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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With the exception of Japan, most regional stocks with a market value of more than S$1 billion have posted declines in the September quarter. In line with the region, the relevant billionaire stocks in Singapore generated a median 1.9% decline in total return. 
	 </li>
	<li>
This took the median total return of the Singapore billionaire stocks for the first nine months of 2019 to 10.4%, positioned between Hong Kong’s gain of 2.9% and China’s gain of 14.8%. As expected, Singapore’s performance was most aligned with its ASEAN neighbours. 
	 </li>
	<li>
Aside from the REITs &amp; SGX, the five companies that posted the strongest stock gains for the Sep quarter were ThaiBev, SIA Eng, SingPost, CDL &amp; Sheng Siong. All reported profit growth for the preceding quarter and averaged a 4.9% total return over the Sep Quarter.   
	 </li>
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Singapore lists approximately 100 stocks with a market capitalisation of S$1 billion and above which have generated a median decline of 1.9% in the September quarter. This reduced their median total return for the first nine months of 2019 to 10.4%. These were similar returns to the region with the 450 ASEAN (Ex Singapore) stocks that have the minimum S$1 billion in market value generating a median decline of 1.1% over the quarter, and an 11.2% return for the 2019 year to date.
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Aside from 24 REITs/Stapled Trusts/Business Trusts adding to their 1H19 gains, a number of companies have also defied the declines of the regional benchmarks and generated returns in the September quarter.

For the relevant primary-listed Singapore stocks, the majority of these companies have a Singapore focus and/or consumer emphasis to their business. They include SGX, Thai Beverage PCL (“ThaiBev”), SIA Engineering (“SIAEC”),  Singapore Post, Sheng Siong Group (“Sheng Siong”), City Developments (“CDL”), Fraser and Neave (“F&amp;N”), Wilmar International, SBS Transit, First Resources, Singapore Airlines, GuocoLand and United Overseas Bank.

 

ThaiBev

<ul>
<li>For the nine-months ended 30 June 2019, total sales revenue of the Company increased 18.2% YoY , led by growth in its beer business and food business.  Gross profit for the period increase of 17.2 % YoY. The food business growth was mainly was mainly due to an increase in revenue from Oishi food and QSA while overall domestic demand and government spending has continued to expand in Thailand, and ThaiBev has also observed an increase in purchasing power from real farm income rising slightly from the same period of last year. 
	 </li>
	<li>ThaiBev is expanding its Vietnam business. In the Independent Auditor’s Report on Review of Interim Financial Information,  it was detailed that for the nine months ending June 2019 ThaiBev reported 23% of its revenue to Vietnam, which was up from 16% for the nine month period ending September 2018. ThaiBev invested in Sabeco, the leading beer producer and distributor in Vietnam, in 2017. ThaiBev’s indirect associated company F&amp;N has also started brewing Chang Beer in Myanmar. 
	 </li>
	<li>ThaiBev has been named as a Global Beverage Industry Leader in the Dow Jones Sustainability Indices (“DJSI”), in recognition of its corporate sustainability leadership within the beverage industry, for the second consecutive year.</li>
</ul>
 

SIAEC

<ul>
<li>For tits 1QFY19/20 (ending 30 June), SIAEC  Group posted revenue of S$258.1  million,  comparable year on year, with a 0.2% gain. Revenue from the airframe and line maintenance segment was $2.3 million higher. This was partially offset by a S$1.9million decrease in revenue from the engine and  component segment. Expenditure at $240.4 million was lower by $7.1 million or 2.9%, mainly due to a reduction in material costs. As a result, operating profit increased $7.5 million or 73.5% to $17.7 million (click <a href="http://www.siaec.com.sg/pdf/26Jul2019.pdf">here</a> for more). 
	 </li>
	<li>The Group noted it is continuing to pursue its strategy of joint ventures and  alliances, and work on opportunities to strengthen the breadth and depth of its joint ventures to sustain growth. 
	 </li>
</ul>
SingPost

<ul>
<li>On 2 August SingPost reported revenue growth of 1.0% for its 1QFY19/20 (ending 30 June), with continued growth of International Post and Parcel arising from cross-border eCommerce deliveries. Its overall net profit for the quarter was up 37.2% YoY  due to improved results from associated companies and joint ventures, and the absence of exceptional losses (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/7I7AFSYME3TF9X9G/f331e03949e05a522888cdb3d35d8388a6ae6fe1d32eea1c8506424fb2824fef">here</a> for more). 
	 </li>
	<li>Note that SingPost reported exceptional fair value loss on warrants from an associated company last year, which were then swapped for direct shareholding, accounting for the absence of the fair value losses this year.</li>
</ul>
 

City Developments

<ul>
<li>For its 1HFY19 (ending 30 June), City Developments Limited (“CDL”) delivered an 18.3% increase in net attributable profit after tax and minority interests (PATMI) of S$362.0 million (Restated 1HFY18: S$306.1 million). The increase was underpinned by the successful unwinding of the Group’s second Profit Participation Securities structure, which achieved pre-tax deferred gains totaling S$153.9 million from the divestment of Manulife Centre and 7 &amp; 9 Tampines Grande and a gain of S$43.3 million from the Group’s stake in PPS 2 (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/19MOF3A5IZ7WO1XO/d27cf5e8fbc68f49c217c9944f9fb4156a80d56a2559d37ecfe103da6bd6a425">here</a> for more). 
	 </li>
	<li>The Group plans to launch the 680-unit Sengkang Grand Residences, a JV project located at Sengkang Central in 4QFY19 2019 and on 7 June, in line with the Group’s strong focus on boosting recurring income, it launched a takeover offer for Millennium &amp; Copthorne Hotels plc – with recent details available <a href="https://links.sgx.com/1.0.0/corporate-announcements/66MAE5ONQQMSSW5T/04ac56eb39e4294ecda58dfe619fa1889a65d1b96015ae04c50fc19c81102cc8">here</a>.</li>
</ul>
 

Sheng Siong 

<ul>
<li>Likewise, Sheng Siong Group, reported a 7.6% YoY increase in net profit to S$18.4 million its 2QFY19 (ending 30 June), Sheng Siong Group one of the largest supermarket chains in Singapore , attributed this to an increase in gross profit arising from higher revenue, slightly improved gross margin, and higher other income but was partially offset by higher operating and net interest expense.  
	 </li>
	<li>For the 1HFY19 reported a 6.8% YoY increase in net profit. The Sheng Siong Groceries Chain, consists of 57 outlets all across the island, primarily located in retail locations in the heartlands of Singapore (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/4UDH3A6QOT8AIQRZ/6b5790186627983e42b053064aaf139b7a61595b1146da5d54162a8080782d92">here</a> for more). As part of the Group strategy Sheng Siong is continuing to expanding its network of outlets in Singapore, especially in areas with no presence.</li>
</ul>
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With the exception of Japan, most regional stocks with a market value of more than S$1 billion have posted declines in the September quarter. In line with the region, the relevant billionaire stocks in Singapore generated a median 1.9% decline in total return. 
	 
	
This took the median total return of the Singapore billionaire stocks for the first nine months of 2019 to 10.4%, positioned between Hong Kong’s gain of 2.9% and China’s gain of 14.8%. As expected, Singapore’s performance was most aligned with its ASEAN neighbours. 
	 
	
Aside from the REITs &amp; SGX, the five companies that posted the strongest stock gains for the Sep quarter were ThaiBev, SIA Eng, SingPost, CDL &amp; Sheng Siong. All reported profit growth for the preceding quarter and averaged a 4.9% total return over the Sep Quarter.   
	 

Singapore lists approximately 100 stocks with a market capitalisation of S$1 billion and above which have generated a median decline of 1.9% in the September quarter. This reduced their median total return for the first nine months of 2019 to 10.4%. These were similar returns to the region with the 450 ASEAN (Ex Singapore) stocks that have the minimum S$1 billion in market value generating a median decline of 1.1% over the quarter, and an 11.2% return for the 2019 year to date.



