The SGX Maritime & Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in tandem with the recovery of crude oil prices, which may be an indication that the sector could be bottoming out. Despite the rally, the 18 constituents within the SGX MOE Index are trading at an average current price-to-book (PB) ratio of 0.7x, with 10 of them trading below their book values.
Industrials, Real Estate Developers, and Energy total returns paced overall Singapore stock market in January. Institutional investors net buy (+)/sell (-) at (+S$75.9m) in January, vs. (-S$572.4m) in December. Financials, Telecommunication Services and Energy were the top net buy sectors. DBS and OCBC net bought for third consecutive month (+S$1.3bn). Wilmar and Keppel Corp continue to see net buys as both crude and palm oil prices recover.
The STI has generated a 5.6% gain in the year thus far (as of this afternoon), compared to an average 2.5% return for the Nikkei 225 and Hang Seng Index, and an average 1.0% return for the FTSE Malaysia KLCI, Stock Exchange of Thailand SET Index and the Jakarta Composite Index. The five strongest STI stocks in the 2017 year through to the Lunar New Year Holiday were Global Logistic Properties (+19.1%), City Developments (+12.2%), Sembcorp Industries (+11.9%), CapitaLand (+10.6%) and DBS Group Holdings (+10.6%).
Construction industry veteran David Low believes the future revolves around crazy ideas - bold, off-the-wall concepts that can help businesses make a quantum leap forward and remain relevant in a changing world. With this in mind, the founder and Chief Executive Officer of Singapore-based Futuristic Store Fixtures Pte Ltd aims to hire more millennials, a generation with a penchant for the wacky and unconventional.
The Chief Operating Officer of Mainboard-listed China Aviation Oil adheres to a strict code of ethics, and can be a contrarian of sorts. A seasoned trader, Jean Teo is known to be a straight shooter. "As senior management, there's a need to stand firm and say 'No', even to the boss - I know this is uncommon in a Chinese-run firm, but it's important to do what is right," Teo said with a smile.
The SGX All Healthcare Index has generated a 0.7% total return in the January MTD, following a total return of 6.0% in the 2016 calendar year. This brings its five-year annualised total return to 11.2%. The five best-performing constituents of the SGX All Healthcare Index in the MTD are International Healthway Corporation (+32.0%), Pharmesis International (+25.0%), AsiaMedic (+10.4%), Talkmed Group (+6.9%) and iX Biopharma (+5.4%).
Stocks categorised to the Capital Goods Industry are involved in a wide range of manufacturing and distribution activities. The majority of Singapore’s 20 biggest Capital Goods stocks have business activities that span across Asia. Singapore lists the third biggest Capital Goods stock in Asia Pacific – Industrial Conglomerate, Jardine Matheson Holdings, which re-joined the STI in November. Over the past 12 months, Jardine Matheson Holdings generated a 15.7% total return, with 2016 turnover 70.6% higher than the previous year. Samurai 2K Aerosol, which made its trading debut on Catalist yesterday, ended the session 22.5% above its offer price.
Singapore’s REIT Sector has averaged a 2.1% YTD gain, taking the average 12-month total return to 13.2%. The Bloomberg Asia REIT Index performed similarly with a 0.8% YTD gain, and 12-month 12.3% total return. Retail REITs have been the best-performing REIT segment in the 2017 YTD, in addition to the last three years, with average 36.7% total returns. The Retail REITs also maintain the lowest average debt-to-asset ratios and the second-highest ROE history amongst the five REIT segments.
All constituents of the SGX Real Estate 20 Index generated positive gains in the first five sessions of 2017; returns of the 20 stocks averaged 3.7%, taking average 12 month total returns to 14.6%. The SGX Real Estate 20 Index makes up one-tenth of the total market capitalisation of all stocks listed on SGX. The Index includes the eight Real Estate plays within the STI, in addition to three of the five stocks that make up the STI Reserve List - Suntec REIT, Mapletree Commercial Trust and Keppel REIT.
The FTSE ST Mid Cap Index is made up of 40 mid-capitalised stocks with a combined market capitalisation of S$100 billion. Like the larger capitalised STI, it is a free float-adjusted market capitalisation-weighted Index. For the 2016 year, the five best performers of the FTSE ST Mid Cap Index were ARA Asset Management, United Engineers, Yanlord Land Group, SATS and Venture Corporation.
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