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

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In the first two months of 2019, the five best-performing healthcare service providers were: ISEC Healthcare (+11.8%), Thomson Medical (+9.5%), Singapore Medical Group (+8.7%), Medinex (+5.6%), and Asian Healthcare Specialists (+5.4%). They averaged a total return of +8.2% over the period. 
	 </li>
	<li>
The combined trading turnover for the five largest capitalised healthcare service providers rose 26% to an average S$3.5 million per day in Feb, from S$2.8 million per day in the preceding three months. Thomson Medical and Raffles Medical saw the largest increases in average daily traded values. 
	 </li>
	<li>Healthcare was a net buy sector for retail investors for the second straight month in Feb, drawing net inflows of about S$6.5 million, after net inflows of S$20.5 million in Jan. This reverses a net retail outflow of S$54.8 million for the sector in calendar year 2018, SGX data showed.</li>
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There are 18 healthcare service providers listed on SGX that operate patient care services and facilities in Singapore and worldwide. These facilities include laboratories, hospitals, nursing homes and clinics that offer services and treatments ranging from family medicine, dentistry, endoscopy and aesthetics to gynaecology, oncology, paediatrics, orthopaedics, ophthalmology and even cord blood banking.

Four healthcare service providers that listed on SGX over the last two years were: Medinex Ltd (December 2018), Asian Healthcare Specialists (April 2018), Clearbridge Health (December 2017), and Aoxin Q &amp; M Dental (April 2017).

Healthcare Index Clocks Nearly 10% YTD Total Return 

The performance of Singapore’s listed healthcare sector is measured by the iEdge SG All Healthcare Index, which is a free-float, market capitalisation-weighted index comprising 31 stocks. Healthcare service providers are well-represented in the Index, accounting for more than half its constituents. In the first two months of 2019, the Index generated a total return of 9.7%. This compares with total returns of 4.8% and 5.4% respectively for the benchmark Straits Times Index (STI) and the broader FTSE ST All-Share Index over the same period.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-03/healthcare1.PNG" alt="Jan-Feb Total Returns">
 </figure>
 <div class="content-caption">Jan-Feb Total Returns</div>
Source: Bloomberg

 

Best-Performing Healthcare Services Stocks in Jan-Feb 2019

In the first two months of 2019, the five best-performing healthcare service providers were: ISEC Healthcare (+11.8%), Thomson Medical Group (+9.5%), Singapore Medical Group (+8.7%), Medinex Ltd (+5.6%), and Asian Healthcare Specialists (+5.4%). These five stocks averaged a total return of +8.2% over the period, bringing their one-year and three-year total returns to -12.2% and +31.1% respectively.