      
    
    Median Total Returns


Aside from 24 REITs/Stapled Trusts/Business Trusts adding to their 1H19 gains, a number of companies have also defied the declines of the regional benchmarks and generated returns in the September quarter.

For the relevant primary-listed Singapore stocks, the majority of these companies have a Singapore focus and/or consumer emphasis to their business. They include SGX, Thai Beverage PCL (“ThaiBev”), SIA Engineering (“SIAEC”),  Singapore Post, Sheng Siong Group (“Sheng Siong”), City Developments (“CDL”), Fraser and Neave (“F&amp;N”), Wilmar International, SBS Transit, First Resources, Singapore Airlines, GuocoLand and United Overseas Bank.

 

ThaiBev


For the nine-months ended 30 June 2019, total sales revenue of the Company increased 18.2% YoY , led by growth in its beer business and food business.  Gross profit for the period increase of 17.2 % YoY. The food business growth was mainly was mainly due to an increase in revenue from Oishi food and QSA while overall domestic demand and government spending has continued to expand in Thailand, and ThaiBev has also observed an increase in purchasing power from real farm income rising slightly from the same period of last year. 
	 
	ThaiBev is expanding its Vietnam business. In the Independent Auditor’s Report on Review of Interim Financial Information,  it was detailed that for the nine months ending June 2019 ThaiBev reported 23% of its revenue to Vietnam, which was up from 16% for the nine month period ending September 2018. ThaiBev invested in Sabeco, the leading beer producer and distributor in Vietnam, in 2017. ThaiBev’s indirect associated company F&amp;N has also started brewing Chang Beer in Myanmar. 
	 
	ThaiBev has been named as a Global Beverage Industry Leader in the Dow Jones Sustainability Indices (“DJSI”), in recognition of its corporate sustainability leadership within the beverage industry, for the second consecutive year.

 

SIAEC


For tits 1QFY19/20 (ending 30 June), SIAEC  Group posted revenue of S$258.1  million,  comparable year on year, with a 0.2% gain. Revenue from the airframe and line maintenance segment was $2.3 million higher. This was partially offset by a S$1.9million decrease in revenue from the engine and  component segment. Expenditure at $240.4 million was lower by $7.1 million or 2.9%, mainly due to a reduction in material costs. As a result, operating profit increased $7.5 million or 73.5% to $17.7 million (click here for more). 
	 
	The Group noted it is continuing to pursue its strategy of joint ventures and  alliances, and work on opportunities to strengthen the breadth and depth of its joint ventures to sustain growth. 
	 

SingPost


On 2 August SingPost reported revenue growth of 1.0% for its 1QFY19/20 (ending 30 June), with continued growth of International Post and Parcel arising from cross-border eCommerce deliveries. Its overall net profit for the quarter was up 37.2% YoY  due to improved results from associated companies and joint ventures, and the absence of exceptional losses (click here for more). 
	 
	Note that SingPost reported exceptional fair value loss on warrants from an associated company last year, which were then swapped for direct shareholding, accounting for the absence of the fair value losses this year.

 

City Developments


For its 1HFY19 (ending 30 June), City Developments Limited (“CDL”) delivered an 18.3% increase in net attributable profit after tax and minority interests (PATMI) of S$362.0 million (Restated 1HFY18: S$306.1 million). The increase was underpinned by the successful unwinding of the Group’s second Profit Participation Securities structure, which achieved pre-tax deferred gains totaling S$153.9 million from the divestment of Manulife Centre and 7 &amp; 9 Tampines Grande and a gain of S$43.3 million from the Group’s stake in PPS 2 (click here for more). 
	 
	The Group plans to launch the 680-unit Sengkang Grand Residences, a JV project located at Sengkang Central in 4QFY19 2019 and on 7 June, in line with the Group’s strong focus on boosting recurring income, it launched a takeover offer for Millennium &amp; Copthorne Hotels plc – with recent details available here.

 

Sheng Siong 


Likewise, Sheng Siong Group, reported a 7.6% YoY increase in net profit to S$18.4 million its 2QFY19 (ending 30 June), Sheng Siong Group one of the largest supermarket chains in Singapore , attributed this to an increase in gross profit arising from higher revenue, slightly improved gross margin, and higher other income but was partially offset by higher operating and net interest expense.  
	 
	For the 1HFY19 reported a 6.8% YoY increase in net profit. The Sheng Siong Groceries Chain, consists of 57 outlets all across the island, primarily located in retail locations in the heartlands of Singapore (click here for more). As part of the Group strategy Sheng Siong is continuing to expanding its network of outlets in Singapore, especially in areas with no presence.




Five Growing Billionaire Companies that Gained in 3Q19





While global trade tensions and growth concerns abated in the month of July, the past six weeks has seen a more challenging outlook with potential growth downgrades impacting global equity and bond markets.  
	 
	
The STI generated a decline of 4.0% in total return in the September quarter-to-date, which has trimmed its 2019 year to date total return to 6.1%. While industrial stocks weighed on the STI through August, multiple STI stocks &amp; STI Reserve stocks generated gains.  
	 
	
The 10 largest stocks by market cap that added to their 1H19 gains in the quarter-to-date are all STI or STI Reserve List stocks – they were Wilmar, Thai Bev, CapitaLand, CapitaLand Mall Trust, A-REIT, SGX, City Dev, CapitaLand Com Trust, Mapletree Com Trust &amp; Suntec REIT. 


While global trade tensions and growth concerns abated in the month of July, the past six weeks has seen a more challenging outlook with potential growth downgrades impacting global equity and bond markets.  At Jackson Hole, Federal Reserve President Jerome Powell noted that “trade policy uncertainty seems to be playing a role in the global slowdown and in weak manufacturing and capital spending in the United States”.

 

Impact of Lower Yielding Treasuries

 

While the Federal Reserve cut interest rates by 25 bps on July 31, following nine successive hikes, yields on US treasuries have fallen significantly this year, with US two year yields falling from 2.49% at the end of 2018, to 1.54% on Friday, and US 10 year yields falling from 2.68% at the end of 2018, to 1.56% on Friday.

 

The lower interest rates have had a clear impact on banks and real estate stocks, with the latter outpacing the former.

 


The largest capitalised 100 banks across the world generated a median total return of 6.8% in the 2019 year through to September 6. By comparison, the largest capitalised 100 real estate stocks across the world, more than tripled that performance, generating a median total return of 23.6% over the same period.  

 


Similarly in Singapore, DBS Group Holdings, Oversea-Chinese Banking Corp and United Overseas Bank (“UOB”) averaged a 6.2% total return in the 2019 year through to September 6, while the iEdge SG Real Estate 20 Index generated a 21.0% total return, and the iEdge S-REIT Index generated a 25.5% total return.

 


The measured investor interest can also be exemplified with comparative institutional inflows. In the 2019 year through to September 6, the aforementioned UOB has seen net institutional outflow of S$475 million, whilst UOL Group has seen a net institutional inflow of S$27 million. Last year, coinciding with rising interest rates, UOB saw net institutional inflow of S$260 million, whereas UOL Group saw net institutional outflow of S$99 million.

 


UOL Group has generated a total return of 23.9% in the 2019 year through to September 6, whilst UOB generated a total return of 8.9%. UOB acquired a controlling interest in UOL Group, with a subsequent rename from Faber Union, in 1975.

 

10 Biggest Stocks that have Beat the Benchmark in Sep QTD

 

The ongoing moderation to the global growth outlook, and impact on interest rates has seen the Straits Times Index (“STI”) generate a decline of 4.0% in total return in the September quarter-to-date, which has trimmed its 2019 year to date total return to 6.1%.

