Author: SGX My Gateway

Technology Sector Led Market Gains in April & YTD

Information Technology (IT) was the best performing of Singapore’s Sectors in the 2017 YTD. The IT Sector generated a 4.9% capitalisation weighted total return in April, taking YTD gains to 33.3%. April was the third consecutive month the IT Sector was the best performing. The largest stock of Singapore IT Sector, Venture Corp reported 1Q17 results on Friday, with net profit up 36% YOY to S$48.6 million. Management attributed profit growth to achieving compelling product & service differentiation, well-regarded engineering and advanced manufacturing capabilities, as well as its new product/programme execution with several customers. Among the 10 largest stocks...

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Highlights of Singapore’s Three Healthcare REITs

RHT generated total returns of 2.7% and 33.1% in the year-to-date and last 12 months, bringing its three-year total return to 80.5%. The trust currently trades at 1.1x price-to-book (P/B) ratio with 7.7% dividend yield. Parkway Life generated total returns of 11.0% and 11.1% in the year-to-date and last 12 months, bringing its three-year total return to 21.7%. The trust currently trades at 1.5x price-to-book (P/B) ratio with 5.1% dividend yield. First REIT generated total returns of 9.0% and 14.7% in the year-to-date and last 12 months, bringing its three-year total return to 43.6%. The trust currently trades at...

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Aoxin Q & M Dental Group – First China Dental Play to List on SGX

Aoxin Q & M Dental Group Ltd (Aoxin), the first dental services and equipment provider in China, is scheduled to debut on Catalist tomorrow. Aoxin is one of the leading providers of private dental services/dental equipment and supplies in Liaoning Province, Northern China. China’s healthcare expenditure is expected to grow at an average annual rate of 11.8% on the back of rising affluence, ageing population, urbanisation and government public healthcare reforms. Aoxin intends to use the bulk of the IPO proceeds to expand the business through organic growth, M&A, JV and partnerships. SGX lists 20 Health Care Equipment and...

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Pharmaceuticals – A Strong and Growing Healthcare Sub-segment

Despite being one of Singapore’s smaller healthcare sub-segments, the YTD total return of 7.3% generated by the six Pharmaceuticals stocks is almost double that of the overall SGX Healthcare Index.  Against Asia-Pacific peers, Singapore Pharmaceuticals stocks trade at lower valuations of 13.9x PE and 1.2x PB, and generated higher total returns of 7.3% in the YTD (vs 2.2%) and 16.3% in the last one year (vs 7.7%).  Drivers for Singapore’s Pharmaceuticals industry include growing demographics and rising affluence, strong government support and infrastructure, as well as expansion into new markets for regional opportunities. According to Singapore’s Economic Development Board...

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21 SG Stocks Feature in Regional Index built on ‘Quality Factors’

The SGX Developed Asia ex Japan Quality Index is made up of 60 stocks listed across Singapore, Hong Kong and South Korea. With constituents maintaining comparatively strong financials, the Index has generated more resilient long term returns than relative benchmarks. Financial metrics for Quality Factors include net profit margins, return on equity & invested capital, the degree of financial leverage and accrued income. Singapore’s stocks within the SGX Developed Asia ex Japan Quality Index have averaged a 10% YTD total return bringing their average annualised five year returns to 8%. As inferred by their Quality Index inclusion, the stocks...

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Strongest Performing Healthcare Providers of the Past Year

Singapore lists comparatively more stocks in the GICS® ‘Healthcare Providers and Services’ sub-sector than the global norm, with capitalisation growth outpacing the world. Singapore’s 14 primary listings in the sub-sector generated a 12 month median return of 24% (or 45% average gain excluding new listing HC Surgical Specialists’ 115% gain on its initial offer price). Four of the 14 primary listings – Singapore Medical Group, Health Management International, TalkMed Group and Singapore O&G – exceeded 50% in returns over the past 12 months. The majority of the four stocks reported profit growth for either the 6M or 12M ending...

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Singapore’s High Dividend Yields Grab Spotlight Again

Singapore’s biggest Index stocks maintain the highest dividend yield in Asia, with Singapore’s yield of 3.7% ranking as Asia’s highest in the FTSE Country Indices. As many as 70% of Singapore’s constituents in the FTSE All-World Index qualify for the FTSE All-World High Dividend Yield Index, compared to the global norm of 40%. While Singapore’s lists a number of REITs with high yields, the FTSE All-World High Dividend Yield Index excludes REITs as constituents. Seven of Singapore’s constituents in the FTSE All-World High Dividend Yield Index are also now a part of the One STOXX ASEAN Select Dividend Index...

