Market Review and Trends
STI is Asia’s Strongest Benchmark in 2017 YTD
By SGX My Gateway  •  January 31, 2017
The STI has generated a 5.6% gain in the year thus far (as of this afternoon), compared to an average 2.5% return for the Nikkei 225 and Hang Seng Index, and an average 1.0% return for the FTSE Malaysia KLCI, Stock Exchange of Thailand SET Index and the Jakarta Composite Index. The five strongest STI stocks in the 2017 year through to the Lunar New Year Holiday were Global Logistic Properties (+19.1%), City Developments (+12.2%), Sembcorp Industries (+11.9%), CapitaLand (+10.6%) and DBS Group Holdings (+10.6%). As of 2pm the Straits Times Index (STI) was trading at 3,043, which represented a 5.6% gain in the 2017 year to date thus far. This compared to an average 2.5% gain for the Nikkei 225 Index and Hang Seng Index and an average 1.0% return for the FTSE Malaysia KLCI, Stock Exchange of Thailand SET Index and the Jakarta Composite Index. The SPDR® Straits Times Index ETF was also the most active ETF last week with a turnover of S$9.0 million. ETFs give investors access to the performance of the asset that comprises the underlying index. Investing in the ETF is also less costly if one was to build a similar portfolio by buying the individual stocks. The other STI tracking ETF listed for trading on Singapore Exchange (SGX) is the Nikko AM Singapore STI ETF. The comparative returns (in SGD terms) of these Asian Indices are tabled below. The SGD has gained 1.9% to the US Dollar in the 2017 YTD. Snapshot of 2017 YTD Asia Index Returns [in SGD terms] as of 2pm 31 January Picture Source: Bloomberg (Data as of 2pm 31 January 2017) The five strongest STI stocks in the 2017 year through to the Lunar New Year Holiday were Global Logistic Properties, City Developments, Sembcorp Industries, CapitaLand and DBS Group Holdings. Last week, DBS Group Holdings and CapitaLand were the biggest institutional net buy stocks, while City Developments was the fifth biggest institutional net buy stock. Meanwhile, Global Logistic Properties was the biggest Institution net sell stock last week. These five stocks averaged a year-to-date total return of 12.9% and five year total return of 27.9% (4.4% annualised). The 30 STI constituents have averaged a 6.0% annualised total return over the past five years with Thai Beverage, SATS, ComfortDelGro Corp, CapitaLand Commercial Trust and UOL Group the strongest performers over the five year period. These five stocks averaged annualised total returns of 18.7% over the past five years. The table below details the 30 constituents of the STI sort by market capitalisation. Click on each stock to visit its profile page on SGX StockFacts.
Name SGX Code Market Cap S$B Total Return YTD % Annualised Total Return 5 Yr %
Singapore Telecommunications Z74 63.5 6.6 9.5
Jardine Matheson Hldgs J36 62.8 10.0 8.4
DBS Grp Hldgs D05 48.6 10.6 11.1
Oversea-Chinese Banking Corp O39 39.5 5.9 6.2
United Overseas Bank U11 34.4 2.9 7.8
Wilmar Intl F34 24.8 9.2 -4.5
Hongkong Land Hldgs H78 22.7 5.4 10.5
Thai Beverage Y92 21.3 0.0 29.1
Jardine Cycle & Carriage C07 16.5 1.6 -0.1
CapitaLand C31 14.2 10.6 7.4
Global Logistic Properties MC0 12.3 19.1 8.2
Singapore Airlines C6L 11.9 3.8 1.0
Genting Singapore G13 11.5 6.1 -8.9
Keppel Corp BN4 11.4 8.3 -5.7
Singapore Tech Engineering S63 10.4 3.4 7.5
City Developments C09 8.4 12.2 -0.2
Singapore Exchange S68 8.0 4.9 6.8
Ascendas REIT A17U 7.0 7.5 11.2
CapitaLand Mall Trust C38U 6.9 4.2 7.9
SATS S58 5.9 9.3 24.7
Sembcorp Industries U96 5.7 11.9 -4.4
Singapore Press Hldgs T39 5.5 -1.7 5.2
Hutchison Port Hldgs Trust NS8U 5.4 -2.3 0.2
Golden Agri-Resources E5H 5.3 -2.3 -9.0
ComfortDelGro Corp C52 5.3 -0.4 15.1
UOL Grp U14 5.2 8.5 11.6
StarHub CC3 5.2 7.5 7.2
CapitaLand Commercial Trust C61U 4.5 6.2 13.2
SIA Engineering Co S59 3.9 3.9 4.8
Yangzijiang Shipbuilding BS6 3.1 -0.6 -1.5
Average     5.7 6.0
Source: SGX, Bloomberg & SGX StockFacts (data as of 27 January 2017)
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