years.

All 30 stocks outpaced the STI over the past 3 months and the past year, while 26 of the 30 stocks outpaced the STI over the past 3 years. Just one of the 30 stocks tabled above is presently an STI constituent – Keppel Corporation, while Mapletree Logistics Trust will join the STI on Dec 23, as discussed here. Almost half the 30 stocks, ranked amongst the 100 most active stocks by turnover in the first 11 months of 2019.

While the majority of the stocks maintain a Singapore revenue focus, a number of the above stocks provide international exposure to countries that include the United States, China, Japan, India. There are also stocks that have diversified their revenue streams over multiple jurisdictions. For instance in FY18 integrated technology solutions provider, Frencken Group, reported 23% of its revenue to the Netherlands, 18% to Thailand, 13% to Taiwan, 10% to Malaysia, 9% to Singapore, 8% to Germany, 7% to the Czech Republic, 5% to America, with the remaining revenue to at least 5 other countries.

Note multiple methods exist for gauging the momentum of a stock or consistency of total returns, such as wider or separate timeframes.







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