SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

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The FTSE ST Small Cap Index is a free float-adjusted, market cap-weighted index, representing the performance of small-cap companies that pass size, free float and liquidity screens and trade on SGX Mainboard. 
	 </li>
	<li>
The Index's 49 constituents – comprising 20 REITs and 29 companies – have a combined market cap of about S$37 billion. REIT constituents carry a weighting of approximately 71.9% in the Index, with companies accounting for the remaining 28.1%. 
	 </li>
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In the YTD, the FTSE ST Small Cap Index has generated a total return of 7.2%, compared with total returns of 3.9% and 5.8% for the benchmark STI and broader FTSE ST All-Share Index respectively. 
	 </li>
	<li>
In the YTD, the five best-performing, non-REIT constituents of the Index were: Indofood Agri Resources (+71.7%), Hi-P (+33.8%), QAF (+33.8%), Hong Leong Asia (+23.5%) and Koufu Group (+19.7%). They averaged a total return of 36.5% over the period. 
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The FTSE ST Small Cap Index is a free float-adjusted, market capitalisation-weighted index, representing the performance of small-cap companies that pass size, free float and liquidity screens and trade on SGX Mainboard. The Index’s 49 constituents – comprising 20 Real Estate Investment Trusts (REITs) and 29 companies – have a combined market cap of about S$37 billion, ranging from S$45 million to nearly S$3 billion.

REIT constituents in the Index carry a weighting of approximately 71.9%, with companies accounting for the remaining 28.1%. More broadly, beyond the Index are approximately another 300 stocks listed on SGX that fall within this market cap range.

In the 2019 year-to-date, the FTSE ST Small Cap Index has generated a total return of 7.2%, compared with total returns of 3.9% and 5.8% for the benchmark Straits Times Index (STI) and broader FTSE ST All-Share Index respectively.
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2019-10/YTD%20Total%20Returns%20FTSE%20STI.png' alt='YTD Total Returns FTSE STI' />
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 <div class='content-caption'>YTD Total Returns FTSE STI</div>
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Source: Bloomberg (data as of 4 Oct 2019) 
 

In the YTD, the five best-performing, non-REIT constituents of the FTSE ST Small Cap Index were: Indofood Agri Resources (+71.7%), Hi-P International (+33.8%), QAF Ltd (+33.8%), Hong Leong Asia (+23.5%) and Koufu Group (+19.7%). They have averaged a total return of 36.5%, bringing their one-year total return to 17.0%.

These five stocks are categorised to the consumer staples (specifically the sub-segments of food manufacturing and restaurant operations), electronics manufacturing and construction machinery sectors. They either derive growing revenues from the Asia-Pacific, ex-Singapore markets, or are building their presence beyond domestic shores.

Note that for Indofood Agri Resources, its parent Indofood Sukses Makmur – controlled by Indonesian tycoon Anthoni Salim – has been acquiring shares of the subsidiary in the open market since its buyout offer lapsed in June.

