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The five stock reserve list of the Straits Times Index

  • There are five stocks on the reserve list of the STI - Keppel Land, UOL Group, CapitaCommercial Trust, Suntec REIT and Yangzijiang Shipbuilding.
  • These five stocks have a combined market capitalization of S$24.3 billion with an average 2014 YTD total return of 12.2%, and median return of 10.3%. These five stocks currently maintain an average indicative dividend yield of 4.1%
  • These five stocks have a combined market capitalization of S$24.3 billion with an average 2014 YTD total return of 12.2%, wand median return of 10.3%. These five stocks currently maintain an average indicative dividend yield of 4.1%

The composition of STI is reviewed every three months and there are five stocks on the STI reserve list which will be used when a constituent of the STI is removed during the period up to the review. These five stocks have a total market capitalisation of S$24.3 billion as of yesterday with the largest capitalized stock being Keppel Land with a market capitalization of S$5.4 billion.

These five stocks averaged a 2014 YTD total return of 12.2%, with a median of 10.3%. They currently maintain an average indicative dividend yield of 4.1%. The three best performing stocks in 2014 YTD by total return were Suntec REIT (+22.7%), CapitaCommercial Trust (+21.1%) and Keppel Land (+10.3%).

The table below details these five stocks.

Name

SGX Code

Mkt Cap S$M

Price Chg YTD %

Total Return YTD %

Dvd Ind Yld %

ICB Subsector Name

KEPPEL LAND K17 5.4 10.3 -0.2 3.7 Real Estate Holding
& Development
UOL GROUP U14 5.2 9.3 -1.8 2.3 Real Estate Holding 
& Development
CAPITACOMMERCIAL TRUST C61U 4.9 21.1 19.9 5.1 Industrial & Office 
REITs
SUNTEC REIT T82U 4.5 22.7 20.4 4.9 Industrial & Office 
REITs
YANGZIJIANG SHIPBUILDING BS6 4.3 -2.5 24.9 4.5 Commercial Vehicles 
& Trucks

Source: Bloomberg (Data as of 29 July 2014)

Keppel Land

Keppel Land is the biggest stock in the list with a market capitalization of S$5.4 billion. It has businesses in offshore and marine, infrastructure, and property. Its portfolio is located in Asia with a focus in Singapore, China, India, Vietnam, Indonesia and Thailand. On 23 July 2014, it reported net profit of S$195 million for the first half of the year ended 30 June 2014, an increase from S$192.1 million in the previous corresponding period (click here to view). It generated a 2014 YTD total return of 10.3%. The stock went ex-dividend on 22 April 2014, distributing S$0.13 per share in dividends.

UOL Group

UOL Group is the second largest constituent in the list with a market capitalization of S$5.2 billion. It has a portfolio in investment and development properties, hotel and serviced suites in the region of Asia, Australia and North America. UOL Group generated 9.3% of 2014 YTD total return. On 7 May 2014, it reported net attributable profit of S$120.8 million for the first quarter ended 31 March 2014, an increase from S$71.7 million for the first quarter of 2013 (click here to view). The stock went ex-dividend on 29 April 2014, distributing S$0.2 per share in dividends. The next earnings announcement by UOL Group will be on 8 August 2014.

CapitaCommercial Trust

CapitaCommercial Trust (“CCT”) is a commercial REIT with a market capitalization of S$4.9 billion. Its portfolio includes commercial properties in Singapore and Malaysia. On 18 July 2014, CCT reported net property income of S$52.0 million for the second quarter ended 30 June 2014, an increase from S$50.2 million for the previous corresponding period (click here to view). CCT has the second highest 2014 YTD total return amongst the five stocks of 21.1%. The stock went ex-dividend on 24 July 2014, distributing S$0.0422 dividends per share.

Suntec REIT

Suntec REIT holds properties mainly in Singapore and its business is property investment for retail and office purposes. Its portfolio in Singapore includes Suntec City, Park Mall, One Raffles Quay, Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall. It has a market capitalization of S$4.5 billion. It generated the highest 2014 YTD total return amongst the five stocks of 22.7%. On 22 July 2014, Suntec REIT reported net property income of S$46.1 million for the quarter ended 30 June 2014, an increase from S$28.0 million for the previous corresponding period (click here to view). The stock went ex-dividend on 29 July 2014, distributing S$0.02266 per share in dividends.

Yangzijiang Shipbuilding

Yangzijiang Shipbuilding has business operations in shipbuilding, financial investments, shipping logistics and chartering, ship demolition and steel fabrication, and property development. It has a market capitalisation of S$4.3 billion. It declined 2.5% in 2014 YTD. On 30 April 2014, the company reported net profit attributable to shareholders of RMB799.2 million for the quarter ended 31 March 2014, an increase from RMB717.2 million for the previous corresponding period (click here to view). The stock went ex-dividend on 9 May 2014, distributing S$0.05 per share in dividends.

 

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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.