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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<ul>
<li>
The FTSE ST Consumer Goods &amp; Services Liquid 20 Index comprises the 20 most liquid Consumer Goods &amp; Services stocks within the FTSE ST All Share Index. Constituent liquidity is assessed at periodical Index reviews and ranked by preceding 12M traded values.  
	 </li>
	<li>
For 2019 YTD, the FTSE ST Consumer Goods &amp; Services Liquid 20 Index generated a 9.9% total return, a turnaround from its 9.2% decline in 2018. In 2019 YTD, as many as 18 of the 20 stocks have generated gains, with performances led by ThaiBev, Olam Int &amp; Genting SG. 
	 </li>
	<li>The median P/E of the Liquid 20 constituents is 17.6x and compares to 17.3x for the top quartile of Consumer Goods &amp; Services stocks by Market Cap, across the stock markets of Japan, Hong Kong, Taiwan, Korea, Australia and New Zealand.</li>
</ul>
 

Singapore’s offering of listed companies that represent the Consumer Goods &amp; Services industries are highly diversified by their scope of consumer business, in addition to their geographical exposures. As discussed <a href="https://www2.sgx.com/research-education/market-updates/20190219-five-largest-best-performing-fb-stocks-avg-20-ytd-total">here</a>, Singapore Exchange lists more than 140 consumer stocks with a combined market capitalisation of over S$130 billion.

Within the Consumer Goods &amp; Services industries are 20 stocks that have passed free float, capitalisation and liquidity screens at the last FTSE ST All-Share Index and FTSE ST Consumer Goods &amp; Services Liquid 20 Index  rebalance. The relevant 20 stocks must have been selected as constituents of the FTSE ST All-Share Index and aside from the Sector representation, maintained the highest median traded values for the past 12 months at the time of the previous Index review.

For the 2019 year through to 18 Feb, the FTSE ST Consumer Goods &amp; Services Liquid 20 Index generated a 9.9% total return, a turnaround from its 9.2% decline in 2018. 

In the 2019 year-to-date, as many as 18 of the 20 stocks have generated gains, with performances led by Thai Beverage PCL, Olam International and Genting Singapore. These three stocks averaged a gain of 22.2%. The three least performing stocks of the Index in the 2019 year-to-date were mm2 Asia, Dairy Farm International Holdings and Mandarin Oriental International with an average decline of 2.7% (in SGD terms).

The 10 largest of the 20 stocks of the FTSE ST Consumer Goods &amp; Services Liquid 20 Index are tabled below. 

<table class="table table-striped"><tbody>
<tr>
<td>
			10 Largest Weights of the

			FTSE ST Consumer Goods &amp; Services Liquid 20 Index
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap S$M
			</td>
			<td>
			2016 Total Returns (%)
			</td>
			<td>
			2017 

			Total Returns (%)
			</td>
			<td>
			2018 Total Return (%)
			</td>
			<td>
			2019 YTD Return (%)
			</td>
			<td>
			Dividend Yield 

