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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<ul>
<li>
The iEdge SG MOE Index is a free-float, market capitalisation-weighted index that measures the performance of listed maritime and offshore (MOE) companies in Singapore. The Index comprises 12 constituents, with a combined market cap of about S$30 billion. 
	 </li>
	<li>
In the YTD, the five, best-performing Index constituents were: Yangzijiang Shipbuilding (+14.4%), Marco Polo Marine (+5.3%), Sembcorp Marine (+5.2%), COSCO Shipping (+4.5%), and Keppel Corp (+3.7%). They have averaged a total return of +6.6% over the period. 
	 </li>
	<li>The five Index constituents that posted the strongest price rebound from their 52W lows were: Yangzijiang Shipbuilding (70.2%), Vallianz (26.7%), Mermaid Maritime (12.5%), COSCO Shipping (9.7%), and Sembcorp Marine (8.7%). They have averaged a 25.6% rebound from their respective 12M troughs, in line with the YTD rebound in oil prices.</li>
</ul>
 

The iEdge SG MOE Index is a free-float, market capitalisation-weighted index that measures the performance of listed maritime and offshore (MOE) companies in Singapore. Constituents in the Index include shipyard operators, shipping companies as well as those providing port and offshore services. The Index comprises 12 constituents with a combined market capitalisation of about S$30 billion.

The components with the five biggest weights – Yangzijiang Shipbuilding (15.21%), Sembcorp Marine (11.04%), Hutchison Port Holdings Trust (10.73%), Keppel Corp (10.59%), and COSCO Shipping International (10.55%) – account for more than half the Index’s weighting.

Singapore’s offshore and marine industry has been battered by a slump in oil prices over the past few years, cutbacks in exploration and production (E&amp;P) spending, weak charter rates and delayed projects. This has forced a number of players to cut costs and restructure debt.

However, since the start of 2019, WTI crude has gained nearly 30%, and is set for its strongest advance since 2009. The Organization of Petroleum Exporting Countries (OPEC) and its partners – known as OPEC+ – have reduced output, while US sanctions on Iran and Venezuela have tightened supplies. Over the weekend, OPEC+ met in Azerbaijan to monitor their crude supply reduction pact, and said they would exceed commitments in the coming months. On Sunday, Saudi Arabia signalled that producers may need to extend their 1.2 million barrels per day of supply curbs past June into the second half of the year.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-03/WTI%20CRUDE_0.PNG" alt="WTI crude">
 </figure>
 <div class="content-caption">WTI crude</div>
In the 2019 year-to-date, the five, best-performing Index constituents were: Yangzijiang Shipbuilding (+14.4%), Marco Polo Marine (+5.3%), Sembcorp Marine (+5.2%), COSCO Shipping International (+4.5%), and Keppel Corp (+3.7%). They averaged a total return of +6.6% in the YTD, bringing their one-year and three-year total returns to -22.5% and -4.4%.

