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.

Asia’s leading multi-asset exchange

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

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

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<li>
The iEdge SG All Healthcare Index has generated a 30% total return in 3Q20, adding to its 37% total return in 1H20. Volatility of the Index continued to climb, with the 90 day annualised volatility of the Index increasing from 35% at the end of June to 45% as of 29 Sep. 
	 </li>
	<li>
Combined average daily turnover of iEdge SG All Healthcare Index constituents in 2020 increased to $66 million a day as of 29 Sep, from $36 million as of 30 June, on the back of comparatively wider price swings of medical suppliers attracting short-term investors with more risk-to-return tolerance. 
	 </li>
	<li>
For its FY20 (ending 31 Aug) Top Glove’s net profit increased 412% YoY. This coincided with a 12M 410% total return for the stock through to 17 Sep, the day its FY20 results were reported. Top Glove estimates glove demand will grow by 20% per annum in 2020, 25% in 2021 and 15% post-COVID-19. 
	 </li>
	<li>
Also on 17 Sep, the Employees Provident Fund Board of Malaysia become a substantial shareholder of Riverstone Holdings with the acquisition of 2 million shares increasing its direct interest in Riverstone Holdings from 4.86 per cent to 5.13 per cent.   
</li>
</ul>
 

Big Swings of Big Global Healthcare Stocks 
The first half of 2020 saw sharp economic contractions across the world with lockdowns containing the spread of COVID-19 to 10 million people with a 4.9% mortality rate. The tally of COVID-19 infections has since more than tripled to 33 million cases, with effective treatments and more prevalent testing seeing the total mortality rate decline from 4.9% to 3.0%. 
While the social and economic consequences of lockdowns to contain COVID-19 have been the major policy and market drivers in 2020, containment measures have directly impacted the demand for healthcare products. This has naturally impacted the business of listed providers of medical equipment and supplies. From the end of June through to 29 September, the top quartile of global healthcare stocks by market value generated a 3% median total return (with average total returns of 12%) on current median 90 day volatility of 48%. 
This has brought the median total return of the top quartile of global healthcare stocks by market value to 20% and the average total return to 120%, the latter on skewed outlier performances of providers of medical equipment and supplies. Continued Global Focus on Medical Supply Stocks Extends to Singapore 
From the end of June through to 29 September, the iEdge SG All Healthcare Index generated a 29% price gain, adding to its 35% gain in the first half of 2020. This brought its 2020 year to 29 September price return to 74%. The 90-day volatility of the Index also continued to rise in the third quarter, moving from 35% at the end of June to 45% as of 29 September. 
The big swings of the healthcare stocks that represent the sub-industries of medical supplies and equipment continued to attract active investors seeking shorter-term trading returns with increased risk. This saw the combined average daily turnover of the full constituents of the iEdge SG All Healthcare rise from S$36 million a day as of the end of June, to S$66 million a day as of 29 September. The combined average daily turnover of the constituents of the iEdge SG All Healthcare Index in 2019 was less than S$10 million a day. 
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-09/Capture_13.PNG' alt='iEdge SG All Healthcare Inde x Returns, Turnover and Volatility' />
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 <div class='content-caption'>iEdge SG All Healthcare Inde x Returns, Turnover and Volatility</div>
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Recent iEdge SG All Healthcare Index Rebalance Reveals Seven Index Heavyweights 
The combined market capitalisation of the constituents of the iEdge SG All Healthcare Index is S$54 billion which represents 7% of the total market capitalisation of all stocks listed on Singapore Exchange at S$798 million. Business activities within the healthcare sector include, but are not limited to, healthcare providers, manufacturing and distribution of medical equipment and supplies, pharmaceutical companies, biotechnology companies or healthcare asset owners. 
The most recent rebalance of the iEdge SG All Healthcare index took place on 28 September, based on market values as of 31 August 2020. Index constituents have their index weights capped at 10% at each semi-annual rebalance date. As a result of this, the ‘excess index weights’ are then proportionally redistributed to the remaining constituents. The weights, as of the 28 September balance are tabled below.

