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The five-year swinging history of STI constituents

  • Together, the 30 constituents of the STI have a market capitalisation of S$547 billion. In the 2014 year thus far, the 30 constituents generated an average total return of 10.1% with the median return at 7.3%. The total return of the STI as a weighted index was 8.4%.
  • Over a period of five years, the five stocks of the STI which were observed to swing the most relative to the STI were Noble Group, Olam International, SembCorp Marine, Jardine Cycle & Carriage and Golden Agri-Resources.
  • Meanwhile, the five stocks that swung the least relative to the STI were Thai Beverage, StarHub, SIA Engineering, Singapore Press Holdings and Ascendas Real Estate Investment Trust.

There are 30 constituents of the Straits Times Index (STI) and five reserve stocks. The STI comprises the largest and most liquid of the stocks that are listed on Singapore Exchange (SGX) which represent more than half of the total market capitalisation of all primary-listed and secondary-listed stocks on SGX. The total market capitalisation of the 30 STI companies is currently S$546.9 billion – which compares to approximately S$417.3 billion for the FTSE Bursa Malaysia KLCI Index and S$487.3 billion for the Jakarta Composite Index.

In 2014 thus far, the 30 STI constituents generated an average total return of 10.1% with the median return at 7.3%. The total return of the STI, in its weighted index form, for the same period was 8.4%.  

Historical Beta

Historical beta is an average volatility measure of the percentage price change of a stock given a one percent change in the representative market index. This beta value can be determined by comparing the price movements of the stock and the STI for the year-to-date or for different timeframes. According to S&P Capital IQ, the five-year beta is the slope of the 60 month regression line of the percentage price change of the stock relative to the percentage price change of its benchmark. A beta of 1.0 indicates that the market-sensitive portion of the stock's price has the same volatility as the overall market. A beta greater than 1.0 indicates that the stock is relatively more sensitive to volatility in the market; a beta less than 1.0 indicates a more muted response.

The full list of the 30 stocks in the STI is detailed below and is sorted by its five-year annualized historical beta's value.

Name

SGX Code

Three year ANN raw beta

Five year ANN raw beta

Market Cap S$B

Px Chg Pct YTD %

Total Return YTD %

Total Return: 12M %

Dvd Ind Yld

ICB Subsector Name

NOBLE GROUP N21 1.9 1.8 9.2 45.1 29.7 71.3 0.8 Diversified Industrials
OLAM INTERNATIONAL O32 1.4 1.5 6.4 123.6 72.0 86.3 1.9 Food Products
SEMBCORP MARINE S51 1.4 1.4 8.3 -15.6 -7.9 -3.5 2.8 Oil Equipment & Services
JARDINE CYCLE & CARRIAGE C07 1.4 1.3 15.8 39.9 29.1 37.5 3.0 Specialty Retailers
GOLDEN AGRI-RESOURCES E5H 1.1 1.3 6.5 -8.1 -4.7 -8.0 2.2 Farming & Fishing
CAPITALAND C31 1.4 1.3 14.1 17.6 14.4 14.8 2.4 Real Estate Holding & Development
GENTING SINGAPORE PLC G13 1.1 1.3 15.1 -26.0 -17.8 -8.6 0.8 Recreational Services
SEMBCORP INDUSTRIES U96 1.1 1.2 9.2 -8.5 -1.9 11.0 1.0 Oil Equipment & Services
KEPPEL CORP BN4 1.1 1.2 19.8 -2.8 2.0 12.3 3.8 Oil Equipment & Services
CITY DEVELOPMENTS C09 1.2 1.2 9.1 6.4 5.5 1.6 0.8 Real Estate Holding & Development
UNITED OVERSEAS BANK U11 1.2 1.1 36.9 13.3 12.6 18.4 3.0 Banks
DBS GROUP HOLDINGS D05 1.1 1.0 44.1 8.4 9.2 15.8 3.2 Banks
WILMAR INTERNATIONAL F34 1.0 1.0 20.2 -11.5 -5.8 3.9 2.4 Food Products
HONGKONG LAND HOLDINGS H78 1.0 1.0 20.3 27.0 20.8 6.8 2.6 Real Estate Holding & Development
OVERSEA-CHINESE BANKING CORP O39 1.0 1.0 38.3 -1.7 2.4 4.6 3.5 Banks
SINGAPORE EXCHANGE S68 0.9 0.9 7.7 0.8 1.7 3.8 3.8 Investment Services
SINGAPORE AIRLINES C6L 0.7 0.9 11.8 -4.1 0.7 11.4 2.1 Airlines
SINGAPORE TELECOMMUNICATIONS Z74 0.7 0.8 62.8 11.1 10.2 17.1 4.3 Mobile Telecommunications
JARDINE MATHESON HLDGS J36 0.9 0.8 52.2 28.3 21.1 18.1 2.3 Diversified Industrials
SINGAPORE TECH ENGINEERING S63 0.8 0.7 11.5 -9.9 -2.9 -3.8 2.2 Aerospace
JARDINE STRATEGIC HLDGS J37 0.8 0.7 51.6 23.1 15.9 12.9 0.7 Diversified Industrials
CAPITAMALL TRUST C38U 0.6 0.7 6.9 7.1 9.1 11.7 5.4 Retail REITs
COMFORTDELGRO CORP C52 0.6 0.6 5.5 45.7 33.3 47.7 3.0 Travel & Tourism
ASCENDAS REAL ESTATE INV TRT A17U 0.6 0.5 5.6 10.3 10.3 11.0 6.0 Industrial & Office REITs
SINGAPORE PRESS HOLDINGS T39 0.4 0.5 6.7 2.2 3.2 10.5 3.6 Publishing
SIA ENGINEERING CO S59 0.3 0.5 5.2 -12.9 -5.6 3.3 4.3 Transportation Services
STARHUB CC3 0.4 0.4 7.2 -4.8 0.3 6.2 4.8 Mobile Telecommunications
THAI BEVERAGE PCL Y92 0.5 0.3 17.2 40.8 29.6 45.8 2.3 Brewers
GLOBAL LOGISTIC PROPERTIES MC0 1.1 N.A. 13.9 1.5 2.7 5.6 1.5 Real Estate Holding & Development
HUTCHISON PORT HOLDINGS TR-U NS8U 0.7 N.A. 7.8 7.6 13.5 4.3 6.7 Transportation Services