The table below details the 18 healthcare service providers listed on SGX, sorted by YTD total return.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			Total Return 2018 (%)
			</td>
			<td>
			Total Return 2017 (%)
			</td>
		</tr>
<tr>
<td>
			ISEC HEALTHCARE
			</td>
			<td>
			40T
			</td>
			<td>
			147
			</td>
			<td>
			11.8
			</td>
			<td>
			-7.8
			</td>
			<td>
			26.7
			</td>
			<td>
			-14.9
			</td>
			<td>
			8.9
			</td>
		</tr>
<tr>
<td>
			THOMSON MEDICAL GROUP
			</td>
			<td>
			A50
			</td>
			<td>
			2,087
			</td>
			<td>
			9.5
			</td>
			<td>
			-31.0
			</td>
			<td>
			-42.9
			</td>
			<td>
			-41.9
			</td>
			<td>
			4.9
			</td>
		</tr>
<tr>
<td>
			SINGAPORE MEDICAL GROUP
			</td>
			<td>
			5OT
			</td>
			<td>
			206
			</td>
			<td>
			8.7
			</td>
			<td>
			-22.3
			</td>
			<td>
			171.9
			</td>
			<td>
			-30.4
			</td>
			<td>
			32.2
			</td>
		</tr>
<tr>
<td>
			MEDINEX LTD
			</td>
			<td>
			OTX
			</td>
			<td>
			37.4
			</td>
			<td>
			5.6
			</td>
			<td>
			NA
			</td>
			<td>
			NA
			</td>
			<td>
			NA
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			ASIAN HEALTHCARE SPECIALISTS
			</td>
			<td>
			1J3
			</td>
			<td>
			88.0
			</td>
			<td>
			5.4
			</td>
			<td>
			NA
			</td>
			<td>
			NA
			</td>
			<td>
			NA
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			ASIAMEDIC LTD
			</td>
			<td>
			505
			</td>
			<td>
			8.6
			</td>
			<td>
			4.8
			</td>
			<td>
			-63.3
			</td>
			<td>
			-66.7
			</td>
			<td>
			-66.1
			</td>
			<td>
			-7.5
			</td>
		</tr>
<tr>
<td>
			IHH HEALTHCARE
			</td>
			<td>
			Q0F
			</td>
			<td>
			16,223
			</td>
			<td>
			3.4
			</td>
			<td>
			-7.5
			</td>
			<td>
			-12.3
			</td>
			<td>
			-7.3
			</td>
			<td>
			-8.9
			</td>
		</tr>
<tr>
<td>
			CORDLIFE GROUP
			</td>
			<td>
			P8A
			</td>
			<td>
			98.8
			</td>
			<td>
			2.6
			</td>
			<td>
			-48.6
			</td>
			<td>
			-72.0
			</td>
			<td>
			-51.2
			</td>
			<td>
			-18.9
			</td>
		</tr>
<tr>
<td>
			CLEARBRIDGE HEALTH
			</td>
			<td>
			1H3
			</td>
			<td>
			83.2
			</td>
			<td>
			1.8
			</td>
			<td>
			-68.8
			</td>
			<td>
			NA
			</td>
			<td>
			-53.0
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			HEALTH MGMT INTL
			</td>
			<td>
			588
			</td>
			<td>
			456
			</td>
			<td>
			1.5
			</td>
			<td>
			-12.4
			</td>
			<td>
			84.3
			</td>
			<td>
			-17.2
			</td>
			<td>
			4.1
			</td>
		</tr>
<tr>
<td>
			SINGAPORE O&amp;G
			</td>
			<td>
			1D8
			</td>
			<td>
			167
			</td>
			<td>
			0.0
			</td>
			<td>
			-2.2
			</td>
			<td>
			3.1
			</td>
			<td>
			-16.6
			</td>
			<td>
			-23.2
			</td>
		</tr>
<tr>
<td>
			RAFFLES MEDICAL GROUP
			</td>
			<td>
			BSL
			</td>
			<td>
			1,977
			</td>
			<td>
			0.0
			</td>
			<td>
			-2.4
			</td>
			<td>
			-20.6
			</td>
			<td>
			0.2
			</td>
			<td>
			-20.5
			</td>
		</tr>
<tr>
<td>
			HC SURGICAL SPECIALISTS
			</td>
			<td>
			1B1
			</td>
			<td>
			87
			</td>
			<td>
			-1.7
			</td>
			<td>
			-11.2
			</td>
			<td>
			NA
			</td>
			<td>
			-10.9
			</td>
			<td>
			18.5
			</td>
		</tr>
<tr>
<td>
			Q&amp;M DENTAL
			</td>
			<td>
			QC7
			</td>
			<td>
			373
			</td>
			<td>
			-5.0
			</td>
			<td>
			-23.5
			</td>
			<td>
			-29.8
			</td>
			<td>
			-16.8
			</td>
			<td>
			-12.2
			</td>
		</tr>
<tr>
<td>
			OUE LIPPO HEALTHCARE
			</td>
			<td>
			5WA
			</td>
			<td>
			271
			</td>
			<td>
			-6.2
			</td>
			<td>
			-50.2
			</td>
			<td>
			22.3
			</td>
			<td>
			-40.6
			</td>
			<td>
			150.0
			</td>
		</tr>
<tr>
<td>
			TALKMED GROUP
			</td>
			<td>
			5G3
			</td>
			<td>
			736
			</td>
			<td>
			-6.7
			</td>
			<td>
			-15.0
			</td>
			<td>
			40.0
			</td>
			<td>
			-9.0
			</td>
			<td>
			36.6
			</td>
		</tr>
<tr>
<td>
			HEALTHWAY MEDICAL GROUP
			</td>
			<td>
			5NG
			</td>
			<td>
			131
			</td>
			<td>
			-9.4
			</td>
			<td>
			-43.1
			</td>
			<td>
			3.6
			</td>
			<td>
			-40.7
			</td>
			<td>
			63.6
			</td>
		</tr>
<tr>
<td>
			AOXIN Q&amp;M DENTAL
			</td>
			<td>
			1D4
			</td>
			<td>
			76.3
			</td>
			<td>
			-13.0
			</td>
			<td>
			0.9
			</td>
			<td>
			NA
			</td>
			<td>
			10.5
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			0.7
			</td>
			<td>
			-22.7
			</td>
			<td>
			6.0
			</td>
			<td>
			-22.5
			</td>
			<td>
			12.6
			</td>
		</tr>
</tbody></table>
Source: StockFacts &amp; Bloomberg (data as of 28 Feb 2019)