<table class="table table-striped"><tbody>
<tr>
<td>
			iEdge SG All Healthcare Index 

			10 Largest Weights 

			(as of 28 Sep)
			</td>
			<td>
			Code
			</td>
			<td>
			Index Weight as of 29 Sep 
			</td>
			<td>
			Mkt Cap (S$M)
			</td>
			<td>
			Total Return Sep MTD
			</td>
			<td>
			Total Return Sep QTD
			</td>
			<td>
			Total Return 2020 YTD
			</td>
			<td>
			2020 Average Daily Turnover as of 29 Sep (S$M)
			</td>
			<td>
			180 Day Volatility
			</td>
		</tr>
<tr>
<td>
			TOP GLOVE CORP BHD
			</td>
			<td>
			BVA
			</td>
			<td>
			10.0%
			</td>
			<td>
			22,604
			</td>
			<td>
			-2%
			</td>
			<td>
			58%
			</td>
			<td>
			438%
			</td>
			<td>
			5.79
			</td>
			<td>
			92%
			</td>
		</tr>
<tr>
<td>
			IHH HEALTHCARE BHD
			</td>
			<td>
			Q0F
			</td>
			<td>
			10.0%
			</td>
			<td>
			14,921
			</td>
			<td>
			-3%
			</td>
			<td>
			-4%
			</td>
			<td>
			-8%
			</td>
			<td>
			0.30
			</td>
			<td>
			33%
			</td>
		</tr>
<tr>
<td>
			PARKWAYLIFE REAL ESTATE
			</td>
			<td>
			C2PU
			</td>
			<td>
			10.0%
			</td>
			<td>
			2,474
			</td>
			<td>
			9%
			</td>
			<td>
			24%
			</td>
			<td>
			27%
			</td>
			<td>
			3.36
			</td>
			<td>
			36%
			</td>
		</tr>
<tr>
<td>
			HAW PAR CORP LTD
			</td>
			<td>
			H02
			</td>
			<td>
			10.0%
			</td>
			<td>
			2,068
			</td>
			<td>
			-1%
			</td>
			<td>
			-3%
			</td>
			<td>
			-25%
			</td>
			<td>
			1.74
			</td>
			<td>
			24%
			</td>
		</tr>
<tr>
<td>
			RIVERSTONE HOLDINGS LTD
			</td>
			<td>
			AP4
			</td>
			<td>
			10.0%
			</td>
			<td>
			2,542
			</td>
			<td>
			-14%
			</td>
			<td>
			32%
			</td>
			<td>
			275%
			</td>
			<td>
			9.51
			</td>
			<td>
			74%
			</td>
		</tr>
<tr>
<td>
			MEDTECS INTERNATIONAL CORP
			</td>
			<td>
			546
			</td>
			<td>
			10.0%
			</td>
			<td>
			615
			</td>
			<td>
			-26%
			</td>
			<td>
			197%
			</td>
			<td>
			2955%
			</td>
			<td>
			20.52
			</td>
			<td>
			175%
			</td>
		</tr>
<tr>
<td>
			RAFFLES MEDICAL GROUP LTD
			</td>
			<td>
			BSL
			</td>
			<td>
			10.0%
			</td>
			<td>
			1,501
			</td>
			<td>
			-1%
			</td>
			<td>
			-10%
			</td>
			<td>
			-17%
			</td>
			<td>
			1.46
			</td>
			<td>
			30%
			</td>
		</tr>
<tr>
<td>
			FIRST REAL ESTATE INVT TRUST
			</td>
			<td>
			AW9U
			</td>
			<td>
			4.5%
			</td>
			<td>
			350
			</td>
			<td>
			-12%
			</td>
			<td>
			-37%
			</td>
			<td>
			-54%
			</td>
			<td>
			1.87
			</td>
			<td>
			66%
			</td>
		</tr>
<tr>
<td>
			TIANJIN ZHONG XIN PHARM CO-S
			</td>
			<td>
			T14
			</td>
			<td>
			4.0%
			</td>
			<td>
			2,147
			</td>
			<td>
			-1%
			</td>
			<td>
			-5%
			</td>
			<td>
			5%
			</td>
			<td>
			0.49
			</td>
			<td>
			44%
			</td>
		</tr>
<tr>
<td>
			UG HEALTHCARE CORP LTD
			</td>
			<td>
			41A
			</td>
			<td>
			2.8%
			</td>
			<td>
			523
			</td>
			<td>
			12%
			</td>
			<td>
			116%
			</td>
			<td>
			1721%
			</td>
			<td>
			6.94
			</td>
			<td>
			160%
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			-4%
			</td>
			<td>
			37%
			</td>
			<td>
			532%
			</td>
			<td>
			 