The table below details the 10 best-performing, non-REIT constituents of the FTSE ST Small Cap Index, sorted by YTD total returns.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
		</tr>
<tr>
<td>
			INDOFOOD AGRI RESOURCES
			</td>
			<td>
			5JS
			</td>
			<td>
			454
			</td>
			<td>
			71.7
			</td>
			<td>
			39.6
			</td>
			<td>
			-24.5
			</td>
		</tr>
<tr>
<td>
			HI-P INTL 
			</td>
			<td>
			H17
			</td>
			<td>
			925
			</td>
			<td>
			33.8
			</td>
			<td>
			14.1
			</td>
			<td>
			204.2
			</td>
		</tr>
<tr>
<td>
			QAF LTD
			</td>
			<td>
			Q01
			</td>
			<td>
			434
			</td>
			<td>
			33.8
			</td>
			<td>
			3.7
			</td>
			<td>
			-31.0
			</td>
		</tr>
<tr>
<td>
			HONG LEONG ASIA
			</td>
			<td>
			H22
			</td>
			<td>
			445
			</td>
			<td>
			23.5
			</td>
			<td>
			10.0
			</td>
			<td>
			-13.0
			</td>
		</tr>
<tr>
<td>
			KOUFU GROUP 
			</td>
			<td>
			VL6
			</td>
			<td>
			399
			</td>
			<td>
			19.7
			</td>
			<td>
			17.8
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			CHINA AVIATION OIL
			</td>
			<td>
			G92
			</td>
			<td>
			998
			</td>
			<td>
			13.2
			</td>
			<td>
			-23.1
			</td>
			<td>
			-8.8
			</td>
		</tr>
<tr>
<td>
			UMS HOLDINGS LTD
			</td>
			<td>
			558
			</td>
			<td>
			333
			</td>
			<td>
			10.9
			</td>
			<td>
			-12.6
			</td>
			<td>
			47.9
			</td>
		</tr>
<tr>
<td>
			LIAN BENG GROUP
			</td>
			<td>
			L03
			</td>
			<td>
			242
			</td>
			<td>
			10.2
			</td>
			<td>
			-5.1
			</td>
			<td>
			20.4
			</td>
		</tr>
<tr>
<td>
			SHENG SIONG GROUP
			</td>
			<td>
			OV8
			</td>
			<td>
			1,684
			</td>
			<td>
			9.1
			</td>
			<td>
			1.4
			</td>
			<td>
			15.1
			</td>
		</tr>
<tr>
<td>
			HONG LEONG FINANCE
			</td>
			<td>
			S41
			</td>
			<td>
			1,158
			</td>
			<td>
			7.8
			</td>
			<td>
			5.7
			</td>
			<td>
			33.6
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			23.4
			</td>
			<td>
			5.2
			</td>
			<td>
			24.4
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 4 Oct 2019)

 

In the YTD, the five least-performing non-REIT constituents of the FTSE ST Small Cap Index were: Japfa Ltd (-35.8%), mm2 Asia (-30.2%), Breadtalk Group (-25.4%), CITIC Envirotech (-22.2%) and Duty Free International (-20.2%). These five stocks have averaged a total return of -26.7% over the period.
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The FTSE ST Small Cap Index is a free float-adjusted, market cap-weighted index, representing the performance of small-cap companies that pass size, free float and liquidity screens and trade on SGX Mainboard.  
	 
	
The Index's 49 constituents – comprising 20 REITs and 29 companies – have a combined market cap of about S$37 billion. REIT constituents carry a weighting of approximately 71.9% in the Index, with companies accounting for the remaining 28.1%.  
	 
	
In the YTD, the FTSE ST Small Cap Index has generated a total return of 7.2%, compared with total returns of 3.9% and 5.8% for the benchmark STI and broader FTSE ST All-Share Index respectively.  
	 
	
In the YTD, the five best-performing, non-REIT constituents of the Index were: Indofood Agri Resources (+71.7%), Hi-P (+33.8%), QAF (+33.8%), Hong Leong Asia (+23.5%) and Koufu Group (+19.7%). They averaged a total return of 36.5% over the period. 
	 

The FTSE ST Small Cap Index is a free float-adjusted, market capitalisation-weighted index, representing the performance of small-cap companies that pass size, free float and liquidity screens and trade on SGX Mainboard. The Index’s 49 constituents – comprising 20 Real Estate Investment Trusts (REITs) and 29 companies – have a combined market cap of about S$37 billion, ranging from S$45 million to nearly S$3 billion.

REIT constituents in the Index carry a weighting of approximately 71.9%, with companies accounting for the remaining 28.1%. More broadly, beyond the Index are approximately another 300 stocks listed on SGX that fall within this market cap range.

In the 2019 year-to-date, the FTSE ST Small Cap Index has generated a total return of 7.2%, compared with total returns of 3.9% and 5.8% for the benchmark Straits Times Index (STI) and broader FTSE ST All-Share Index respectively.



