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>
Global manufacturing activity, with its links to trade and other key sectors is a recent focus of global economic data &amp; Fed policy. Last week, the ISM survey of US factory activity fell to its lowest level since June 2009, while US manufacturing jobs declined in Sept.   
	 </li>
	<li>
Globally in the year-to-date, larger manufacturing stocks have on average performed better than their smaller counterparts, possibly due to industry sub-trends, or the ability for the larger capitalised stocks to operate more diversified businesses.   
	 </li>
	<li>
In Singapore, eight stocks with manufacturing activity amongst the 40 most actively traded averaged a 16% YTD total return. While two maritime plays generated similar 23% declines, gains of the remaining six ranged from 14% for Venture, to 46% for ThaiBev. 
	 </li>
</ul>
Just as manufacturing contributes at least 20% to Singapore’s GDP, eight of Singapore’s 40 top stocks by turnover over the first nine months of 2019 maintain a manufacturing focus. 

The eight stocks - Wilmar International, Thai Beverage PCL, Yangzijiang Shipbuilding, Sembcorp Marine, Venture Corp, Singapore Tech Engineering, AEM Holdings and Hi-P International span the Food &amp; Beverage, maritime, value chain management, aerospace and hi-tech industries. 

Despite global headwinds, together the eight stocks have averaged a 16% total return in the 2019 year-to-date and were the combined recipient of more than S$510 million in net institutional inflow over the first nine months of the year. The individual performances of the eight stocks are illustrated below.
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2019-10/Manufacturing%202019%20YTD%20Returns_0.PNG' alt='Manufacturing 2019 YTD Returns' />
 </figure>
 <div class='content-caption'>Manufacturing 2019 YTD Returns</div>
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Source: SGX, StockFacts (data as of 4 October 2019)

 

Singapore’s most actively traded 40 stocks in the first nine months of 2019 saw a combined net institutional inflow of close to S$1 billion over the period, and have averaged a 13% total return in the 2019 year through to 4 October.  The 40 stocks include the aforementioned eight manufacturers, and also include a dozen Real Estate Investment Trusts (REITs).  
 

Global Manufacturing Stocks 

Market performances suggest that weaker global manufacturing surveys this year have had less impact on world’s larger capitalised manufacturing stocks than the smaller capitalised manufacturing stocks. This could be possibly due to industry sub-trends, or the ability for the larger capitalised stocks to operate more diversified businesses. 

A snapshot of global manufacturing stocks on 7 October revealed the 1000 largest manufacturers across the world that operate over the Industrial, Machinery, Food &amp; Beverage and Technology Sectors have generated a median total return of 15% in the 2019 year through to October 4. That was more than triple the 4% median total return for the broader group of the largest capitalised 5000 manufacturers over the same Sectors.
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2019-10/2019%20YTD%20Median%20Total%20Returns.PNG' alt='2019 YTD Median Total Returns' />
 </figure>
 <div class='content-caption'>2019 YTD Median Total Returns</div>
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Source: Thomson Reuters, Bloomberg (Data as of 4 October 2019) 
 

The median total return for the 50 largest capitalised Singapore manufacturers over these same industries at 9% was in-line with the broader global medians. Note however, the 50 stocks also generated 40% annualised volatility over the last 180 days with market swings based the ongoing developments in trade talks.

 

Last Week’s US Data Affirms Fed Reserve Outlook

While manufacturing makes up just over one-tenth of US GDP, its performance is tied to other key sectors such as consumer trends, business and financial services, technology, transportation and retail trade. Key recent developments are as follows:

<ul>
<li>Last week, an ISM survey of US factory activity fell to 47.3, its lowest level since June 2009 – making it two straight months below the 50 threshold. This index moved from 51.2 in July, to 49.1 in August and 47.8 in September after being as high as 58.8 in November 2018. 
	 </li>
	<li>In addition, the US Bureau of Labor Statistics reported September saw 136,000 non-farm jobs created in the United States, while the manufacturing component saw a decline of 2,000 jobs (click <a href="https://www.bls.gov/news.release/archives/empsit_10042019.htm">here</a> for more). By contrast, back in September 2018, manufacturing accounted for 18,000 jobs of the then 134,000 reported jobs growth. 
	 </li>
	<li>The US Federal Reserve has addressed the manufacturing weakness through its two interest rate cuts, while the impact of the aforementioned ISM survey saw the probability of another 25-basis-point cut in the federal funds target rate (at the 30 October FOMC meeting) rise to 85% on 4 October, up from 40% on Monday 31 September - according to the CME Fed Watch Tool. 
	 </li>
</ul>
Singapore’s Eight Stocks with Manufacturing Activity Amongst 40 Most Traded Stocks 

<ul>
<li>Wilmar International and Thai Beverage averaged a 32% total return in the 2019 year through to 4 October, with both stocks seeing similar net institutional inflows close to S$200 million.  Thai Beverage was the strongest of these two stocks over the period. For the nine-months ended 30 June 2019, Thai Beverage’s company sales revenue increased 18% YoY, led by growth in its beer business and food business.  Thai Beverage is also expanding its Vietnam business, and reported for the period that 23% of its revenue came from Vietnam, which was up from 16% for the nine month period ending September 2018. 
	 </li>
	<li>Venture Corporation and ST Engineering generated similar 14% total returns in the 2019 year through to 4 October, with ST Engineering seeing close to S$170 million in net institutional inflow for the nine months, and Venture Corporation seeing close to S$40 million in net institutional outflow.  ST Engineering reported for its 1HFY19 (ended 30 June) revenue was up 6% YoY and net profit was up 14% YoY. 
	 </li>
	<li>For AEM Holdings and Hi-P International, the stocks averaged 39% total returns in the 2019 year through to 4 October. Both stocks also saw similar net institutional inflow, totaling S$25 million for the first nine months of 2019. Last month, AEM Holdings maintained that as of 12 September 2019, it had received sales orders worth S$280 million for delivery in FY19 (ending 31 Dec). In terms of financial guidance for FY19, management revised upwards the revenue range to be between S$285 million and S$305 million. This compared to revenue for FY18 at S$262 million and S$221 million for FY17. 
	 </li>
	<li>The two maritime companies with manufacturing activity, Yangzijiang Shipbuilding Holdings and Sembcorp Marine, generated similar declines in total return for the 2019 year through to 4 October.  The majority of global trade is handled by shipping. For the first four months of 2019, which was prior to the US-China trade talks ending without resolution between 3 and 7 May, these two stocks had averaged an 18% total return.</li>
	<li>
	The 40 most actively traded Singapore stocks for the nine months ending 30 September are tabled below.
	</li>
</ul>
 

The 40 most actively traded Singapore stocks for the nine months ending 30 September are tabled below.