			</td>
			<td>
			73%
			</td>
		</tr>
<tr>
<td>
			Median
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			-2%
			</td>
			<td>
			10%
			</td>
			<td>
			16%
			</td>
			<td>
			 
			</td>
			<td>
			55%
			</td>
		</tr>
</tbody></table>
 Source: SGX, Bloomberg, Refinitiv (Data as of 29 September 2020)

 

As tabled above, there is a significant difference between the median and average total returns of the 10 largest weights of the Index. The asymmetry in the median and average returns was also observed globally with the top quartile of global healthcare stocks generating an average total return of 20% with median total returns of 120% in the 2020 year to 29 September as noted above. 
The next ten largest weights of the iEdge SG All Healthcare Index are tabled below. With less stocks among the 10 that focus on medical supplies, there was less variation between the average and median total returns.

<table class="table table-striped"><tbody>
<tr>
<td>
			iEdge SG All Healthcare Index 

			Next 10 Largest Weights 

			(as of 28 Sep)
			</td>
			<td>
			Code
			</td>
			<td>
			Index Weight as of 29 Sep 
			</td>
			<td>
			Mkt Cap (S$M)
			</td>
			<td>
			Total Return Sep MTD
			</td>
			<td>
			Total Return Sep QTD
			</td>
			<td>
			Total Return 2020 YTD
			</td>
			<td>
			2020 Average Daily Turnover as of 29 Sep (S$M)
			</td>
			<td>
			180 Day Volatility
			</td>
		</tr>
<tr>
<td>
			Q &amp; M DENTAL GROUP SINGAPORE
			</td>
			<td>
			QC7
			</td>
			<td>
			2.1%
			</td>
			<td>
			366
			</td>
			<td>
			0%
			</td>
			<td>
			10%
			</td>
			<td>
			2%
			</td>
			<td>
			0.53
			</td>
			<td>
			46%
			</td>
		</tr>
<tr>
<td>
			THOMSON MEDICAL GROUP LTD
			</td>
			<td>
			A50
			</td>
			<td>
			2.0%
			</td>
			<td>
			1,322
			</td>
			<td>
			-6%
			</td>
			<td>
			-11%
			</td>
			<td>
			-22%
			</td>
			<td>
			0.53
			</td>
			<td>
			46%
			</td>
		</tr>
<tr>
<td>
			TALKMED GROUP LTD
			</td>
			<td>
			5G3
			</td>
			<td>
			1.8%
			</td>
			<td>
			501
			</td>
			<td>
			-4%
			</td>
			<td>
			-10%
			</td>
			<td>
			-24%
			</td>
			<td>
			0.01
			</td>
			<td>
			54%
			</td>
		</tr>
<tr>
<td>
			VICPLAS INTERNATIONAL LTD
			</td>
			<td>
			569
			</td>
			<td>
			1.7%
			</td>
			<td>
			170
			</td>
			<td>
			-41%
			</td>
			<td>
			189%
			</td>
			<td>
			260%
			</td>
			<td>
			2.52
			</td>
			<td>
			157%
			</td>
		</tr>
<tr>
<td>
			IX BIOPHARMA LTD
			</td>
			<td>
			42C
			</td>
			<td>
			1.6%
			</td>
			<td>
			158
			</td>
			<td>
			-13%
			</td>
			<td>
			-8%
			</td>
			<td>
			2%
			</td>
			<td>
			1.61
			</td>
			<td>
			111%
			</td>
		</tr>
<tr>
<td>
			CLEARBRIDGE HEALTH LTD
			</td>
			<td>
			1H3
			</td>
			<td>
			1.2%
			</td>
			<td>
			97
			</td>
			<td>
			-8%
			</td>
			<td>
			-6%
			</td>
			<td>
			15%
			</td>
			<td>
			2.41
			</td>
			<td>
			90%
			</td>
		</tr>
<tr>
<td>
			SINGAPORE MEDICAL GROUP LTD
			</td>
			<td>
			5OT
			</td>
			<td>
			1.1%
			</td>
			<td>
			123
			</td>
			<td>
			0%
			</td>
			<td>
			4%
			</td>
			<td>
			-14%
			</td>
			<td>
			0.39
			</td>
			<td>
			61%
			</td>
		</tr>
<tr>
<td>
			BIOLIDICS LTD
			</td>
			<td>
			8YY
			</td>
			<td>
			1.0%
			</td>
			<td>
			90
			</td>
			<td>
			-9%
			</td>
			<td>
			11%
			</td>
			<td>
			39%
			</td>
			<td>
			3.10
			</td>
			<td>
			127%
			</td>
		</tr>
<tr>
<td>
			HEALTHWAY MEDICAL CORP LTD
			</td>
			<td>
			5NG
			</td>
			<td>
			0.8%
			</td>
			<td>
			145
			</td>
			<td>
			-3%
			</td>
			<td>
			7%
			</td>
			<td>
			23%
			</td>
			<td>
			0.30
			</td>
			<td>
			84%
			</td>
		</tr>
<tr>
<td>
			ISEC HEALTHCARE LTD
			</td>
			<td>
			40T
			</td>
			<td>
			0.6%
			</td>
			<td>
			163
			</td>
			<td>
			2%
			</td>
			<td>
			5%
			</td>
			<td>
			-10%
			</td>
			<td>
			0.00
			</td>
			<td>
			50%
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			-8%
			</td>
			<td>
			19%
			</td>
			<td>
			27%
			</td>
			<td>
			 