The table details the 12 constituents of the iEdge SG MOE Index, sorted by YTD total return.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			P/E (x)
			</td>
			<td>
			P/B (x)
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING
			</td>
			<td>
			BS6
			</td>
			<td>
			14.4
			</td>
			<td>
			14.7
			</td>
			<td>
			59.9
			</td>
			<td>
			7.4
			</td>
			<td>
			1.0
			</td>
		</tr>
<tr>
<td>
			MARCO POLO MARINE
			</td>
			<td>
			5LY
			</td>
			<td>
			5.3
			</td>
			<td>
			-52.4
			</td>
			<td>
			-89.6
			</td>
			<td>
			0.4
			</td>
			<td>
			0.6
			</td>
		</tr>
<tr>
<td>
			SEMBCORP MARINE
			</td>
			<td>
			S51
			</td>
			<td>
			5.2
			</td>
			<td>
			-22.9
			</td>
			<td>
			0.3
			</td>
			<td>
			NA
			</td>
			<td>
			1.5
			</td>
		</tr>
<tr>
<td>
			COSCO SHIPPING INTL
			</td>
			<td>
			F83
			</td>
			<td>
			4.5
			</td>
			<td>
			-33.7
			</td>
			<td>
			-9.2
			</td>
			<td>
			59.5
			</td>
			<td>
			1.5
			</td>
		</tr>
<tr>
<td>
			KEPPEL CORP 
			</td>
			<td>
			BN4
			</td>
			<td>
			3.7
			</td>
			<td>
			-18.2
			</td>
			<td>
			16.7
			</td>
			<td>
			12.1
			</td>
			<td>
			1.0
			</td>
		</tr>
<tr>
<td>
			HUTCHISON PORT HOLDINGS TRUST
			</td>
			<td>
			NS8U
			</td>
			<td>
			1.6
			</td>
			<td>
			-20.8
			</td>
			<td>
			-40.6
			</td>
			<td>
			NA
			</td>
			<td>
			0.6
			</td>
		</tr>
<tr>
<td>
			SEMBCORP INDUSTRIES
			</td>
			<td>
			U96
			</td>
			<td>
			-0.8
			</td>
			<td>
			-17.1
			</td>
			<td>
			-9.8
			</td>
			<td>
			15.2
			</td>
			<td>
			0.7
			</td>
		</tr>
<tr>
<td>
			MERMAID MARITIME
			</td>
			<td>
			DU4
			</td>
			<td>
			-1.1
			</td>
			<td>
			-44.5
			</td>
			<td>
			-16.5
			</td>
			<td>
			NA
			</td>
			<td>
			0.3
			</td>
		</tr>
<tr>
<td>
			EZION HOLDINGS
			</td>
			<td>
			5ME
			</td>
			<td>
			-6.5
			</td>
			<td>
			-78.2
			</td>
			<td>
			-92.1
			</td>
			<td>
			NA
			</td>
			<td>
			-0.4
			</td>
		</tr>
<tr>
<td>
			AUSGROUP LTD
			</td>
			<td>
			5GJ
			</td>
			<td>
			-12.5
			</td>
			<td>
			-46.7
			</td>
			<td>
			-76.0
			</td>
			<td>
			6.1
			</td>
			<td>
			0.9
			</td>
		</tr>
<tr>
<td>
			NORDIC GROUP
			</td>
			<td>
			MR7
			</td>
			<td>
			-21.3
			</td>
			<td>
			-43.9
			</td>
			<td>
			88.5
			</td>
			<td>
			10.7
			</td>
			<td>
			1.5
			</td>
		</tr>
<tr>
<td>
			VALLIANZ HOLDING
			</td>
			<td>
			WPC
			</td>
			<td>
			-36.0
			</td>
			<td>
			-50.8
			</td>
			<td>
			-86.2
			</td>
			<td>
			7.5
			</td>
			<td>
			0.3
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 15 March 2019)

The five Index constituents that posted the strongest price recovery from their 52-week lows were: Yangzijiang Shipbuilding (70.2%), Vallianz Holdings (26.7%), Mermaid Maritime (12.5%), COSCO Shipping (9.7%), and Sembcorp Marine (8.7%). These five stocks have averaged a 25.6% rebound from their respective 12-month troughs.