<table class="table table-striped"><tbody>
<tr>
<td>
			Most Actively Traded SGX-listed Stocks over first 9 months of 2019 
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Average daily turnover for past 9 months S$M
			</td>
			<td>
			Total Return YTD %
			</td>
			<td>
			9 Month Net Institutional Flow S$M
			</td>
		</tr>
<tr>
<td>
			DBS Group Holdings
			</td>
			<td>
			D05
			</td>
			<td>
			102.7
			</td>
			<td>
			8
			</td>
			<td>
			-202.6
			</td>
		</tr>
<tr>
<td>
			Singapore Telecommunications
			</td>
			<td>
			Z74
			</td>
			<td>
			65.3
			</td>
			<td>
			9
			</td>
			<td>
			460.8
			</td>
		</tr>
<tr>
<td>
			United Overseas Bank
			</td>
			<td>
			U11
			</td>
			<td>
			62.8
			</td>
			<td>
			8
			</td>
			<td>
			-149.3
			</td>
		</tr>
<tr>
<td>
			Oversea-Chinese Banking Corp
			</td>
			<td>
			O39
			</td>
			<td>
			58.2
			</td>
			<td>
			-2
			</td>
			<td>
			-187.1
			</td>
		</tr>
<tr>
<td>
			Yangzijiang Shipbuilding
			</td>
			<td>
			BS6
			</td>
			<td>
			34.0
			</td>
			<td>
			-22
			</td>
			<td>
			25.6
			</td>
		</tr>
<tr>
<td>
			Ascendas REIT
			</td>
			<td>
			A17U
			</td>
			<td>
			33.9
			</td>
			<td>
			23
			</td>
			<td>
			63.3
			</td>
		</tr>
<tr>
<td>
			Genting Singapore
			</td>
			<td>
			G13
			</td>
			<td>
			28.1
			</td>
			<td>
			-6
			</td>
			<td>
			-201.4
			</td>
		</tr>
<tr>
<td>
			CapitaLand
			</td>
			<td>
			C31
			</td>
			<td>
			27.2
			</td>
			<td>
			16
			</td>
			<td>
			152.0
			</td>
		</tr>
<tr>
<td>
			CapitaLand Commercial Trust
			</td>
			<td>
			C61U
			</td>
			<td>
			26.7
			</td>
			<td>
			23
			</td>
			<td>
			50.5
			</td>
		</tr>
<tr>
<td>
			CapitaLand Mall Trust
			</td>
			<td>
			C38U
			</td>
			<td>
			25.3
			</td>
			<td>
			18
			</td>
			<td>
			4.9
			</td>
		</tr>
<tr>
<td>
			Singapore Exchange
			</td>
			<td>
			S68
			</td>
			<td>
			22.3
			</td>
			<td>
			19
			</td>
			<td>
			379.9
			</td>
		</tr>
<tr>
<td>
			Keppel Corp
			</td>
			<td>
			BN4
			</td>
			<td>
			21.0
			</td>
			<td>
			2
			</td>
			<td>
			-95.4
			</td>
		</tr>
<tr>
<td>
			Venture Corp
			</td>
			<td>
			V03
			</td>
			<td>
			20.6
			</td>
			<td>
			14
			</td>
			<td>
			-42.9
			</td>
		</tr>
<tr>
<td>
			Hongkong Land Hldgs
			</td>
			<td>
			H78
			</td>
			<td>
			20.1
			</td>
			<td>
			-9
			</td>
			<td>
			-58.0
			</td>
		</tr>
<tr>
<td>
			Wilmar International
			</td>
			<td>
			F34
			</td>
			<td>
			19.8
			</td>
			<td>
			19
			</td>
			<td>
			194.4
			</td>
		</tr>
<tr>
<td>
			Jardine Matheson Hldgs
			</td>
			<td>
			J36
			</td>
			<td>
			19.2
			</td>
			<td>
			-19
			</td>
			<td>
			-14.8
			</td>
		</tr>
<tr>
<td>
			Mapletree Logistics Trust
			</td>
			<td>
			M44U
			</td>
			<td>
			18.9
			</td>
			<td>
			33
			</td>
			<td>
			36.6
			</td>
		</tr>
<tr>
<td>
			ComfortDelGro Corp
			</td>
			<td>
			C52
			</td>
			<td>
			18.7
			</td>
			<td>
			15
			</td>
			<td>
			85.2
			</td>
		</tr>
<tr>
<td>
			Mapletree Commercial Trust
			</td>
			<td>
			N2IU
			</td>
			<td>
			17.7
			</td>
			<td>
			47
			</td>
			<td>
			6.1
			</td>
		</tr>
<tr>
<td>
			Suntec REIT
			</td>
			<td>
			T82U
			</td>
			<td>
			16.9
			</td>
			<td>
			10
			</td>
			<td>
			-13.7
			</td>
		</tr>
<tr>
<td>
			Thai Beverage PCL
			</td>
			<td>
			Y92
			</td>
			<td>
			16.7
			</td>
			<td>
			46
			</td>
			<td>
			198.6
			</td>
		</tr>
<tr>
<td>
			City Developments
			</td>
			<td>
			C09
			</td>
			<td>
			16.6
			</td>
			<td>
			20
			</td>
			<td>
			82.3
			</td>
		</tr>
<tr>
<td>
			ST Engineering
			</td>
			<td>
			S63
			</td>
			<td>
			16.6
			</td>
			<td>
			15
			</td>
			<td>
			172.1
			</td>
		</tr>
<tr>
<td>
			Mapletree North Asia Commercial Trust
			</td>
			<td>
			RW0U
			</td>
			<td>
			11.6
			</td>
			<td>
			20
			</td>
			<td>
			26.5
			</td>
		</tr>
<tr>
<td>
			Singapore Airlines
			</td>
			<td>
			C6L
			</td>
			<td>
			11.5
			</td>
			<td>
			-2
			</td>
			<td>
			-50.6
			</td>
		</tr>
<tr>
<td>
			Jardine Strategic Hldgs
			</td>
			<td>
			J37
			</td>
			<td>
			11.5
			</td>
			<td>
			-17
			</td>
			<td>
			-0.9
			</td>
		</tr>
<tr>
<td>
			Jardine Cycle &amp; Carriage
			</td>
			<td>
			C07
			</td>
			<td>
			11.3
			</td>
			<td>
			-12
			</td>
			<td>
			-13.2
			</td>
		</tr>
<tr>
<td>
			Mapletree Industrial Trust
			</td>
			<td>
			ME8U
			</td>
			<td>
			10.5
			</td>
			<td>
			34
			</td>
			<td>
			18.1
			</td>
		</tr>
<tr>
<td>
			Singapore Press Holdings
			</td>
			<td>
			T39
			</td>
			<td>
			9.9
			</td>
			<td>
			-7
			</td>
			<td>
			4.9
			</td>
		</tr>
<tr>
<td>
			AEM Holdings
			</td>
			<td>
			AWX
			</td>
			<td>
			9.8
			</td>
			<td>
			43
			</td>
			<td>
			11.3
			</td>
		</tr>
<tr>
<td>
			UOL Group
			</td>
			<td>
			U14
			</td>
			<td>
			9.0
			</td>
			<td>
			20
			</td>
			<td>
			74.8
			</td>
		</tr>
<tr>
<td>
			SATS
			</td>
			<td>
			S58
			</td>
			<td>
			8.9
			</td>
			<td>
			6
			</td>
			<td>
			0.4
			</td>
		</tr>
<tr>
<td>
			Frasers Logistics &amp; Industrial Trust
			</td>
			<td>
			BUOU
			</td>
			<td>
			8.8
			</td>
			<td>
			27
			</td>
			<td>
			40.8
			</td>
		</tr>
<tr>
<td>
			Sembcorp Marine
			</td>
			<td>
			S51
			</td>
			<td>
			8.6
			</td>
			<td>
			-23
			</td>
			<td>
			-62.0
			</td>
		</tr>
<tr>
<td>
			Keppel DC REIT
			</td>
			<td>
			AJBU
			</td>
			<td>
			8.4
			</td>
			<td>
			52
			</td>
			<td>
			14.2
			</td>
		</tr>
<tr>
<td>
			NetLink NBN Trust
			</td>
			<td>
			CJLU
			</td>
			<td>
			8.3
			</td>
			<td>
			21
			</td>
			<td>
			-1.9
			</td>
		</tr>
<tr>
<td>
			Keppel REIT
			</td>
			<td>
			K71U
			</td>
			<td>
			8.3
			</td>
			<td>
			14
			</td>
			<td>
			46.8
			</td>
		</tr>
<tr>
<td>
			Sembcorp Industries
			</td>
			<td>
			U96
			</td>
			<td>
			8.2
			</td>
			<td>
			-18
			</td>
			<td>
			-89.6
			</td>
		</tr>
<tr>
<td>
			Hi-P International
			</td>
			<td>
			H17
			</td>
			<td>
			7.4
			</td>
			<td>
			34
			</td>
			<td>
			13.8
			</td>
		</tr>
<tr>
<td>
			Frasers Centrepoint Trust
			</td>
			<td>
			J69U
			</td>
			<td>
			5.9
			</td>
			<td>
			31
			</td>
			<td>
			9.9
			</td>
		</tr>
</tbody></table>
Source: Thomson Reuters, Bloomberg (Data as of 4 October 2019)
</body></html>





Global manufacturing activity, with its links to trade and other key sectors is a recent focus of global economic data &amp; Fed policy. Last week, the ISM survey of US factory activity fell to its lowest level since June 2009, while US manufacturing jobs declined in Sept.    
	 
	
Globally in the year-to-date, larger manufacturing stocks have on average performed better than their smaller counterparts, possibly due to industry sub-trends, or the ability for the larger capitalised stocks to operate more diversified businesses.   
	 
	
In Singapore, eight stocks with manufacturing activity amongst the 40 most actively traded averaged a 16% YTD total return. While two maritime plays generated similar 23% declines, gains of the remaining six ranged from 14% for Venture, to 46% for ThaiBev. 
	 

Just as manufacturing contributes at least 20% to Singapore’s GDP, eight of Singapore’s 40 top stocks by turnover over the first nine months of 2019 maintain a manufacturing focus. 

The eight stocks - Wilmar International, Thai Beverage PCL, Yangzijiang Shipbuilding, Sembcorp Marine, Venture Corp, Singapore Tech Engineering, AEM Holdings and Hi-P International span the Food &amp; Beverage, maritime, value chain management, aerospace and hi-tech industries. 

Despite global headwinds, together the eight stocks have averaged a 16% total return in the 2019 year-to-date and were the combined recipient of more than S$510 million in net institutional inflow over the first nine months of the year. The individual performances of the eight stocks are illustrated below.



      
    
    Manufacturing 2019 YTD Returns


Source: SGX, StockFacts (data as of 4 October 2019)

 

Singapore’s most actively traded 40 stocks in the first nine months of 2019 saw a combined net institutional inflow of close to S$1 billion over the period, and have averaged a 13% total return in the 2019 year through to 4 October.  The 40 stocks include the aforementioned eight manufacturers, and also include a dozen Real Estate Investment Trusts (REITs).  
 

Global Manufacturing Stocks 

Market performances suggest that weaker global manufacturing surveys this year have had less impact on world’s larger capitalised manufacturing stocks than the smaller capitalised manufacturing stocks. This could be possibly due to industry sub-trends, or the ability for the larger capitalised stocks to operate more diversified businesses. 

A snapshot of global manufacturing stocks on 7 October revealed the 1000 largest manufacturers across the world that operate over the Industrial, Machinery, Food &amp; Beverage and Technology Sectors have generated a median total return of 15% in the 2019 year through to October 4. That was more than triple the 4% median total return for the broader group of the largest capitalised 5000 manufacturers over the same Sectors.



      
    
    2019 YTD Median Total Returns


Source: Thomson Reuters, Bloomberg (Data as of 4 October 2019) 
 

The median total return for the 50 largest capitalised Singapore manufacturers over these same industries at 9% was in-line with the broader global medians. Note however, the 50 stocks also generated 40% annualised volatility over the last 180 days with market swings based the ongoing developments in trade talks.

 

Last Week’s US Data Affirms Fed Reserve Outlook

While manufacturing makes up just over one-tenth of US GDP, its performance is tied to other key sectors such as consumer trends, business and financial services, technology, transportation and retail trade. Key recent developments are as follows:


Last week, an ISM survey of US factory activity fell to 47.3, its lowest level since June 2009 – making it two straight months below the 50 threshold. This index moved from 51.2 in July, to 49.1 in August and 47.8 in September after being as high as 58.8 in November 2018. 
	 
	In addition, the US Bureau of Labor Statistics reported September saw 136,000 non-farm jobs created in the United States, while the manufacturing component saw a decline of 2,000 jobs (click here for more). By contrast, back in September 2018, manufacturing accounted for 18,000 jobs of the then 134,000 reported jobs growth. 
	 
	The US Federal Reserve has addressed the manufacturing weakness through its two interest rate cuts, while the impact of the aforementioned ISM survey saw the probability of another 25-basis-point cut in the federal funds target rate (at the 30 October FOMC meeting) rise to 85% on 4 October, up from 40% on Monday 31 September - according to the CME Fed Watch Tool.  
	 

Singapore’s Eight Stocks with Manufacturing Activity Amongst 40 Most Traded Stocks 


Wilmar International and Thai Beverage averaged a 32% total return in the 2019 year through to 4 October, with both stocks seeing similar net institutional inflows close to S$200 million.  Thai Beverage was the strongest of these two stocks over the period. For the nine-months ended 30 June 2019, Thai Beverage’s company sales revenue increased 18% YoY, led by growth in its beer business and food business.  Thai Beverage is also expanding its Vietnam business, and reported for the period that 23% of its revenue came from Vietnam, which was up from 16% for the nine month period ending September 2018. 
	 
	Venture Corporation and ST Engineering generated similar 14% total returns in the 2019 year through to 4 October, with ST Engineering seeing close to S$170 million in net institutional inflow for the nine months, and Venture Corporation seeing close to S$40 million in net institutional outflow.  ST Engineering reported for its 1HFY19 (ended 30 June) revenue was up 6% YoY and net profit was up 14% YoY. 
	 
