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STI sector performances in November

  • In the month of November, the best performing Sector Index relevant to the STI was the FTSE ST Financials Index which generated 3.9% price gain. Among the relevant eight sector indices, six of generated price gains in November and two generated price declines.
  • The ten STI stocks relevant to the ST Financials Index - DBS Group Holdings, Oversea-Chinese Banking Corporation, United Overseas Bank, Hongkong Land Holdings, CapitaLand, Global Logistic Properties, City Developments, Singapore Exchange, CapitaMall Trust and Ascendas REIT averaged 2014 YTD price gains of 6.2%.
  • The strongest STI sectors over the first 11 months of 2014 have varied according to each month. The monthly lead was represented by as many seven different sectors - with Consumer Goods being the most consistent, leading the STI in Feb, Mar, Aug & Sep.

Differentiation among Straits Times Index (STI) constituents has been important in generating stable, diversified performances for broad benchmarking. However, variation in the constituents at sector level has also provided for periodical portfolio rebalancing. Rebalancing on a quarterly basis was discussed in yesterdays revamped SGX My Gateway newsletter (click here).

The STI is made up of 30 constituents which share representation with as many as eight of the core FTSE ST Sector Indices. These Sector Indices are grouped by Industry Classification Benchmark (ICB) categorisations, and in the case of the large Financial Industry Index , two sub-indices: the ST Real Estate Development & Holding Index and the ST Real Estate Investment Trust (REIT) Index are also used. The FTSE ST Indices are not just made up of STI stocks, they also includes stocks of the FTSE ST Mid Cap Index and the FTSE ST Small Cap Index. However, the below indices all have STI representation hence the mutual STI constituents have had the most impact on the performance of the Sector Index.

In the month of November 2014, the best performing FTSE ST Sector Indices was the FTSE ST Financials Index which generated 3.9% price gain. Among the eight core Sector Indices, six of them generated price gains and two of them generated price declines. The FTSE ST Oil & Gas Index continued its decline in November for the second subsequent month, as during November, WTI Crude Oil futures declined 17.8% while the Brent Oil futures declined 18.3%.

The chart below illustrates the different monthly price performances of the FTSE ST Sector Indices relevant to the STI starting with January 2014 and carrying through until the end of November 2014.

Monthly price performance of FTSE ST Sector Indices with STI representation

Source: Bloomberg

Over the first 11 months of 2014, a composite of the best performing sectors generated a total price return of 39.2%. On the other side of the coin, a composite of every least performing sector generated a total decline of -34.9% with half of those declines contributed by Oil & Gas in October & November. 

The STI stocks that are relevant to the above illustrated ST indices are detailed in the table below. Please note that the ST Financials Index include the three banks, four Real Estate Development stocks, two REITs and a diversified financial service provider. Hence the two sub-indices ST Real Estate Development & Holding Index and the ST REIT Index provide some more granularity to the performances within financial sector. The relevant ST industry Index of each STI stock is detailed in the table below.

Name SGX Code Market Cap: S$B ICB Industry Name Px Chg Pct YTD % Dvd Ind Yld %
GOLDEN AGRI-RESOURCES E5H 5.9 Consumer Goods -18.3 2.1
OLAM INTERNATIONAL O32 5.3 Consumer Goods 35.5 2.4
THAI BEVERAGE PCL Y92 16.4 Consumer Goods 22.2 2.4
WILMAR INTERNATIONAL F34 20.5 Consumer Goods -7.9 2.4
COMFORTDELGRO CORP C52 5.6 Consumer Services 26.9 3.0
GENTING SINGAPORE PLC G13 13.9 Consumer Services -24.7 0.9
JARDINE CYCLE & CARRIAGE C07 15.1 Consumer Services 19.2 3.2
SINGAPORE AIRLINES C6L 12.6 Consumer Services 1.8 1.5
SINGAPORE PRESS HOLDINGS T39 6.9 Consumer Services 4.4 3.5
ASCENDAS REAL ESTATE INV TRT A17U 5.6 Financials - REIT 5.0 6.3
CAPITALAND C31 14.1 Financials - RE D & H 7.6 2.5
CAPITAMALL TRUST C38U 6.9 Financials - REIT 3.9 5.5
CITY DEVELOPMENTS C09 9.1 Financials - RE D & H 4.8 0.8
DBS GROUP HOLDINGS D05 49.1 Financials - Banks 14.4 3.0
GLOBAL LOGISTIC PROPERTIES L MC0 12.7 Financials - RE D & H -9.0 1.7
HONGKONG LAND HOLDINGS H78 21.2 Financials - RE D & H 20.0 2.6
OVERSEA-CHINESE BANKING CORP O39 41.8 Financials - Banks 3.1 3.3
SINGAPORE EXCHANGE S68 7.8 Financials - Div Services -0.1 3.9
UNITED OVERSEAS BANK U11 38.4 Financials - Banks 12.3 2.9
HUTCHISON PORT HOLDINGS TR-U NS8U 7.8 Industrials 3.4 7.1
JARDINE MATHESON HLDGS J36 56.1 Industrials 23.3 2.3
JARDINE STRATEGIC HLDGS J37 53.5 Industrials 17.4 0.7
NOBLE GROUP N21 8.3 Industrials 9.3 1.0
SIA ENGINEERING CO S59 4.6 Industrials -18.8 4.6
SINGAPORE TECH ENGINEERING S63 10.5 Industrials -15.7 2.4
KEPPEL CORP BN4 16.4 Oil & Gas -23.5 4.9
SEMBCORP INDUSTRIES U96 8.2 Oil & Gas -20.9 1.2
SEMBCORP MARINE S51 6.5 Oil & Gas -33.7 3.7
SINGAPORE TELECOMMUNICATIONS Z74 62.2 Telecommunications 5.2 4.4
STARHUB CC3 7.1 Telecommunications -4.0 4.9