 

While trade-orientated industrial stocks weighed the STI through August, multiple STI stocks and STI Reserve stocks generated gains. As many as 11 stocks amidst the 30 stocks that make up the STI and five stocks that make up the STI Reserve List have generated positive total returns in the September quarter through to September 6. The 10 largest capitalised of these stocks are tabled below:




			STI &amp; STI Reserve List Stocks
			
			
			SGX Code
			
			
			Market Cap S$Bn 
			
			
			Total Return QTD
			
			
			Total Return YTD
			
			
			Total Return 2018 %
			
			
			Total Return 2017 %
			
			
			Total Return 2016 %
			
		


			WILMAR INTERNATIONAL
			
			
			F34
			
			
			24.4
			
			
			5.1
			
			
			27.2
			
			
			4.3
			
			
			-12.1
			
			
			25.0
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			22.4
			
			
			7.2
			
			
			49.2
			
			
			-31.7
			
			
			11.3
			
			
			27.2
			
		


			CAPITALAND
			
			
			C31
			
			
			17.9
			
			
			0.8
			
			
			18.3
			
			
			-9.0
			
			
			20.1
			
			
			-7.2
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			9.8
			
			
			2.6
			
			
			21.7
			
			
			12.7
			
			
			19.5
			
			
			3.0
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			9.8
			
			
			0.6
			
			
			25.5
			
			
			0.3
			
			
			27.4
			
			
			4.6
			
		


			SINGAPORE EXCHANGE
			
			
			S68
			
			
			9.0
			
			
			6.7
			
			
			20.6
			
			
			0.4
			
			
			7.9
			
			
			-3.4
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			8.8
			
			
			2.7
			
			
			21.6
			
			
			-33.8
			
			
			53.1
			
			
			10.3
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			8.4
			
			
			2.4
			
			
			29.9
			
			
			-5.0
			
			
			42.1
			
			
			16.6
			
		


			MAPLETREE COMMERCIAL TRUST* **
			
			
			N2IU
			
			
			6.5
			
			
			8.4
			
			
			40.8
			
			
			7.6
			
			
			23.0
			
			
			14.9
			
		


			SUNTEC REIT*
			
			
			T82U
			
			
			5.4
			
			
			0.8
			
			
			13.4
			
			
			-12.8
			
			
			37.6
			
			
			13.2
			
		

Source: SGX StockFacts (Data as of 6 September 2019)

For comparative purposes all the STI stocks and STI Reserve List stocks are tabled below. Mapletree Commercial Trust (MCT) will join the STI effective 23 Sep, with Hutchison Port Holdings Trust scheduled to leave the benchmark. Based on mid-year STI weightages and comparative performances to date, MCT would maintain a weightage in the STI that is close to 1.5%. This would bring the combined weightage of the four REITs in the STI to around 8.0%.



			STI &amp; STI Reserve List Stocks
			
			
			SGX Code
			
			
			Market Cap S$Bn 
			
			
			Total Return QTD
			
			
			Total Return YTD
			
			
			Total Return 2018 %
			
			
			Total Return 2017 %
			
			
			Total Return 2016 %
			
		


			DBS GROUP HOLDINGS
			
			
			D05
			
			
			63.3
			
			
			-3.5
			
			
			9.3
			
			
			1.2
			
			
			47.7
			
			
			8.1
			
		


			JARDINE MATHESON HLDGS
			
			
			J36
			
			
			54.3
			
			
			-13.1
			
			
			-20.3
			
			
			19.8
			
			
			4.0
			
			
			18.8
			
		


			SINGAPORE TELECOMMUNICATIONS
			
			
			Z74
			
			
			52.3
			
			
			-5.6
			
			
			12.8
			
			
			-13.2
			
			
			3.2
			
			
			4.0
			
		


			JARDINE STRATEGIC HLDGS
			
			
			J37
			
			
			48.2
			
			
			-15.4
			
			
			-12.2
			
			
			-4.6
			
			
			11.0
			
			
			25.2
			
		


			OVERSEA-CHINESE BANKING CORP
			
			
			O39
			
			
			46.8
			
			
			-2.6
			
			
			0.5
			
			
			-6.2
			
			
			43.6
			
			
			5.6
			
		


			UNITED OVERSEAS BANK
			
			
			U11
			
			
			42.5
			
			
			-0.3
			
			
			8.9
			
			
			-3.3
			
			
			33.7
			
			
			8.1
			
		


			WILMAR INTERNATIONAL 
			
			
			F34
			
			
			24.4
			
			
			5.1
			
			
			27.2
			
			
			4.3
			
			
			-12.1
			
			
			25.0
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			22.4
			
			
			7.2
			
			
			49.2
			
			
			-31.7
			
			
			11.3
			
			
			27.2
			
		


			HONGKONG LAND HOLDINGS
			
			
			H78
			
			
			18.5
			
			
			-8.8
			
			
			-5.4
			
			
			-6.1
			
			
			5.5
			
			
			-4.8
			
		


			CAPITALAND 
			
			
			C31
			
			
			17.9
			
			
			0.8
			
			
			18.3
			
			
			-9.0
			
			
			20.1
			
			
			-7.2
			
		


			DAIRY FARM INTL HLDGS
			
			
			D01
			
			
			12.8
			
			
			-1.1
			
			
			-20.9
			
			
			20.4
			
			
			3.5
			
			
			24.6
			
		


			SINGAPORE TECH ENGINEERING
			
			
			S63
			
			
			12.4
			
			
			-2.7
			
			
			18.5
			
			
			11.8
			
			
			5.0
			
			
			12.3
			
		


			JARDINE CYCLE &amp; CARRIAGE
			
			
			C07
			
			
			12.1
			
			
			-15.1
			
			
			-10.5
			
			
			-10.0
			
			
			1.0
			
			
			21.5
			
		


			GENTING SINGAPORE
			
			
			G13
			
			
			10.9
			
			
			-2.2
			
			
			-5.8
			
			
			-23.2
			
			
			48.6
			
			
			21.6
			
		


			KEPPEL CORP
			
			
			BN4
			
			
			10.8
			
			
			-9.4
			
			
			4.3
			
			
			-16.4
			
			
			30.9
			
			
			-6.3
			
		


			SINGAPORE AIRLINES
			
			
			C6L
			
			
			10.7
			
			
			-0.4
			
			
			-2.0
			
			
			-8.2
			
			
			12.5
			
			
			-10.0
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			9.8
			
			
			2.6
			
			
			21.7
			
			
			12.7
			
			
			19.5
			
			
			3.0
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			9.8
			
			
			0.6
			
			
			25.5
			
			
			0.3
			
			
			27.4
			
			
			4.6
			
		


			SINGAPORE EXCHANGE 
			
			
			S68
			
			
			9.0
			
			
			6.7
			
			
			20.6
			
			
			0.4
			
			
			7.9
			
			
			-3.4
			
		


			CITY DEVELOPMENTS 
			
			
			C09
			
			
			8.8
			
			
			2.7
			
			
			21.6
			
			
			-33.8
			
			
			53.1
			
			
			10.3
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			8.4
			
			
			2.4
			
			
			29.9
			
			
			-5.0
			
			
			42.1
			
			
			16.6
			
		


			MAPLETREE COMMERCIAL TRUST* **
			
			
			N2IU
			
			
			6.5
			
			
			8.4
			
			
			40.8
			
			
			7.6
			
			
			23.0
			
			
			14.9
			
		


			UOL GROUP
			
			
			U14
			
			
			6.3
			
			
			-0.9
			
			
			23.6
			
			
			-28.8
			
			
			51.2
			
			
			-1.5
			
		


			MAPLETREE LOGISTICS TRUST*
			
			
			M44U
			
			
			5.7
			
			
			-0.6
			
			
			29.0
			
			
			1.5
			
			
			38.7
			
			
			10.8
			
		


			COMFORTDELGRO CORP
			
			
			C52
			
			
			5.5
			
			
			-3.6
			
			
			22.2
			
			
			13.7
			
			
			-16.4
			
			
			-16.3
			
		


			SATS
			
			
			S58
			
			
			5.5
			
			
			-4.0
			
			
			7.5
			
			
			-7.2
			
			
			10.9
			
			
			30.9
			
		


			SUNTEC REIT*
			
			
			T82U
			
			
			5.4
			
			
			0.8
			
			
			13.4
			
			
			-12.8
			
			
			37.6
			
			
			13.2
			
		