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Healthcare Sector Sentiment Remains Positive Despite Slow 1Q

The SGX All Healthcare index, a benchmark index for Singapore’s listed healthcare companies, generated a total return of 12.7% in the last 12 months, outperforming the regional benchmark MSCI AC Asia ex Japan Healthcare Index’s total return of 0.8%, but lagging the STI’s 10.8%. Several trends favour the healthcare industry, namely Asia’s rapidly ageing population, rising disposable incomes and increasing per capita healthcare spending. Many SGX-listed healthcare players have recognised these trends, and are already expanding into regional markets to meet the growing demand for healthcare services.     Singapore’s 10 largest healthcare stocks averaged a 7.3 % return in...

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Three Sectors that Continued to Beat the Market in March

The Information Technology (IT), Materials and Real Estate Management & Development Sectors were again ranked as the best three performing Sectors last month, following the same rankings for the three Sectors in February.Alliance Mineral Assets, China Sunsine Chemical and Kingboard Copper Foil led the Materials Sector Leaders higher in March. Alliance Mineral Assets announced Lithium and Tantalum drilling results in late January and China Sunsine Chemical reported FY2016 profit growth. Yanlord Land, Hongkong Land and City Developments led the Real Estate Management & Development Sector Leaders higher in March. Yanlord Land and Hongkong Land reported FY 2016 profit growth...

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Industrial Mining Stocks Made a Solid Start to 2017

SGX lists four stocks focused on mining Industrial Minerals – Lithium & Tantalite, Phosphate, Limestone and Marble. Mining activities of these stocks span Australia, China and Malaysia. These minerals have diverse industrial applications – from agri-business to construction to health supplements. Three of the four stocks have generated gains in 2017 YTD, with Lithium & Tantalite miner Alliance Mineral Assets the strongest performer of the four. The other two gainers were Marble miner Terratech Group and Limestone miner, GCCP Resources. The median YTD return of the four stocks was 22.3%. Like the Coal and Gold mining companies, these four...

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Expansion of the Utility Sector

The capitalisation of Singapore’s Utility Sector has expanded by 80% over the past five years outpacing the capitalisation growth of the MSCI AC Asia Pacific Utility Index and the parent MSCI AC Asia Pacific Index. Together the 10 stocks of Singapore’s Utility Sector supply water, gas and independent power through renewable electricity production. The 10 stocks have averaged a 5.2% YTD gain, similar to the MSCI AC Asia Pacific Utilities Index which gained 4.3%. The most recent stock to join the Sector is China Jinjiang Environment Holding Company. For FY 2016, the company reported RMB 597.6 million in profit...

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Significant Expansion of Singapore’s Coal Mining Stocks

The number & combined market cap of SGX listed stocks focused on thermal coal mining in Indonesia has grown fourfold over the past three years. Following Geo Energy’s listing in 2012, three RTOs have seen Resources Prima Group, BlackGold Natural Resources and Golden Energy and Resources list on SGX. Two of these four stocks – Geo Energy Resources & BlackGold Natural Resources – have generated triple digit returns over the past 12 months, taking the average 12 month return for the four thermal coal stocks to 58%. Geo Energy reported quarterly net profit of US$14.7 million in 4Q2016, the...

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Technology Hardware Stocks form a Firm Foundation for Industry 4.0

Singapore Manufacturing Sector represents 20% of Singapore’s 2016 GDP. The Government is focusing on key growth areas such as advanced manufacturing and Industrial IoT. SGX’s Technology Hardware companies form a firm foundation for the paradigm shift to Industry 4.0. These companies are mostly cash-generative and dividend payers. The 10 highest yielding stocks within the Technology Hardware Industry excluding Broad Way Industrial Group averaged a yield of 6.5%. Singapore Manufacturing Sector an important growth pillar for Singapore’s economy The manufacturing sector is a very important pillar of growth for Singapore’s economy. Based on a recent report by the Committee on...

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Recent Corporate Activities of Gold Mining Stocks

Singapore’s trio of gold plays have averaged an 3% return in the 2017 year to date. The three miners, CNMC Goldmine Holdings, Wilton Resources Corporation and Anchor Resources are in different stages of the gold exploration, development and production. CNMC Goldmine Holdings recently completed a subscription of 51% of the shares in the enlarged share capital of Pulai Mining Sdn.Bhd. Pulai Mining’s brownfield project is nearly four times the size of CNMC Goldmine Holdings’ Sokor Gold Field Project. The stock was the biggest gainer amongst the trio in the past year with a one-year total return of +84.8%. Wilton...

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Expectations of March Fed Hike Near 100%

Expectations of a March Federal Reserve rate hike are near 100% as economic data strengthens. Federal Reserve policy rate decision expected on Thursday, 2.00AM, Singapore time.  Cyclical sectors typically have strongest positive correlations to a rising interest rate environment. Singapore banks have generated an average total return of 17.8% (vs STI’s 12.2%) since 8 Nov-16, on the back of strong institutional investors buying activity. Defensive sectors such as REITs are also sensitive to interest rates. The S-REIT Sector currently offers a yield spread of c430bps, higher than the long-term average of c340bps, which may imply that investors have largely...

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