Source: Bloomberg (Data as of  01 December 2014)

As noted above, the FTSE ST Financials Index was the best performing Sector Index in November 2014. The FTSE ST Financials Index added 3.9% in November, in addition to gains in February, March, April, May, July and October, leading to 9.2% price gains in the year-to-date thus far. The ten STI stocks relevant to the FTSE ST Financials Index are detailed below.

Ten STI stocks relevant to the FTSE ST Financials Index

Name SGX Code Index Weightage % Market Cap: S$B Px Chg Pct YTD % Total Return YTD % Total Return: 12M % Dvd Ind Yld %
DBS GROUP HOLDINGS D05 18.4 49.1 14.4 18.3 17.8 3.0
OVERSEA-CHINESE BANKING CORP O39 17.1 41.8 3.1 6.8 4.3 3.3
UNITED OVERSEAS BANK U11 15.3 38.4 12.3 16.2 18.0 2.9
HONGKONG LAND HOLDINGS H78 5.6 21.2 20.0 23.4 23.9 2.6
CAPITALAND C31 4.5 14.1 7.6 10.3 10.3 2.5
GLOBAL LOGISTIC PROPERTIES L MC0 4.2 12.7 -9.0 -7.5 -9.4 1.7
CITY DEVELOPMENTS C09 3.2 9.1 4.8 6.0 1.9 0.8
SINGAPORE EXCHANGE S68 3.2 7.8 -0.1 3.9 4.4 3.9
CAPITAMALL TRUST C38U 2.8 6.9 3.9 9.8 7.5 5.5
ASCENDAS REAL ESTATE INV TRT A17U 2.5 5.6 5.0 11.9 10.9 6.3

Source: Bloomberg (Data as of 01 December 2014)

These ten STI stocks are also the ten largest capitalised stocks in the FTSE ST Financials Index. They are DBS Group Holdings, Oversea-Chinese Banking Corporation, United Overseas Bank, Hongkong Land Holdings, CapitaLand, Global Logistic Properties, City Developments, Singapore Exchange, CapitaMall Trust and Ascendas Real Estate Investment Trust (REIT). These ten stocks have a combined market capitalisation of S$157.7 billion. They generated an average 2014 year-to-date total return of 9.9%. These ten stocks have a combined index weightage of 76.8% in the FTSE ST Financials Index.

DBS Group Holdings

DBS Group Holdings provides a range of commercial banking and financial services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. On 31 October 2014, DBS Group Holdings reported net profit for the quarter ended 30 September 2014, increased 17% year-on-year to S$1.01 billion (click here to view more). DBS Group Holdings has a market capitalisation of S$49.1 billion and generated 2014 year-to-date total return of 18.3%. In addition, the company has the largest index weightage in the ST Financials Index of 18.4%. The stock went ex-dividend on 13 August 2014, distributing S$0.28 per share in dividends.

Oversea-Chinese Banking Corporation

Oversea-Chinese Banking Corporation offers various financial and wealth management products and services primarily in Singapore, Malaysia, Indonesia, and Greater China. On 24 April, a share buy-back resolution was passed for Oversea-Chinese Banking Corporation. For the month of November, Oversea-Chinese Banking Corporation repurchased a total number of 2,125,500 shares with a total consideration of S$21,751,400.72. On 30 October 2014, Oversea-Chinese Banking Corporation reported a net profit after tax of S$1.23 billion for the third quarter of 2014 ended 30 September 2014, an increase of 62% from S$759 million a year ago (click here to view more). Oversea-Chinese Banking Corporation has a market capitalisation of S$41.8 billion and generated 2014 year-to-date total return of 6.8%. The stock went ex-dividend on 25 August 2014, distributing S$0.18 per share in dividends.