			VENTURE CORP
			
			
			V03
			
			
			4.5
			
			
			-3.7
			
			
			15.9
			
			
			-29.1
			
			
			115.4
			
			
			28.0
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST*
			
			
			RW0U
			
			
			4.3
			
			
			-6.9
			
			
			22.9
			
			
			-1.1
			
			
			38.3
			
			
			11.7
			
		


			KEPPEL REIT*
			
			
			K71U
			
			
			4.2
			
			
			0.3
			
			
			13.5
			
			
			-5.2
			
			
			30.1
			
			
			17.0
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			3.8
			
			
			-35.9
			
			
			-18.9
			
			
			-11.4
			
			
			86.3
			
			
			-22.3
			
		


			SEMBCORP INDUSTRIES
			
			
			U96
			
			
			3.8
			
			
			-10.8
			
			
			-14.8
			
			
			-15.0
			
			
			8.8
			
			
			-3.3
			
		


			GOLDEN AGRI-RESOURCES
			
			
			E5H
			
			
			3.4
			
			
			-8.6
			
			
			10.3
			
			
			-33.6
			
			
			-10.8
			
			
			28.0
			
		


			SINGAPORE PRESS HOLDINGS
			
			
			T39
			
			
			3.2
			
			
			-18.9
			
			
			-13.9
			
			
			-6.9
			
			
			-21.0
			
			
			-6.1
			
		


			HUTCHISON PORT HOLDINGS TR-U**
			
			
			NS8U
			
			
			1.9
			
			
			-12.0
			
			
			-14.2
			
			
			-34.7
			
			
			-4.5
			
			
			-7.9
			
		


			MAPLETREE INDUSTRIAL TRUST**
			
			
			ME8U
			
			
			4.7
			
			
			5.9
			
			
			28.0
			
			
			-0.7
			
			
			32.2
			
			
			15.8
			
		

* STI Reserve List **HUTCHISON PORT HOLDINGS TR-U will leave the STI effective September 23, Mapletree Commercial Trust will join the STI, while Mapletree Industrial Trust will join the STI Reserve List. Source: SGX StockFacts (Data as of 6 September 2019)



10 Biggest Stocks that Beat the Benchmark with Gains in Sep QTD      

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
In July, Consumer Staples was the top net buy sector on SGX, drawing total institutional inflows of S$26.9 million. Among the top institutional net buy stocks that month, Wilmar ranked second with inflows of S$27.9 million. 
	 </li>
	<li>
In 7M2019, Consumer Staples garnered total institutional inflows of S$160.4 million. Over this period, the segment generated a total return of +20.0%, double the benchmark STI’s total return of +10.3%. 
	 </li>
	<li>The three largest and best-performing Consumer Staples stocks in 7M2019 were: ThaiBev (+40.0%), Wilmar (+30.4%) and Golden Agri (+22.8%), which generated an average total return of +31.1%.</li>
</ul>
SGX lists more than 140 consumer stocks with a combined market capitalisation of over S$100 billion. Among these, more than 100 belong to the consumer discretionary sector, while the remainder are classified under the consumer staples segment.

Consumer Staples stocks are typically regarded as defensive in nature, as the businesses of food manufacturing and the processing of agricultural products tend to be less impacted by economic cycles and overall demand is more inelastic.

Consumer Staples was the top net buy sector in the month of July, drawing total institutional inflows of S$26.9 million. Among the top institutional net buy stocks, Wilmar International ranked second with inflows of S$27.9 million, after its China subsidiary received regulatory approval to list on the Shenzhen Stock Exchange later this year.

Between January and July 2019, Consumer Staples garnered total institutional inflows of S$160.4 million. Over the first seven months of the year, the segment generated a total return of +20.0%, double the benchmark Straits Times Index’s (STI) total return of +10.3%.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-08/Institutional%20Flows%20for%20Consumer%20Staples.png" alt="Institutional Inflows for Consumer Staples Sector">
 </figure>
 <div class="content-caption">Institutional Inflows for Consumer Staples Sector</div>
Source: SGX data

The 10 largest capitalised Consumer Staples stocks on SGX have a combined market cap of about S$80 billion, and are well-diversified – both in terms of product range as well as geographical spread. The majority of these players report more than half their revenues to the Asia Pacific and/or global markets, excluding Singapore.

In 7M2019, these 10 largest Consumer Staples plays averaged a total return of +8.6%, bringing their one-year and three-year total returns to -0.3% and +8.6% respectively. They also average a 12-month dividend indicated yield of 3.0%.

The three largest best performers among the 10 were: Thai Beverage (+40.0%), Wilmar International (+30.4%) and Golden Agri-Resources (+22.8%). Over 7M2019, they averaged a total return of +31.1%, bringing their one-year and three-year total returns to +17.1% and +5.0% respectively.

The table below details the 10 largest Consumer Staples stocks on SGX, sorted by 7M2019 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>
			<td>
			P/E (x)
			</td>
			<td>
			Div Ind Yld (%)
			</td>
		</tr>
<tr>
<td>
			THAI BEVERAGE
			</td>
			<td>
			Y92
			</td>
			<td>
			20,970
			</td>
			<td>
			40.0
			</td>
			<td>
			12.3
			</td>
			<td>
			-11.9
			</td>
			<td>
			20.6
			</td>
			<td>
			2.0
			</td>
		</tr>
<tr>
<td>
			WILMAR INTL
			</td>
			<td>
			F34
			</td>
			<td>
			25,206
			</td>
			<td>
			30.4
			</td>
			<td>
			31.4
			</td>
			<td>
			40.1
			</td>
			<td>
			15.0
			</td>
			<td>
			2.6
			</td>
		</tr>
<tr>
<td>
			GOLDEN AGRI-RESOURCES
			</td>
			<td>
			E5H
			</td>
			<td>
			3,820
			</td>
			<td>
			22.8
			</td>
			<td>
			7.5
			</td>
			<td>
			-13.1
			</td>
			<td>
			NM*
			</td>
			<td>
			1.9
			</td>
		</tr>
<tr>
<td>
			OLAM INTL
			</td>
			<td>
			O32
			</td>
			<td>
			6,277
			</td>
			<td>
			20.0
			</td>
			<td>
			-9.7
			</td>
			<td>
			12.5
			</td>
			<td>
			20.9
			</td>
			<td>
			3.8
			</td>
		</tr>
<tr>
<td>
			SHENG SIONG GROUP
			</td>
			<td>
			OV8
			</td>
			<td>
			1,759
			</td>
			<td>
			11.3
			</td>
			<td>
			12.0
			</td>
			<td>
			30.6
			</td>
			<td>
			24.1
			</td>
			<td>
			2.9
			</td>
		</tr>
<tr>
<td>
			FRASER &amp; NEAVE
			</td>
			<td>
			F&amp;N
			</td>
			<td>
			4,159
			</td>
			<td>
			5.6
			</td>
			<td>
			-7.2
			</td>
			<td>
			43.0
			</td>
			<td>
			15.6
			</td>
			<td>
			2.6
			</td>
		</tr>
<tr>
<td>
			FIRST RESOURCES
			</td>
			<td>
			EB5
			</td>
			<td>
			2,376
			</td>
			<td>
			2.4
			</td>
			<td>
			-1.3
			</td>
			<td>
			4.1
			</td>
			<td>
			16.5
			</td>
			<td>
			2.1
			</td>
		</tr>
<tr>
<td>
			BUMITAMA AGRI
			</td>
			<td>
			P8Z
			</td>
			<td>
			999
			</td>
			<td>
			-3.7
			</td>
			<td>
			-13.2
			</td>
			<td>
			-8.5
			</td>
			<td>
			10.7
			</td>
			<td>
			4.7
			</td>
		</tr>
<tr>
<td>
			DAIRY FARM INTL
			</td>
			<td>
			D01
			</td>
			<td>
			13,110
			</td>
			<td>
			-15.1
			</td>
			<td>
			-5.1
			</td>
			<td>
			23.8
			</td>
			<td>
			NM*
			</td>
			<td>
			3.0
			</td>
		</tr>
<tr>
<td>
			JAPFA LTD
			</td>
			<td>
			UD2
			</td>
			<td>
			913
			</td>
			<td>
			-28.0
			</td>
			<td>
			-29.5
			</td>
			<td>
			-34.2
			</td>
			<td>
			7.1
			</td>
			<td>
			4.1
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			8.6
			</td>
			<td>
			-0.3
			</td>
			<td>
			8.6
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 31 July 2019) *NM: Not Meaningful
</body></html>





In July, Consumer Staples was the top net buy sector on SGX, drawing total institutional inflows of S$26.9 million. Among the top institutional net buy stocks that month, Wilmar ranked second with inflows of S$27.9 million. 
	 