Five Largest Capitalised Healthcare Providers on SGX

The five largest capitalised healthcare service providers on SGX are: IHH Healthcare, Thomson Medical Group, Raffles Medical Group, Talkmed Group, and Health Management International (HMI). These five stocks, with a combined market capitalisation of over S$20 billion, have averaged a total return of +1.6% in the first two months of this year. This brings their one-year and three-year total returns to -13.7% and +9.7% respectively.

For the month of February 2019, the combined trading turnover for these five largest capitalised healthcare service providers rose by 26% to an average S$3.5 million per day, from an average S$2.8 million per day in the preceding three months. In particular, three of the five largest capitalised healthcare service providers saw higher average daily trading values in February, compared to the previous three months. They were Thomson Medical (+52.9%), Raffles Medical (+3.0%), and HMI (+1.6%).

Net Buy Sector for Retail Investors 

Healthcare was a net buy sector for retail investors for the second straight month in February, drawing inflows of about S$6.5 million, following net inflows of S$20.5 million in January. This reverses a net retail outflow of S$54.8 million for the sector in calendar year 2018, SGX data showed.

For institutional investors, Healthcare was a net sell for the second straight month in February, with net outflows of S$7.9 million, after a net outflow of S$21.5 million in January. This reverses a net institutional inflow of S$49.4 million for the sector in calendar year 2018, according to SGX data.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-03/healthcare%20fund.PNG" alt="Healthcare Fund Flow">
 </figure>
 <div class="content-caption">Healthcare Fund Flow</div>
Source: SGX data

Defensive With Robust Prospects

Singapore’s healthcare sector is typically viewed as a defensive segment, poised to enjoy multi-year growth prospects. Drivers of Asia’s increased healthcare spending levels include accelerated ageing rates, the rise of lifestyle diseases like diabetes and hypertension, as well as growing disposable incomes. 

The majority of Singapore’s healthcare service providers have also pursued international expansion plans in recent years. Their operations and assets span multiple geographies outside Singapore, including markets in South and Southeast Asia, Northeast Asia, as well as Middle East and Europe.

Investors can easily participate in the structural Asian healthcare theme through SGX-listed healthcare stocks that are rapidly expanding into regional and global markets to meet growing patient needs.
</body></html>





In the first two months of 2019, the five best-performing healthcare service providers were: ISEC Healthcare (+11.8%), Thomson Medical (+9.5%), Singapore Medical Group (+8.7%), Medinex (+5.6%), and Asian Healthcare Specialists (+5.4%). They averaged a total return of +8.2% over the period. 
	 
	
The combined trading turnover for the five largest capitalised healthcare service providers rose 26% to an average S$3.5 million per day in Feb, from S$2.8 million per day in the preceding three months. Thomson Medical and Raffles Medical saw the largest increases in average daily traded values. 
	 
	Healthcare was a net buy sector for retail investors for the second straight month in Feb, drawing net inflows of about S$6.5 million, after net inflows of S$20.5 million in Jan. This reverses a net retail outflow of S$54.8 million for the sector in calendar year 2018, SGX data showed.