	For AEM Holdings and Hi-P International, the stocks averaged 39% total returns in the 2019 year through to 4 October. Both stocks also saw similar net institutional inflow, totaling S$25 million for the first nine months of 2019. Last month, AEM Holdings maintained that as of 12 September 2019, it had received sales orders worth S$280 million for delivery in FY19 (ending 31 Dec). In terms of financial guidance for FY19, management revised upwards the revenue range to be between S$285 million and S$305 million. This compared to revenue for FY18 at S$262 million and S$221 million for FY17. 
	 
	The two maritime companies with manufacturing activity, Yangzijiang Shipbuilding Holdings and Sembcorp Marine, generated similar declines in total return for the 2019 year through to 4 October.  The majority of global trade is handled by shipping. For the first four months of 2019, which was prior to the US-China trade talks ending without resolution between 3 and 7 May, these two stocks had averaged an 18% total return.
	
	The 40 most actively traded Singapore stocks for the nine months ending 30 September are tabled below.
	

 

The 40 most actively traded Singapore stocks for the nine months ending 30 September are tabled below.




			Most Actively Traded SGX-listed Stocks over first 9 months of 2019 
			
			
			SGX Code
			
			
			Average daily turnover for past 9 months S$M
			
			
			Total Return YTD %
			
			
			9 Month Net Institutional Flow S$M
			
		


			DBS Group Holdings
			
			
			D05
			
			
			102.7
			
			
			8
			
			
			-202.6
			
		


			Singapore Telecommunications
			
			
			Z74
			
			
			65.3
			
			
			9
			
			
			460.8
			
		


			United Overseas Bank
			
			
			U11
			
			
			62.8
			
			
			8
			
			
			-149.3
			
		


			Oversea-Chinese Banking Corp
			
			
			O39
			
			
			58.2
			
			
			-2
			
			
			-187.1
			
		


			Yangzijiang Shipbuilding
			
			
			BS6
			
			
			34.0
			
			
			-22
			
			
			25.6
			
		


			Ascendas REIT
			
			
			A17U
			
			
			33.9
			
			
			23
			
			
			63.3
			
		


			Genting Singapore
			
			
			G13
			
			
			28.1
			
			
			-6
			
			
			-201.4
			
		


			CapitaLand
			
			
			C31
			
			
			27.2
			
			
			16
			
			
			152.0
			
		


			CapitaLand Commercial Trust
			
			
			C61U
			
			
			26.7
			
			
			23
			
			
			50.5
			
		


			CapitaLand Mall Trust
			
			
			C38U
			
			
			25.3
			
			
			18
			
			
			4.9
			
		


			Singapore Exchange
			
			
			S68
			
			
			22.3
			
			
			19
			
			
			379.9
			
		


			Keppel Corp
			
			
			BN4
			
			
			21.0
			
			
			2
			
			
			-95.4
			
		


			Venture Corp
			
			
			V03
			
			
			20.6
			
			
			14
			
			
			-42.9
			
		


			Hongkong Land Hldgs
			
			
			H78
			
			
			20.1
			
			
			-9
			
			
			-58.0
			
		


			Wilmar International
			
			
			F34
			
			
			19.8
			
			
			19
			
			
			194.4
			
		


			Jardine Matheson Hldgs
			
			
			J36
			
			
			19.2
			
			
			-19
			
			
			-14.8
			
		


			Mapletree Logistics Trust
			
			
			M44U
			
			
			18.9
			
			
			33
			
			
			36.6
			
		


			ComfortDelGro Corp
			
			
			C52
			
			
			18.7
			
			
			15
			
			
			85.2
			
		


			Mapletree Commercial Trust
			
			
			N2IU
			
			
			17.7
			
			
			47
			
			
			6.1
			
		


			Suntec REIT
			
			
			T82U
			
			
			16.9
			
			
			10
			
			
			-13.7
			
		


			Thai Beverage PCL
			
			
			Y92
			
			
			16.7
			
			
			46
			
			
			198.6
			
		


			City Developments
			
			
			C09
			
			
			16.6
			
			
			20
			
			
			82.3
			
		


			ST Engineering
			
			
			S63
			
			
			16.6
			
			
			15
			
			
			172.1
			
		


			Mapletree North Asia Commercial Trust
			
			
			RW0U
			
			
			11.6
			
			
			20
			
			
			26.5
			
		


			Singapore Airlines
			
			
			C6L
			
			
			11.5
			
			
			-2
			
			
			-50.6
			
		


			Jardine Strategic Hldgs
			
			
			J37
			
			
			11.5
			
			
			-17
			
			
			-0.9
			
		


			Jardine Cycle &amp; Carriage
			
			
			C07
			
			
			11.3
			
			
			-12
			
			
			-13.2
			
		


			Mapletree Industrial Trust
			
			
			ME8U
			
			
			10.5
			
			
			34
			
			
			18.1
			
		


			Singapore Press Holdings
			
			
			T39
			
			
			9.9
			
			
			-7
			
			
			4.9
			
		


			AEM Holdings
			
			
			AWX
			
			
			9.8
			
			
			43
			
			
			11.3
			
		


			UOL Group
			
			
			U14
			
			
			9.0
			
			
			20
			
			
			74.8
			
		


			SATS
			
			
			S58
			
			
			8.9
			
			
			6
			
			
			0.4
			
		


			Frasers Logistics &amp; Industrial Trust
			
			
			BUOU
			
			
			8.8
			
			
			27
			
			
			40.8
			
		


			Sembcorp Marine
			
			
			S51
			
			
			8.6
			
			
			-23
			
			
			-62.0
			
		


			Keppel DC REIT
			
			
			AJBU
			
			
			8.4
			
			
			52
			
			
			14.2
			
		


			NetLink NBN Trust
			
			
			CJLU
			
			
			8.3
			
			
			21
			
			
			-1.9
			
		


			Keppel REIT
			
			
			K71U
			
			
			8.3
			
			
			14
			
			
			46.8
			
		


			Sembcorp Industries
			
			
			U96
			
			
			8.2
			
			
			-18
			
			
			-89.6
			
		


			Hi-P International
			
			
			H17
			
			
			7.4
			
			
			34
			
			
			13.8
			
		


			Frasers Centrepoint Trust
			
			
			J69U
			
			
			5.9
			
			
			31
			
			
			9.9
			
		

Source: Thomson Reuters, Bloomberg (Data as of 4 October 2019)



Singapore’s Most Traded Manufacturing Stocks in 2019

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<ul>
<li>
In September, the STI edged 0.4% higher with dividends marginally improving the total return to 0.5%. This brought the STI’s total return for the first nine months of 2019 to 5.3%, while the FTSE ST Mid Cap Index almost doubled the STI’s gains with an 11.3% total return. 
	 </li>
	<li>
For the month of September, 23 primary-listed SGX stocks repurchased more than 30 million shares with a total consideration of S$15 million. This was down from S$70 million in August and down from S$94 million in Sept 2018. 
	 </li>
	<li>
September buyback consideration was led by Yangzijiang Shipbuilding, Stamford Land Corporation, Singapore Press Holdings, ST Engineering and Global Investments. Seven stocks initiated new buyback mandates. 
	 </li>
</ul>
Total share buyback consideration for month of September 2019 totaled S$14.9 million, the lowest consideration value for a month since December 2016. The month’s buyback was down from S$70.1 million in August and down from S$94 million in September 2018. There were 23 SGX primary-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 49.7 million shares. 
 

Volatility gauges of the Straits Times Index (“STI”) that take into consideration the last 180 and 250 trading days have continued to trend lower since January. The 180 day historical volatility gauge for the STI has declined from 13.8% in December 2018 to 10.1% yesterday.  Select stocks have also seen short-term volatility gauges decline, such as Oversea-Chinese Banking Corp seeing its 30 day historical volatility back at October 2017 levels. 
 

Last month, the STI edged 0.4% higher with dividend distributions from Venture Corporation and Genting Singapore marginally improving the STI total return to 0.5%. This brought the STI’s total return for the first nine months of 2019 to 5.3%. By comparison the FTSE ST Mid Cap Index generated an 11.3% total return, with the iEdge S-REIT Index generating a 25.9% total return over the nine months. 
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2019-10/Total%20share%20buyback%20consideration.PNG' alt='Monthly Share Buyback Consideration ' />
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 <div class='content-caption'>Monthly Share Buyback Consideration </div>
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Source: SGX My Gateway (Data as of 30 Sept  2019)

 

