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
|Rex International||5WH||216||45||107||144||137||107||Click here|
|GS Holdings||43A||137||221||78||311||121||78||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|
|Fu Yu||F13||188||126||20||42||67||20||Click here|
|CSE Global||544||272||102||16||33||40||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|
|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|
|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|
|Pacific Century||P15||835||199||9||26||43||9||Click here|
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.