There are 18 healthcare service providers listed on SGX that operate patient care services and facilities in Singapore and worldwide. These facilities include laboratories, hospitals, nursing homes and clinics that offer services and treatments ranging from family medicine, dentistry, endoscopy and aesthetics to gynaecology, oncology, paediatrics, orthopaedics, ophthalmology and even cord blood banking.

Four healthcare service providers that listed on SGX over the last two years were: Medinex Ltd (December 2018), Asian Healthcare Specialists (April 2018), Clearbridge Health (December 2017), and Aoxin Q &amp; M Dental (April 2017).

Healthcare Index Clocks Nearly 10% YTD Total Return 

The performance of Singapore’s listed healthcare sector is measured by the iEdge SG All Healthcare Index, which is a free-float, market capitalisation-weighted index comprising 31 stocks. Healthcare service providers are well-represented in the Index, accounting for more than half its constituents. In the first two months of 2019, the Index generated a total return of 9.7%. This compares with total returns of 4.8% and 5.4% respectively for the benchmark Straits Times Index (STI) and the broader FTSE ST All-Share Index over the same period.

      
    
    Jan-Feb Total Returns
Source: Bloomberg

 

Best-Performing Healthcare Services Stocks in Jan-Feb 2019

In the first two months of 2019, the five best-performing healthcare service providers were: ISEC Healthcare (+11.8%), Thomson Medical Group (+9.5%), Singapore Medical Group (+8.7%), Medinex Ltd (+5.6%), and Asian Healthcare Specialists (+5.4%). These five stocks averaged a total return of +8.2% over the period, bringing their one-year and three-year total returns to -12.2% and +31.1% respectively.

The table below details the 18 healthcare service providers listed on SGX, sorted by YTD total return.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			Total Return 2018 (%)
			
			
			Total Return 2017 (%)
			
		


			ISEC HEALTHCARE
			
			
			40T
			
			
			147
			
			
			11.8
			
			
			-7.8
			
			
			26.7
			
			
			-14.9
			
			
			8.9
			
		


			THOMSON MEDICAL GROUP
			
			
			A50
			
			
			2,087
			
			
			9.5
			
			
			-31.0
			
			
			-42.9
			
			
			-41.9
			
			
			4.9
			
		


			SINGAPORE MEDICAL GROUP
			
			
			5OT
			
			
			206
			
			
			8.7
			
			
			-22.3
			
			
			171.9
			
			
			-30.4
			
			
			32.2
			
		


			MEDINEX LTD
			
			
			OTX
			
			
			37.4
			
			
			5.6
			
			
			NA
			
			
			NA
			
			
			NA
			
			
			NA
			
		


			ASIAN HEALTHCARE SPECIALISTS
			
			
			1J3
			
			
			88.0
			
			
			5.4
			
			
			NA
			
			
			NA
			
			
			NA
			
			
			NA
			
		


			ASIAMEDIC LTD
			
			
			505
			
			
			8.6
			
			
			4.8
			
			
			-63.3
			
			
			-66.7
			
			
			-66.1
			
			
			-7.5
			
		


			IHH HEALTHCARE
			
			
			Q0F
			
			
			16,223
			
			
			3.4
			
			
			-7.5
			
			
			-12.3
			
			
			-7.3
			
			
			-8.9
			
		


			CORDLIFE GROUP
			
			
			P8A
			
			
			98.8
			
			
			2.6
			
			
			-48.6
			
			
			-72.0
			
			
			-51.2
			
			
			-18.9
			
		


			CLEARBRIDGE HEALTH
			
			
			1H3
			
			
			83.2
			
			
			1.8
			
			
			-68.8
			
			
			NA
			
			
			-53.0
			
			
			NA
			
		


			HEALTH MGMT INTL
			
			
			588
			
			
			456
			
			
			1.5
			
			
			-12.4
			
			
			84.3
			
			
			-17.2
			
			
			4.1
			
		