Seven Stocks Commenced New Mandates in September 2019 

The table below summarises the buyback considerations in September 2019. The table is sorted by the value of the total consideration amount for the month, which combines the amount of shares or units purchased and the purchasing price of the transactions. The seven stocks that commenced new mandates are highlighted in Bold.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stocks
			</td>
			<td>
			Number of Shares/units Authorised for Purchase in Current Mandate
			</td>
			<td>
			Sept 2019 Total Number of Shares/units Purchased
			</td>
			<td>
			Sept 2019 Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares
			</td>
			<td>
			Cumulative Number of Shares/units purchased in Mandate to date*
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING (HOLDINGS)
			</td>
			<td>
			394,576,520
			</td>
			<td>
			5,000,000
			</td>
			<td>
			$4,670,740
			</td>
			<td>
			25,000,000
			</td>
		</tr>
<tr>
<td>
			STAMFORD LAND CORPORATION
			</td>
			<td>
			81,973,408
			</td>
			<td>
			4,062,800
			</td>
			<td>
			$1,965,093
			</td>
			<td>
			19,773,600
			</td>
		</tr>
<tr>
<td>
			SINGAPORE PRESS HOLDINGS
			</td>
			<td>
			159,698,243
			</td>
			<td>
			939,500
			</td>
			<td>
			$1,829,054
			</td>
			<td>
			3,515,800
			</td>
		</tr>
<tr>
<td>
			SINGAPORE TECHNOLOGIES ENGINEERING
			</td>
			<td>
			62,432,801
			</td>
			<td>
			400,000
			</td>
			<td>
			$1,555,995
			</td>
			<td>
			3,670,700
			</td>
		</tr>
<tr>
<td>
			GLOBAL INVESTMENTS
			</td>
			<td>
			168,741,864
			</td>
			<td>
			10,949,000
			</td>
			<td>
			$1,493,282
			</td>
			<td>
			48,747,200
			</td>
		</tr>
<tr>
<td>
			SINGAPORE SHIPPING CORPORATION
			</td>
			<td>
			42,417,689
			</td>
			<td>
			2,809,000
			</td>
			<td>
			$818,461
			</td>
			<td>
			7,364,800
			</td>
		</tr>
<tr>
<td>
			REX INTERNATIONAL HOLDING
			</td>
			<td>
			129,122,045
			</td>
			<td>
			7,459,700
			</td>
			<td>
			$588,517
			</td>
			<td>
			13,187,000
			</td>
		</tr>
<tr>
<td>
			CHINA SUNSINE CHEMICAL HOLDINGS
			</td>
			<td>
			49,131,170
			</td>
			<td>
			508,000
			</td>
			<td>
			$510,541
			</td>
			<td>
			3,087,000
			</td>
		</tr>
<tr>
<td>
			HEALTHWAY MEDICAL CORPORATION
			</td>
			<td>
			226,439,605
			</td>
			<td>
			14,066,700
			</td>
			<td>
			$348,427
			</td>
			<td>
			14,066,700
			</td>
		</tr>
<tr>
<td>
			BREADTALK GROUP
			</td>
			<td>
			56,376,234
			</td>
			<td>
			495,000
			</td>
			<td>
			$312,402
			</td>
			<td>
			495,000
			</td>
		</tr>
<tr>
<td>
			HRNETGROUP
			</td>
			<td>
			100,581,957
			</td>
			<td>
			280,000
			</td>
			<td>
			$163,392
			</td>
			<td>
			502,000
			</td>
		</tr>
<tr>
<td>
			CDW HOLDING
			</td>
			<td>
			22,724,200
			</td>
			<td>
			645,500
			</td>
			<td>
			$124,075
			</td>
			<td>
			3,382,500
			</td>
		</tr>
<tr>
<td>
			CHEUNG WOH TECHNOLOGIES
			</td>
			<td>
			30,189,290
			</td>
			<td>
			743,700
			</td>
			<td>
			$109,334
			</td>
			<td>
			1,780,300
			</td>
		</tr>
<tr>
<td>
			FOOD EMPIRE HOLDINGS
			</td>
			<td>
			53,426,699
			</td>
			<td>
			200,000
			</td>
			<td>
			$100,812
			</td>
			<td>
			200,000
			</td>
		</tr>
<tr>
<td>
			JAPFA
			</td>
			<td>
			186,466,879
			</td>
			<td>
			167,800
			</td>
			<td>
			$76,784
			</td>
			<td>
			1,330,500
			</td>
		</tr>
<tr>
<td>
			STARBURST HOLDINGS
			</td>
			<td>
			12,114,546
			</td>
			<td>
			166,600
			</td>
			<td>
			$61,825
			</td>
			<td>
			166,600
			</td>
		</tr>
<tr>
<td>
			TUAN SING HOLDINGS
			</td>
			<td>
			118,620,496
			</td>
			<td>
			175,000
			</td>
			<td>
			$58,851
			</td>
			<td>
			3,705,000
			</td>
		</tr>
<tr>
<td>
			HONG FOK CORPORATION
			</td>
			<td>
			86,147,124
			</td>
			<td>
			62,100
			</td>
			<td>
			$52,638
			</td>
			<td>
			2,355,300
			</td>
		</tr>
<tr>
<td>
			EUROSPORTS GLOBAL
			</td>
			<td>
			26,220,160
			</td>
			<td>
			230,000
			</td>
			<td>
			$43,300
			</td>
			<td>
			230,000
			</td>
		</tr>
<tr>
<td>
			STRACO CORPORATION
			</td>
			<td>
			86,411,428
			</td>
			<td>
			38,300
			</td>
			<td>
			$28,862
			</td>
			<td>
			100,800
			</td>
		</tr>
<tr>
<td>
			SINGHAIYI GROUP
			</td>
			<td>
			421,905,217
			</td>
			<td>
			310,000
			</td>
			<td>
			$27,505
			</td>
			<td>
			310,000
			</td>
		</tr>
<tr>
<td>
			GRP
			</td>
			<td>
			19,370,161
			</td>
			<td>
			20,000
			</td>
			<td>
			$3,545
			</td>
			<td>
			1,857,200
			</td>
		</tr>
<tr>
<td>
			ANCHUN INTERNATIONAL HOLDINGS
			</td>
			<td>
			5,008,260
			</td>
			<td>
			2,700
			</td>
			<td>
			$583
			</td>
			<td>
			2,700
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			49,731,400
			</td>
			<td>
			$14,944,019
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolutions. 
Source: SGX My Gateway (Data as of 30 September 2019) 
 

Share buyback transactions involve share issuers repurchasing some of their outstanding shares from shareholders through the open market. Once the shares are bought back, they will be converted into treasury shares, which means they are no longer categorised as shares outstanding. Motivations for share buybacks can include employee compensation plans (such as share option schemes or employee share purchase plans) or long term capital management. 
 

The date of the relevant share buyback mandate is also provided in the table above, in addition to the amount of shares authorised to be bought back under the mandate. The total number of shares purchased under the mandate and the percentage of the companies that issued shares that have been repurchased under the mandate are also provided. 
 

Share buyback information can be found on the company disclosure page on the SGX website, using the Announcement category and sub-category of Share Buy Back-On Market (click <a href="http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/company_announcements">here</a>). As best practice, companies should refrain from buying back their shares during the two weeks immediately before its quarterly financial statements and one month immediately before the full-year financial statements.
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In September, the STI edged 0.4% higher with dividends marginally improving the total return to 0.5%. This brought the STI’s total return for the first nine months of 2019 to 5.3%, while the FTSE ST Mid Cap Index almost doubled the STI’s gains with an 11.3% total return.  
	 
	
For the month of September, 23 primary-listed SGX stocks repurchased more than 30 million shares with a total consideration of S$15 million. This was down from S$70 million in August and down from S$94 million in Sept 2018. 
	 
	
September buyback consideration was led by Yangzijiang Shipbuilding, Stamford Land Corporation, Singapore Press Holdings, ST Engineering and Global Investments. Seven stocks initiated new buyback mandates.  
	 

Total share buyback consideration for month of September 2019 totaled S$14.9 million, the lowest consideration value for a month since December 2016. The month’s buyback was down from S$70.1 million in August and down from S$94 million in September 2018. There were 23 SGX primary-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 49.7 million shares. 
 

Volatility gauges of the Straits Times Index (“STI”) that take into consideration the last 180 and 250 trading days have continued to trend lower since January. The 180 day historical volatility gauge for the STI has declined from 13.8% in December 2018 to 10.1% yesterday.  Select stocks have also seen short-term volatility gauges decline, such as Oversea-Chinese Banking Corp seeing its 30 day historical volatility back at October 2017 levels. 
 

Last month, the STI edged 0.4% higher with dividend distributions from Venture Corporation and Genting Singapore marginally improving the STI total return to 0.5%. This brought the STI’s total return for the first nine months of 2019 to 5.3%. By comparison the FTSE ST Mid Cap Index generated an 11.3% total return, with the iEdge S-REIT Index generating a 25.9% total return over the nine months. 



      
    
    Monthly Share Buyback Consideration 


Source: SGX My Gateway (Data as of 30 Sept  2019)

 

Seven Stocks Commenced New Mandates in September 2019 

The table below summarises the buyback considerations in September 2019. The table is sorted by the value of the total consideration amount for the month, which combines the amount of shares or units purchased and the purchasing price of the transactions. The seven stocks that commenced new mandates are highlighted in Bold.




			Stocks
			
			
			Number of Shares/units Authorised for Purchase in Current Mandate
			
			
			Sept 2019 Total Number of Shares/units Purchased
			
			
			Sept 2019 Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares
			
			
			Cumulative Number of Shares/units purchased in Mandate to date*
			
		


			YANGZIJIANG SHIPBUILDING (HOLDINGS)
			
			
			394,576,520
			
			
			5,000,000
			
			
			$4,670,740
			
			
			25,000,000
			
		


			STAMFORD LAND CORPORATION
			
			
			81,973,408
			
			
			4,062,800
			
			
			$1,965,093
			
			
			19,773,600
			
		


			SINGAPORE PRESS HOLDINGS
			
			
			159,698,243
			
			
			939,500
			
			
			$1,829,054
			
			
			3,515,800
			
		


			SINGAPORE TECHNOLOGIES ENGINEERING
			
			
			62,432,801
			
			
			400,000
			
			
			$1,555,995
			
			
			3,670,700
			
		


			GLOBAL INVESTMENTS
			
			
			168,741,864
			
			
			10,949,000
			
			
			$1,493,282
			
			
			48,747,200
			
		


			SINGAPORE SHIPPING CORPORATION
			
			
			42,417,689
			
			
			2,809,000
			
			
			$818,461
			
			
			7,364,800
			
		


			REX INTERNATIONAL HOLDING
			
			
			129,122,045
			
			
			7,459,700
			
			
			$588,517
			
			
			13,187,000
			
		


			CHINA SUNSINE CHEMICAL HOLDINGS
			
			
			49,131,170
			
			
			508,000
			
			
			$510,541
			
			
			3,087,000
			
		


			HEALTHWAY MEDICAL CORPORATION
			
			
			226,439,605
			
			
			14,066,700
			
			
			$348,427
			
			
			14,066,700
			
		


			BREADTALK GROUP
			
			
			56,376,234
			
			
			495,000
			
			
			$312,402
			
			
			495,000
			
		


			HRNETGROUP
			
			
			100,581,957
			
			
			280,000
			
			
			$163,392
			
			
			502,000
			
		


			CDW HOLDING
			
			
			22,724,200
			
			
			645,500
			
			
			$124,075
			
			
			3,382,500
			
		


			CHEUNG WOH TECHNOLOGIES
			
			
			30,189,290
			
			
			743,700
			
			
			$109,334
			
			
			1,780,300
			
		


			FOOD EMPIRE HOLDINGS
			
			
			53,426,699
			
			
			200,000
			
			
			$100,812
			
			
			200,000
			
		


			JAPFA
			
			
			186,466,879
			
			
			167,800
			
			
			$76,784
			
			
			1,330,500
			
		


			STARBURST HOLDINGS
			
			
			12,114,546
			
			
			166,600
			
			
			$61,825
			
			
			166,600
			
		


			TUAN SING HOLDINGS
			
			
			118,620,496
			
			
			175,000
			
			
			$58,851
			
			
			3,705,000
			
		


			HONG FOK CORPORATION
			
			
			86,147,124
			
			
			62,100
			
			
			$52,638
			
			
			2,355,300
			
		


			EUROSPORTS GLOBAL
			
			
			26,220,160
			
			
			230,000
			
			
			$43,300
			
			
			230,000
			
		


			STRACO CORPORATION
			
			
			86,411,428
			
			
			38,300
			
			
			$28,862
			
			
			100,800
			
		


			SINGHAIYI GROUP
			
			
			421,905,217
			
			
			310,000
			
			
			$27,505
			
			
			310,000
			
		


			GRP
			
			
			19,370,161
			
			
			20,000
			
			
			$3,545
			
			
			1,857,200
			
		


			ANCHUN INTERNATIONAL HOLDINGS
			
			
			5,008,260
			
			
			2,700
			
			
			$583
			
			
			2,700
			
		


			Total
			
			
			 
			
			
			49,731,400
			
			
			$14,944,019
			
			
			 
			
		

Percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolutions. 
Source: SGX My Gateway (Data as of 30 September 2019) 
 

Share buyback transactions involve share issuers repurchasing some of their outstanding shares from shareholders through the open market. Once the shares are bought back, they will be converted into treasury shares, which means they are no longer categorised as shares outstanding. Motivations for share buybacks can include employee compensation plans (such as share option schemes or employee share purchase plans) or long term capital management. 
 