	
In 7M2019, Consumer Staples garnered total institutional inflows of S$160.4 million. Over this period, the segment generated a total return of +20.0%, double the benchmark STI’s total return of +10.3%.  
	 
	The three largest and best-performing Consumer Staples stocks in 7M2019 were: ThaiBev (+40.0%), Wilmar (+30.4%) and Golden Agri (+22.8%), which generated an average total return of +31.1%.

SGX lists more than 140 consumer stocks with a combined market capitalisation of over S$100 billion. Among these, more than 100 belong to the consumer discretionary sector, while the remainder are classified under the consumer staples segment.

Consumer Staples stocks are typically regarded as defensive in nature, as the businesses of food manufacturing and the processing of agricultural products tend to be less impacted by economic cycles and overall demand is more inelastic.

Consumer Staples was the top net buy sector in the month of July, drawing total institutional inflows of S$26.9 million. Among the top institutional net buy stocks, Wilmar International ranked second with inflows of S$27.9 million, after its China subsidiary received regulatory approval to list on the Shenzhen Stock Exchange later this year.

Between January and July 2019, Consumer Staples garnered total institutional inflows of S$160.4 million. Over the first seven months of the year, the segment generated a total return of +20.0%, double the benchmark Straits Times Index’s (STI) total return of +10.3%.

      
    
    Institutional Inflows for Consumer Staples Sector
Source: SGX data

The 10 largest capitalised Consumer Staples stocks on SGX have a combined market cap of about S$80 billion, and are well-diversified – both in terms of product range as well as geographical spread. The majority of these players report more than half their revenues to the Asia Pacific and/or global markets, excluding Singapore.

In 7M2019, these 10 largest Consumer Staples plays averaged a total return of +8.6%, bringing their one-year and three-year total returns to -0.3% and +8.6% respectively. They also average a 12-month dividend indicated yield of 3.0%.

The three largest best performers among the 10 were: Thai Beverage (+40.0%), Wilmar International (+30.4%) and Golden Agri-Resources (+22.8%). Over 7M2019, they averaged a total return of +31.1%, bringing their one-year and three-year total returns to +17.1% and +5.0% respectively.

The table below details the 10 largest Consumer Staples stocks on SGX, sorted by 7M2019 total returns.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			P/E (x)
			
			
			Div Ind Yld (%)
			
		


			THAI BEVERAGE
			
			
			Y92
			
			
			20,970
			
			
			40.0
			
			
			12.3
			
			
			-11.9
			
			
			20.6
			
			
			2.0
			
		


			WILMAR INTL
			
			
			F34
			
			
			25,206
			
			
			30.4
			
			
			31.4
			
			
			40.1
			
			
			15.0
			
			
			2.6
			
		


			GOLDEN AGRI-RESOURCES
			
			
			E5H
			
			
			3,820
			
			
			22.8
			
			
			7.5
			
			
			-13.1
			
			
			NM*
			
			
			1.9
			
		


			OLAM INTL
			
			
			O32
			
			
			6,277
			
			
			20.0
			
			
			-9.7
			
			
			12.5
			
			
			20.9
			
			
			3.8
			
		


			SHENG SIONG GROUP
			
			
			OV8
			
			
			1,759
			
			
			11.3
			
			
			12.0
			
			
			30.6
			
			
			24.1
			
			
			2.9
			
		


			FRASER &amp; NEAVE
			
			
			F&amp;N
			
			
			4,159
			
			
			5.6
			
			
			-7.2
			
			
			43.0
			
			
			15.6
			
			
			2.6
			
		


			FIRST RESOURCES
			
			
			EB5
			
			
			2,376
			
			
			2.4
			
			
			-1.3
			
			
			4.1
			
			
			16.5
			
			
			2.1
			
		


			BUMITAMA AGRI
			
			
			P8Z
			
			
			999
			
			
			-3.7
			
			
			-13.2
			
			
			-8.5
			
			
			10.7
			
			
			4.7
			
		


			DAIRY FARM INTL
			
			
			D01
			
			
			13,110
			
			
			-15.1
			
			
			-5.1
			
			
			23.8
			
			
			NM*
			
			
			3.0
			
		


			JAPFA LTD
			
			
			UD2
			
			
			913
			
			
			-28.0
			
			
			-29.5
			
			
			-34.2
			
			
			7.1
			
			
			4.1
			
		


			Average
			
			
			 
			
			
			 
			
			
			8.6
			
			
			-0.3
			
			
			8.6
			
			
			 
			
			
			 
			
		

Source: Bloomberg &amp; StockFacts (data as of 31 July 2019) *NM: Not Meaningful



Three Largest, Best-Performing Consumer Plays Returned 31% in 7M19

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
In Jan-May 2019, the Consumer Staples sector attracted net institutional inflows of S$112.4 million. The sector was among the top net buy sectors for institutional investors in the month of May, garnering net inflows of S$46.1 million. 
	 </li>
	<li>
In May 2019, the five stocks in the Consumer Staples sector that garnered the highest net institutional inflows were: ThaiBev (+S$12.1 million), Sheng Siong (+S$10.2 million), Wilmar (+S$9.3 million), Golden Agri-Resources (+S$7.2 million) and Dairy Farm (+S$5.4 million). 
	 </li>
	<li>In the YTD, these five top institutional net buy Consumer Staples stocks have averaged a total return of 11.0%. Among them, the three best performers were: ThaiBev (+38.3%), Golden Agri-Resources (+14.5%) and Wilmar (+11.5%).</li>
</ul>
SGX lists more than 40 Consumer Staples stocks with a combined market capitalisation of about S$80 billion. Consumer staples stocks are typically regarded as defensive in nature, as the businesses of food manufacturing and the processing of agricultural products tend to be less impacted by economic cycles and overall demand is more inelastic.

In January-May 2019, the Consumer Staples sector attracted net institutional inflows of S$112.4 million. The sector was among the top net buy sectors for institutional investors during the month of May, garnering net inflows of S$46.1 million, after Communications Services (+S$135.8 million) and REITs (+S$78.5 million).
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-06/Insti%20Flows%20for%20Consumer%20Staples.png" alt="Insti Flows for Consumer Staples Sector">
 </figure>
 <div class="content-caption">Insti Flows for Consumer Staples Sector</div>
Source: SGX data

In the month of May, the five stocks in the Consumer Staples sector that garnered the highest net institutional inflows were: Thai Beverage (+S$12.1 million), Sheng Siong Group (+S$10.2 million), Wilmar International (+S$9.3 million), Golden Agri-Resources (+S$7.2 million) and Dairy Farm International (+S$5.4 million).
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-06/Top%20Insti%20Net%20Buy%20consumer%20Staples%20Stocks%20in%20May.png" alt="Top Insti Net Buy Consumer Staples Stocks in May">
 </figure>
 <div class="content-caption">Top Insti Net Buy Consumer Staples Stocks in May</div>
Source: SGX data

These five top institutional net buy Consumer Staples stocks have a combined market capitalisation of more than S$60 billion, and averaged a total return of 11.0% in the 2019 year-to-date. This brings their one-year and three-year average total returns to 0.8% and 9.6% respectively. Among the five, the three best performers in the YTD were Thai Beverage (+38.3%), Golden Agri-Resources (+14.5%) and Wilmar International (+11.5%).