			(%)
			</td>
		</tr>
<tr>
<td>
			Wilmar International
			</td>
			<td>
			F34
			</td>
			<td>
			21,259
			</td>
			<td>
			25.0
			</td>
			<td>
			-12.1
			</td>
			<td>
			4.3
			</td>
			<td>
			7.7
			</td>
			<td>
			3.2
			</td>
		</tr>
<tr>
<td>
			Thai Beverage PCL
			</td>
			<td>
			Y92
			</td>
			<td>
			20,593
			</td>
			<td>
			27.2
			</td>
			<td>
			11.3
			</td>
			<td>
			-31.7
			</td>
			<td>
			36.3
			</td>
			<td>
			2.0
			</td>
		</tr>
<tr>
<td>
			Dairy Farm International
			</td>
			<td>
			D01
			</td>
			<td>
			16,472
			</td>
			<td>
			21.5
			</td>
			<td>
			3.5
			</td>
			<td>
			20.4
			</td>
			<td>
			-1.3
			</td>
			<td>
			2.4
			</td>
		</tr>
<tr>
<td>
			Jardine Cycle &amp; Carriage
			</td>
			<td>
			C07
			</td>
			<td>
			14,517
			</td>
			<td>
			21.6
			</td>
			<td>
			1.0
			</td>
			<td>
			-10.0
			</td>
			<td>
			3.9
			</td>
			<td>
			3.2
			</td>
		</tr>
<tr>
<td>
			Genting Singapore
			</td>
			<td>
			G13
			</td>
			<td>
			13,249
			</td>
			<td>
			22.0
			</td>
			<td>
			48.6
			</td>
			<td>
			-23.2
			</td>
			<td>
			12.8
			</td>
			<td>
			3.2
			</td>
		</tr>
<tr>
<td>
			Singapore Airlines
			</td>
			<td>
			C6L
			</td>
			<td>
			11,777
			</td>
			<td>
			-10.0
			</td>
			<td>
			12.5
			</td>
			<td>
			-8.2
			</td>
			<td>
			5.6
			</td>
			<td>
			3.8
			</td>
		</tr>
<tr>
<td>
			Olam International
			</td>
			<td>
			O32
			</td>
			<td>
			6,174
			</td>
			<td>
			12.2
			</td>
			<td>
			6.5
			</td>
			<td>
			-15.9
			</td>
			<td>
			17.6
			</td>
			<td>
			3.9
			</td>
		</tr>
<tr>
<td>
			ComfortDelGro
			</td>
			<td>
			C52
			</td>
			<td>
			5,218
			</td>
			<td>
			-16.3
			</td>
			<td>
			-16.4
			</td>
			<td>
			13.7
			</td>
			<td>
			12.1
			</td>
			<td>
			4.4
			</td>
		</tr>
<tr>
<td>
			Singapore Press Holdings
			</td>
			<td>
			T39
			</td>
			<td>
			4,011
			</td>
			<td>
			-6.1
			</td>
			<td>
			-21.0
			</td>
			<td>
			-6.9
			</td>
			<td>
			6.8
			</td>
			<td>
			3.6
			</td>
		</tr>
<tr>
<td>
			Golden-Agri Resources
			</td>
			<td>
			E5H
			</td>
			<td>
			3,247
			</td>
			<td>
			28.0
			</td>
			<td>
			-10.8
			</td>
			<td>
			-33.6
			</td>
			<td>
			4.1
			</td>
			<td>
			0.5
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td> </td>
			<td> </td>
			<td>
			12.5
			</td>
			<td>
			2.3
			</td>
			<td>
			-9.1
			</td>
			<td>
			10.6
			</td>
			<td>
			3.0
			</td>
		</tr>
</tbody></table>
Source: SGX StockFacts and Bloomberg (Data as of 18 February 2019)

The median Price-to-Earnings (“P/E”) ratio of the 20 FTSE ST Consumer Goods &amp; Services Liquid 20 Index is 17.6x. This compares to 17.3x for the top quartile of Consumer Goods &amp; Services stocks by market capitalisation, across the stock markets of Japan, Hong Kong, Taiwan, Korea, Australia and New Zealand.

By the same measure, the FTSE ST Consumer Goods &amp; Services Liquid 20 Index constituents also maintain comparatively similar median 12 month Return On Equity (“ROE”) ratios to the region.

FTSE ST Consumer Goods &amp; Services Liquid 20 Index Methodology

The key steps for Index inclusion are explained in more detail <a href="https://www.ftse.com/products/downloads/FTSE_ST_Index_Series.pdf?18">here</a>, however in summary involves the following:

<ul>
<li>The FTSE ST Consumer Goods &amp; Services Liquid 20 Index is comprised of 20  stocks that represent either the ICB Consumer Goods or the ICB Consumer Services Industries that are also a part of the FTSE ST All-Share Index. 
	 </li>
	<li>For inclusion at the March and September review a stock must have traded for at least 60 or more days in the last 252 trading days prior to the data cut-off date to be considered for inclusion. 
	 </li>
	<li>For each stock in the underlying index, the traded value for the last 252 trading days is calculated and includes days on which a stock is suspended. The median value is then taken with the Median Traded values of potential stocks sorted in descending order, the top 20 liquid stocks are then selected.</li>
</ul>
</body></html>





The FTSE ST Consumer Goods &amp; Services Liquid 20 Index comprises the 20 most liquid Consumer Goods &amp; Services stocks within the FTSE ST All Share Index. Constituent liquidity is assessed at periodical Index reviews and ranked by preceding 12M traded values.   
	 
	
For 2019 YTD, the FTSE ST Consumer Goods &amp; Services Liquid 20 Index generated a 9.9% total return, a turnaround from its 9.2% decline in 2018. In 2019 YTD, as many as 18 of the 20 stocks have generated gains, with performances led by ThaiBev, Olam Int &amp; Genting SG. 
	 
	The median P/E of the Liquid 20 constituents is 17.6x and compares to 17.3x for the top quartile of Consumer Goods &amp; Services stocks by Market Cap, across the stock markets of Japan, Hong Kong, Taiwan, Korea, Australia and New Zealand.

 

Singapore’s offering of listed companies that represent the Consumer Goods &amp; Services industries are highly diversified by their scope of consumer business, in addition to their geographical exposures. As discussed here, Singapore Exchange lists more than 140 consumer stocks with a combined market capitalisation of over S$130 billion.

Within the Consumer Goods &amp; Services industries are 20 stocks that have passed free float, capitalisation and liquidity screens at the last FTSE ST All-Share Index and FTSE ST Consumer Goods &amp; Services Liquid 20 Index  rebalance. The relevant 20 stocks must have been selected as constituents of the FTSE ST All-Share Index and aside from the Sector representation, maintained the highest median traded values for the past 12 months at the time of the previous Index review.