The date of the relevant share buyback mandate is also provided in the table above, in addition to the amount of shares authorised to be bought back under the mandate. The total number of shares purchased under the mandate and the percentage of the companies that issued shares that have been repurchased under the mandate are also provided. 
 

Share buyback information can be found on the company disclosure page on the SGX website, using the Announcement category and sub-category of Share Buy Back-On Market (click here). As best practice, companies should refrain from buying back their shares during the two weeks immediately before its quarterly financial statements and one month immediately before the full-year financial statements.



Buybacks Scale Back as Long Term Volatility Gauges Ease           

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
SGX lists more than 200 stocks in the Industrials Sector. The 10 largest capitalised Industrials stocks have a combined market cap of more than S$160 billion, and are constituents of the benchmark STI. 
	 </li>
	<li>
Among these 10, the five with the highest ROEs are: ST Engineering (22.2%), Venture Corp (16.4%), SATS Ltd (15.1%), Yangzijiang Shipbuilding (13.2%) and ComfortDelGro Corp (11.6%). They have averaged a current ROE of 15.7%. 
	 </li>
	<li>
Of the five, Venture Corp and Yangzijiang Shipbuilding have registered higher ROEs for the latest FY versus their respective 5Y averages, while SATS and ST Engineering have maintained relatively stable ROEs over the periods.  
	 </li>
	<li>Comparing current ROE levels with 5Y averages provides insight into the company’s track record – stable or rising ROEs indicate that returns are consistently being generated from shareholders’ investments and the business is operating efficiently.</li>
</ul>
Singapore Exchange lists more than 200 stocks in the Industrials Sector. The 10 largest capitalised Industrials stocks have a combined market capitalisation of more than S$160 billion, and are constituents of the Straits Times Index (STI).

The STI is the most globally recognised benchmark index and market barometer for Singapore. With a history dating back to 1966, the diversified index tracks the performance of the 30 largest and most liquid companies listed on SGX. These 30 constituents have foundations spanning three centuries and multiple sectors, while maintaining a balance between local and regional economic exposures.

In the 2019 year-to-date, the STI has generated a total return of +5.4%, compared with FTSE Bursa Malaysia Kuala Lumpur Composite Index’s total return of -3.1%, the Jakarta Composite Index’s total return of +7.4%, the Stock Exchange of Thailand Index’s total return of 13.7% and the Philippine Stock Exchange Index’s total return of +7.5%.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-08/YTD%20Returns%20ROE%20Highlights%20of%20STIs%2010%20Largest%20Industrial.png" alt="YTD Returns ROE Highlights of STIs 10 Largest Industrial ">
 </figure>
 <div class="content-caption">YTD Returns ROE Highlights of STIs 10 Largest Industrial </div>
Source: Bloomberg (data as of 16 Aug 2019)

In terms of annualised 10-year total returns, the STI generated a total return of 9.2% over the 2008-2018 period, versus 10.0% for the MSCI ASEAN Index, 7.6% for the MSCI Asia Pacific Index, and 9.8% for the MSCI World Index.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-08/10Y%20Annualised%20Total%20Returns%20Industrials.png" alt="10Y Annualised Total Returns Industrials">
 </figure>
 <div class="content-caption">10Y Annualised Total Returns Industrials</div>
Source: Bloomberg

The 10 largest Industrials stocks of the STI are categorised to the following sub-segments: airport and transport services, air freight and logistics, engineering, defence, road and rail services, infrastructure, manufacturing, as well as offshore and marine services. They have averaged a ROE of 11.0%, a YTD total return of -0.5% and a 12-month dividend indicated yield of 3.5%.

Return on Equity (ROE), also known as return on net worth, measures a corporation's profitability by revealing how much earnings a business generates with the money shareholders have invested. ROE is expressed as a percentage and calculated by dividing net income against shareholder's equity, which refers to the company’s net assets, or assets minus liabilities.

The higher the ROE, the more efficient the company's operations are in making use of those funds. ROE is one of the tools by which investors can use to gauge a company’s growth potential – both in terms of earnings as well as share price appreciation. However, note that if the value of shareholder equity falls, ROE gains. Thus, write-downs, share buybacks and high debt levels can artificially boost ROE levels.

Among these 10 largest Industrials stocks, the five with the highest ROEs are: ST Engineering (22.2%), Venture Corp (16.4%), SATS Ltd (15.1%), Yangzijiang Shipbuilding (13.2%) and ComfortDelGro Corp (11.6%). They have averaged a current ROE of 15.7%.

Of the five, two – Venture Corp and Yangzijiang Shipbuilding – have registered higher ROEs for the latest financial year versus their respective five-year averages, while another two – SATS and ST Engineering – have maintained relatively stable ROEs over the periods.

Comparing current ROE levels with their five-year averages provides insight into the company’s track record – stable or rising ROEs indicate that returns are consistently being generated from shareholders’ investments and the business is operating efficiently.

In the YTD, these five plays have averaged a total return of 7.2%, bringing their one-year and three-year total returns to 3.8% and 33.3%. They have also averaged a dividend indicated yield of 4.3%. This compares with the STI’s YTD total return of 4.9% and yield of 4.1%.

The tables below detail the 10 largest Industrials stocks of the STI, sorted by current ROE levels.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			ROE (%)
			</td>
			<td>
			5Y Avg ROE (%)
			</td>
			<td>
			Div Ind Yld (%)
			</td>
		</tr>
<tr>
<td>
			ST ENGINEERING
			</td>
			<td>
			S63
			</td>
			<td>
			12,604
			</td>
			<td>
			22.2
			</td>
			<td>
			23.5
			</td>
			<td>
			3.7
			</td>
		</tr>
<tr>
<td>
			VENTURE CORP
			</td>
			<td>
			V03
			</td>
			<td>
			4,383
			</td>
			<td>
			16.4
			</td>
			<td>
			11.3
			</td>
			<td>
			4.6
			</td>
		</tr>
<tr>
<td>
			SATS LTD
			</td>
			<td>
			S58
			</td>
			<td>
			5,289
			</td>
			<td>
			15.1
			</td>
			<td>
			15.3
			</td>
			<td>
			4.0
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING
			</td>
			<td>
			BS6
			</td>
			<td>
			3,904
			</td>
			<td>
			13.2
			</td>
			<td>
			12.6
			</td>
			<td>
			4.8
			</td>
		</tr>
<tr>
<td>
			COMFORTDELGRO CORP
			</td>
			<td>
			C52
			</td>
			<td>
			5,393
			</td>
			<td>
			11.6
			</td>
			<td>
			12.6
			</td>
			<td>
			4.2
			</td>
		</tr>
<tr>
<td>
			KEPPEL CORP
			</td>
			<td>
			BN4
			</td>
			<td>
			10,701
			</td>
			<td>
			8.4
			</td>
			<td>
			10.0
			</td>
			<td>
			3.9
			</td>
		</tr>
<tr>
<td>
			JARDINE MATHESON*
			</td>
			<td>
			J36
			</td>
			<td>
			54,670
			</td>
			<td>
			6.6
			</td>
			<td>
			10.7
			</td>
			<td>
			3.2
			</td>
		</tr>
<tr>
<td>
			JARDINE STRATEGIC*
			</td>
			<td>
			J37
			</td>
			<td>
			49,716
			</td>
			<td>
			5.9
			</td>
			<td>
			9.7
			</td>
			<td>
			1.1
			</td>
		</tr>
<tr>
<td>
			SEMBCORP INDUSTRIES
			</td>
			<td>
			U96
			</td>
			<td>
			3,986
			</td>
			<td>
			5.1
			</td>
			<td>
			8.9
			</td>
			<td>
			1.8
			</td>
		</tr>
<tr>
<td>
			SINGAPORE AIRLINES
			</td>
			<td>
			C6L
			</td>
			<td>
			10,594
			</td>
			<td>
			5.2
			</td>
			<td>
			5.6
			</td>
			<td>
			3.4
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			11.0
			</td>
			<td>
			12.0
			</td>
			<td>
			3.5
			</td>
		</tr>
</tbody></table>
 