      
    
    YTD Total Returns FTSE STI


Source: Bloomberg (data as of 4 Oct 2019) 
 

In the YTD, the five best-performing, non-REIT constituents of the FTSE ST Small Cap Index were: Indofood Agri Resources (+71.7%), Hi-P International (+33.8%), QAF Ltd (+33.8%), Hong Leong Asia (+23.5%) and Koufu Group (+19.7%). They have averaged a total return of 36.5%, bringing their one-year total return to 17.0%.

These five stocks are categorised to the consumer staples (specifically the sub-segments of food manufacturing and restaurant operations), electronics manufacturing and construction machinery sectors. They either derive growing revenues from the Asia-Pacific, ex-Singapore markets, or are building their presence beyond domestic shores.

Note that for Indofood Agri Resources, its parent Indofood Sukses Makmur – controlled by Indonesian tycoon Anthoni Salim – has been acquiring shares of the subsidiary in the open market since its buyout offer lapsed in June.

The table below details the 10 best-performing, non-REIT constituents of the FTSE ST Small Cap Index, sorted by YTD total returns.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
		


			INDOFOOD AGRI RESOURCES
			
			
			5JS
			
			
			454
			
			
			71.7
			
			
			39.6
			
			
			-24.5
			
		


			HI-P INTL 
			
			
			H17
			
			
			925
			
			
			33.8
			
			
			14.1
			
			
			204.2
			
		


			QAF LTD
			
			
			Q01
			
			
			434
			
			
			33.8
			
			
			3.7
			
			
			-31.0
			
		


			HONG LEONG ASIA
			
			
			H22
			
			
			445
			
			
			23.5
			
			
			10.0
			
			
			-13.0
			
		


			KOUFU GROUP 
			
			
			VL6
			
			
			399
			
			
			19.7
			
			
			17.8
			
			
			NA
			
		


			CHINA AVIATION OIL
			
			
			G92
			
			
			998
			
			
			13.2
			
			
			-23.1
			
			
			-8.8
			
		


			UMS HOLDINGS LTD
			
			
			558
			
			
			333
			
			
			10.9
			
			
			-12.6
			
			
			47.9
			
		


			LIAN BENG GROUP
			
			
			L03
			
			
			242
			
			
			10.2
			
			
			-5.1
			
			
			20.4
			
		


			SHENG SIONG GROUP
			
			
			OV8
			
			
			1,684
			
			
			9.1
			
			
			1.4
			
			
			15.1
			
		


			HONG LEONG FINANCE
			
			
			S41
			
			
			1,158
			
			
			7.8
			
			
			5.7
			
			
			33.6
			
		


			Average
			
			
			 
			
			
			 
			
			
			23.4
			
			
			5.2
			
			
			24.4
			
		

Source: Bloomberg &amp; StockFacts (data as of 4 Oct 2019)

 

In the YTD, the five least-performing non-REIT constituents of the FTSE ST Small Cap Index were: Japfa Ltd (-35.8%), mm2 Asia (-30.2%), Breadtalk Group (-25.4%), CITIC Envirotech (-22.2%) and Duty Free International (-20.2%). These five stocks have averaged a total return of -26.7% over the period.



Small Cap Index’s Five Non-REIT Best Performers Returned 37% in YTD      

Singapore

Hong Leong Asia Limited manufactures and fabricates precast concrete products, trades and distributes steel and cement products,  The Company also manufactures and distributes refrigerators and freezers, assembles air-conditioners and diesel engines as well as manufactures and sells metal drums and containers, plastic packaging related products, and container components.

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Hong Leong Asia (HLA SP)

Small Cap Index’s Five Non-REIT Best Performers Returned 37% in YTD

The FTSE ST Small Cap Index is a free float-adjusted, market cap-weighted index, representing the performance of small-cap companies that pass...

Singapore Exchange Ltd (SGX)

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