In May 2018, Consumer Discretionary was the best-performing sector on SGX, generating a market capitalisation-weighted average return of 3.1% during the month. The three best-performing stocks among the 10 largest, actively traded Consumer Discretionary stocks during the month were: Mandarin Oriental (+9.6%), Genting Singapore (+7.7%) and Shangri-La Asia (+4.0%).
Singapore lists 3 stocks that make up the Insurance Sector - Great Eastern Holdings, United Overseas Insurance and Singapore Reinsurance Corp. The three stocks have a combined market value of S$15.5 billion. Together the 3 stocks have averaged a 8.6% total return in the 2018 YTD, bringing their average 12M return to 31.4%. By comparison the MSCI World Insurance Index has gained 1.8% in the YTD, bringing its 12M total return to 10.5% in SGD terms.
The five largest Healthcare companies listed on SGX, IHH, Top Glove, RMG, TalkMed & HMI are all pursuing growth strategies to expand their businesses. Across the five stocks are examples of recent acquisitions, construction & refurbishment, hiring drives and collaborations. Singapore’s segment of Healthcare & Equipment Stocks also maintain financials and valuations in line with APAC. On average, these stocks maintain a five year median ROE of 9% in addition to a five year median P/E ratio of 23x, both aligned with APAC medians.
The average 30 day volatility of the 30 STI constituents continued to increase in April, rising to 22.3% at the end of the month, up from 21.9% at the end of March, and up from 15.6% at the end of April 2017. YZJ Shipbuilding, Golden Agri-Res, Genting Sing, Venture, HPH Trust, SPH and SATS averaged daily trading ranges (difference between daily high and low) of more than 2.0% in April. Another eight STI stocks averaged ranges above 1.5%.
The STI continued to outperform the region in April with Bank-led gains driving the STI’s total return to 7.1% over the first four months of 2018. This compared to an average decline of 0.1% for the benchmarks of Japan, Hong Kong and Australia. The three strongest sector segments in April included Banks, with capitalisation-weighted gains of 10.7%, followed by Telecommunication Services and Consumer Staples, both with capitalisation weighted returns of 4.0%. M1 led the performances of the largest Telecommunication Services stocks in April with a 7.6% total return, whilst Thai Beverage PCL and Sheng Siong Group led the largest Consumer Staples stocks with 9.6% and 9.7% respective returns.
DBS, OCBC and UOB averaged 8% gains in April-to-date, bringing average YTD total returns to 14%, and 12 month average total returns to 50%. April has seen the three banks trade at all-time highs, with DBS recently trading at a high of S$30.00. The three banks currently average a 1.5x P/B, above the 10 year average P/B, and in-line with the 20 year average. In the YTD institutional investors were net buyers of the three banks, with inflows totalling S$1.12 billion, following net inflows of S$3.39 billion in 2017.
Five of the 30 STI constituents have released earnings over the first two weeks of April, while the remainder are expected to report their quarterly or FY results in the coming weeks. In the 2018 year-to-date, the 30 STI constituents have averaged a total return of 0.9%, bringing their total return over the last 12 months to 11.9%.
Diversified real estate developer SLB Development debuts on SGX’s Catalist board today. SLB is a spin-off from Mainboard-listed Lian Beng Group, one of Singapore's major home-grown building and construction groups. SLB undertakes small to large scale residential developments, mixed-used projects, as well as industrial and commercial developments. Its portfolio comprises a S$892 million gross development value with an estimated development profit of S$136 million. With an IPO market capitalisation of more than S$220 million after its trading debut, SLB ranks as the third-largest real estate developer by market capitalisations on Catalist, after Astaka Holdings and Hatten Land.
Asian Healthcare Specialists, which made its trading debut on SGX Catalist today, is a group of orthopaedic specialists who provide a wide spectrum of general and sub-specialised treatments, including orthopaedic, trauma and sports services. SGX lists 10 Catalist stocks under the GICS® Healthcare Service Providers sub-industry, and they have a combined market capitalisation of S$2.4 billion. The five largest Healthcare Service Providers – TalkMED, OUE Lippo, Clearbridge, SMG and Healthway Medical – have generated average total returns of +0.5% and +34.9% in YTD and 2017 respectively.
The SGX All Healthcare Index has gained 4.6% in the 2018 YTD, similar to the MSCI AC Asia Pacific Health Care Index returns of 4.7%, and higher than the MSCI World Health Care Index decline of 2.1%. The 5 largest capitalised stocks of the SGX All Healthcare Index include IHH Healthcare Bhd, Top Glove Corp Bhd, Haw Par Corp, Raffles Medical Group and Tianjin Zhong Xin Pharm Group. All five stocks have gained in the YTD, with average total returns of 11.6% and median total returns of 5.7%.
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