SGX Market Updates

5 Strongest Index Stocks over the Past 5 Weeks - Olam, Frencken, YZJ, OUE & Straits Trading


PUBLISHED ON |

06 September 2021

  • The 5 strongest stocks of the FTSE ST All-Share Index from 31 July through to 3 Sep included Olam International, Frencken, Yangzijiang Shipbuilding, OUE and Straits Trading. Together the 5 stocks have averaged a 19% total return over the 5 weeks, bringing their average 2021 year-to-date total return to 50%.

  • Olam International presently ranks just outside the top 50 stocks by trading turnover for the 2021 year-to-date, following its ranking as the 100th most traded stock in 2020. Based on current market values, effective the Friday 17 September close, Olam International will also be the top placed stock in the STI Reserve List.

  • Since reporting a turnaround profit attributable to shareholders of S$30.1 million for its 1HFY21 (ended 30 June), OUE has bought back 5.1 million shares or 0.6% of its shares as of the 30 April approved mandate to buy back up to 10% of its outstanding shares (excluding treasury shares). The preceding mandate saw OUE buy back 2.4% of its shares.




With an 11.8% total return in the 2021 year to 3 Sep, the FTSE ST All-Share Index is currently comprised of the 30 STI stocks in addition to another 77 mid-cap to small-cap stocks. The 5 strongest performing stocks of the FTSE ST All-Share Index for the 5 weeks from 31 July through to 3 Sep included Olam International, Frencken Group, Yangzijiang Shipbuilding, OUE and Straits Trading Co. As tabled below, the stocks have averaged an 18.9% total return over the 5 weeks that have brought their 2021 year to date average total return to 49.8%. All 5 stocks were recipient to net institutional buying over the 5 weeks, with net inflows totaling S$128.4 million.

5 Strongest Stocks of FTSE ST All-Share Index Since 31 July 2021 SGX
Code
Market
Cap
S$m
Total
Return
Since 31 July
%
Net Insti Inflow
Since 31 July
S$M
52-Week
Low
52-Week
High
YTD Price
Chang
%
YTD Total
Return
%
YTD Net
Insti Inflow
S$M
Olam International O32 5,978.5 26.0 12.8 1.20 1.81 9.5 15.0 -0.4
Frencken E28 982.1 21.1 8.0 0.93 2.42 74.2 77.8 38.0
Yangzijiang Shipbuilding BS6 6,396.6 18.2 101.9 0.88 1.69 69.6 74.8 315.8
OUE LJ3 1,259.3 15.2 3.6 1.09 1.62 20.0 20.9 4.9
Straits Trading Co. S20 1,310.0 13.8 2.2 1.49 3.31 57.1 60.5 -3.9
Average 18.9 46.1 49.8
Total 15,926.5 128.4 354.4

Source: SGX, Refinitiv, Bloomberg (Data as of 3 September 2021)




All 5 stocks tabled above reported earnings growth in August:

  • On 13 August, Olam International reported its strongest operational earnings since inception. The CEO attributed the Groups strong results for its 1HFY21 (ended 30 June) to the food security agenda, rising protein consumption, emerging markets food staples and industrial and fibre demand growth, rising technology adoption and sustainability focus. The company has secured three committed loan facilities aggregating US$5.2 billion with a term loan facility for general corporate purposes, and bridge loan facilities will be used to facilitate Olam International’s re-organisation Plan. Olam International’s Olam Food Ingredients (“OFI”) intends to seek primary listing on the London Stock Exchange, with a concurrent listing in Singapore. OFI was created in early 2020 following a re-organisation of Olam to unlock and maximise Olam’s long-term value, including an IPO and concurrent demerger by the first half of 2022. Olam International presently ranks just outside the top 50 stocks by trading turnover for the 2021 year to 3 Sep following its ranking as the 100th most traded stock in 2020. Based on current market values, effective the Friday 17 September close, Olam International will also be the top placed stock in the STI Reserve List (joining Suntec REIT, Keppel REIT, Frasers Centrepoint Trust and NetLink NBN Trust).

  • On 12 Aug close, Frencken Group reported 1HFY21 (ended 30 June) PATMI of $31.3 million, an increase of 67.2% y-o-y, attributed to the continued strength of the semiconductor industry, recovery of certain business segments affected by the COVID outbreak in 1HFY20, as well as the Group’s continual efforts to engage customers. With regard to potential business and operational impacts arising from supply chain disruptions and soaring freight costs, Frencken Group noted back in April it had witnessed across-the-board price increases of raw materials for both its Mechatronics and IMS Divisions, however, certain contracts with customers provide the leeway for the Group to pass on these costs to customers if material prices increase above a certain threshold. The Group added it is in close communications with its customers on their forecasts and plans to ensure the supply chain is in sync and to enable early mitigation of potential challenges.

  • Yangzijiang Shipbuilding has now secured orders for 118 vessels at a contract value of US$7.2 billion this year. When reporting 39% y-o-y growth in its 1HFY21 (ended 30 June) PATMI to RMB 1.64 billion for 1H2021 on 5 Aug, the company cited a Clarksons report that started that global new shipbuilding orders in 1HFY21 made a seven year high, with a total contract value of US$52 billion, underpinned by huge number of orders placed for containerships which accounted for more than half of the new shipbuilding orders in the first half of 2021.

  • On 3 Aug, OUE reported a turnaround profit attributable to shareholders of S$30.1 million for its 1HFY21 (ended 30 June) on the back of an increase in profit attributable to shareholders was mainly due to the absence of fair value loss recognised on US Bank Tower in 1HFY20. The disposal of US Bank Tower in September 2020 and partial divestment of the OUE Bayfront Property in March 2021 enabled the Group to improve its net gearing by paring down existing debt and strengthening its cash reserves to weather the challenging operating environment. OUE has bought back 5.1 million shares or 0.6% of its shares as of the 30 April approved mandate to buy back up to 10% of its outstanding shares (excl. treasury shares). The preceding mandate saw OUE buy back 2.4% of its shares.

  • On 13 Aug, The Straits Trading Company reported an increase in 1HFY21 (ended June 30) EBITDA to S$186.9 million, compared to S$27.7 million in 1HFY20. With the results, executive chairman Chew Gek Khim noted that despite the global pandemic, the group's performance in 1HFY21 demonstrated the resilience of its strategy as a conglomerate investment company, with both operations as well as financial investments in real estate, hospitality, and resources.



Since the end of July, the FTSE ST All-Share Index has declined 2.2% in price, however the seasonally heavy month for dividends in August trimmed the decline in total return to 1.0%. Nanofilm Technologies, Singapore Exchange, Sembcorp Marine, Hutchison Port Holdings Trust and Japfa were the least performing stocks of the FTSE ST All-Share Index over the 5 weeks, averaging a 15.6% decline in total return.


Following the September Index rebalancing, Aztech Global, GHY Culture & Media, The Place Holdings and PropNex will join the FTSE ST All-Share Index effective the 17 Sep close.







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