			</td>
			<td>
			83%
			</td>
		</tr>
<tr>
<td>
			Median
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			-5%
			</td>
			<td>
			5%
			</td>
			<td>
			2%
			</td>
			<td>
			 
			</td>
			<td>
			73%
			</td>
		</tr>
</tbody></table>
 Source: SGX, Bloomberg, Refinitiv (Data as of 29 September 2020)

 

Top Glove Reported 412% Net Profit Growth in FY20 &amp; Provided Outlook Beyond 2020 
On 17 September, Top Glove Coproation Berhard (“Top Glove”) reported its net profit increased 412% from 365 million ringgit in FY19 to 1.9 million ringgit in FY20 (ending 31 August). The FY20 results were released during the session lunch break, with the afternoon session seeing the stock retrace 9% of its preceeding gains. This brought the 12 month total return of Top Glove to 407%, which was relatively symmetric to the reported FY20 net profit growth of 412%. 
Top Glove has been a top 50 Singapore stock by turnover in the year thus far with an average of S$5.8 million of shares changing hands on a daily basis in 2020. In addition to being ASEAN’s biggest healthcare stock, Top Glove also emerged its position as the world’s largest manufacturer of nitrile gloves, in addition to being the world’s largest manufacturer of natural rubber gloves and surgical gloves. In its outlook, mangement noted that without a readable vaccine to COVID-19, much of the momentum of the Rubber Glove Sector will continue to be in trader’s focus. With COVID-19, Top Glove estimates that glove demand will grow by 20% per annum in 2020, 25% in 2021 and 15% post-COVID-19, noting that notwithstanding news of several promising vaccines in the pipeline, glove demand remains at a supernormal level, as gloves will still be required even when a vaccine becomes available. Malaysia EPF Becoems Substantial Shareholder of Riverstone Holdings 
On 17 September, the Employees Provident Fund Board of Malaysia become a substantial shareholder of Riverstone Holdings. The acquisition of 2 million shares on the open market with a consideration of S$6,576,000 was transacted at an average price of S$3.29 per share. This increased the Employees Provident Fund Board of Malaysia direct interest in Riverstone Holdings from 4.86 per cent to 5.13 per cent. 
Back on 5 August, Riverstone Holdings posted a 119 per cent increase in net profit to RM137.5 million for its 1HFY20 (ended 30 June). Riverstone Holdings Executive Chairman and CEO Wong Teek Son noted that with the current industry tailwinds, the Group continues to focus on internal initiatives such as adopting automation to improve productivity and reduce its reliance on labor. Mr Wong added that the in-house R&amp;D team continues to monitor industry trends closely and develop new products that will allow the Group to venture into untapped markets including the food processing, pharmaceutical and surgical glove segments.
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The iEdge SG All Healthcare Index has generated a 30% total return in 3Q20, adding to its 37% total return in 1H20. Volatility of the Index continued to climb, with the 90 day annualised volatility of the Index increasing from 35% at the end of June to 45% as of 29 Sep. 
	 