Source: Bloomberg (Data as of 3 September 2014)

Comparing five-year beta amongst the 30 stocks, the highest beta values were observed by Noble Group, Olam International, Sembcorp Marine, Jardine Cycle & Carriage and Golden Agri-Resources. Amongst the 30 stocks in the STI, Noble Group had the highest value of the five-year beta at 1.8. This means that the stock was the most sensitive to the volatility in the STI over the five years period. There are 11 stocks which had five-year beta higher than 1.0 and 13 stocks with five-year beta smaller than 1.0. Please also note that historical beta is not a forward looking measure. 

Noble Group

Noble Group is a supply chain manager of agricultural and energy products, metals and minerals with operations in over 140 locations. Noble Group has a market capitalisation of S$9.2 billion and generated 12-month total return of 71.3%. On 8 August 2014, Noble Group reported a profit before tax before continuing operations of US$117.1 million for the quarter ended on 30 June 2014. Moreover, Noble Group reported revenue of US$23.6 billion for the quarter ended on 30 June 2014 which was an increase of 13% over the same corresponding period in 2013 (click here to view more). The stock went ex-dividend on 12 May 2014, distributing S$0.01 per share in dividends.

Olam International

Olam International is in the agri-business and has operations in 65 countries, supplying various products across 16 platforms to over 13,800 customers. Olam International has a market capitalisation of S$6.4 billion and generated 12-month total return of 86.3%. On 29 August, Olam International reported profit after tax and minority interest for the financial year 2014 ended on 30 June 2014 grew 67.8% to S$608.5 million compared to S$362.6 million in the financial year 2013 (click here to view). The stock will go ex-dividend on 4 November 2014, distributing S$0.075 per share in dividends.

SembCorp Marine

SembCorp Marine is in the rig-building and offshore conversion business. SembCorp Marine portfolio includes jack-up design and building, fast-track semi-submersible construction and production of offshore platforms. SembCorp Marine has a market capitalisation of S$8.3 billion and a dividend indicative yield of 2.8%. SembCorp Marine reported on the 4 August 2014 that the net profit gained 4% year-on-year from S$244 million to S$254 million for the six months ended 30 June 2014 (click here to view). The stock went ex-dividend on the 15 August 2014, distributing S$ 0.05 per share in dividends.

