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>
The FTSE ST Small Cap Index’s 49 constituents – comprising 20 REITs and 29 companies – have a combined market cap of about S$37 billion. REIT constituents in the Index carry a weighting of approximately 71.9%, with companies accounting for the remaining 28.1%. 
	 </li>
	<li>
Against a backdrop of increasing geopolitical uncertainty, market volatility and slowing global growth, analysts are recommending that investors include high-yielding, defensive stocks in their portfolios. 
	 </li>
	<li>
The five non-REIT constituents of the FTSE ST Small Cap Index with the highest dividend indicated yields are: UMS (7.4%), Valuetronics (7.1%), QAF (6.8%), Duty Free Intl (6.7%) and Chip Eng Seng (6.4%). They average a 12M indicated yield of 6.9%, vs the STI’s yield of about 4%, and SGS 5Y and 10Y yields of around 1.6%. 
	 </li>
</ul>
The FTSE ST Small Cap Index is a free float-adjusted, market capitalisation-weighted index, representing the performance of small-cap companies that pass size, free float and liquidity screens and trade on SGX Mainboard. The Index’s 49 constituents – comprising 20 Real Estate Investment Trusts (REITs) and 29 companies – have a combined market cap of about S$37 billion, ranging from S$45 million to nearly S$3 billion.

REIT constituents in the Index carry a weighting of approximately 71.9%, with companies accounting for the remaining 28.1%. More broadly, beyond the Index are approximately another 300 stocks listed on SGX that fall within this market cap range.

Against a backdrop of increasing geopolitical uncertainty, market volatility and slowing global growth, analysts are recommending that investors include high-yielding, defensive stocks in their portfolios.

The five non-REIT constituents of the FTSE ST Small Cap Index with the highest dividend indicated yields are: UMS Holdings (7.4%), Valuetronics Holdings (7.1%), QAF Ltd (6.8%), Duty Free International (6.7%) and Chip Eng Seng (6.4%). They average a 12-month indicated yield of 6.9%, which compares with the benchmark Straits Times Index’s (STI) indicated yield of about 4%, and the <a href="https://secure.sgs.gov.sg/fdanet/SgsBenchmarkIssuePrices.aspx">Singapore Government Securities</a> (SGS) five- and 10-year yields of around 1.6%.
</body></html>

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2019-10/Div%20Ind%20Yield.png' alt='Dividend Indicated Yields' />
 </figure>
 <div class='content-caption'>Dividend Indicated Yields</div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
Source: Bloomberg, StockFacts &amp; SGS data

 

These five best-yielding stocks, with a combined market cap of over S$1.6 billion, are categorised to the semiconductor equipment, electronics manufacturing, consumer staples, consumer discretionary, as well as construction and property sectors.

The table details the FTSE ST Small Cap Index’s 10 highest-yielding, non-REIT constituents, sorted by 12M dividend indicated yield.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			12M Div Ind Yld (%)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			P/E (x)
			</td>
		</tr>
<tr>
<td>
			UMS HLDGS
			</td>
			<td>
			558
			</td>
			<td>
			333
			</td>
			<td>
			7.4
			</td>
			<td>
			10.9
			</td>
			<td>
			8.6
			</td>
		</tr>
<tr>
<td>
			VALUETRONICS HLDGS
			</td>
			<td>
			BN2
			</td>
			<td>
			268
			</td>
			<td>
			7.1
			</td>
			<td>
			-1.9
			</td>
			<td>
			7.6
			</td>
		</tr>
<tr>
<td>
			QAF LTD
			</td>
			<td>
			Q01
			</td>
			<td>
			434
			</td>
			<td>
			6.8
			</td>
			<td>
			33.8
			</td>
			<td>
			71.2
			</td>
		</tr>
<tr>
<td>
			DUTY FREE INTL
			</td>
			<td>
			5SO
			</td>
			<td>
			179
			</td>
			<td>
			6.7
			</td>
			<td>
			-20.2
			</td>
			<td>
			12.5
			</td>
		</tr>
<tr>
<td>
			CHIP ENG SENG
			</td>
			<td>
			C29
			</td>
			<td>
			394
			</td>
			<td>
			6.4
			</td>
			<td>
			0.6
			</td>
			<td>
			6.6
			</td>
		</tr>
<tr>
<td>
			HONG LEONG FINANCE
			</td>
			<td>
			S41
			</td>
			<td>
			1,158
			</td>
			<td>
			5.8
			</td>
			<td>
			7.8
			</td>
			<td>
			9.7
			</td>
		</tr>
<tr>
<td>
			CHINA SUNSINE CHEMICAL
			</td>
			<td>
			CH8
			</td>
			<td>
			542
			</td>
			<td>
			5.0
			</td>
			<td>
			-7.6
			</td>
			<td>
			4.6
			</td>
		</tr>
<tr>
<td>
			LIAN BENG GROUP
			</td>
			<td>
			L03
			</td>
			<td>
			242
			</td>
			<td>
			4.6
			</td>
			<td>
			10.2
			</td>
			<td>
			4.3
			</td>
		</tr>
<tr>
<td>
			KOUFU GROUP
			</td>
			<td>
			VL6
			</td>
			<td>
			399
			</td>
			<td>
			4.5
			</td>
			<td>
			19.7
			</td>
			<td>
			15.2
			</td>
		</tr>
<tr>
<td>
			HI-P INTL
			</td>
			<td>
			H17
			</td>
			<td>
			925
			</td>
			<td>
			4.4
			</td>
			<td>
			33.8
			</td>
			<td>
			9.1
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			5.9
			</td>
			<td>
			8.7
			</td>
			<td>
			14.9
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 4 Oct 2019)

