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





Multiple methods exist to gauge momentum in a stock, which entails both short term and long term positive returns. For the past three months the STI has generated a 1.5% total return, bringing its three year return to 20%.  
	 
	
Keppel Corp and MLT (joins STI on Dec 23) are two of 30 Singapore stocks with a market value above S$100M that generated the highest momentum in total returns. This is based on the observing comparative minimum total returns for the past three months, one and three years. 
	 
	With market values above S$100M, Rex, GS Holdings, AEM, UMS and Penguin generated the highest minimum total returns over the three month, one and three year time frames. Penguin generated respective total returns of 49%, 150% and 232% over the three timeframes.         

 

Over the past three months, the STI generated a 1.5% total return, bringing its three year total return to a competitive 20.1% that doubled the gains of the FTSE ASEAN All-Share Index. Multiple stocks generated consistent total returns over the three years that spanned regional and synchronised growth acceleration and deceleration. However, the 30 Singapore-listed stocks that generated some of the most consistent and highest momentum over the three years, mostly reside out of the STI.

Momentum stocks are generically defined as those stocks which generated positive returns over multiple time periods, typically in the short term and long term. Singapore lists 100 stocks that maintain a market value of more than S$100 million, which did not generate a decline in total return over the three timeframes of the past three months, past year and past three years.

The 30 Singapore-listed stocks that have set a bar in generating the highest minimum total returns in either of the three timeframes are tabled below. For instance the minimum return generated by Rex International in either the past three months, past one year and past three years was 107% (for the past three months).  Likewise, the minimum total return generated by Valuetronics across the three timeframes was 23% (for the past one year).

The 30 stocks are ranked by the highest minimum total return generated in either of the three timeframes.  

 



 
			 
			 
			 
			
			Accumulated Total Return
			
			 
		


			Name
			
			
			Code
			
			
			Mkt Cap 

			S$M
			
			
			11M19 Turnover Ranking
			
			
			3M %
			
			
			1Y %
			
			
			3Y %
			
			
			Min Return %
			
			
			Recent Financials
			
		


			Rex Intl
			
			
			5WH
			
			
			                           216
			
			
			45
			
			
			107
			
			
			144
			
			
			137
			
			
			107
			
			
			Click here
			
		


			GS Holdings
			
			
			43A
			
			
			                           137
			
			
			221
			
			
			78
			
			
			311
			
			
			121
			
			
			78
			
			
			Click here
			
		


			AEM
			
			
			AWX
			
			
			                           515
			
			
			30
			
			
			72
			
			
			111
			
			
			1,404
			
			
			72
			
			
			Click here
			
		


			UMS
			
			
			558
			
			
			                           523
			
			
			53
			
			
			61
			
			
			71
			
			
			140
			
			
			61
			
			
			Click here
			
		


			Penguin Intl
			
			
			BTM
			
			
			                           168
			
			
			144
			
			
			49
			
			
			150
			
			
			232
			
			
			49
			
			
			Click here
			
		


			Frencken
			
			
			E28
			
			
			                           399
			
			
			73
			
			
			44
			
			
			146
			
			
			336
			
			
			44
			
			
			Click here
			
		


			Accordia Golf Trust
			
			
			ADQU
			
			
			                           769
			
			
			110
			
			
			37
			
			
			54
			
			
			37
			
			
			37
			
			
			Click here
			
		


			Hi-P
			
			
			H17
			
			
			                       1,248
			
			
			39
			
			
			34
			
			
			57
			
			
			263
			
			
			34
			
			
			Click here
			
		


			Tiong Woon
			
			
			BQM
			
			
			                           107
			
			
			247
			
			
			32
			
			
			65
			
			
			89
			
			
			32
			
			
			Click here
			
		


			Valuetronics
			
			
			BN2
			
			
			                           341
			
			
			61
			
			
			28
			
			
			23
			
			
			88
			
			
			23
			
			
			Click here
			
		


			Fu Yu
			
			
			F13
			
			
			                           188
			
			
			126
			
			
			20
			
			
			42
			
			
			67
			
			
			20
			
			
			Click here
			
		


			Oxley
			
			
			5UX
			
			
			                       1,475
			
			
			91
			
			
			19
			
			
			24
			
			
			17
			
			
			17
			
			
			Click here
			
		


			Sunpower
			
			
			5GD
			
			
			                           462
			
			
			84
			
			
			25
			
			
			97
			
			
			17
			
			
			17
			
			
			Click here
			
		


