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Market Capitalisation up 6% over past year

  • The total market cap of the stocks and trusts listed on SGX has grown 6% to $958 billion in the twelve months to Oct 25, with almost half the gains coming in the year-to-date.
  • More than half of the total market cap is represented by the 30 STI stocks which has grown 5% over the past 12 months.
  • These 30 STI stocks with a combined market capitalisation of S$521 billion have distributed more than S$15.5 billion in dividend income over the past 12 months.
  • Among the STI stocks, dividend distributions had the biggest impact on 12 month total returns for Singapore Press Holdings, Hutchison Port Holdings Trust, Starhub, SIA Engineering and Singtel.

The total market capitalisation of the stocks and trusts listed on Singapore Exchange (SGX) has gained 5.8% to S$958 billion at 25 October 2013 from S$905 billion at the end of October 2012. Almost half of these gains have come in the 2013 year-to-date.  

Growth and composition of total market capitalisation

The 30 STI stocks make up more than half of the total market capitalisation with a combined amount of S$521 billion as of 25 October. Of the S$958 billion market capitalisation, 70% or S$669 billion was made up of primary listings and 29% or S$280 billion made up of secondary listings. The remaining 1% of market capitalisation or S$9.2 billion was made up of Catalist stocks. The change in total month-end market capitalisation since October 2012 is illustrated in the chart below.

Source: SGX My Gateway – October 2013 data as of 25 October 2013

While the STI makes up 54% of the total market capitalisation ($521 billion of S$958 billion), the next 20 largest companies make up an additional 20% of the total market capitalisation. Within this group of 50 stocks are 39 primary listings and 11 secondary listings. Combined, these stocks represent as many as 20 different sectors as defined by the Industry Classification Benchmark (ICB).

Note that during the months of April and May 2013, the total market capitalisation surpassed S$1 trillion.

STI stability over past 12 months

The current 30 STI stocks have seen their market capitalisation gain 4.8% in the year-to-date. Market capitalisation is a function of the number of shares or (units) outstanding and the price of the shares (or trust). The STI stocks that have seen the most increase to market capitalisation are Global Logistic Properties, Thai Beverage, SIA Engineering and Starhub which have all seen increases of more than 20% over the 12 months.

Investors generally invest for two reasons. Firstly, they attempt to capture price returns, which are reflected in the rise of the market price of the specific share upon closing the investment position. Secondly, they benefit from the potential earnings that are periodically paid out to shareholders, otherwise known as dividend returns.

STI Dividends

The current 30 STI stocks have distributed S$15.5 billion in dividends over the past 12 months. One third of this annual stream was distributed in August and just over a third was distributed in the months of April and May. The S$15.5 billion distribution represents 3.0% of the total market capitalisation of the 30 STI companies.  

Assuming equal dividend yields, the larger the company, the larger the dividend distribution. Of the S$15.5 billion, 17.3% was distributed by Singtel, 8.8% by DBS Group, 7.6% by Jardine Matheson, 7.5% by OCBC and 7.1% by UOB. However, dividend yields do typically vary which affects the distribution sum - yields for the past 12 months ranged from 0.7% for Jardine Strategic to 9.9% for Singapore Press Holdings.

 

Short Name SGX Code Market Cap S$M as of end October 2012 Market Cap S$M as of 25 October 2013 Market Cap Growth % Approx Div dist S$M over 12 months Px Chg Pct:Y-1 Total Return:
Y-1
Dvd 12M Yld - Gross

CAPITALAND LTD

C31

13,900

13,326

-4.1

298

-5.1

-3.3

2.23

CAPITAMALL TRUST

C38U

7,028

6,917

-1.6

254

-8.3

-5.0

3.66

CAPITAMALLS ASIA

JS8

7,192

8,019

11.5

131

14.1

16.1

1.65

CITY DEVELOPS

C09

10,421

9,502

-8.8

191

-9.0

-7.3

2.01

COMFORTDELGRO CO

C52

3,548

4,069

14.7

138

15.1

19.0

3.41

DBS GROUP HLDGS

D05

33,868

40,591

19.8

1369

18.5

22.4

3.36

GENTING SINGAPOR

G13

16,241

18,280

12.6

122

14.4

15.1

0.67

GLOBAL LOGISTIC

MC0

11,841

14,707

24.2

190

20.8

22.5

1.30

GOLDEN AGRI-RESO

E5H

8,023

7,125

-11.2

76

-11.7

-9.9

2.11

HONGKONG LAND

H78

18,177

17,889

-1.6

504

1.3

3.8

2.76

HUTCHISON PORT-U

NS8U

8,283

8,185

-1.2

646

-2.9

4.6

7.94

JARDINE CYCLE &

C07

17,515

12,834

-26.7

545

-27.5

-25.0

4.21

JARDINE MATHESON

J36

50,363

46,202

-8.3

1173

-8.3

-6.2

2.46

JARDINE STRAT

J37

49,715

47,948

-3.6

346

-2.0

-1.3

0.71

KEPPEL CORP LTD

BN4

19,158

19,647

2.6

669

1.6

5.0

3.40

NOBLE GROUP LTD

N21

8,504

6,959

-18.2

149

-21.4

-19.8

2.15

OCBC BANK

O39

31,216

35,698

14.4

1167

13.3

16.9

3.28

OLAM INTERNATION

O32

4,709

3,705

-21.3

96

-20.9

-19.2

2.58

SEMBCORP INDUS

U96

9,719

9,517

-2.1

268

-3.4

-0.5

2.82

SEMBCORP MARINE

S51

9,833

9,550

-2.9

272

-6.2

-3.3

2.86

SIA ENGINEERING

S59

4,628

5,713

23.4

245

23.3

29.2

4.30

SING AIRLIN

C6L

12,420

12,300

-1.0

270

-2.1

0.2

2.20

SING EXCH

S68

7,191

7,927

10.2

300

8.7

12.8

3.78

SING TELECO

Z74

51,338

59,470

15.8

2679

16.9

22.4

4.46

SINGAP PRESS HLG

T39

6,447

6,794

5.4

671

3.9

14.8

9.86

SINGAP TECH ENG

S63

10,830

12,918

19.3

522

18.7

23.3

4.04

STARHUB LTD

CC3

6,313

7,686

21.7

344

21.4

27.3

4.47

THAI BEVERAGE

Y92

10,923

13,559

24.1

394

21.3

25.3

3.29

UNITED OVERSEAS

U11

28,754

32,749

13.9

1103

11.7

15.4

3.38

WILMAR INTERNATI

F34

19,764

22,072

11.7

352

9.8

11.7

1.59

Source: SGX My Gateway, Bloomberg

The five companies that saw the biggest impact by dividends on 12 month total returns were Singapore Press Holdings, Hutchison Port Holdings Trust, Starhub, Singtel and SIA Engineering. The table above details the dividend amounts.

 


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Geoff Howie
Geoff Howie

Mr Howie is a Market Strategist at SGX, providing investment application and market updates to the market participants of the SGX. He is a key contributor to the educational materials on SGX My Gateway. He previously held lead broking and strategist roles in four Asia Pacific offices of MF Global, Macquarie Securities in Hong Kong and was also Treasury Adviser to the Coalition Leaders in the Queensland Parliament. He holds a Bachelors and Masters degree in Economics, the latter extending into deferred PhD work after receiving the highest grading for first-mover research and modelling conducted on the Shanghai economy. Mr Howie's other notable achievements include receiving two HKSI Outstanding Achievers/Candidate of the Year awards in 2005 and a commendation in the Queensland Parliament Hansard for his analysis on government finances when he was Treasury Adviser to the Coalition leaders.