The table details the 12 constituents of the iEdge SG MOE Index, sorted by percentage price gain from 52-week lows.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Index Weight (%)
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Last Price (S$)
			</td>
			<td>
			52W Low Price (S$)
			</td>
			<td>
			52W Low Date
			</td>
			<td>
			% Chg vs 52W Low
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING
			</td>
			<td>
			BS6
			</td>
			<td>
			15.21
			</td>
			<td>
			5,721
			</td>
			<td>
			1.43
			</td>
			<td>
			0.84
			</td>
			<td>
			07/18/2018
			</td>
			<td>
			70.2
			</td>
		</tr>
<tr>
<td>
			VALLIANZ HOLDINGS
			</td>
			<td>
			WPC
			</td>
			<td>
			2.88
			</td>
			<td>
			109
			</td>
			<td>
			0.19
			</td>
			<td>
			0.15
			</td>
			<td>
			10/29/2018
			</td>
			<td>
			26.7
			</td>
		</tr>
<tr>
<td>
			MERMAID MARITIME
			</td>
			<td>
			DU4
			</td>
			<td>
			6.75
			</td>
			<td>
			120
			</td>
			<td>
			0.09
			</td>
			<td>
			0.08
			</td>
			<td>
			03/11/2019
			</td>
			<td>
			12.5
			</td>
		</tr>
<tr>
<td>
			COSCO SHIPPING INTL
			</td>
			<td>
			F83
			</td>
			<td>
			10.55
			</td>
			<td>
			773
			</td>
			<td>
			0.34
			</td>
			<td>
			0.31
			</td>
			<td>
			12/26/2018
			</td>
			<td>
			9.7
			</td>
		</tr>
<tr>
<td>
			SEMBCORP MARINE
			</td>
			<td>
			S51
			</td>
			<td>
			11.04
			</td>
			<td>
			3,363
			</td>
			<td>
			1.62
			</td>
			<td>
			1.49
			</td>
			<td>
			12/26/2018
			</td>
			<td>
			8.7
			</td>
		</tr>
<tr>
<td>
			KEPPEL CORP 
			</td>
			<td>
			BN4
			</td>
			<td>
			10.59
			</td>
			<td>
			11,074
			</td>
			<td>
			6.13
			</td>
			<td>
			5.67
			</td>
			<td>
			12/26/2018
			</td>
			<td>
			8.1
			</td>
		</tr>
<tr>
<td>
			HUTCHISON PORT HOLDINGS TRUST
			</td>
			<td>
			NS8U
			</td>
			<td>
			10.73
			</td>
			<td>
			2,835
			</td>
			<td>
			0.32
			</td>
			<td>
			0.30
			</td>
			<td>
			03/01/2019
			</td>
			<td>
			6.7
			</td>
		</tr>
<tr>
<td>
			SEMBCORP INDUSTRIES
			</td>
			<td>
			U96
			</td>
			<td>
			10.52
			</td>
			<td>
			4,550
			</td>
			<td>
			2.52
			</td>
			<td>
			2.43
			</td>
			<td>
			12/26/2018
			</td>
			<td>
			3.7
			</td>
		</tr>
<tr>
<td>
			EZION HOLDINGS
			</td>
			<td>
			5ME
			</td>
			<td>
			6.57
			</td>
			<td>
			160
			</td>
			<td>
			0.04
			</td>
			<td>
			0.04
			</td>
			<td>
			11/22/2018
			</td>
			<td>
			0.0
			</td>
		</tr>
<tr>
<td>
			NORDIC GROUP
			</td>
			<td>
			MR7
			</td>
			<td>
			4.66
			</td>
			<td>
			124
			</td>
			<td>
			0.31
			</td>
			<td>
			0.31
			</td>
			<td>
			03/12/2019
			</td>
			<td>
			0.0
			</td>
		</tr>
<tr>
<td>
			AUSGROUP LTD
			</td>
			<td>
			5GJ
			</td>
			<td>
			5.22
			</td>
			<td>
			88
			</td>
			<td>
			0.03
			</td>
			<td>
			0.03
			</td>
			<td>
			03/08/2019
			</td>
			<td>
			0.0
			</td>
		</tr>
<tr>
<td>
			MARCO POLO MARINE
			</td>
			<td>
			5LY
			</td>
			<td>
			5.29
			</td>
			<td>
			70
			</td>
			<td>
			0.02
			</td>
			<td>
			0.02
			</td>
			<td>
			12/26/2018
			</td>
			<td>
			0.0
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 15 March 2019)
</body></html>





The iEdge SG MOE Index is a free-float, market capitalisation-weighted index that measures the performance of listed maritime and offshore (MOE) companies in Singapore. The Index comprises 12 constituents, with a combined market cap of about S$30 billion. 
	 
	
In the YTD, the five, best-performing Index constituents were: Yangzijiang Shipbuilding (+14.4%), Marco Polo Marine (+5.3%), Sembcorp Marine (+5.2%), COSCO Shipping (+4.5%), and Keppel Corp (+3.7%). They have averaged a total return of +6.6% over the period. 
	 
	The five Index constituents that posted the strongest price rebound from their 52W lows were: Yangzijiang Shipbuilding (70.2%), Vallianz (26.7%), Mermaid Maritime (12.5%), COSCO Shipping (9.7%), and Sembcorp Marine (8.7%). They have averaged a 25.6% rebound from their respective 12M troughs, in line with the YTD rebound in oil prices.