	
Combined average daily turnover of iEdge SG All Healthcare Index constituents in 2020 increased to $66 million a day as of 29 Sep, from $36 million as of 30 June, on the back of comparatively wider price swings of medical suppliers attracting short-term investors with more risk-to-return tolerance. 
	 
	
For its FY20 (ending 31 Aug) Top Glove’s net profit increased 412% YoY. This coincided with a 12M 410% total return for the stock through to 17 Sep, the day its FY20 results were reported. Top Glove estimates glove demand will grow by 20% per annum in 2020, 25% in 2021 and 15% post-COVID-19.  
	 
	
Also on 17 Sep, the Employees Provident Fund Board of Malaysia become a substantial shareholder of Riverstone Holdings with the acquisition of 2 million shares increasing its direct interest in Riverstone Holdings from 4.86 per cent to 5.13 per cent.   


 

Big Swings of Big Global Healthcare Stocks   
The first half of 2020 saw sharp economic contractions across the world with lockdowns containing the spread of COVID-19 to 10 million people with a 4.9% mortality rate. The tally of COVID-19 infections has since more than tripled to 33 million cases, with effective treatments and more prevalent testing seeing the total mortality rate decline from 4.9% to 3.0%.  
While the social and economic consequences of lockdowns to contain COVID-19 have been the major policy and market drivers in 2020, containment measures have directly impacted the demand for healthcare products. This has naturally impacted the business of listed providers of medical equipment and supplies. From the end of June through to 29 September, the top quartile of global healthcare stocks by market value generated a 3% median total return (with average total returns of 12%) on current median 90 day volatility of 48%.  
This has brought the median total return of the top quartile of global healthcare stocks by market value to 20% and the average total return to 120%, the latter on skewed outlier performances of providers of medical equipment and supplies.  Continued Global Focus on Medical Supply Stocks Extends to Singapore  
From the end of June through to 29 September, the iEdge SG All Healthcare Index generated a 29% price gain, adding to its 35% gain in the first half of 2020. This brought its 2020 year to 29 September price return to 74%. The 90-day volatility of the Index also continued to rise in the third quarter, moving from 35% at the end of June to 45% as of 29 September.  
The big swings of the healthcare stocks that represent the sub-industries of medical supplies and equipment continued to attract active investors seeking shorter-term trading returns with increased risk. This saw the combined average daily turnover of the full constituents of the iEdge SG All Healthcare rise from S$36 million a day as of the end of June, to S$66 million a day as of 29 September. The combined average daily turnover of the constituents of the iEdge SG All Healthcare Index in 2019 was less than S$10 million a day. 



      
    
    iEdge SG All Healthcare Inde x Returns, Turnover and Volatility


Recent iEdge SG All Healthcare Index Rebalance Reveals Seven Index Heavyweights  
The combined market capitalisation of the constituents of the iEdge SG All Healthcare Index is S$54 billion which represents 7% of the total market capitalisation of all stocks listed on Singapore Exchange at S$798 million. Business activities within the healthcare sector include, but are not limited to, healthcare providers, manufacturing and distribution of medical equipment and supplies, pharmaceutical companies, biotechnology companies or healthcare asset owners.  
The most recent rebalance of the iEdge SG All Healthcare index took place on 28 September, based on market values as of 31 August 2020. Index constituents have their index weights capped at 10% at each semi-annual rebalance date. As a result of this, the ‘excess index weights’ are then proportionally redistributed to the remaining constituents. The weights, as of the 28 September balance are tabled below.




			iEdge SG All Healthcare Index 

			10 Largest Weights 

			(as of 28 Sep)
			
			
			Code
			
			
			Index Weight as of 29 Sep 
			
			
			Mkt Cap (S$M)
			
			
			Total Return Sep MTD
			
			
			Total Return Sep QTD
			
			
			Total Return 2020 YTD
			
			
			2020 Average Daily Turnover as of 29 Sep (S$M)
			
			
			180 Day Volatility
			
		


			TOP GLOVE CORP BHD
			
			
			BVA
			
			
			10.0%
			
			
			22,604
			
			
			-2%
			
			
			58%
			
			
			438%
			
			
			5.79
			
			
			92%
			
		


