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Five best Mid Cap stock performances in 2014 YTD

  • In the 2014 year thus far, the FTSE ST Mid Cap Index gained 7.2% in price and generated a total return of 9.9%. In the same period, the STI gained 3.3% in price and generated a total return of 4.9%.
  • The five best performing stocks in terms of YTD 2014 price returns were Silverlake Axis (+38.6%), GuocoLeisure (+34.9%), SMRT Corp (+33.6%), Vard Holdings (+32.5%) and Singapore Post (+31.7%).
  • The average market capitalisation of a mid cap stock is S$2.3 billion while the average dividend yield of the constituents that maintain a yield is 3.7%.

The FTSE ST Mid Cap Index is made up of 50 stocks which include the five reserve stocks for the Straits Times Index (STI). In effect, the stocks of the FTSE ST Mid Cap Index are the next largest and most liquid names after the 30 stocks of the STI.

The 50 stocks that make up the FTSE ST Mid Cap Index maintained a combined market capitalisation of $115.4 billion as of last Friday. The average market capitalisation of these 50 stocks was S$2.3 billion. In the 2014 year thus far, the FTSE ST Mid Cap Index gained 7.2% in price and generated a total return of 9.9%. In the same period, the STI gained 3.3% in price and generated a total return of 4.9%.

The five largest capitalised constituent stocks in the FTSE ST Mid Cap Index are Keppel Land, UOL Group, CapitaCommercial Trust, Suntec REIT and Yangzijiang Shipbuilding. These five stocks consist of four real estate stocks of which two are holding & development companies and two are industrial & office REITs, while the fifth stock is a shipbuilding company. The five stocks are detailed in the table below.

The five best performing stocks in terms of YTD 2014 price returns were Silverlake Axis (+38.6%), GuocoLeisure (+34.9%), SMRT Corp (+33.6%), Vard Holdings (+32.5%) and Singapore Post (+31.7%). These five stocks are detailed in the table below.

Name

SGX Code

Mkt Cap S$M

Price Chg YTD %

Total Return YTD %

Dvd Ind Yld %

ICB Subsector Name

SILVERLAKE AXIS

5CP

2649

38.6

41.6

3.1

Software

GUOCOLEISURE

B16

1580

34.9

34.9

1.7

Hotels

SMRT CORP

S53

2358

33.6

33.6

1.4

Travel & Tourism

VARD HOLDINGS

MS7

1286

32.5

32.5

N/A

Oil Equipment & Services

SINGAPORE POST

S08

3354

31.7

32.9

3.6

Delivery Services

Source: Bloomberg (Data as of 27 June 2014)

Silverlake Axis

Silverlake Axis provides digital economy software solutions and services to the banking, insurance, payment, retail and logistics industries. Silver Lake invests across the broad value chain and sub-verticals of the technology industry, from semiconductors, cloud computing, and IT infrastructure to tech-enabled financial markets, transaction processing, mobile communications, and e-commerce. According to its 2013 Annual Report, Silverlake Axis generated 43.5% of its revenue from Maintenance and Enhancement Services, 30% from the licensing of Silverlake Axis Integrated Banking Solution (SIBS) and 19.4% from customised software solutions.

Silverlake Axis announced a cash dividend distribution of S$0.01 per share on 6 May which went ex-dividend on 20 May (click here to view). Silverlake Axis is the largest capitalised company in the technology sector with a market capitalisation of S$2.6 billion and gained 38.6% in 2014 YTD. With the addition of dividends, Silverlake Axis generated a total return of 41.6% in 2014 YTD.

GuocoLeisure

GuocoLeisure is an investment holding company with principal investments in hotel management & operations, gaming, oil & gas, property development and other areas in the leisure industry. It manages and operates two distinct hotel brands – Guoman and Thisle, in the UK and Malaysia. It is also involved in the gaming industry in the UK, operating The Clermont Club (TCC), an exclusive members-only casino in Mayfair, London. GuocoLeisure receives royalties from the Bass Strait Oil Trust (BSOT) which is a unit trust managed by Bass Strait Oil Management. Lastly, it is involved in property development through its property investment arms in Molokai, Hawaii and Denarau, Fiji.

GuocoLeisure recently announced that the Company will be delisted from New Zealand Stock Exchange (NZX) on 27 June (click here to view). GuocoLeisure has a market capitalisation of S$1.6 billion and generated a 2014 YTD price gain of 34.9%. The company has not distributed any dividends thus far this year.