<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>
			ST ENGINEERING
			</td>
			<td>
			S63
			</td>
			<td>
			12,604
			</td>
			<td>
			18.8
			</td>
			<td>
			26.1
			</td>
			<td>
			37.9
			</td>
		</tr>
<tr>
<td>
			VENTURE CORP
			</td>
			<td>
			V03
			</td>
			<td>
			4,383
			</td>
			<td>
			12.4
			</td>
			<td>
			-9.1
			</td>
			<td>
			82.2
			</td>
		</tr>
<tr>
<td>
			SATS LTD
			</td>
			<td>
			S58
			</td>
			<td>
			5,289
			</td>
			<td>
			4.2
			</td>
			<td>
			-3.6
			</td>
			<td>
			8.9
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING
			</td>
			<td>
			BS6
			</td>
			<td>
			3,904
			</td>
			<td>
			-18.1
			</td>
			<td>
			-5.2
			</td>
			<td>
			40.5
			</td>
		</tr>
<tr>
<td>
			COMFORTDELGRO CORP
			</td>
			<td>
			C52
			</td>
			<td>
			5,393
			</td>
			<td>
			18.6
			</td>
			<td>
			10.9
			</td>
			<td>
			-2.9
			</td>
		</tr>
<tr>
<td>
			KEPPEL CORP
			</td>
			<td>
			BN4
			</td>
			<td>
			10,701
			</td>
			<td>
			3.1
			</td>
			<td>
			-8.4
			</td>
			<td>
			23.2
			</td>
		</tr>
<tr>
<td>
			JARDINE MATHESON*
			</td>
			<td>
			J36
			</td>
			<td>
			54,670
			</td>
			<td>
			-20.3
			</td>
			<td>
			-16.4
			</td>
			<td>
			0.2
			</td>
		</tr>
<tr>
<td>
			JARDINE STRATEGIC*
			</td>
			<td>
			J37
			</td>
			<td>
			49,716
			</td>
			<td>
			-9.8
			</td>
			<td>
			-12.1
			</td>
			<td>
			7.3
			</td>
		</tr>
<tr>
<td>
			SEMBCORP INDUSTRIES
			</td>
			<td>
			U96
			</td>
			<td>
			3,986
			</td>
			<td>
			-11.6
			</td>
			<td>
			-15.6
			</td>
			<td>
			-14.0
			</td>
		</tr>
<tr>
<td>
			SINGAPORE AIRLINES
			</td>
			<td>
			C6L
			</td>
			<td>
			10,594
			</td>
			<td>
			-2.8
			</td>
			<td>
			-3.1
			</td>
			<td>
			-10.3
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			-0.5
			</td>
			<td>
			-3.6
			</td>
			<td>
			17.3
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 16 Aug 2019)

*traded in USD, with SGD equivalents shown in table
</body></html>





SGX lists more than 200 stocks in the Industrials Sector. The 10 largest capitalised Industrials stocks have a combined market cap of more than S$160 billion, and are constituents of the benchmark STI. 
	 
	
Among these 10, the five with the highest ROEs are: ST Engineering (22.2%), Venture Corp (16.4%), SATS Ltd (15.1%), Yangzijiang Shipbuilding (13.2%) and ComfortDelGro Corp (11.6%). They have averaged a current ROE of 15.7%. 
	 
	
Of the five, Venture Corp and Yangzijiang Shipbuilding have registered higher ROEs for the latest FY versus their respective 5Y averages, while SATS and ST Engineering have maintained relatively stable ROEs over the periods.  
	 
	Comparing current ROE levels with 5Y averages provides insight into the company’s track record – stable or rising ROEs indicate that returns are consistently being generated from shareholders’ investments and the business is operating efficiently.

Singapore Exchange lists more than 200 stocks in the Industrials Sector. The 10 largest capitalised Industrials stocks have a combined market capitalisation of more than S$160 billion, and are constituents of the Straits Times Index (STI).

The STI is the most globally recognised benchmark index and market barometer for Singapore. With a history dating back to 1966, the diversified index tracks the performance of the 30 largest and most liquid companies listed on SGX. These 30 constituents have foundations spanning three centuries and multiple sectors, while maintaining a balance between local and regional economic exposures.

In the 2019 year-to-date, the STI has generated a total return of +5.4%, compared with FTSE Bursa Malaysia Kuala Lumpur Composite Index’s total return of -3.1%, the Jakarta Composite Index’s total return of +7.4%, the Stock Exchange of Thailand Index’s total return of 13.7% and the Philippine Stock Exchange Index’s total return of +7.5%.

      
    
    YTD Returns ROE Highlights of STIs 10 Largest Industrial 
Source: Bloomberg (data as of 16 Aug 2019)

In terms of annualised 10-year total returns, the STI generated a total return of 9.2% over the 2008-2018 period, versus 10.0% for the MSCI ASEAN Index, 7.6% for the MSCI Asia Pacific Index, and 9.8% for the MSCI World Index.

      
    
    10Y Annualised Total Returns Industrials
Source: Bloomberg

The 10 largest Industrials stocks of the STI are categorised to the following sub-segments: airport and transport services, air freight and logistics, engineering, defence, road and rail services, infrastructure, manufacturing, as well as offshore and marine services. They have averaged a ROE of 11.0%, a YTD total return of -0.5% and a 12-month dividend indicated yield of 3.5%.

Return on Equity (ROE), also known as return on net worth, measures a corporation's profitability by revealing how much earnings a business generates with the money shareholders have invested. ROE is expressed as a percentage and calculated by dividing net income against shareholder's equity, which refers to the company’s net assets, or assets minus liabilities.

The higher the ROE, the more efficient the company's operations are in making use of those funds. ROE is one of the tools by which investors can use to gauge a company’s growth potential – both in terms of earnings as well as share price appreciation. However, note that if the value of shareholder equity falls, ROE gains. Thus, write-downs, share buybacks and high debt levels can artificially boost ROE levels.

Among these 10 largest Industrials stocks, the five with the highest ROEs are: ST Engineering (22.2%), Venture Corp (16.4%), SATS Ltd (15.1%), Yangzijiang Shipbuilding (13.2%) and ComfortDelGro Corp (11.6%). They have averaged a current ROE of 15.7%.

Of the five, two – Venture Corp and Yangzijiang Shipbuilding – have registered higher ROEs for the latest financial year versus their respective five-year averages, while another two – SATS and ST Engineering – have maintained relatively stable ROEs over the periods.

Comparing current ROE levels with their five-year averages provides insight into the company’s track record – stable or rising ROEs indicate that returns are consistently being generated from shareholders’ investments and the business is operating efficiently.

In the YTD, these five plays have averaged a total return of 7.2%, bringing their one-year and three-year total returns to 3.8% and 33.3%. They have also averaged a dividend indicated yield of 4.3%. This compares with the STI’s YTD total return of 4.9% and yield of 4.1%.

The tables below detail the 10 largest Industrials stocks of the STI, sorted by current ROE levels.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			ROE (%)
			
			
			5Y Avg ROE (%)
			
			
			Div Ind Yld (%)
			
		


			ST ENGINEERING
			
			
			S63
			
			
			12,604
			
			
			22.2
			
			
			23.5
			
			
			3.7
			
		


			VENTURE CORP
			
			
			V03
			
			
			4,383
			
			
			16.4
			
			
			11.3
			
			
			4.6
			
		


			SATS LTD
			
			
			S58
			
			
			5,289
			
			
			15.1
			
			
			15.3
			
			
			4.0
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			3,904
			
			
			13.2
			
			
			12.6
			
			
			4.8
			
		


			COMFORTDELGRO CORP
			
			
			C52
			
			
			5,393
			
			
			11.6
			
			
			12.6
			
			
			4.2
			
		


			KEPPEL CORP
			
			
			BN4
			
			
			10,701
			
			
			8.4
			
			
			10.0
			
			
			3.9
			
		


			JARDINE MATHESON*
			
			
			J36
			
			
			54,670
			
			
			6.6
			
			
			10.7
			
			
			3.2
			
		


			JARDINE STRATEGIC*
			
			
			J37
			
			
			49,716
			
			
			5.9
			
			
			9.7
			
			
			1.1
			
		


			SEMBCORP INDUSTRIES
			
			
			U96
			
			
			3,986
			
			
			5.1
			
			
			8.9
			
			
			1.8
			
		


			SINGAPORE AIRLINES
			
			
			C6L
			
			
			10,594
			
			
			5.2
			
			
			5.6
			
			
			3.4
			
		


			Average
			
			
			 
			
			
			 
			
			
			11.0
			
			
			12.0
			
			
			3.5
			
		

 




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


			ST ENGINEERING
			
			
			S63
			
			
			12,604
			
			
			18.8
			
			
			26.1
			
			
			37.9
			
		


			VENTURE CORP
			
			
			V03
			
			
			4,383
			
			
			12.4
			
			
			-9.1
			
			
			82.2
			
		


			SATS LTD
			
			
			S58
			
			
			5,289
			
			
			4.2
			
			
			-3.6
			
			
			8.9
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			3,904
			
			
			-18.1
			
			
			-5.2
			
			
			40.5
			
		


			COMFORTDELGRO CORP
			
			
			C52
			
			
			5,393
			
			
			18.6
			
			
			10.9
			
			
			-2.9
			
		


			KEPPEL CORP
			
			
			BN4
			
			
			10,701
			
			
			3.1
			
			
			-8.4
			
			
			23.2
			
		


			JARDINE MATHESON*
			
			
			J36
			
			
			54,670
			
			
			-20.3
			
			
			-16.4
			
			
			0.2
			
		


			JARDINE STRATEGIC*
			
			
			J37
			
			
			49,716
			
			
			-9.8
			
			
			-12.1
			
			
			7.3
			
		


			SEMBCORP INDUSTRIES
			
			
			U96
			
			
			3,986
			
			
			-11.6
			
			
			-15.6
			
			
			-14.0
			
		


			SINGAPORE AIRLINES
			
			
			C6L
			
			
			10,594
			
			
			-2.8
			
			
			-3.1
			
			
			-10.3
			
		


			Average
			
			
			 
			
			
			 
			
			
			-0.5
			
			
			-3.6
			
			
			17.3
			
		

Source: Bloomberg &amp; StockFacts (data as of 16 Aug 2019)

*traded in USD, with SGD equivalents shown in table



ROE Highlights of STI’s 10 Largest Industrials Constituents

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<ul>
<li>
In 1H19, Singapore’s 30 most actively traded manufacturers (non-food) produced 20% average total returns, outpacing STI gains, in a similar style to their below benchmark performance amidst declines in 2018, and above benchmark total returns amidst gains in 2017 and 2016.  
	 </li>
	<li>
1H19 total returns of the 30 stocks were more consistent than recent years, with a median 21% total return, 24 gainers &amp; six decliners, combined net institutional inflows of S$264 million; with Memtech, Jadason &amp; Hi-P Int, the strongest performing of the 30.  
	 </li>
	<li>Together the 30 stocks accounted for more than one-tenth of the day-to-day turnover of the Singapore stock market in 1H19. Manufacturers YZJ, Venture, Sing Tech Eng, AEM &amp; Sembcorp Marine were also amidst Singapore’s 30 most active stocks by turnover for 1H19.  </li>
</ul>
The global economy in the first half of 2019 was mostly characterised by downgrades to the outlook for global economic growth, weakening Purchasing Manufacturing Indices across the globe and trade tensions between the World’s two largest economies returning in early May through to end of June.