			IHH HEALTHCARE BHD
			
			
			Q0F
			
			
			10.0%
			
			
			14,921
			
			
			-3%
			
			
			-4%
			
			
			-8%
			
			
			0.30
			
			
			33%
			
		


			PARKWAYLIFE REAL ESTATE
			
			
			C2PU
			
			
			10.0%
			
			
			2,474
			
			
			9%
			
			
			24%
			
			
			27%
			
			
			3.36
			
			
			36%
			
		


			HAW PAR CORP LTD
			
			
			H02
			
			
			10.0%
			
			
			2,068
			
			
			-1%
			
			
			-3%
			
			
			-25%
			
			
			1.74
			
			
			24%
			
		


			RIVERSTONE HOLDINGS LTD
			
			
			AP4
			
			
			10.0%
			
			
			2,542
			
			
			-14%
			
			
			32%
			
			
			275%
			
			
			9.51
			
			
			74%
			
		


			MEDTECS INTERNATIONAL CORP
			
			
			546
			
			
			10.0%
			
			
			615
			
			
			-26%
			
			
			197%
			
			
			2955%
			
			
			20.52
			
			
			175%
			
		


			RAFFLES MEDICAL GROUP LTD
			
			
			BSL
			
			
			10.0%
			
			
			1,501
			
			
			-1%
			
			
			-10%
			
			
			-17%
			
			
			1.46
			
			
			30%
			
		


			FIRST REAL ESTATE INVT TRUST
			
			
			AW9U
			
			
			4.5%
			
			
			350
			
			
			-12%
			
			
			-37%
			
			
			-54%
			
			
			1.87
			
			
			66%
			
		


			TIANJIN ZHONG XIN PHARM CO-S
			
			
			T14
			
			
			4.0%
			
			
			2,147
			
			
			-1%
			
			
			-5%
			
			
			5%
			
			
			0.49
			
			
			44%
			
		


			UG HEALTHCARE CORP LTD
			
			
			41A
			
			
			2.8%
			
			
			523
			
			
			12%
			
			
			116%
			
			
			1721%
			
			
			6.94
			
			
			160%
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			-4%
			
			
			37%
			
			
			532%
			
			
			 
			
			
			73%
			
		


			Median
			
			
			 
			
			
			 
			
			
			 
			
			
			-2%
			
			
			10%
			
			
			16%
			
			
			 
			
			
			55%
			
		

 Source: SGX, Bloomberg, Refinitiv (Data as of 29 September 2020)

 

As tabled above, there is a significant difference between the median and average total returns of the 10 largest weights of the Index. The asymmetry in the median and average returns was also observed globally with the top quartile of global healthcare stocks generating an average total return of 20% with median total returns of 120% in the 2020 year to 29 September as noted above.  
The next ten largest weights of the iEdge SG All Healthcare Index are tabled below. With less stocks among the 10 that focus on medical supplies, there was less variation between the average and median total returns.




			iEdge SG All Healthcare Index 

			Next 10 Largest Weights 

			(as of 28 Sep)
			
			
			Code
			
			
			Index Weight as of 29 Sep 
			
			
			Mkt Cap (S$M)
			
			
			Total Return Sep MTD
			
			
			Total Return Sep QTD
			
			
			Total Return 2020 YTD
			
			
			2020 Average Daily Turnover as of 29 Sep (S$M)
			
			
			180 Day Volatility
			
		


			Q &amp; M DENTAL GROUP SINGAPORE
			
			
			QC7
			
			
			2.1%
			
			
			366
			
			
			0%
			
			
			10%
			
			
			2%
			
			
			0.53
			
			
			46%
			
		


			THOMSON MEDICAL GROUP LTD
			
			
			A50
			
			
			2.0%
			
			
			1,322
			
			
			-6%
			
			
			-11%
			
			
			-22%
			
			
			0.53
			
			
			46%
			
		


			TALKMED GROUP LTD
			
			
			5G3
			
			
			1.8%
			
			
			501
			
			
			-4%
			
			
			-10%
			
			
			-24%
			
			
			0.01
			
			
			54%
			
		


			VICPLAS INTERNATIONAL LTD
			
			
			569
			
			
			1.7%
			
			
			170
			
			
			-41%
			
			
			189%
			
			
			260%
			
			
			2.52
			
			
			157%
			
		