SMRT Corp

SMRT Corp is a holding company with transportation as its core business. SMRT Corp through its wholly-owned subsidiary, SMRT, operates the MRT system in Singapore. It also operates the Bukit Panjang light rapid transit system (Bukit Panjang LRT System), provides island-wide bus and taxi services and a stored value farecard ticketing service. SMRT Corp also markets and leases the commercial and media spaces within its transport network, and offers engineering consultancy and project management as well as operations and maintenance services, locally and internationally.

SMRT Corp announced its fourth quarter and full year FY2014 financial results on 2 May (click here to view). Following this announcement, SMRT Corp announced on 17 June that its fifteenth Annual General Meeting (AGM) will be held on 16 July (click here to view). SMRT Corp has a market capitalisation of S$2.4 billion and gained 33.6% in 2014 YTD. The company has not distributed any dividends thus far this year.

Vard Holdings

Vard Holdings, together with its subsidiaries, is one of the major global designers and shipbuilders of offshore and specialized vessels used in the offshore oil and gas exploration and production and oil services industries. Headquartered in Norway and with approximately 10,000 employees, Vard Holdings operates ten shipbuilding facilities, including five in Norway, two in Romania, two in Brazil and one in Vietnam. Majority shareholder Fincantieri Oil & Gas owns 55.63% in the Group. Headquartered in Trieste, Italy, Fincantieri is one of the world’s largest shipbuilding groups and has, over its 200 years of maritime history, built more than 7,000 vessels.

Vard Holdings announced its first quarter 2014 financial results ended 31 March 2014 on 29 April (click here to view). Vard Holdings has a market capitalisation of S$1.3 billion and generated a 2014 YTD price gain of 32.5%. The company has not distributed any dividends thus far this year.

Singapore Post

Singapore Post (SingPost) provides an integrated range of mail, logistics and retail solutions in Singapore and the Asia Pacific region. Its three main business areas are mail business, logistics business and retail business. SingPost is the designated Public Postal Licensee (PPL) for Singapore, providing services for collecting, sorting and distributing domestic and international mail. SingPost also provides delivery solutions for the corporate and retail market. SingPost owns one of the largest retail distribution networks in Singapore, with a multi-channel network of over 60 post offices, more than 300 SAM and SAMPLUS as well as vPOST, its internet portal.

SingPost announced a cash dividend distribution of S$0.025 per share on 16 May which goes ex-dividend on 8 July (click here to view). SingPost has a market capitalisation of S$3.4 billion and gained 31.7% in 2014 YTD. With the addition of dividends, SingPost generated a total return of 32.9% in 2014 YTD.

The five least performing stocks in terms of YTD 2014 price returns were Super Group (-25.3%), Ezra Holdings (-20.0%), Rowsley (-15.4%), Neptune Orient Lines (-15.1%) and Yanlord Land Group (-9.8%). These five stocks are detailed in the table below.

Name

SGX Code

Mkt Cap S$M

Price Chg YTD %

Total Return YTD %

Dvd Ind Yld %

ICB Subsector Name

SUPER GROUP

S10

1567

-25.3

-23.7

3.2

Food Products

EZRA HOLDINGS

5DN

1077

-20.0

-19.6

0.5

Oil Equipment & Services

ROWSLEY

A50

1171

-15.4

-15.4

N/A

Gambling

NEPTUNE ORIENT LINES

N03

2503

-15.1

-15.1

N/A

Marine Transportation

YANLORD LAND GROUP

Z25

2144

-9.8

-8.8

1.2

Real Estate Holding & Development

Source: Bloomberg (Data as of 27 June 2014)

 

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Geoff Howie
Geoff Howie

Mr Howie is the Singapore Exchange's Market Strategist - and the key contributor to the educational content and market insights of SGX My Gateway. He is also part of the Associate Faculty at SIM University,  educating students on the fundamentals of investing. 

He previously held lead broking and strategist roles across the Asia Pacific offices of a large international futures broker. Outside of his 15 year career in the financial markets he has also served as the Treasury Adviser to the Leader of the Queensland Liberal Party in Queensland Parliament.

Following High School in Hong Kong, he attended University of Queensland, receiving a Bachelors and Master's 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 Hong Kong Securities Institute Outstanding Achievers awards for the 2005 year.