			Hanwell
			
			
			DM0
			
			
			                           119
			
			
			217
			
			
			17
			
			
			35
			
			
			20
			
			
			17
			
			
			Click here
			
		


			Micro-Mechanics
			
			
			5DD
			
			
			                           256
			
			
			251
			
			
			20
			
			
			17
			
			
			152
			
			
			17
			
			
			Click here
			
		


			CSE Global
			
			
			544
			
			
			                           272
			
			
			102
			
			
			16
			
			
			33
			
			
			40
			
			
			16
			
			
			Click here
			
		


			Isetan
			
			
			I15
			
			
			                           206
			
			
			220
			
			
			16
			
			
			45
			
			
			47
			
			
			16
			
			
			Click here
			
		


			Keppel DC REIT
			
			
			AJBU
			
			
			                       3,310
			
			
			32
			
			
			15
			
			
			58
			
			
			94
			
			
			15
			
			
			Click here
			
		


			BRC Asia
			
			
			BEC
			
			
			                           351
			
			
			104
			
			
			14
			
			
			16
			
			
			198
			
			
			14
			
			
			Click here
			
		


			Food Empire
			
			
			F03
			
			
			                           324
			
			
			206
			
			
			17
			
			
			13
			
			
			28
			
			
			13
			
			
			Click here
			
		


			Cortina
			
			
			C41
			
			
			                           245
			
			
			561
			
			
			13
			
			
			48
			
			
			126
			
			
			13
			
			
			Click here
			
		


			Mapletree Ind Trust
			
			
			ME8U
			
			
			                       5,722
			
			
			27
			
			
			13
			
			
			45
			
			
			88
			
			
			13
			
			
			Click here
			
		


			Manulife REIT USD
			
			
			BTOU
			
			
			                       2,176
			
			
			57
			
			
			12
			
			
			45
			
			
			61
			
			
			12
			
			
			Click here
			
		


			Procurri
			
			
			BVQ
			
			
			                           127
			
			
			189
			
			
			37
			
			
			65
			
			
			12
			
			
			12
			
			
			Click here
			
		


			Ascendas-iTrust
			
			
			CY6U
			
			
			                       1,795
			
			
			64
			
			
			11
			
			
			54
			
			
			76
			
			
			11
			
			
			Click here
			
		


			Keppel Corp
			
			
			BN4
			
			
			                     12,206
			
			
			13
			
			
			11
			
			
			13
			
			
			26
			
			
			11
			
			
			Click here
			
		


			Mapletree Log Trust
			
			
			M44U
			
			
			                       6,531
			
			
			18
			
			
			11
			
			
			43
			
			
			103
			
			
			11
			
			
			Click here
			
		


			ValueMax
			
			
			T6I
			
			
			                           175
			
			
			330
			
			
			11
			
			
			18
			
			
			47
			
			
			11
			
			
			Click here
			
		


			UOA
			
			
			EH5
			
			
			                       1,117
			
			
			456
			
			
			9
			
			
			22
			
			
			44
			
			
			9
			
			
			Click here
			
		


			Pacific Century
			
			
			P15
			
			
			                           835
			
			
			199
			
			
			9
			
			
			26
			
			
			43
			
			
			9
			
			
			Click here
			
		

By comparison, the STI generated a 1.5% total return over the past three months, 6.5% over the past one year and 20.1% for the past three years. Source: Thomson Reuters, Bloomberg, SGX (accumulative total returns as of Dec 11, 2019).

 

All 30 stocks outpaced the STI over the past three months and the past year, while 26 of the 30 stocks outpaced the STI over the past three years.  Just one of the 30 stocks tabled above is presently an STI constituent – Keppel Corporation, while Mapletree Logistics Trust will join the STI on Dec 23, as discussed here. Almost half the 30 stocks, ranked amongst the 100 most active stocks by turnover in the first 11 months of 2019.

While the majority of the stocks maintain a Singapore revenue focus, a number of the above stocks provide international exposure to countries that include the United States, China, Japan, India. There are also stocks that have diversified their revenue streams over multiple jurisdictions. For instance in FY18 integrated technology solutions provider, Frencken Group, reported 23% of its revenue to the Netherlands, 18% to Thailand, 13% to Taiwan, 10% to Malaysia, 9% to Singapore, 8% to Germany, 7% to the Czech Republic, 5% to America, with the remaining revenue to at least five other countries.   

Note multiple methods exist for gauging the momentum of a stock or consistency of total returns, such as wider or separate timeframes.  



Stocks with Consistent Momentum in Recent Years

Penguin International

Stocks with Consistent Momentum in Recent Years