The table details May’s five top institutional net buy stocks in the Consumer Staples sector, sorted by YTD total return.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$B)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			12M Div Ind Yld (%)
			</td>
		</tr>
<tr>
<td>
			THAI BEVERAGE
			</td>
			<td>
			Y92
			</td>
			<td>
			21.1
			</td>
			<td>
			38.3
			</td>
			<td>
			5.4
			</td>
			<td>
			-1.6
			</td>
			<td>
			2.0
			</td>
		</tr>
<tr>
<td>
			GOLDEN AGRI-RESOURCES
			</td>
			<td>
			E5H
			</td>
			<td>
			3.5
			</td>
			<td>
			14.5
			</td>
			<td>
			-11.0
			</td>
			<td>
			-23.2
			</td>
			<td>
			2.1
			</td>
		</tr>
<tr>
<td>
			WILMAR INTL
			</td>
			<td>
			F34
			</td>
			<td>
			21.5
			</td>
			<td>
			11.5
			</td>
			<td>
			7.8
			</td>
			<td>
			9.8
			</td>
			<td>
			3.1
			</td>
		</tr>
<tr>
<td>
			SHENG SIONG GROUP
			</td>
			<td>
			OV8
			</td>
			<td>
			1.7
			</td>
			<td>
			4.6
			</td>
			<td>
			11.5
			</td>
			<td>
			37.3
			</td>
			<td>
			3.1
			</td>
		</tr>
<tr>
<td>
			DAIRY FARM INTL
			</td>
			<td>
			D01
			</td>
			<td>
			14.2
			</td>
			<td>
			-13.6
			</td>
			<td>
			-9.7
			</td>
			<td>
			25.7
			</td>
			<td>
			2.8
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			11.0
			</td>
			<td>
			0.8
			</td>
			<td>
			9.6
			</td>
			<td>
			2.6
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 12 June 2019)
</body></html>





In Jan-May 2019, the Consumer Staples sector attracted net institutional inflows of S$112.4 million. The sector was among the top net buy sectors for institutional investors in the month of May, garnering net inflows of S$46.1 million. 
	 
	
In May 2019, the five stocks in the Consumer Staples sector that garnered the highest net institutional inflows were: ThaiBev (+S$12.1 million), Sheng Siong (+S$10.2 million), Wilmar (+S$9.3 million), Golden Agri-Resources (+S$7.2 million) and Dairy Farm (+S$5.4 million). 
	 
	In the YTD, these five top institutional net buy Consumer Staples stocks have averaged a total return of 11.0%. Among them, the three best performers were: ThaiBev (+38.3%), Golden Agri-Resources (+14.5%) and Wilmar (+11.5%).

SGX lists more than 40 Consumer Staples stocks with a combined market capitalisation of about S$80 billion. Consumer staples stocks are typically regarded as defensive in nature, as the businesses of food manufacturing and the processing of agricultural products tend to be less impacted by economic cycles and overall demand is more inelastic.

In January-May 2019, the Consumer Staples sector attracted net institutional inflows of S$112.4 million. The sector was among the top net buy sectors for institutional investors during the month of May, garnering net inflows of S$46.1 million, after Communications Services (+S$135.8 million) and REITs (+S$78.5 million).

      
    
    Insti Flows for Consumer Staples Sector
Source: SGX data

In the month of May, the five stocks in the Consumer Staples sector that garnered the highest net institutional inflows were: Thai Beverage (+S$12.1 million), Sheng Siong Group (+S$10.2 million), Wilmar International (+S$9.3 million), Golden Agri-Resources (+S$7.2 million) and Dairy Farm International (+S$5.4 million).

      
    
    Top Insti Net Buy Consumer Staples Stocks in May
Source: SGX data

These five top institutional net buy Consumer Staples stocks have a combined market capitalisation of more than S$60 billion, and averaged a total return of 11.0% in the 2019 year-to-date. This brings their one-year and three-year average total returns to 0.8% and 9.6% respectively. Among the five, the three best performers in the YTD were Thai Beverage (+38.3%), Golden Agri-Resources (+14.5%) and Wilmar International (+11.5%).

The table details May’s five top institutional net buy stocks in the Consumer Staples sector, sorted by YTD total return.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$B)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			12M Div Ind Yld (%)
			
		


			THAI BEVERAGE
			
			
			Y92
			
			
			21.1
			
			
			38.3
			
			
			5.4
			
			
			-1.6
			
			
			2.0
			
		


			GOLDEN AGRI-RESOURCES
			
			
			E5H
			
			
			3.5
			
			
			14.5
			
			
			-11.0
			
			
			-23.2
			
			
			2.1
			
		


			WILMAR INTL
			
			
			F34
			
			
			21.5
			
			
			11.5
			
			
			7.8
			
			
			9.8
			
			
			3.1
			
		


			SHENG SIONG GROUP
			
			
			OV8
			
			
			1.7
			
			
			4.6
			
			
			11.5
			
			
			37.3
			
			
			3.1
			
		


			DAIRY FARM INTL
			
			
			D01
			
			
			14.2
			
			
			-13.6
			
			
			-9.7
			
			
			25.7
			
			
			2.8
			
		


			Average
			
			
			 
			
			
			 
			
			
			11.0
			
			
			0.8
			
			
			9.6
			
			
			2.6
			
		

Source: Bloomberg &amp; StockFacts (data as of 12 June 2019)



Defensive Nature of Consumer Staples Stocks Draws Fund Flows





Real Estate, Manufacturing and Food &amp; Beverage stocks made up close to half of Singapore’s top 200 stocks by turnover in the first 5 months of 2019. The stocks representing tech–laden Manufacturing were the best performers in 2019 YTD and preceding two years, with F&amp;B the best performer in 2016. 
	 
	
Distinct drivers of the three sectors included interest rate outlooks and property prices for Real Estate, technological advancements, value chain integration and global trade for Manufacturing while incomes, tastes, preferences and tourism drove Food &amp; Beverage sales.  
	 
	
Real estate stocks showed the most consistency in returns, with the least standard deviation amongst the individual stock performances, followed by food &amp; beverage stocks, with the individual manufacturing stocks showing the most performance deviation in past years.  
	 
	Returns amongst the relevant 23 manufacturing stocks have been more constant in the 2019 YTD, with the 18% average total return generated by  19 gainers and four decliners, and a median total return of 19%. Hi-P Int, Frencken &amp; Sunpower led the manufacturers over the 23 weeks. 

As 2019 rapidly approaches the halftime mark of 30 June, clear drivers of investor sentiment in the year thus far have included concerns of global growth deceleration at home and abroad, resumption of trade frictions amongst the world’s two largest economies in early May, and a more dovish outlook for US interest rates.

In Singapore, the Straits Times index (“STI”) has generated  a total return of 6.8% in the 2019 year-to-date, in-line with the FTSE ASEAN All Share Index which has gained 7.4%. 

Looking beyond the STI, the 200 most actively traded stocks have generated an average total return of 8.0%. This does not include the average total returns of RHT Health Trust, Memtech International and Indofood Agri Resources which averaged 89.2% gains on premium cash offers for these businesses.

60 Real Estate Stocks Amongst Top 200 Stocks by Turnover 

Singapore’s strong property and infrastructure fundamentals have provided beachheads for Singapore’s listed Real Estate Sector. For the first five months of 2019, the 60 Real Estate stocks amongst the 200 most active traded stocks by turnover accounted for the most day-to-day market turnover, which was followed by Financial Services. As discussed recently (click here) this year Singapore REITs have attracted investment flows from global funds which has included private equity funds.

The 23 manufacturing stocks that were amongst the 200 stocks by turnover accounted for the most day-to-day turnover after the 11 financial services stocks. After Real Estate’s 60 stocks, the 23 manufacturing stocks led by the likes of Yangzijiang Shipbuilding, Venture Corporation and Singapore Tech Engineering, contributed the next most number of stocks in the top 200 by turnover. Note these manufacturing stocks do not include Food Manufacturers or Processors, and span diverse business from advanced electronics to healthcare products.