United Overseas Bank

United Overseas Bank provides various banking products and services. On 30 October 2014, United Overseas Bank reported net earnings for the nine months of 2014 ended 30 September 2014, increased 10.2% year-on-year to S$2.46 billion (click here to view more). United Overseas Bank has a market capitalisation of S$38.4 billion and generated 2014 year-to-date total return of 16.2%. The stock went ex-dividend on 18 August 2014, distributing S$0.20 per share in dividends.

Hongkong Land Holdings

Hongkong Land Holdings, together with its subsidiaries, is engaged in the investment, development, and management of real estate properties in Greater China, Southeast Asia, and internationally. The company operates through two segments, Commercial Property and Residential Property. On 5 November 2014, Hongkong Land Holdings reported vacancy in the Group’s portfolio increased from 6.0% to 6.8% from the end of June to the end of October (click here to view more). Hongkong Land Holdings has a market capitalisation of S$21.2 billion and generated 2014 year-to-date total return of 23.4%. The stock went ex-dividend on 20 August 2014, distributing US$0.06 per share in dividends.

CapitaLand

CapitaLand, an investment holding company, is engaged in the real estate development, investment in real estate financial products and assets, investment advisory and management services, and management of serviced residences. On 7 November 2014, CapitaLand reported profit after tax and minority interests (PATMI) for the quarter ended 30 September 2014 increased 1.3% year-on-year to S$130 million (click hereto view more). CapitaLand has a market capitalisation of S$14.1 billion and generated 2014 year-to-date total return of 10.3%. The stock went ex-dividend on 2 May 2014, distributing S$0.08 per share in dividends.

Global Logistic Properties

Global Logistic Properties (GLP) is a developer, owner, and manager of modern logistics facilities. The company’s portfolio spans 28 million square meters across China, Japan, and Brazil. On 4 November 2014, GLP reported revenue for the six months ended 30 September 2014, increased 25% year-on-year to US$362 million (click here to view more). GLP has a market capitalisation of S$12.7 billion and generated 2014 year-to-date total return of -7.5%. The stock went ex-dividend on 22 July 2014, distributing S$0.045 per share in dividends.

City Developments

City Developments, through its subsidiaries, engages in the development and investment of real estate properties, and ownership and management of hotels, as well as the provision of hospitality solutions. On 12 November 2014, City Developments reported gross profit for the quarter ended 30 September 2014, increased 13.7% year-on-year, from S$404 million to S$459 million (click here to view more). City Developments has a market capitalisation of S$9.1 billion and generated 2014 year-to-date total return of 6.0%. The stock went ex-dividends on 21 August 2014, distributing S$0.04 per share in dividends.

Singapore Exchange

Singapore Exchange operates an integrated securities exchange and derivatives exchange in Singapore and related clearing houses. It operates through three segments: Securities Market, Derivatives Market, and Other Operations. On 21 October 2014, Singapore Exchange reported revenue for the quarter ended 30 September 2014, decreased 8% year-on-year to S$169 million (click here to view more). Singapore Exchange has a market capitalisation of S$7.8 billion and generated 2014 year-to-date total return of 3.9%. The stock went ex-dividend on 28 October 2014, distributing S$0.04 per share in dividends.

CapitaMall Trust

CapitaMall Trust (CMT) is a publicly owned real estate investment arm of CapitaLand Ltd. The firm invests in income producing retail properties. It invests in the real estate markets of Singapore. On 17 October 2014, CMT reported distributable income of S$93.7 million for the period from 1 July 2014 to 30 September 2014 was 5.6% higher than the S$88.8 million for the same period last year (click here to view more). CapitaMall Trust has a market capitalisation of S$6.9 billion and generated 2014 year-to-date total return of 9.8%. The trust went ex-dividend on 24 October 2014, distributing S$0.0272 per share in dividends.

Ascendas Real Estate Investment Trust (REIT)

Ascendas Real Estate Investment Trust is a real estate investment trust launched and managed by Ascendas Funds Management (S) Limited. The fund invests in the real estate markets of Singapore and China. On 23 October 2014, Ascendas REIT reported the total amount available for distribution for the quarter ended 30 September 2014, increased 1.6% year-on-year to S$87.8 million (click here to view more). Ascendas REIT has a market capitalisation of S$5.6 billion and generated 2014 year-to-date total return of 11.9%. The trust went ex-dividend on 29 October 2014, distributing S$0.073 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.