SGX Market Updates

SGX Active Commodity Plays Average 60%+ YTD Return On Strong Turnover


PUBLISHED ON |

09 May 2022

  • For the first 18 weeks of 2022, eight stocks whose share price gains have been largely associated with higher commodity prices, have averaged a 64% total return for the period, following on from averaging 121% total returns in 2021. Five of the eight stocks are associated with energy, the sector that has led global stocks over the period.

  • The combined average daily trading turnover of the eights stocks has soared 250% from S$24 million in 2021 to S$61 million over the past 18 weeks. Golden Energy and Resources and Geo Energy Resources saw the biggest jump in turnover, as May Indonesia Thermal Coal futures rallied close to 90% to US$97/MT.

  • Sembcorp Industries led the STI stocks over the 18 weeks with a 49% total return, while ranking among the top five Singapore stocks by net institutional inflow. Pressing ahead with strategic transformation of its portfolio from brown to green energy, last week the company announced it secured a S$1.2 billion sustainability-linked loan facility.




For the first 18 weeks of 2022, energy and agriculture stocks have led the global stock market, as supply constraints from the Ukraine crisis have exacerbated price gains, which had been previously been driven by demand factors.

Among Singapore’s most actively traded 100 stocks this year are Sembcorp Industries, Rex International, Geo Energy Resources, RH Petrogas, Golden Energy and Resources, with the 5 stocks averaging 77% gains in the 2022 year-to-date, following 176% average total returns in 2021. Brent Crude Oil is currently trading 45% above the end of 2021 levels, while May Indonesia Thermal Coal futures are trading 90% above their end of 2021 levels.

On the agriculture side, Crude Palm Oil producers have also outpaced the region in the 2022 year-to-date, with Golden Agri-Resources, First Resources and Bumitama Agri, which also rank among the top 100 stocks by turnover this year, averaging 42% total returns following 31% average total returns in 2021. July CPO futures are also trading more than 50% above their end of 2021 levels.

The comparative performances of the 8 stocks which has seen combined net institutional inflows of S$174 million in the 2022 year-to-date are tabled below.

Stock SGX
Code
Market Cap
S$M
2022 YTD
Total Return
%
2022 YTD
Average
Daily
Turnover
S$M
2022 YTD
Net Insti
Inflow
S$M
2021
Total
Return
%
2021
Average
Daily
Turnover
S$M
Turnover
Growth
12-Month
Volatility
%
Sector
Sembcorp Industries U96 5,266 49 14.2 133.9 20 8.2 73% 25 Utilities
Rex Intl 5WH 443 11 9.8 -17.8 109 4.8 104% 54 Energy/ Oil & Gas
Geo Energy Resources RE4 747 74 9.1 18.3 118 2.1 341% 57 Energy/ Oil & Gas
Golden Agri-Resources E5H 3,995 33 8.8 10.0 60 4.2 111% 39 Consumer Non-Cyclicals
First Resources EB5 3,328 43 6.8 9.1 21 2.3 195% 35 Consumer Non-Cyclicals
RH Petrogas T13 251 81 5.9 -0.9 552 1.6 257% 121 Energy/ Oil & Gas
Golden Energy & Resources AUE 2,058 169 4.5 12.7 80 0.8 472% 80 Energy/ Oil & Gas
Bumitama Agri P8Z 1,353 51 1.4 8.4 11 0.5 206% 34 Consumer Non-Cyclicals
Total 17,439 61 174 24
Average 64 121 56

Source: SGX, Bloomberg (Data as of 6 May 2022)



Financial Milestones in 2021

In 2021, Sembcorp Industries reported revenue of S$7.8 billion compared to S$5.4 billion in 2020. The increase was driven by improvements across all segments, with the biggest contribution from conventional energy at 86% of Group turnover. The company is pressing ahead with strategic transformation of its portfolio from brown to green energy, with an objective for sustainable solutions to make up 70% of its net profit by 2025, which would be up from 20% in 2020.

Rex International recorded revenue of US$158.44 million in 2021, a 240% increase from US$46.66 million in 2020, mainly from subsidiary Masirah Oil Ltd’s share of produced oil after the Oman government’s take. RH Petrogas also reported net profit after tax of US$27.3 million, a sharp reversal from a loss of US$4.8 million recorded in 2020. Last year, Geo Energy Resources achieved a record revenue of US$641.9 million in 2021, an increase of 109% from 2020, while Golden Energy and Resources also delivered record revenue of US$1,874 million, its highest revenue since listing in 2016.

In 2021, Golden-Agri Resources’ revenue for the full year crossed the US$10 billion level, an all-time high corresponding to strong CPO prices. First Resources also delivered record sales in 2021, with the topline revenue surging 56.3% y-o-y to US$1,032.3 million while underlying net profit rose 53.8% to US$149.2 million. Meanwhile, stronger production in 2021 enabled Bumitama Agri to capitalise on soaring prices and surpass the IDR 10-trillion revenue milestone and a record-breaking profit of IDR 2.09 trillion in 2021.







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