 

Note that among the 10, QAF and Hi-P International are also the second- and third-best performing constituents of the FTSE ST Small Cap Index in the YTD. To read the Market Update published yesterday on the  Small Cap Index’s best-performing non-REIT constituents in the YTD, click <a href="https://www2.sgx.com/research-education/market-updates/20191007-small-cap-indexs-five-non-reit-best-performers-returned">here</a>.
</body></html>





The FTSE ST Small Cap Index’s 49 constituents – comprising 20 REITs and 29 companies – have a combined market cap of about S$37 billion. REIT constituents in the Index carry a weighting of approximately 71.9%, with companies accounting for the remaining 28.1%. 
	 
	
Against a backdrop of increasing geopolitical uncertainty, market volatility and slowing global growth, analysts are recommending that investors include high-yielding, defensive stocks in their portfolios. 
	 
	
The five non-REIT constituents of the FTSE ST Small Cap Index with the highest dividend indicated yields are: UMS (7.4%), Valuetronics (7.1%), QAF (6.8%), Duty Free Intl (6.7%) and Chip Eng Seng (6.4%). They average a 12M indicated yield of 6.9%, vs the STI’s yield of about 4%, and SGS 5Y and 10Y yields of around 1.6%. 
	 

The FTSE ST Small Cap Index is a free float-adjusted, market capitalisation-weighted index, representing the performance of small-cap companies that pass size, free float and liquidity screens and trade on SGX Mainboard. The Index’s 49 constituents – comprising 20 Real Estate Investment Trusts (REITs) and 29 companies – have a combined market cap of about S$37 billion, ranging from S$45 million to nearly S$3 billion.

REIT constituents in the Index carry a weighting of approximately 71.9%, with companies accounting for the remaining 28.1%. More broadly, beyond the Index are approximately another 300 stocks listed on SGX that fall within this market cap range.

Against a backdrop of increasing geopolitical uncertainty, market volatility and slowing global growth, analysts are recommending that investors include high-yielding, defensive stocks in their portfolios.

The five non-REIT constituents of the FTSE ST Small Cap Index with the highest dividend indicated yields are: UMS Holdings (7.4%), Valuetronics Holdings (7.1%), QAF Ltd (6.8%), Duty Free International (6.7%) and Chip Eng Seng (6.4%). They average a 12-month indicated yield of 6.9%, which compares with the benchmark Straits Times Index’s (STI) indicated yield of about 4%, and the Singapore Government Securities (SGS) five- and 10-year yields of around 1.6%.



      
    
    Dividend Indicated Yields


Source: Bloomberg, StockFacts &amp; SGS data

 

These five best-yielding stocks, with a combined market cap of over S$1.6 billion, are categorised to the semiconductor equipment, electronics manufacturing, consumer staples, consumer discretionary, as well as construction and property sectors.

The table details the FTSE ST Small Cap Index’s 10 highest-yielding, non-REIT constituents, sorted by 12M dividend indicated yield.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			12M Div Ind Yld (%)
			
			
			Total Return YTD (%)
			
			
			P/E (x)
			
		


			UMS HLDGS
			
			
			558
			
			
			333
			
			
			7.4
			
			
			10.9
			
			
			8.6
			
		


			VALUETRONICS HLDGS
			
			
			BN2
			
			
			268
			
			
			7.1
			
			
			-1.9
			
			
			7.6
			
		


			QAF LTD
			
			
			Q01
			
			
			434
			
			
			6.8
			
			
			33.8
			
			
			71.2
			
		


			DUTY FREE INTL
			
			
			5SO
			
			
			179
			
			
			6.7
			
			
			-20.2
			
			
			12.5
			
		


			CHIP ENG SENG
			
			
			C29
			
			
			394
			
			
			6.4
			
			
			0.6
			
			
			6.6
			
		


			HONG LEONG FINANCE
			
			
			S41
			
			
			1,158
			
			
			5.8
			
			
			7.8
			
			
			9.7
			
		


			CHINA SUNSINE CHEMICAL
			
			
			CH8
			
			
			542
			
			
			5.0
			
			
			-7.6
			
			
			4.6
			
		


			LIAN BENG GROUP
			
			
			L03
			
			
			242
			
			
			4.6
			
			
			10.2
			
			
			4.3
			
		


			KOUFU GROUP
			
			
			VL6
			
			
			399
			
			
			4.5
			
			
			19.7
			
			
			15.2
			
		


			HI-P INTL
			
			
			H17
			
			
			925
			
			
			4.4
			
			
			33.8
			
			
			9.1
			
		


			Average
			
			
			 
			
			
			 
			
			
			5.9
			
			
			8.7
			
			
			14.9
			
		

Source: Bloomberg &amp; StockFacts (data as of 4 Oct 2019)

 

Note that among the 10, QAF and Hi-P International are also the second- and third-best performing constituents of the FTSE ST Small Cap Index in the YTD. To read the Market Update published yesterday on the  Small Cap Index’s best-performing non-REIT constituents in the YTD, click here.



Small Cap Index’s Best-Yielding Non-REIT Constituents Avg 7% Yield      

Chip Eng Seng Corp

Small Cap Index’s Best-Yielding Non-REIT Constituents Avg 7% Yield