 

The iEdge SG MOE Index is a free-float, market capitalisation-weighted index that measures the performance of listed maritime and offshore (MOE) companies in Singapore. Constituents in the Index include shipyard operators, shipping companies as well as those providing port and offshore services. The Index comprises 12 constituents with a combined market capitalisation of about S$30 billion.

The components with the five biggest weights – Yangzijiang Shipbuilding (15.21%), Sembcorp Marine (11.04%), Hutchison Port Holdings Trust (10.73%), Keppel Corp (10.59%), and COSCO Shipping International (10.55%) – account for more than half the Index’s weighting.

Singapore’s offshore and marine industry has been battered by a slump in oil prices over the past few years, cutbacks in exploration and production (E&amp;P) spending, weak charter rates and delayed projects. This has forced a number of players to cut costs and restructure debt.

However, since the start of 2019, WTI crude has gained nearly 30%, and is set for its strongest advance since 2009. The Organization of Petroleum Exporting Countries (OPEC) and its partners – known as OPEC+ – have reduced output, while US sanctions on Iran and Venezuela have tightened supplies. Over the weekend, OPEC+ met in Azerbaijan to monitor their crude supply reduction pact, and said they would exceed commitments in the coming months. On Sunday, Saudi Arabia signalled that producers may need to extend their 1.2 million barrels per day of supply curbs past June into the second half of the year.

      
    
    WTI crude
In the 2019 year-to-date, the five, best-performing Index constituents were: Yangzijiang Shipbuilding (+14.4%), Marco Polo Marine (+5.3%), Sembcorp Marine (+5.2%), COSCO Shipping International (+4.5%), and Keppel Corp (+3.7%). They averaged a total return of +6.6% in the YTD, bringing their one-year and three-year total returns to -22.5% and -4.4%.

The table details the 12 constituents of the iEdge SG MOE Index, sorted by YTD total return.




			Name
			
			
			SGX Code
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			P/E (x)
			
			
			P/B (x)
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			14.4
			
			
			14.7
			
			
			59.9
			
			
			7.4
			
			
			1.0
			
		


			MARCO POLO MARINE
			
			
			5LY
			
			
			5.3
			
			
			-52.4
			
			
			-89.6
			
			
			0.4
			
			
			0.6
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			5.2
			
			
			-22.9
			
			
			0.3
			
			
			NA
			
			
			1.5
			
		


			COSCO SHIPPING INTL
			
			
			F83
			
			
			4.5
			
			
			-33.7
			
			
			-9.2
			
			
			59.5
			
			
			1.5
			
		


			KEPPEL CORP 
			
			
			BN4
			
			
			3.7
			
			
			-18.2
			
			
			16.7
			
			
			12.1
			
			
			1.0
			
		


			HUTCHISON PORT HOLDINGS TRUST
			
			
			NS8U
			
			
			1.6
			
			
			-20.8
			
			
			-40.6
			
			
			NA
			
			
			0.6
			
		


			SEMBCORP INDUSTRIES
			
			
			U96
			
			
			-0.8
			
			
			-17.1
			
			
			-9.8
			
			
			15.2
			
			
			0.7
			
		


			MERMAID MARITIME
			
			
			DU4
			
			
			-1.1
			
			
			-44.5
			
			
			-16.5
			
			
			NA
			
			
			0.3
			
		


			EZION HOLDINGS
			
			
			5ME
			
			
			-6.5
			
			
			-78.2
			
			
			-92.1
			
			
			NA
			
			
			-0.4
			
		


			AUSGROUP LTD
			
			
			5GJ
			
			
			-12.5
			
			
			-46.7
			
			
			-76.0
			
			
			6.1
			
			
			0.9
			
		


			NORDIC GROUP
			
			
			MR7
			
			
			-21.3
			
			
			-43.9
			
			
			88.5
			
			
			10.7
			
			
			1.5
			
		


			VALLIANZ HOLDING
			
			
			WPC
			
			
			-36.0
			
			
			-50.8
			
			
			-86.2
			
			
			7.5
			
			
			0.3
			
		

Source: Bloomberg &amp; StockFacts (data as of 15 March 2019)

The five Index constituents that posted the strongest price recovery from their 52-week lows were: Yangzijiang Shipbuilding (70.2%), Vallianz Holdings (26.7%), Mermaid Maritime (12.5%), COSCO Shipping (9.7%), and Sembcorp Marine (8.7%). These five stocks have averaged a 25.6% rebound from their respective 12-month troughs.

