SGX Market Updates By SGX My Gateway

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SGX My Gateway Market Updates

Expectations of March Fed Hike Near 100%

14 March 2017

Expectations of a March Federal Reserve rate hike are near 100% as economic data strengthens. Federal Reserve policy rate decision expected on Thursday, 2.00AM, Singapore time. Cyclical sectors typically have strongest positive correlations to a rising interest rate environment. Singapore banks have generated an average total return of 17.8% (vs STI’s 12.2%) since 8 Nov-16, on the back of strong institutional investors buying activity. Defensive sectors such as REITs are also sensitive to interest rates. The S-REIT Sector currently offers a yield spread of c430bps, higher than the long-term average of c340bps, which may imply that investors have largely factored in potential rate hikes this year.

Average 19% YTD Gain in Key Mining Stocks

SGX My Gateway

10 March 2017

SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold mining stocks. These 11 stocks are at different stages in the exploration, development, production cycle and have averaged a 19.0% gain in 2017 YTD. In each of the three Mining segments, the largest capitalised stocks are Alliance Minerals Assets – mining tantalite and lithium in Western Australia, Golden Energy and Resources – mining thermal coal in Indonesia, CNMC Goldmine Holdings – mining gold in Malaysia.

Ascendas REIT is now Singapore’s Largest Capitalised REIT

SGX My Gateway

07 March 2017

Ascendas REIT has recently replaced CapitaLand Mall Trust as Singapore's largest capitalised REIT – and has been the second-best performing REIT in the YTD with an 11.9% total return. The NikkoAM - StraitsTrading Asia ex Japan REIT ETF which is expected to include up to 70% weightage in Singapore REITs is scheduled to list on SGX on 29 March 2017. Ascendas REIT and CapitaLand Mall Trust are expected to maintain relatively large weightings in the ETF.

Highlights of Yangzijiang Shipbuilding, Sembcorp Marine & Ezion Holdings

SGX My Gateway

02 March 2017

Yangzijiang Shipbuilding, the largest private shipbuilder in China, has registered a total return of +20.3% year-to-date. Sembcorp Marine, a global leader in marine & offshore engineering solutions, has total returns of +38.0% year-to-date. Ezion Holdings, the largest offshore services provider listed on SGX, has total returns of -1.3% on a year-to-date basis. The stock, however, has returned +81.0% since its trough in September 2016.

Industrial REITs generated a total return of +8.2% YTD (STI +8.1%)

SGX My Gateway

28 February 2017

Industrial REITs in the SGX S-REIT index generated a total return of +8.2 YTD (SGX S-REIT Index +6.0%), similar to the Straits Times Index’s (STI) +8.1%. The sub-industry forms the largest share in the SGX S-REIT index with 8 members and a total weightage of 26.5%. The top three performing Industrial REITs in the YTD are Sabana Shari'ah Compliant Industrial REIT (+18.4%), Ascendas REIT (+11.9%) and Cambridge Industrial Trust (+9.3%). The three plays averaged a year-to-date return of 13.2%.

Rising Government Spending Bodes Well for Healthcare Sector

SGX My Gateway

23 February 2017

The SGX All Healthcare Index generated a total return of 16.2% over the past 12 months, outperforming the MSCI AC Asia Pacific Ex Japan Healthcare Index and the MSCI World Healthcare Index, which generated total returns of -0.5% and 10.4% respectively. The five best-performing stocks in the SGX All Healthcare Index excluding International Healthway Corporation are Talkmed Group (+35.8%), Singapore Medical Group (+34.5%), Healthway Medical Corporation (+24.2%), AsiaMedic (+10.4%) and Singapore O&G (+10.2%).

Electronic Components Stocks Shine as Exports Gain Momentum

SGX My Gateway

21 February 2017

Singapore's Electronics exports rose 6.1% to S$4.3 billion in January 2017 from the same period a year ago. This rising trend in Singapore’s electronics exports generally bodes well for the Electronic Components sub-segment. The Electronic Components sub-industry was among best performing sub-sectors in Singapore’s IT industry, generating average total returns of 31.7% and 66.7% in the year-to-date and last 12 months respectively, compared to the STI’s total returns of 7.8% and 21.2% in the same period. The three best-performing Electronic Components stocks in the year-to-date are AA Group Holdings (+136.8%), CPH (+100.0%) and GSS Energy (+42.4%).

Highlights of Singapore's 10 Largest OSV Players

SGX My Gateway

16 February 2017

Singapore's 32 Offshore Supply Vessels (OSV) stocks have rebounded 17.2% in the year-to-date in tandem with the recent oil price rally. OSVs are one of the key beneficiaries of a crude oil price recovery. The 10 biggest OSV stocks listed on SGX have averaged a YTD total return of 28.9%, against total returns of 0.9% for the SGX MOE Index, a benchmark for the MOE Sector.

Real Estate Sector Outperformed in the Year to Date

SGX My Gateway

14 February 2017

SGX's Real Estate Developers and Operators have returned 12% YTD, outperforming the STI’s +8%. Despite the rally, the price-to-book ratio of the Sector is still trading near one standard deviation below its historical mean. Potential drivers for the Singapore property market exist on both the supply and demand front. The biggest Real Estate Developer stocks with substantial Singapore exposure include UOL Group, United Industrial Corporation, Wheelock Properties, Wing Tai Holdings and Bukit Sembawang Estates.

SGX S-REIT 20 Index Registered Total Returns of 6.2% in YTD

SGX My Gateway

09 February 2017

Benchmark SGX S-REIT 20 Index returned 6.2% in the YTD. Retail and Industrial REITs were the outperforming sub-segments. Key metrics from Oct-Dec quarter earnings suggest weaknesses in office property, while the Industrials and Retail segments remain relatively resilient. Within the Index, Retail REITs were the best-performing sub-segment with a market capitalisation-weighted total return of 7.1%, followed by Industrials (+6.6%), Hospitality (+6.0%), Healthcare (+5.6%), Diversified (+5.2%) and Office (+4.6%).

These articles are provided by SGX My Gateway.

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