In 2012, the Straits Times Index (STI) rebounded from its 2011 decline, generating a gain of +19.7% over the year. Dividends boost the total return of the Index to +23.5% in 2012. Over the past three years the average annualised return of the STI including dividend distributions amounted to +6.4%.

The five best performing STI stocks over 2012 were CapitaMalls Asia (JS8, +72.1%), CapitaLand (C31, +67.4%), Global Logistics Properties (MC0, +58.4%), Fraser and Neave (F99, +55.8%) and Hong Kong Land (H78, +54.4%). The five underperforming STI stocks over 2012 were Wilmar International (F34, -33.0%), Olam International (O32, -26.8%), Genting Singapore (G13, -8.9%), Golden Agri Resources (E5H, -8.4%) and Jardine Cycle & Carriage (C07, -0.3%).

The broader universe of stocks as represented by the FTSE ST All-Share Index gained +22.2% in 2012. Reinvested dividends boosted …