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

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<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