Over the last 10 years, the market cap of Singapore’s healthcare sector – comprising primary and secondary listings – has expanded nearly 13-fold. In the 2019 YTD, the 5 best-performing healthcare services providers on SGX were: ISEC Healthcare (+26.5%), Cordlife Group (+15.6%), Singapore Medical Group (+12.5%), Singapore O&G (+11.4%), and Medinex Ltd (+7.4%).
In April 2019, 19 primary-listed stocks on SGX repurchased close to 30 million shares with a total consideration of S$36 million. 6 stocks commenced new buyback mandates in the month of April 2019: Keppel REIT, Global Investments, Tuan Sing Holdings, Ecowise Holdings, Kim Heng Offshore & Marine Holdings and Axcelasia Inc.
The 51-member FTSE ST Small Cap Index tracks the performance of small-cap companies that pass size, free float and liquidity screens and trade on SGX Mainboard. As the Index has a significant Real Estate weighting – with 19 REIT constituents – it maintains a relatively high average dividend indicated yield of about 4.5%, above the STI’s 3.9% yield.
Of the 42 SGX listed trusts, 19 – with a combined market cap of over S$30 billion – own more than half their assets in markets outside Singapore. Single-market REITs include Fortune REIT, Lippo Malls Indonesia Retail Trust, and Ascendas India Trust. Pure China plays are CapitaLand Retail China Trust, Sasseur REIT, EC World REIT, Dasin Retail Trust and BHG Retail Trust. Manulife US REIT and Keppel KBS US REIT are US-based trusts, while IREIT Global and Cromwell European REIT are focused on Europe.
Singapore’s 10 largest capitalised stocks that are distributing dividends on a quarterly basis now have a combined market capitalisation of S$118 billion and span the Financial and Real Estate Sectors with average indicative dividend yields of 5%. These 10 stocks, now distributing dividends every quarter, have beat the local benchmark every year since 2015.
The STI Reserve List is wholly comprised of 5 REITs: Mapletree Commercial Trust, Suntec REIT, Mapletree Logistics Trust, Keppel REIT, and Mapletree North Asia Commercial Trust. In the 2019 YTD, these 5 trusts have averaged a total return of 12.5%, bringing their 1Y and 3Y total returns to 15.0% and 48.7% respectively.
In 1Q2019, Consumer Staples was the second-best performing sector with +13.9% total return, reversing the -2.9% total return in calendar year 2018. It was also amongst the top net buy sectors for the quarter, garnering total institutional inflows of S$61.5 million. The 5 best performers in the YTD were: Indofood Agri Resources (+46.6%), QAF Ltd (+44.4%), Thai Beverage PCL (+38.0%), Golden Agri-Resources (+20.4%), and First Resources (+19.5%).
In 1Q19, IT was the best-performing sector on SGX with a total return of 28.6%, after registering a total return of -16.3% in calendar year 2018. It was also among the top net buy sectors for the quarter, garnering total institutional inflow of S$100.5 million. Among the 20, the 5 best performers in the YTD were: Hi-P (+65.0%), TPV Tech (+46.2%), Innotek (+41.0%), Venture (+37.9%), and CSE Global (+36.8%).
Singapore’s 10 largest capitalised stocks that report majority revenue to China, have all gained in 2019 YTD, averaging 25% total returns. The strongest of the 10 stocks in 2019 YTD were Hi-P International, China Aviation Oil Singapore and Yangzijiang Shipbuilding. The three stocks are also amongst Singapore’s largest stocks in the Information Technology, Energy and Industrials Sector.
The constituents of the benchmark STI are expected to report their latest quarterly or full-year results in the coming weeks. The STI has generated total returns of -6.5% and 9.6% in 2018 and in the 2019 YTD respectively. With a combined market capitalisation of S$535 billion, the 30 constituents of the index have averaged Price-to-Earnings (P/E) and Price-to-Book (P/B) ratios of 18.9x and 1.9x respectively.
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