			SINGAPORE O&amp;G
			
			
			1D8
			
			
			167
			
			
			0.0
			
			
			-2.2
			
			
			3.1
			
			
			-16.6
			
			
			-23.2
			
		


			RAFFLES MEDICAL GROUP
			
			
			BSL
			
			
			1,977
			
			
			0.0
			
			
			-2.4
			
			
			-20.6
			
			
			0.2
			
			
			-20.5
			
		


			HC SURGICAL SPECIALISTS
			
			
			1B1
			
			
			87
			
			
			-1.7
			
			
			-11.2
			
			
			NA
			
			
			-10.9
			
			
			18.5
			
		


			Q&amp;M DENTAL
			
			
			QC7
			
			
			373
			
			
			-5.0
			
			
			-23.5
			
			
			-29.8
			
			
			-16.8
			
			
			-12.2
			
		


			OUE LIPPO HEALTHCARE
			
			
			5WA
			
			
			271
			
			
			-6.2
			
			
			-50.2
			
			
			22.3
			
			
			-40.6
			
			
			150.0
			
		


			TALKMED GROUP
			
			
			5G3
			
			
			736
			
			
			-6.7
			
			
			-15.0
			
			
			40.0
			
			
			-9.0
			
			
			36.6
			
		


			HEALTHWAY MEDICAL GROUP
			
			
			5NG
			
			
			131
			
			
			-9.4
			
			
			-43.1
			
			
			3.6
			
			
			-40.7
			
			
			63.6
			
		


			AOXIN Q&amp;M DENTAL
			
			
			1D4
			
			
			76.3
			
			
			-13.0
			
			
			0.9
			
			
			NA
			
			
			10.5
			
			
			NA
			
		


			Average
			
			
			 
			
			
			 
			
			
			0.7
			
			
			-22.7
			
			
			6.0
			
			
			-22.5
			
			
			12.6
			
		

Source: StockFacts &amp; Bloomberg (data as of 28 Feb 2019)

Five Largest Capitalised Healthcare Providers on SGX

The five largest capitalised healthcare service providers on SGX are: IHH Healthcare, Thomson Medical Group, Raffles Medical Group, Talkmed Group, and Health Management International (HMI). These five stocks, with a combined market capitalisation of over S$20 billion, have averaged a total return of +1.6% in the first two months of this year. This brings their one-year and three-year total returns to -13.7% and +9.7% respectively.

For the month of February 2019, the combined trading turnover for these five largest capitalised healthcare service providers rose by 26% to an average S$3.5 million per day, from an average S$2.8 million per day in the preceding three months. In particular, three of the five largest capitalised healthcare service providers saw higher average daily trading values in February, compared to the previous three months. They were Thomson Medical (+52.9%), Raffles Medical (+3.0%), and HMI (+1.6%).

Net Buy Sector for Retail Investors 

Healthcare was a net buy sector for retail investors for the second straight month in February, drawing inflows of about S$6.5 million, following net inflows of S$20.5 million in January. This reverses a net retail outflow of S$54.8 million for the sector in calendar year 2018, SGX data showed.

For institutional investors, Healthcare was a net sell for the second straight month in February, with net outflows of S$7.9 million, after a net outflow of S$21.5 million in January. This reverses a net institutional inflow of S$49.4 million for the sector in calendar year 2018, according to SGX data.

      
    
    Healthcare Fund Flow
Source: SGX data

Defensive With Robust Prospects

Singapore’s healthcare sector is typically viewed as a defensive segment, poised to enjoy multi-year growth prospects. Drivers of Asia’s increased healthcare spending levels include accelerated ageing rates, the rise of lifestyle diseases like diabetes and hypertension, as well as growing disposable incomes. 

The majority of Singapore’s healthcare service providers have also pursued international expansion plans in recent years. Their operations and assets span multiple geographies outside Singapore, including markets in South and Southeast Asia, Northeast Asia, as well as Middle East and Europe.

Investors can easily participate in the structural Asian healthcare theme through SGX-listed healthcare stocks that are rapidly expanding into regional and global markets to meet growing patient needs.



Highlights of Singapore’s Healthcare Services Stocks