With Food and Beverage (“F&amp;B”) contributing 14 stocks to the top 200 by turnover, and the next highest number of stocks after Manufacturing, the three sectors of Real Estate, Manufacturing and F&amp;B together made up 97 stocks. This was close to half the top 200 stocks by turnover. The average total returns of the three genres of stocks over recent years are illustrated in the chart below. 

      
    
    Total Returns of Three Genres
The average total returns illustrated above were built on various levels of consistency across the performances of each of the Sector’s stocks. For instance, the 60 real estate stocks showed the most consistency, with the least standard deviation amongst the individual stock performances in all four time periods.

This was followed by F&amp;B, which saw more consistency in the performances across its relevant 14 stocks than Manufacturing over the past three years ending 2018. As noted above, Singapore manufacturing stocks span a wide range of industries, with the diversification exponentiated by the geographical reach of these businesses. This was a contributing factor to the individual manufacturing stocks showing the most performance deviation over the preceding three years.  However, in the 2019 year to date, performances across manufacturing stocks have seen marginally less deviation than the F&amp;B stocks. 

The comparative performances of the relevant stocks are tabled below, with each table sorted by stocks with the most turnover over the first five months of 2019.  The 60 real estate stocks maintain a combined market capitalisation of S$175 billion, the 23 manufacturing stocks maintain a total market capitalisation of S$35 billion and the 14 F&amp;B stocks maintain a total market capitalisation of S$60 billion. Note the designated F&amp;B stocks do not include Palm Oil producers.




			Real Estate
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			4.6
			
			
			27.4
			
			
			0.3
			
			
			18.7
			
		


			CAPITALAND
			
			
			C31
			
			
			-7.2
			
			
			20.1
			
			
			-9.0
			
			
			13.4
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			16.6
			
			
			42.1
			
			
			-5.0
			
			
			19.3
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			3.0
			
			
			19.5
			
			
			12.7
			
			
			16.3
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			10.8
			
			
			38.7
			
			
			1.5
			
			
			24.9
			
		


			HONGKONG LAND HOLDINGS
			
			
			H78
			
			
			-4.8
			
			
			5.5
			
			
			-6.1
			
			
			10.8
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			10.3
			
			
			53.1
			
			
			-33.8
			
			
			12.9
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			13.2
			
			
			37.6
			
			
			-12.8
			
			
			9.5
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			14.9
			
			
			23.0
			
			
			7.6
			
			
			25.5
			
		


			UOL GROUP
			
			
			U14
			
			
			-1.5
			
			
			51.2
			
			
			-28.8
			
			
			18.7
			
		


			MAPLETREE NORTH ASIA COMMERC
			
			
			RW0U
			
			
			11.7
			
			
			38.3
			
			
			-1.1
			
			
			22.9
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			17.0
			
			
			30.1
			
			
			-5.2
			
			
			11.3
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			15.8
			
			
			32.2
			
			
			-0.7
			
			
			15.5
			
		


			FRASERS LOGISTICS &amp; INDUSTRI
			
			
			BUOU
			
			
			0.0
			
			
			34.0
			
			
			-4.2
			
			
			19.1
			
		


			KEPPEL DC REIT
			
			
			AJBU
			
			
			26.1
			
			
			27.0
			
			
			-0.7
			
			
			24.6
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			9.1
			
			
			24.8
			
			
			2.2
			
			
			20.3
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2.4
			
			
			20.2
			
			
			-6.1
			
			
			22.6
			
		


			FRASERS COMMERCIAL TRUST
			
			
			ND8U
			
			
			7.0
			
			
			27.1
			
			
			-1.7
			
			
			17.7
			
		


			CDL HOSPITALITY TRUSTS
			
			
			J85
			
			
			8.7
			
			
			39.9
			
			
			-8.6
			
			
			13.6
			
		


			YANLORD LAND GROUP
			
			
			Z25
			
			
			33.1
			
			
			25.6
			
			
			-21.6
			
			
			7.9
			
		


			CAPITALAND RETAIL CHINA TRUS
			
			
			AU8U
			
			
			-1.0
			
			
			29.4
			
			
			-12.5
			
			
			16.3
			
		


			ESR-REIT
			
			
			J91U
			
			
			3.6
			
			
			12.0
			
			
			-1.8
			
			
			12.7
			
		


			CROMWELL EUROPEAN REIT
			
			
			CNNU
			
			
			0.0
			
			
			0.0
			
			
			-13.3
			
			
			16.0
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			4.7
			
			
			11.6
			
			
			-6.5
			
			
			13.7
			
		


			YING LI INTERNATIONAL REAL E
			
			
			5DM
			
			
			-10.2
			
			
			1.3
			
			
			-23.2
			
			
			20.7
			
		


			CACHE LOGISTICS TRUST
			
			
			K2LU
			
			
			-3.5
			
			
			19.0
			
			
			-12.2
			
			
			12.4
			
		


			FAR EAST HOSPITALITY TRUST
			
			
			Q5T
			
			
			-3.1
			
			
			27.9
			
			
			-10.8
			
			
			9.8
			
		


			MANULIFE US REAL ESTATE INV
			
			
			BTOU
			
			
			0.0
			
			
			18.3
			
			
			-7.2
			
			
			18.5
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			23.3
			
			
			19.1
			
			
			0.2
			
			
			27.7
			
		


			OUE HOSPITALITY TRUST
			
			
			SK7
			
			
			-1.1
			
			
			38.2
			
			
			-16.0
			
			
			6.6
			
		


			SASSEUR REAL ESTATE INVESTME
			
			
			CRPU
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			31.7
			
		


			OXLEY HOLDINGS
			
			
			5UX
			
			
			1.0
			
			
			71.9
			
			
			-44.7
			
			
			8.0
			
		


			SPH REIT
			
			
			SK6U
			
			
			5.4
			
			
			16.8
			
			
			0.6
			
			
			7.8
			
		


			APAC REALTY
			
			
			CLN
			
			
			0.0
			
			
			0.0
			
			
			-46.4
			
			
			27.8
			
		


			HONG FOK CORP
			
			
			H30
			
			
			-2.4
			
			
			38.2
			
			
			-19.9
			
			
			23.9
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			2.9
			
			
			30.8
			
			
			-3.6
			
			
			25.8
			
		


			LIPPO MALLS INDONESIA RETAIL
			
			
			D5IU
			
			
			27.3
			
			
			17.5
			
			
			-50.6
			
			
			28.6
			
		


			WING TAI HOLDINGS
			
			
			W05
			
			
			-6.1
			
			
			47.1
			
			
			-11.8
			
			
			5.2
			
		


			KEPPEL-KBS US REIT
			
			
			CMOU
			
			
			0.0
			
			
			0.0
			
			
			-23.9
			
			
			28.3
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			-1.8
			
			
			29.3
			
			
			-4.7
			
			
			4.6
			
		


			AIMS APAC REIT
			
			
			O5RU
			
			
			3.4
			
			
			13.5
			
			
			3.9
			
			
			10.1
			
		


			ACCORDIA GOLF TRUST
			
			
			ADQU
			
			
			31.0
			
			
			17.0
			
			
			-21.1
			
			
			11.1
			
		


			OUE COMMERCIAL REAL ESTATE I
			
			
			TS0U
			
			
			14.6
			
			
			11.0
			
			
			-22.6
			
			
			9.3
			
		


			SOILBUILD BUSINESS SPACE REI
			
			
			SV3U
			
			
			-8.7
			
			
			14.2
			
			
			-6.2
			
			
			8.9
			
		


			OUE
			
			
			LJ3
			
			
			0.5
			
			
			8.2
			
			
			-22.2
			
			
			12.2
			
		


			FRASERS PROPERTY
			
			
			TQ5
			
			
			-1.2
			
			
			39.0
			
			
			-17.4
			
			
			15.1
			
		


			SABANA SHARIAH COMP IND REIT
			
			
			M1GU
			
			
			-33.5
			
			
			12.2
			
			
			6.8
			
			
			18.2
			
		


			TUAN SING HOLDINGS
			
			
			T24
			
			
			-10.6
			
			
			60.8
			
			
			-18.9
			
			
			2.3
			
		