For the 2019 year through to 18 Feb, the FTSE ST Consumer Goods &amp; Services Liquid 20 Index generated a 9.9% total return, a turnaround from its 9.2% decline in 2018. 

In the 2019 year-to-date, as many as 18 of the 20 stocks have generated gains, with performances led by Thai Beverage PCL, Olam International and Genting Singapore. These three stocks averaged a gain of 22.2%. The three least performing stocks of the Index in the 2019 year-to-date were mm2 Asia, Dairy Farm International Holdings and Mandarin Oriental International with an average decline of 2.7% (in SGD terms).

The 10 largest of the 20 stocks of the FTSE ST Consumer Goods &amp; Services Liquid 20 Index are tabled below. 




			10 Largest Weights of the

			FTSE ST Consumer Goods &amp; Services Liquid 20 Index
			
			
			SGX Code
			
			
			Market Cap S$M
			
			
			2016 Total Returns (%)
			
			
			2017 

			Total Returns (%)
			
			
			2018 Total Return (%)
			
			
			2019 YTD Return (%)
			
			
			Dividend Yield 

			(%)
			
		


			Wilmar International
			
			
			F34
			
			
			21,259
			
			
			25.0
			
			
			-12.1
			
			
			4.3
			
			
			7.7
			
			
			3.2
			
		


			Thai Beverage PCL
			
			
			Y92
			
			
			20,593
			
			
			27.2
			
			
			11.3
			
			
			-31.7
			
			
			36.3
			
			
			2.0
			
		


			Dairy Farm International
			
			
			D01
			
			
			16,472
			
			
			21.5
			
			
			3.5
			
			
			20.4
			
			
			-1.3
			
			
			2.4
			
		


			Jardine Cycle &amp; Carriage
			
			
			C07
			
			
			14,517
			
			
			21.6
			
			
			1.0
			
			
			-10.0
			
			
			3.9
			
			
			3.2
			
		


			Genting Singapore
			
			
			G13
			
			
			13,249
			
			
			22.0
			
			
			48.6
			
			
			-23.2
			
			
			12.8
			
			
			3.2
			
		


			Singapore Airlines
			
			
			C6L
			
			
			11,777
			
			
			-10.0
			
			
			12.5
			
			
			-8.2
			
			
			5.6
			
			
			3.8
			
		


			Olam International
			
			
			O32
			
			
			6,174
			
			
			12.2
			
			
			6.5
			
			
			-15.9
			
			
			17.6
			
			
			3.9
			
		


			ComfortDelGro
			
			
			C52
			
			
			5,218
			
			
			-16.3
			
			
			-16.4
			
			
			13.7
			
			
			12.1
			
			
			4.4
			
		


			Singapore Press Holdings
			
			
			T39
			
			
			4,011
			
			
			-6.1
			
			
			-21.0
			
			
			-6.9
			
			
			6.8
			
			
			3.6
			
		


			Golden-Agri Resources
			
			
			E5H
			
			
			3,247
			
			
			28.0
			
			
			-10.8
			
			
			-33.6
			
			
			4.1
			
			
			0.5
			
		


			Average
			
			 
			 
			
			12.5
			
			
			2.3
			
			
			-9.1
			
			
			10.6
			
			
			3.0
			
		

Source: SGX StockFacts and Bloomberg (Data as of 18 February 2019)

The median Price-to-Earnings (“P/E”) ratio of the 20 FTSE ST Consumer Goods &amp; Services Liquid 20 Index is 17.6x. This compares to 17.3x for the top quartile of Consumer Goods &amp; Services stocks by market capitalisation, across the stock markets of Japan, Hong Kong, Taiwan, Korea, Australia and New Zealand.

By the same measure, the FTSE ST Consumer Goods &amp; Services Liquid 20 Index constituents also maintain comparatively similar median 12 month Return On Equity (“ROE”) ratios to the region.

FTSE ST Consumer Goods &amp; Services Liquid 20 Index Methodology

The key steps for Index inclusion are explained in more detail here, however in summary involves the following:


The FTSE ST Consumer Goods &amp; Services Liquid 20 Index is comprised of 20  stocks that represent either the ICB Consumer Goods or the ICB Consumer Services Industries that are also a part of the FTSE ST All-Share Index. 
	 
	For inclusion at the March and September review a stock must have traded for at least 60 or more days in the last 252 trading days prior to the data cut-off date to be considered for inclusion. 
	 
	For each stock in the underlying index, the traded value for the last 252 trading days is calculated and includes days on which a stock is suspended. The median value is then taken with the Median Traded values of potential stocks sorted in descending order, the top 20 liquid stocks are then selected.




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