The table details the 12 constituents of the iEdge SG MOE Index, sorted by percentage price gain from 52-week lows.




			Name
			
			
			SGX Code
			
			
			Index Weight (%)
			
			
			Market Cap (S$M)
			
			
			Last Price (S$)
			
			
			52W Low Price (S$)
			
			
			52W Low Date
			
			
			% Chg vs 52W Low
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			15.21
			
			
			5,721
			
			
			1.43
			
			
			0.84
			
			
			07/18/2018
			
			
			70.2
			
		


			VALLIANZ HOLDINGS
			
			
			WPC
			
			
			2.88
			
			
			109
			
			
			0.19
			
			
			0.15
			
			
			10/29/2018
			
			
			26.7
			
		


			MERMAID MARITIME
			
			
			DU4
			
			
			6.75
			
			
			120
			
			
			0.09
			
			
			0.08
			
			
			03/11/2019
			
			
			12.5
			
		


			COSCO SHIPPING INTL
			
			
			F83
			
			
			10.55
			
			
			773
			
			
			0.34
			
			
			0.31
			
			
			12/26/2018
			
			
			9.7
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			11.04
			
			
			3,363
			
			
			1.62
			
			
			1.49
			
			
			12/26/2018
			
			
			8.7
			
		


			KEPPEL CORP 
			
			
			BN4
			
			
			10.59
			
			
			11,074
			
			
			6.13
			
			
			5.67
			
			
			12/26/2018
			
			
			8.1
			
		


			HUTCHISON PORT HOLDINGS TRUST
			
			
			NS8U
			
			
			10.73
			
			
			2,835
			
			
			0.32
			
			
			0.30
			
			
			03/01/2019
			
			
			6.7
			
		


			SEMBCORP INDUSTRIES
			
			
			U96
			
			
			10.52
			
			
			4,550
			
			
			2.52
			
			
			2.43
			
			
			12/26/2018
			
			
			3.7
			
		


			EZION HOLDINGS
			
			
			5ME
			
			
			6.57
			
			
			160
			
			
			0.04
			
			
			0.04
			
			
			11/22/2018
			
			
			0.0
			
		


			NORDIC GROUP
			
			
			MR7
			
			
			4.66
			
			
			124
			
			
			0.31
			
			
			0.31
			
			
			03/12/2019
			
			
			0.0
			
		


			AUSGROUP LTD
			
			
			5GJ
			
			
			5.22
			
			
			88
			
			
			0.03
			
			
			0.03
			
			
			03/08/2019
			
			
			0.0
			
		


			MARCO POLO MARINE
			
			
			5LY
			
			
			5.29
			
			
			70
			
			
			0.02
			
			
			0.02
			
			
			12/26/2018
			
			
			0.0
			
		

Source: Bloomberg &amp; StockFacts (data as of 15 March 2019)



Five Best Performers of SGX MOE Index Average 7% YTD Gain

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

MSCI Emerging Markets Index / Technical Analysis

Today’s report provides a top-down synopsis of the technical condition of emerging markets across the globe, and includes a wide variety of bottom-up recommendations, spanning most sectors and all market capitalizations.

Today’s report provides a top-down synopsis of the technical condition of emerging markets across the globe, and includes a wide variety of bottom-up recommendations, spanning most sectors and all market capitalizations.

Emerging Markets: Technical Strategy & Reccommendations

Singapore

Marco Polo Marine Limited is an integrated shipping company. The Company provides services that include ship chartering, ship building and repair, and brokering services.

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Marco Polo Marine (MPM SP)

Five Best Performers of SGX MOE Index Average 7% YTD Gain

The iEdge SG MOE Index is a free-float, market capitalisation-weighted index that measures the performance of listed maritime and offshore...

Singapore Exchange Ltd (SGX)

Emerging Markets: Technical Strategy & Reccommendations

Today’s report provides a top-down synopsis of the technical condition of emerging markets across the globe, and includes a wide variety of...

Vermilion Research

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