			GUOCOLAND
			
			
			F17
			
			
			4.4
			
			
			28.1
			
			
			-16.3
			
			
			10.0
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			0.0
			
			
			8.0
			
			
			-1.2
			
			
			16.1
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			0.0
			
			
			0.0
			
			
			7.3
			
			
			5.4
			
		


			BUKIT SEMBAWANG ESTATES
			
			
			B61
			
			
			6.7
			
			
			47.1
			
			
			-7.0
			
			
			-1.4
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			12.9
			
			
			17.3
			
			
			0.8
			
			
			8.1
			
		


			HO BEE LAND
			
			
			H13
			
			
			3.8
			
			
			24.3
			
			
			0.1
			
			
			4.5
			
		


			PROPNEX
			
			
			OYY
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			18.2
			
		


			UNITED INDUSTRIAL CORP
			
			
			U06
			
			
			-2.8
			
			
			20.6
			
			
			-16.8
			
			
			8.9
			
		


			FORTUNE REIT
			
			
			F25U
			
			
			17.5
			
			
			8.0
			
			
			-0.4
			
			
			23.6
			
		


			BOUSTEAD SINGAPORE
			
			
			F9D
			
			
			-0.6
			
			
			9.8
			
			
			-3.4
			
			
			-2.5
			
		


			SINGHAIYI GROUP
			
			
			5H0
			
			
			-13.4
			
			
			30.7
			
			
			-22.5
			
			
			11.8
			
		


			CENTURION CORP
			
			
			OU8
			
			
			-10.7
			
			
			65.9
			
			
			-16.5
			
			
			1.1
			
		


			Average:
			
			
			 
			
			
			4.1
			
			
			24.7
			
			
			-10.0
			
			
			14.7
			
		

 




			Manufacturing
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			-22.3
			
			
			86.3
			
			
			-11.4
			
			
			19.2
			
		


			VENTURE CORP
			
			
			V03
			
			
			28.0
			
			
			115.4
			
			
			-29.1
			
			
			19.1
			
		


			SINGAPORE TECH ENGINEERING
			
			
			S63
			
			
			12.3
			
			
			5.0
			
			
			11.8
			
			
			20.3
			
		


			AEM HOLDINGS
			
			
			AWX
			
			
			195.3
			
			
			498.6
			
			
			1.5
			
			
			22.4
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			-19.3
			
			
			34.9
			
			
			-15.9
			
			
			-1.9
			
		


			HI-P INTERNATIONAL
			
			
			H17
			
			
			4.6
			
			
			326.5
			
			
			-50.8
			
			
			57.1
			
		


			VALUETRONICS HOLDINGS
			
			
			BN2
			
			
			34.3
			
			
			103.5
			
			
			-22.8
			
			
			-2.3
			
		


			SUNPOWER GROUP
			
			
			5GD
			
			
			57.4
			
			
			-11.6
			
			
			-27.6
			
			
			53.0
			
		


			CREATIVE TECHNOLOGY
			
			
			C76
			
			
			-11.9
			
			
			10.9
			
			
			254.2
			
			
			0.5
			
		


			FRENCKEN GROUP
			
			
			E28
			
			
			30.3
			
			
			132.4
			
			
			-18.9
			
			
			53.9
			
		


			HAW PAR CORP
			
			
			H02
			
			
			14.9
			
			
			27.2
			
			
			7.9
			
			
			18.8
			
		


			SUNNINGDALE TECH
			
			
			BHQ
			
			
			22.4
			
			
			83.6
			
			
			-21.9
			
			
			-2.8
			
		


			FU YU CORP
			
			
			F13
			
			
			27.2
			
			
			6.6
			
			
			10.1
			
			
			13.2
			
		


			SARINE TECHNOLOGIES
			
			
			U77
			
			
			20.9
			
			
			-42.4
			
			
			-52.0
			
			
			-29.2
			
		


			RIVERSTONE HOLDINGS
			
			
			AP4
			
			
			-25.0
			
			
			25.6
			
			
			7.9
			
			
			-17.9
			
		


			INNOTEK
			
			
			M14
			
			
			48.6
			
			
			32.7
			
			
			18.3
			
			
			30.0
			
		


			MANUFACTURING INTEGRATION TE
			
			
			M11
			
			
			-25.7
			
			
			48.3
			
			
			18.1
			
			
			22.0
			
		


			CHUAN HUP HOLDINGS
			
			
			C33
			
			
			-15.7
			
			
			37.5
			
			
			-3.7
			
			
			32.1
			
		


			JEP HOLDINGS
			
			
			1J4
			
			
			-31.0
			
			
			86.2
			
			
			-3.6
			
			
			12.6
			
		


			HANWELL HOLDINGS
			
			
			DM0
			
			
			-9.4
			
			
			31.3
			
			
			-43.6
			
			
			41.5
			
		


			MIYOSHI
			
			
			M03
			
			
			19.0
			
			
			62.8
			
			
			-39.6
			
			
			4.9
			
		


			AVARGA
			
			
			U09
			
			
			64.7
			
			
			1.8
			
			
			-23.4
			
			
			20.7
			
		


			HALCYON AGRI CORP
			
			
			5VJ
			
			
			-8.3
			
			
			-5.7
			
			
			-29.8
			
			
			24.4
			
		


			Average:
			
			
			 
			
			
			17.9
			
			
			73.8
			
			
			-2.8
			
			
			17.9
			
		

 




			F&amp;B
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			27.2
			
			
			11.3
			
			
			-31.7
			
			
			40.8
			
		


			WILMAR INTERNATIONAL
			
			
			F34
			
			
			25.0
			
			
			-12.1
			
			
			4.3
			
			
			10.8
			
		


			SATS
			
			
			S58
			
			
			30.9
			
			
			10.9
			
			
			-7.2
			
			
			8.2
			
		


			JAPFA
			
			
			UD2
			
			
			94.0
			
			
			-42.8
			
			
			44.6
			
			
			-19.6
			
		


			OLAM INTERNATIONAL
			
			
			O32
			
			
			12.2
			
			
			6.5
			
			
			-15.9
			
			
			15.7
			
		


			KOUFU GROUP
			
			
			VL6
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			14.8
			
		


			SINO GRANDNESS FOOD INDUSTRY
			
			
			T4B
			
			
			-33.8
			
			
			-8.9
			
			
			-38.2
			
			
			-61.0
			
		


			DELFI
			
			
			P34
			
			
			12.0
			
			
			-35.1
			
			
			-5.3
			
			
			-6.8
			
		


			QAF
			
			
			Q01
			
			
			37.8
			
			
			-16.4
			
			
			-45.0
			
			
			36.5
			
		


			JUMBO GROUP
			
			
			42R
			
			
			49.4
			
			
			-9.6
			
			
			-31.4
			
			
			1.7
			
		


			FRASER AND NEAVE
			
			
			F99
			
			
			2.8
			
			
			26.0
			
			
			-32.1
			
			
			4.4
			
		


			BREADTALK GROUP
			
			
			CTN
			
			
			5.4
			
			
			52.1
			
			
			-1.6
			
			
			-2.5
			
		


			JB FOODS
			
			
			BEW
			
			
			32.0
			
			
			69.2
			
			
			38.7
			
			
			11.3
			
		


			KIMLY
			
			
			1D0
			
			
			0.0
			
			
			0.0
			
			
			-30.6
			
			
			2.8
			
		


			Average:
			
			
			 
			
			
			21.1
			
			
			3.7
			
			
			-10.8
			
			
			4.1
			
		

Source: SGX StockFacts, Bloomberg (Data as of 11 June 2019). Note TR = Total Return which assumes dividends are reinvested.

Distinct drivers of the three sectors included interest rate outlooks and property prices for real estate, technological advancements, value chain integration and global trade for manufacturing while incomes, tastes, preferences and tourism drive F&amp;B sales.



Real Estate, Manufacturing and F&B Shares on the Move in 1H19    

Singapore

Thai Beverage Public Company Limited produces a wide range of branded beer and spirits in Thailand.

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Thai Beverage (THBEV SP)

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