However, an outlook of lower interest rates, strength in commodity prices, combined with the fact that the 2019 decelerating growth had begun to be built into market expectations in 2018, saw the majority of Singapore’s 30 most actively traded non-food manufacturing stocks generate positive gains in 1H19.  The average market value of these 30 stocks, measured by their market capitalisation is S$1.2 billion. Hence in many cases these businesses are either multinational corporations or amongst the leaders in their product field. 

These 30 stocks include five companies that are amongst Singapore’s 50 biggest companies by market capitalisation - Singapore Tech Engineering, Yangzijiang Shipbuilding, Venture Corporation, Sembcorp Marine and Haw Par Corp.

Cyclical Nature of Manufacturing

Performance of the manufacturing stocks over the past three and half years is illustrated in the chart below. The mean and median total returns of the 30 manufacturing stocks is provided in addition to the STI total returns. Note while each stock has its own intrinsic drivers – from product cycles to market share, the combined performances of the 30 manufacturing stocks that span multiple sectors and countries can provide for a general inference to past trends and sensitivity to global growth.

When the STI generated positive gains, the manufacturing stocks outpaced those benchmark gains and when the STI generated declines, the manufacturing stocks tended to exacerbate the benchmark’s decline.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-07/Total%20Returns%20of%2030%20Most%20Active%20Manufacturing%20Stocks%20%28%25%29.JPG" alt="Total Returns of 30 Most Active Manufacturing Stocks (%)">
 </figure>
 <div class="content-caption">Total Returns of 30 Most Active Manufacturing Stocks (%)</div>
Recent years has seen some significant swings to the global growth outlook which has decelerated since Singapore was amongst the strongest growing advanced economies across the world in 2017.   

During the period covered in the above chart, the Singapore SIPMM recorded 32 months of consecutive expansion, before registering a 49.9 contraction for Singapore in May. The PMI for June is expected to be released before the market open tomorrow. SIPMM noted in recent releases that anecdotal evidence suggested that manufacturers are increasingly concerned about the escalation of trade tensions between the world’s two largest economies. Any reprieve following the G20 developments over the weekend would expected to be shown in the July PMI to be released in early August. 

Total returns of the 30 stocks in 1H19 were more consistent than recent years, with a median 21.1% total return and average total return of 20.4%. This was a contrast to the skew in 2017 average total returns due to performances from AEM Holdings, Jadason Enterprises and Hi-P International. 

In terms of net institutional inflow, Yangzijiang Shipbuilding and Singapore Tech Engineering ranked as the second and fifth highest recipients amongst all SGX stocks in the 1H19. Combined the 30 stocks saw net institutional inflows of S$264 million over 1H19. The segment also contributed over one-tenth of the day-to-day turnover value of all stocks listed on the SGX.

The 30 non-food manufacturing stocks, sort by highest turnover in  are tabled below.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			1H19 Overall

			Turnover Ranking 
			</td>
			<td>
			1H19 Overall

			Market Cap Ranking 
			</td>
			<td>
			Total Return 1H19 %
			</td>
			<td>
			Total Return 2018 %
			</td>
			<td>
			12M Historical Volatility %
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING
			</td>
			<td>
			BS6
			</td>
			<td>
			7
			</td>
			<td>
			27
			</td>
			<td>
			27
			</td>
			<td>
			-11.4
			</td>
			<td>
			36
			</td>
		</tr>
<tr>
<td>
			VENTURE CORP
			</td>
			<td>
			V03
			</td>
			<td>
			11
			</td>
			<td>
			34
			</td>
			<td>
			20
			</td>
			<td>
			-29.1
			</td>
			<td>
			41
			</td>
		</tr>
<tr>
<td>
			SINGAPORE TECH ENGINEERING
			</td>
			<td>
			S63
			</td>
			<td>
			19
			</td>
			<td>
			14
			</td>
			<td>
			22
			</td>
			<td>
			11.8
			</td>
			<td>
			19
			</td>
		</tr>
<tr>
<td>
			AEM HOLDINGS
			</td>
			<td>
			AWX
			</td>
			<td>
			27
			</td>
			<td>
			185
			</td>
			<td>
			27
			</td>
			<td>
			1.5
			</td>
			<td>
			67
			</td>
		</tr>
<tr>
<td>
			SEMBCORP MARINE
			</td>
			<td>
			S51
			</td>
			<td>
			30
			</td>
			<td>
			45
			</td>
			<td>
			-2
			</td>
			<td>
			-15.9
			</td>
			<td>
			30
			</td>
		</tr>
<tr>
<td>
			HI-P INTERNATIONAL
			</td>
			<td>
			H17
			</td>
			<td>
			32
			</td>
			<td>
			90
			</td>
			<td>
			62
			</td>
			<td>
			-50.8
			</td>
			<td>
			66
			</td>
		</tr>
<tr>
<td>
			VALUETRONICS HOLDINGS
			</td>
			<td>
			BN2
			</td>
			<td>
			56
			</td>
			<td>
			176
			</td>
			<td>
			4
			</td>
			<td>
			-22.8
			</td>
			<td>
			38
			</td>
		</tr>
<tr>
<td>
			CREATIVE TECHNOLOGY
			</td>
			<td>
			C76
			</td>
			<td>
			71
			</td>
			<td>
			182
			</td>
			<td>
			-2
			</td>
			<td>
			254.2
			</td>
			<td>
			58
			</td>
		</tr>
<tr>
<td>
			SUNPOWER GROUP
			</td>
			<td>
			5GD
			</td>
			<td>
			72
			</td>
			<td>
			158
			</td>
			<td>
			50
			</td>
			<td>
			-27.6
			</td>
			<td>
			67
			</td>
		</tr>
<tr>
<td>
			FRENCKEN GROUP
			</td>
			<td>
			E28
			</td>
			<td>
			86
			</td>
			<td>
			186
			</td>
			<td>
			61
			</td>
			<td>
			-18.9
			</td>
			<td>
			49
			</td>
		</tr>
<tr>
<td>
			HAW PAR CORP
			</td>
			<td>
			H02
			</td>
			<td>
			92
			</td>
			<td>
			46
			</td>
			<td>
			26
			</td>
			<td>
			7.9
			</td>
			<td>
			18
			</td>
		</tr>
<tr>
<td>
			SUNNINGDALE TECH
			</td>
			<td>
			BHQ
			</td>
			<td>
			106
			</td>
			<td>
			191
			</td>
			<td>
			-1
			</td>
			<td>
			-21.9
			</td>
			<td>
			30
			</td>
		</tr>
<tr>
<td>
			FU YU CORP
			</td>
			<td>
			F13
			</td>
			<td>
			117
			</td>
			<td>
			231
			</td>
			<td>
			13
			</td>
			<td>
			10.1
			</td>
			<td>
			28
			</td>
		</tr>
<tr>
<td>
			MEMTECH INTERNATIONAL
			</td>
			<td>
			BOL
			</td>
			<td>
			123
			</td>
			<td>
			211
			</td>
			<td>
			77
			</td>
			<td>
			-23.5
			</td>
			<td>
			49
			</td>
		</tr>
<tr>
<td>
			SARINE TECHNOLOGIES
			</td>
			<td>
			U77
			</td>
			<td>
			133
			</td>
			<td>
			260
			</td>
			<td>
			-29
			</td>
			<td>
			-52.0
			</td>
			<td>
			49
			</td>
		</tr>
<tr>
<td>
			RIVERSTONE HOLDINGS
			</td>
			<td>
			AP4
			</td>
			<td>
			142
			</td>
			<td>
			123
			</td>
			<td>
			-13
			</td>
			<td>
			7.9
			</td>
			<td>
			23
			</td>
		</tr>
<tr>
<td>
			INNOTEK
			</td>
			<td>
			M14
			</td>
			<td>
			161
			</td>
			<td>
			251
			</td>
			<td>
			29
			</td>
			<td>
			18.3
			</td>
			<td>
			40
			</td>
		</tr>
<tr>
<td>
			MANUFACTURING INTEGRATION
			</td>
			<td>
			M11
			</td>
			<td>
			167
			</td>
			<td>
			357
			</td>
			<td>
			19
			</td>
			<td>
			18.1
			</td>
			<td>
			67
			</td>
		</tr>
<tr>
<td>
			CHUAN HUP HOLDINGS
			</td>
			<td>
			C33
			</td>
			<td>
			173
			</td>
			<td>
			192
			</td>
			<td>
			30
			</td>
			<td>
			-3.7
			</td>
			<td>
			42
			</td>
		</tr>
<tr>
<td>
			JEP HOLDINGS
			</td>
			<td>
			1J4
			</td>
			<td>
			174
			</td>
			<td>
			329
			</td>
			<td>
			10
			</td>
			<td>
			-3.6
			</td>
			<td>
			54
			</td>
		</tr>
<tr>
<td>
			HANWELL HOLDINGS
			</td>
			<td>
			DM0
			</td>
			<td>
			193
			</td>
			<td>
			255
			</td>
			<td>
			45
			</td>
			<td>
			-43.6
			</td>
			<td>
			40
			</td>
		</tr>
<tr>
<td>
			MIYOSHI
			</td>
			<td>
			M03
			</td>
			<td>
			195
			</td>
			<td>
			437
			</td>
			<td>
			10
			</td>
			<td>
			-39.6
			</td>
			<td>
			60
			</td>
		</tr>
<tr>
<td>
			AA GROUP HOLDINGS
			</td>
			<td>
			5GZ
			</td>
			<td>
			196
			</td>
			<td>
			485
			</td>
			<td>
			-47
			</td>
			<td>
			-51.3
			</td>
			<td>
			127
			</td>
		</tr>
<tr>
<td>
			AVARGA
			</td>
			<td>
			U09
			</td>
			<td>
			199
			</td>
			<td>
			213
			</td>
			<td>
			23
			</td>
			<td>
			-23.4
			</td>
			<td>
			41
			</td>
		</tr>
<tr>
<td>
			HALCYON AGRI CORP
			</td>
			<td>
			5VJ
			</td>
			<td>
			207
			</td>
			<td>
			118
			</td>
			<td>
			22
			</td>
			<td>
			-29.8
			</td>
			<td>
			41
			</td>
		</tr>
<tr>
<td>
			JADASON ENTERPRISES
			</td>
			<td>
			J03
			</td>
			<td>
			222
			</td>
			<td>
			450
			</td>
			<td>
			75
			</td>
			<td>
			-73.7
			</td>
			<td>
			137
			</td>
		</tr>
<tr>
<td>
			IX BIOPHARMA
			</td>
			<td>
			42C
			</td>
			<td>
			228
			</td>
			<td>
			225
			</td>
			<td>
			43
			</td>
			<td>
			-15.2
			</td>
			<td>
			66
			</td>
		</tr>
<tr>
<td>
			ELEC &amp; ELTEK INT CO
			</td>
			<td>
			E16
			</td>
			<td>
			229
			</td>
			<td>
			170
			</td>
			<td>
			8
			</td>
			<td>
			-11.7
			</td>
			<td>
			34
			</td>
		</tr>
<tr>
<td>
			NAM LEE PRESSED METAL IND
			</td>
			<td>
			G0I
			</td>
			<td>
			232
			</td>
			<td>
			282
			</td>
			<td>
			5
			</td>
			<td>
			1.1
			</td>
			<td>
			25
			</td>
		</tr>
<tr>
<td>
			MICRO-MECHANICS HOLDINGS
			</td>
			<td>
			5DD
			</td>
			<td>
			242
			</td>
			<td>
			200
			</td>
			<td>
			-4
			</td>
			<td>
			-16.2
			</td>
			<td>
			21
			</td>
		</tr>
</tbody></table>
Source: SGX StockFacts, Bloomberg (Data as of 30 June 2019) . Note overall turnover ranking is based on highest 1H19 average daily traded turnover for currently listed stocks.
</body></html>





In 1H19, Singapore’s 30 most actively traded manufacturers (non-food) produced 20% average total returns, outpacing STI gains, in a similar style to their below benchmark performance amidst declines in 2018, and above benchmark total returns amidst gains in 2017 and 2016.   
	 