			IX BIOPHARMA LTD
			
			
			42C
			
			
			1.6%
			
			
			158
			
			
			-13%
			
			
			-8%
			
			
			2%
			
			
			1.61
			
			
			111%
			
		


			CLEARBRIDGE HEALTH LTD
			
			
			1H3
			
			
			1.2%
			
			
			97
			
			
			-8%
			
			
			-6%
			
			
			15%
			
			
			2.41
			
			
			90%
			
		


			SINGAPORE MEDICAL GROUP LTD
			
			
			5OT
			
			
			1.1%
			
			
			123
			
			
			0%
			
			
			4%
			
			
			-14%
			
			
			0.39
			
			
			61%
			
		


			BIOLIDICS LTD
			
			
			8YY
			
			
			1.0%
			
			
			90
			
			
			-9%
			
			
			11%
			
			
			39%
			
			
			3.10
			
			
			127%
			
		


			HEALTHWAY MEDICAL CORP LTD
			
			
			5NG
			
			
			0.8%
			
			
			145
			
			
			-3%
			
			
			7%
			
			
			23%
			
			
			0.30
			
			
			84%
			
		


			ISEC HEALTHCARE LTD
			
			
			40T
			
			
			0.6%
			
			
			163
			
			
			2%
			
			
			5%
			
			
			-10%
			
			
			0.00
			
			
			50%
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			-8%
			
			
			19%
			
			
			27%
			
			
			 
			
			
			83%
			
		


			Median
			
			
			 
			
			
			 
			
			
			 
			
			
			-5%
			
			
			5%
			
			
			2%
			
			
			 
			
			
			73%
			
		

 Source: SGX, Bloomberg, Refinitiv (Data as of 29 September 2020)

 

Top Glove Reported 412% Net Profit Growth in FY20 &amp; Provided Outlook Beyond 2020   
On 17 September, Top Glove Coproation Berhard (“Top Glove”) reported its net profit increased 412% from 365 million ringgit in FY19 to 1.9 million ringgit in FY20 (ending 31 August). The FY20 results were released during the session lunch break, with the afternoon session seeing the stock retrace 9% of its preceeding gains. This brought the 12 month total return of Top Glove to 407%, which was relatively symmetric to the reported FY20 net profit growth of 412%.  
Top Glove has been a top 50 Singapore stock by turnover in the year thus far with an average of S$5.8 million of shares changing hands on a daily basis in 2020. In addition to being ASEAN’s biggest healthcare stock, Top Glove also emerged its position as the world’s largest manufacturer of nitrile gloves, in addition to being the world’s largest manufacturer of natural rubber gloves and surgical gloves.  In its outlook, mangement noted that without a readable vaccine to COVID-19, much of the momentum of the Rubber Glove Sector will continue to be in trader’s focus. With COVID-19, Top Glove estimates that glove demand will grow by 20% per annum in 2020, 25% in 2021 and 15% post-COVID-19, noting that notwithstanding news of several promising vaccines in the pipeline, glove demand remains at a supernormal level, as gloves will still be required even when a vaccine becomes available.  Malaysia EPF Becoems Substantial Shareholder of Riverstone Holdings  
On 17 September, the Employees Provident Fund Board of Malaysia become a substantial shareholder of Riverstone Holdings. The acquisition of 2 million shares on the open market with a consideration of S$6,576,000 was transacted at an average price of S$3.29 per share. This increased the Employees Provident Fund Board of Malaysia direct interest in Riverstone Holdings from 4.86 per cent to 5.13 per cent.  
Back on 5 August, Riverstone Holdings posted a 119 per cent increase in net profit to RM137.5 million for its 1HFY20 (ended 30 June). Riverstone Holdings Executive Chairman and CEO Wong Teek Son noted that with the current industry tailwinds, the Group continues to focus on internal initiatives such as adopting automation to improve productivity and reduce its reliance on labor. Mr Wong added that the in-house R&amp;D team continues to monitor industry trends closely and develop new products that will allow the Group to venture into untapped markets including the food processing, pharmaceutical and surgical glove segments.



Comparatively Strong SG All Healthcare Index Added to Gains in 3Q20   

Raffles Medical Group

Comparatively Strong SG All Healthcare Index Added to Gains in 3Q20