Author: SGX My Gateway

Singapore Office Property Market Stabilising Despite Headwinds

1Q17 office space vacancy rates peaked at 11.6%, highest in five years. Office rental rates continue to decline and Grade A office rents stabilising QoQ, indicating signs of stabilisation in office rental rates. Office space supply is expected to peak in 2017 and taper off in the next few years. CBRE Research believes that sentiment has swung from pessimism to optimism as investors forecast a period of relatively modest supply over the next few years.  SGX lists six Office REITs (GICS®) with a combined market capitalisation of S$12.8 billion. These 6 trusts have generated a market cap weighted average...

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Green Shoots Emerge Despite Challenging Industrial Property Market

Singapore’s industrial property market remains challenging as industrial space supply is expected to peak in 2017, before tapering off in the next few years. Green shoots in manufacturing activity data, and the Singapore government’s economic shift, coupled with its focus on higher value-added businesses, bode well for industrial property demand. SGX lists 11 REITs & Property Trusts which have industrial properties within their asset portfolios. These 11 trusts have generated an average year-to-date total return of 19.0%. Real Estate Sector Sub-Segment: Industrial Property Market Industrial Segment Still Challenging but Supply Peaking in 2017 URA data shows that Singapore’s industrial...

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Singapore Private Property Market Shows Signs of Stabilising

Singapore’s private property market appears to be stabilising as URA’s 2Q17 flash estimates show smallest QoQ price decline of private residential property prices since 4Q13. YTD average monthly primary private home sales volumes are also 74.6% higher YoY. Existing property cooling measures are likely to remain despite recent calibrated adjustments. In the medium term, MAS believes that Singapore’s property prices should be aligned with broader income trends in the local economy. SGX lists six Real Estate Management & Development (GICS®) stocks with market capitalisation above S$1 billion that have substantial exposure to the Singapore property market. These six companies...

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June Quarter Earnings Schedule for S-REITs

Tomorrow, SPH REIT will kick off the June quarter financial reporting season for the 36 constituents of the SGX S-REIT Index, reporting its 3Q fiscal year 2017 results. ESR REIT and Soilbuild Business Space REIT will report their 2Q fiscal year 2017 results later this week.  The SGX S-REIT Index generated a total return of 16.2% in the year-to-date, outperforming the S&P Asia Pacific REIT Index and MSCI World REIT Index, which generated total returns of -2.7 % and -2.9% respectively in SGD terms. The 36 trusts averaged a year-to-date return of 16.9%, while maintaining an average distribution yield...

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SGX Real Estate Index Returned 19.5% YTD on Positive Indicators

The SGX Real Estate Index, a benchmark for Singapore’s Real Estate Sector, has returned 19.5% in the YTD. Domestic private home prices have shown signs of stabilisation in recent months, with a pick-up in primary transaction volumes.   There are 104 Real Estate companies (diverse across assets) with a combined market capitalisation of almost S$190 billion listed on the SGX. Some key drivers for the sector include population growth, government cooling measures, land supply and interest rates. Post the YTD rally, sector valuations remain below their long-term historical average. Singapore property developer stocks are trading at PB ratio of 0.75x...

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S$51 Million Worth of Share Buybacks in June – Highest in Nine Months

More than 13 million shares were repurchased by 18 companies in June, with total buyback consideration at S$51.5 million. This was up 5.9% from S$48.6 million in consideration for May 2017. The five stocks with the largest buyback consideration value in May included two STI stocks. The five stocks were Oversea-Chinese Banking Corp (OCBC), SIA Engineering Company, Singapore Post, Hi-P International and Telechoice International. For a fourth consecutive month, OCBC had the highest buyback consideration for the month, taking the total number of shares purchased under the 12 month mandate (effective 28 April) to 7.2 million shares. In the...

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10 Biggest Stocks of the FTSE ST Fledgling Index

The FTSE ST Fledgling Index consists of close to 250 stocks with an average market cap of S$110 million. In 2017 YTD, the FTSE ST Fledgling Index has generated a 12.4% price gain, similar to the STI which has gained 11.4%. The 10 biggest FTSE ST Fledgling Index weights as of the end of 2016 have also averaged a 12.4% price gain in 2017 YTD. Of these 10 stocks, six stocks – Poh Tiong Choon Logistics, Tianjin ZhongXin Pharmaceutical Group Corp, MYP, CSE Global, Singapore Reinsurance Corp and Sunningdale Tech – are still amongst the 10 biggest Index weights....