	
1H19 total returns of the 30 stocks were more consistent than recent years, with a median 21% total return, 24 gainers &amp; six decliners, combined net institutional inflows of S$264 million; with Memtech, Jadason &amp; Hi-P Int, the strongest performing of the 30.   
	 
	Together the 30 stocks accounted for more than one-tenth of the day-to-day turnover of the Singapore stock market in 1H19. Manufacturers YZJ, Venture, Sing Tech Eng, AEM &amp; Sembcorp Marine were also amidst Singapore’s 30 most active stocks by turnover for 1H19.  

The global economy in the first half of 2019 was mostly characterised by downgrades to the outlook for global economic growth, weakening Purchasing Manufacturing Indices across the globe and trade tensions between the World’s two largest economies returning in early May through to end of June.

However, an outlook of lower interest rates, strength in commodity prices, combined with the fact that the 2019 decelerating growth had begun to be built into market expectations in 2018, saw the majority of Singapore’s 30 most actively traded non-food manufacturing stocks generate positive gains in 1H19.  The average market value of these 30 stocks, measured by their market capitalisation is S$1.2 billion. Hence in many cases these businesses are either multinational corporations or amongst the leaders in their product field. 

These 30 stocks include five companies that are amongst Singapore’s 50 biggest companies by market capitalisation - Singapore Tech Engineering, Yangzijiang Shipbuilding, Venture Corporation, Sembcorp Marine and Haw Par Corp.

Cyclical Nature of Manufacturing

Performance of the manufacturing stocks over the past three and half years is illustrated in the chart below. The mean and median total returns of the 30 manufacturing stocks is provided in addition to the STI total returns. Note while each stock has its own intrinsic drivers – from product cycles to market share, the combined performances of the 30 manufacturing stocks that span multiple sectors and countries can provide for a general inference to past trends and sensitivity to global growth.

When the STI generated positive gains, the manufacturing stocks outpaced those benchmark gains and when the STI generated declines, the manufacturing stocks tended to exacerbate the benchmark’s decline.

      
    
    Total Returns of 30 Most Active Manufacturing Stocks (%)
Recent years has seen some significant swings to the global growth outlook which has decelerated since Singapore was amongst the strongest growing advanced economies across the world in 2017.   

During the period covered in the above chart, the Singapore SIPMM recorded 32 months of consecutive expansion, before registering a 49.9 contraction for Singapore in May. The PMI for June is expected to be released before the market open tomorrow. SIPMM noted in recent releases that anecdotal evidence suggested that manufacturers are increasingly concerned about the escalation of trade tensions between the world’s two largest economies. Any reprieve following the G20 developments over the weekend would expected to be shown in the July PMI to be released in early August. 

Total returns of the 30 stocks in 1H19 were more consistent than recent years, with a median 21.1% total return and average total return of 20.4%. This was a contrast to the skew in 2017 average total returns due to performances from AEM Holdings, Jadason Enterprises and Hi-P International. 

In terms of net institutional inflow, Yangzijiang Shipbuilding and Singapore Tech Engineering ranked as the second and fifth highest recipients amongst all SGX stocks in the 1H19. Combined the 30 stocks saw net institutional inflows of S$264 million over 1H19. The segment also contributed over one-tenth of the day-to-day turnover value of all stocks listed on the SGX.

The 30 non-food manufacturing stocks, sort by highest turnover in  are tabled below.




			Name
			
			
			SGX Code
			
			
			1H19 Overall

			Turnover Ranking 
			
			
			1H19 Overall

			Market Cap Ranking 
			
			
			Total Return 1H19 %
			
			
			Total Return 2018 %
			
			
			12M Historical Volatility %
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			7
			
			
			27
			
			
			27
			
			
			-11.4
			
			
			36
			
		


			VENTURE CORP
			
			
			V03
			
			
			11
			
			
			34
			
			
			20
			
			
			-29.1
			
			
			41
			
		


			SINGAPORE TECH ENGINEERING
			
			
			S63
			
			
			19
			
			
			14
			
			
			22
			
			
			11.8
			
			
			19
			
		


			AEM HOLDINGS
			
			
			AWX
			
			
			27
			
			
			185
			
			
			27
			
			
			1.5
			
			
			67
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			30
			
			
			45
			
			
			-2
			
			
			-15.9
			
			
			30
			
		


			HI-P INTERNATIONAL
			
			
			H17
			
			
			32
			
			
			90
			
			
			62
			
			
			-50.8
			
			
			66
			
		


			VALUETRONICS HOLDINGS
			
			
			BN2
			
			
			56
			
			
			176
			
			
			4
			
			
			-22.8
			
			
			38
			
		


			CREATIVE TECHNOLOGY
			
			
			C76
			
			
			71
			
			
			182
			
			
			-2
			
			
			254.2
			
			
			58
			
		


			SUNPOWER GROUP
			
			
			5GD
			
			
			72
			
			
			158
			
			
			50
			
			
			-27.6
			
			
			67
			
		


			FRENCKEN GROUP
			
			
			E28
			
			
			86
			
			
			186
			
			
			61
			
			
			-18.9
			
			
			49
			
		


			HAW PAR CORP
			
			
			H02
			
			
			92
			
			
			46
			
			
			26
			
			
			7.9
			
			
			18
			
		


			SUNNINGDALE TECH
			
			
			BHQ
			
			
			106
			
			
			191
			
			
			-1
			
			
			-21.9
			
			
			30
			
		


			FU YU CORP
			
			
			F13
			
			
			117
			
			
			231
			
			
			13
			
			
			10.1
			
			
			28
			
		


			MEMTECH INTERNATIONAL
			
			
			BOL
			
			
			123
			
			
			211
			
			
			77
			
			
			-23.5
			
			
			49
			
		


			SARINE TECHNOLOGIES
			
			
			U77
			
			
			133
			
			
			260
			
			
			-29
			
			
			-52.0
			
			
			49
			
		


			RIVERSTONE HOLDINGS
			
			
			AP4
			
			
			142
			
			
			123
			
			
			-13
			
			
			7.9
			
			
			23
			
		


			INNOTEK
			
			
			M14
			
			
			161
			
			
			251
			
			
			29
			
			
			18.3
			
			
			40
			
		


			MANUFACTURING INTEGRATION
			
			
			M11
			
			
			167
			
			
			357
			
			
			19
			
			
			18.1
			
			
			67
			
		


			CHUAN HUP HOLDINGS
			
			
			C33
			
			
			173
			
			
			192
			
			
			30
			
			
			-3.7
			
			
			42
			
		


			JEP HOLDINGS
			
			
			1J4
			
			
			174
			
			
			329
			
			
			10
			
			
			-3.6
			
			
			54
			
		


			HANWELL HOLDINGS
			
			
			DM0
			
			
			193
			
			
			255
			
			
			45
			
			
			-43.6
			
			
			40
			
		


			MIYOSHI
			
			
			M03
			
			
			195
			
			
			437
			
			
			10
			
			
			-39.6
			
			
			60
			
		


			AA GROUP HOLDINGS
			
			
			5GZ
			
			
			196
			
			
			485
			
			
			-47
			
			
			-51.3
			
			
			127
			
		


			AVARGA
			
			
			U09
			
			
			199
			
			
			213
			
			
			23
			
			
			-23.4
			
			
			41
			
		


			HALCYON AGRI CORP
			
			
			5VJ
			
			
			207
			
			
			118
			
			
			22
			
			
			-29.8
			
			
			41
			
		


			JADASON ENTERPRISES
			
			
			J03
			
			
			222
			
			
			450
			
			
			75
			
			
			-73.7
			
			
			137
			
		


			IX BIOPHARMA
			
			
			42C
			
			
			228
			
			
			225
			
			
			43
			
			
			-15.2
			
			
			66
			
		


			ELEC &amp; ELTEK INT CO
			
			
			E16
			
			
			229
			
			
			170
			
			
			8
			
			
			-11.7
			
			
			34
			
		


			NAM LEE PRESSED METAL IND
			
			
			G0I
			
			
			232
			
			
			282
			
			
			5
			
			
			1.1
			
			
			25
			
		


			MICRO-MECHANICS HOLDINGS
			
			
			5DD
			
			
			242
			
			
			200
			
			
			-4
			
			
			-16.2
			
			
			21
			
		

Source: SGX StockFacts, Bloomberg (Data as of 30 June 2019) . Note overall turnover ranking is based on highest 1H19 average daily traded turnover for currently listed stocks.



Manufacturing Stocks Outpaced Benchmarks with 20% Gains in 1H19





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

Yangzijiang Shipbuilding (Holdings) Limited builds a wide range of ships. The Company produces a wide range of commercial vessels, mini bulk carriers, multi-purpose cargo vessels, containerships, chemical tankers, offshore supply vessels, rescue and salvage vessels, and lifting vessels.

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52-week Range	0.00 - 0.00
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Yangzijiang Shipbuilding (YZJSGD SP)

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