Jardine Cycle & Carriage

Jardine Cycle & Carriage is a member of the Jardine Matheson Group. Jardine Cycle & Carriage has an interest of just over 50% in Astra, a listed Indonesian conglomerate with motor interests in Southeast Asia. Jardine Cycle & Carriage has a market capitalisation of S$15.8 billion and generated 12-month total return of 37.5%. On the 1 August 2014, Jardine Cycle & Carriage reported a 3% gain in profit before tax, year-on-year for the quarter ended on 30 June 2014 to US$662.1 million (click here to view more). The stock went ex-dividend on the 27 August 2014, distributing US$ 0.18 per share in dividends.

Golden Agri-Resources

Golden Agri-Resources is a palm oil plantation company located in Indonesia with a total planted area of 470,600 hectares (including smallholders) as at 30 June 2014. Golden Agri-Resources has a market capitalisation of S$6.5 billion and a dividend indicative yield of 2.2%. On the 14 August 2014, Golden Agri-Resources reported a gross profit of US$340 million for the quarter ended 30 June 2014, a 12% increase from the corresponding period in 2013 (click here to view more). The stock went ex-dividend on the 29 April 2014, distributing S$0.00515 per share in dividends.

The five stocks with the lowest five-year beta value were Thai Beverage Public Company, StarHub, SIA Engineering Company, Singapore Press Holdings and Ascendas Real Estate Investment Trust. Five-year beta is not available for two stocks namely, Global Logistics Properties and Hutchison Port Holdings Trust as these constituents were listed after 2009. The stock with the lowest five-year beta was Thai Beverage Public Company with a value of 0.3. This means that the stock was the least of the constituents to be related to the volatility of the STI over the five-year period.

Thai Beverage Public Company

Thai Beverage’s businesses consists of 4 segments mainly spirits, beer, non-alcohol beverages and food. Thai Beverage has a market capitalisation of S$17.2 billion and generated 12-month total return of 45.8%. Thai Beverage reported on the 14 August 2014, profit before income tax expense for the quarter ended 30 June 2014 gained from $6.0 billion baht to $6.6 billion baht year-on-year (click here to view more). The stock went ex-dividend on the 25 August 2014, distributing $0.15 Baht per share in dividends.

StarHub

StarHub is a Singapore info-communications company, offering a range of information, communications and entertainment serves for both consumer and corporate markets. StarHub has a market capitalisation of S$7.2 billion and generated a 12-month total return of 6.2%. StarHub reported on the 5 Aug 2014 that net cash from operating activities increased for the quarter ended on 30 June 2014 from S$154.4 million to S$157 million (click here to view more). The stock went ex-dividend on the 11 August 2014, distributing S$0.05 per share in dividends.

SIA Engineering Company

SIA Engineering is an aircraft maintenance, repair and overhaul company providing total maintenance solutions to an expanding client base of international airlines. SIA Engineering has a market capitalisation of S$5.2 billion and generated 12-month total return of 3.3%. SIA Engineering reported on the 25 July 2014, revenue for the quarter ended 30 June 2014 gained 1.6% year-on-year, from S$289.4 million to S$ 294.1 million (click here to view more). The stock went ex-dividend on the 24 July 2014, distributing S$0.18 per share in dividends.

Singapore Press Holdings

Singapore Press Holdings is a Singapore media organization with 19 titles licensed under the Newspaper Printing and Presses Act, of which nine are daily newspaper across four languages. Singapore Press Holdings has a market capitalisation of S$6.7 billion and generated 12-month total return of 10.5%. Singapore Press Holdings reported on the 15 July 2014 that the operating profit of the Group gained 7.5% year-on-year to S$98.4 million for the quarter ended 31 May 2014 (click here to view more). The stock went ex-dividend on the 6 May 2014, distributing S$0.07 per share in dividends.

Ascendas Real Estate Investment Trust

Ascendas Real Estate Investment Trust (REIT) is a Singapore business space and industrial REIT. As at 30 June 2014, the trust has a diversified of 103 properties in Singapore and two business park properties in China. Ascendas REIT has a market capitalisation of S$5.6 billion and generated 12-month total return of 11.0%. On the 23 July 2014, Ascendas REIT reported a 7.7% gain year-on-year of net property income from S$108 million to S$116.3 million for the quarter ended on 30 June 2014 (click here to view more). The stock went ex-dividend on the 25 April 2014, distributing S$0.0355 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.