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STI’s Strongest Stocks & Segments in 2017 YTD

In the 2017 YTD Yangzijiang Shipbuilding was the best performing STI stock with a 45% price gain, after ranking as the STI’s least performer in 2016.  At the same time, the STI’s least performer in the 2017 YTD, Golden Agri Resources, was the best performing STI stock in 2016.  The STI’s five Real Estate Management and Development stocks have averaged a 24% price gain in the year-to-date, with three of the stocks making the top five performing STI stocks in the 2017 year-to-date. Yanlord Land, which recently joined the STI Reserve List has gained 35% in the 2017 YTD....

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Best World, Hanwell & Food Empire Led the Big Consumer Staples Stocks in YTD

Singapore’s 20 biggest Consumer Staples stocks have averaged 9% price gains in the 2017 YTD. Last year, the Sector was the strongest segment of the Singapore market, with the same 20 stocks averaging a 35% price return. In the 2017 YTD the three strongest of the 20 Consumer Staples stocks were Best World International, Food Empire Holdings and Hanwell Holdings. Best World generated a 120% price gain, whilst Hanwell and Food Empire generated similar respective gains of 48% and 42%. All three of these stocks reported diluted EPS growth in 1QFY17. Best World reported EPS of 3.53 cents (+62.7%...

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Top Glove, Riverstone & UG Healthcare Positive on Rubber Glove Prospects

Global rubber glove industry to post 8%-10% annual growth in the next few years, mainly driven by increasing emerging market demand. Malaysia continues to be the top rubber glove manufacturer globally with c.63.0% market share.  While near-term headwinds (competition, raw material prices, and currencies) remain, glove manufacturers are positive on structural growth trends of the industry and remain committed to their respective capacity expansion plans.  SGX lists three rubber glove plays with a combined market capitalisation of S$3 billion. Top Glove Corporation is the largest stock in this segment at S$2 billion. The company will host a webinar on...

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World Class Global – An Aspial Corp Subsidiary – Debuts on SGX

World Class Global, a real estate company in property development and property investment in Australia and Malaysia, made its trading debut on Catalist today. The company intends to distribute annual dividends of up to 50% of net profits attributable to shareholders in FY2019 and thereafter. Rising prices and increasing foreign investor appetite in Australia’s property market are some of the growth drivers that World Class Global has identified. For Malaysia, it also recognises Penang as a hotspot for property growth and investment. SGX lists 63 stocks under the Real Estate Management & Development GICS® Industry with a combined market...

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High-Yielding Billionaire Stocks Extend Beyond the STI

Almost half of Singapore’s primary-listed stocks with a capitalisation greater than S$1.0 billion have dividend yields above 3%. This is a higher ratio than Asia Pacific and the United States, where around one-fifth of the same sized stocks maintain a yield of at least 3%. Within the STI, the 14 stocks that maintain a dividend yield above 3% averaged an 11% total return in the 2017 YTD. Beyond the STI, another 33 stocks, all with market capitalisation above S$1.0 billion and dividend yields above 3%, have averaged 15% gains. Of Singapore’s billionaire capitalisation stocks with 3%+ yields, the strongest...

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Singapore Consumer Plays with a China Focus

Global research firm, Nielsen recently reported that China’s Consumer Confidence Index in 1Q17 reached levels last seen in 2015, while immediate spending intentions had reached their highest levels since 2014.  Singapore lists a dozen stocks with a market capitalisation above S$100 million that reported at least one-tenth of their revenue to China in the last financial year. The 12 stocks have averaged a 25% total return in 2017 YTD. The three best performing stocks of the 12 in the 2017 YTD were Best World International (BWI), Shangri-La Asia and Hanwell Holdings. Last month BWI reported a 1QFY17 EPS of...

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Recent Sector Moves & Turnarounds

Over the first five months of 2017 Information Technology (IT), Materials and Real Estate Management & Development Sectors ranked as the best three performing Sectors. IT and Materials had also ranked amongst the three best performing Sectors in 2016. The Real Estate Management & Development Sector saw a turnaround performance in the first five months of 2017, after ending 2016 as one of the three least performing Sectors. The YTD strength of the Real Estate Management & Development Sector coincided with expectations and announced reductions of some property market cooling measures. Further underlying the reversal of fortune for the...

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Highlights of SGX’s Information Technology Sector Leaders

Venture Corporation, a leading global provider of Technology products and solutions, posted total return of 36.4% year-to-date. Silverlake Axis, a leading provider of digital economy solutions and services, registered total return of 2.6% year-to-date. UMS Holdings, a leading manufacturer of high precision front-end semiconductor components, had a total return of 106.6% year-to-date. There are three types of Information Technology (IT) stocks  – Technology Hardware and Equipment Related,  Software and Services, and Semiconductors. The largest capitalised of each segment are, respectively,  Venture Corporation, Silverlake Axis and UMS Holdings. Approximately two-thirds of the IT stocks listed on SGX represent the Technology...

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