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SGX Healthcare Index Chalked Up 19.6% Total Return in First 7 Months of 2015

SGX Healthcare Index Chalked Up 19.6% Total Return in First 7 Months of 2015

  • During the month of July, the SGX Healthcare Index declined 1.5% to take its year to date total return to 19.6%. The Index is made up of 29 Healthcare plays and includes two REITs and a Business Trust.
  • On July 22, a new healthcare play, iX Biopharma, listed on the Catalist board. The stock closed 21.7% above its offer price on the first day of trading. As of Friday, the stock had moved to 9.8% below its offer price at 41.5 cents.

Singapore’s Healthcare Sector includes companies that provide hospital, clinical and ancillary services to providers of medical supplies, ranging from cleanroom attire to high-tech medical equipment and providers of pharmaceuticals, including western and traditional Chinese medicines.

Providing a benchmark for the expanding sector, the SGX Healthcare Index is an indicative index computed by Singapore Exchange (SGX), and weightings of component stocks are capped at a maximum of 10% at each semi-annual rebalance so that it is better diversified across a range of companies.

Due to the relative market capitalisations of the 29 securities, the six largest constituents currently account for approximately 60% of the index weight. These six stocks- namely,  IHH Healthcare Berhad, Raffles Medical Group, Haw Par Corporation, Parkway Life Real Estate Investment Trust, Tianjin Zhongxin Pharmaceutical Group Corporation and Biosensors International Group, were discussed in last month’s Market Update - Six Largest Stocks in SGX Healthcare Index Averaged Total Returns of 19% YTD (click here).

The objective of the Index is to capture a broad representation of the healthcare segment, and complements the healthcare stocks under the two classification standards – Global Industry Classification Standard (GICS®) and Industry Classification Benchmark (ICB). These 29 components are categorised across sub-industries including healthcare equipment, healthcare supplies, healthcare distributors, healthcare services, healthcare facilities, pharmaceuticals, office services & supplies, and healthcare REITs.

The charts below illustrates the performance of the Index on a total return basis since a base price of 1000 on 30 June 2011. The Index closed Friday at 2198.6.

SGX Healthcare Index (Total Return), 30 June 2011 – 31 July 2015

SGX Healthcare Index (Total Return), 30 June 2015 – 31 July 2015

Largest Index Constituents in July

The 20 largest healthcare plays are detailed in the table below. Please note that clicking on a stock name will take you to its relevant profile page on StockFacts. A total of 19 of these 20 stocks are included in the SGX Healthcare Index and make up the majority weighting of the Index.

Stock Name Code Mkt. Cap.in S$ mm Price vs. 12M High in % Price vs. 12M Low in % P/E July % Price Change YTD % Price Change
IHH Healthcare Berhad Q0F 17,468

-5.3

22.8

61.5

2.9

15.8

Tianjin Zhongxin Pharmaceutical Group Corp T14 3,190

-27.2

64.1

17.2

-7.8

53.6

Raffles Medical Group R01 2,747

-4.0

27.7

40.0

4.1

23.1

Haw Par Corporation H02 1,932

-7.5

4.8

16.1

-2.1

3.5

Parkway Life Real Estate Investment Trust C2PU 1,470

-1.2

7.5

11.9

5.7

2.1

Biosensors International Group B20 1,170

-19.2

46.3

-

-14.7

18.8

First Real Estate Investment Trust AW9U 1,050

-4.1

20.5

11.6

1.4

12.4

Religare Health Trust RF1U 838

-7.5

19.9

21.9

3.4

5.5

TalkMed Group 5G3 733

-6.3

26.7

18.5

0.0

14.4

Q & M Dental Group (Singapore) QC7 650

-16.5

108.8

59.9

16.0

101.2

Riverstone Holdings AP4 630

-2.0

88.9

20.8

0.6

74.4

International Healthway Corporation 5WA 514

0.0

26.0

14.1

6.8

14.6

Cordlife Group P8A 287

-16.9

33.9

10.4

-1.8

24.2

iX Biopharma * 42C 245

-35.2

6.4

-

N/A

N/A

Eu Yan Sang International E02 219

-44.3

22.5

22.5

-13.3

-33.3

Health Management International 588 193

-19.3

55.8

21.2

-9.5

21.8

Singapore O&G 41X 153

-14.1

57.3

28.7

6.1

N/A

Healthway Medical Corporation 5NG 141

-10.3

56.4

11.8

3.4

29.8

ISEC Healthcare 40T 117

-50.5

0.0

53.8

-36.3

-32

QT Vascular 5I0 87

-76.7

2.7

-

-36.2

-63

Source: SGX StockFacts (data as of 31 July 2015). *Please note not included in SGX Healthcare Index as stock was listed in July.  

These stocks averaged a 3.7% decline over July, with the positive performances of three of the Index’s heavyweights accounting for the lesser decline of the Index at 1.5%. Other stocks that are included in the SGX Healthcare Index are Techcomp (Holdings), UG Healthcare Corporation, Singapore Medical Group, Vicplas International, AsiaMedic, Medtecs International Corporation, Suntar Eco-City, STAR Pharmaceutical, Pharmesis International and Pacific Healthcare Holdings.

iX Biopharma was listed on Catalist last month. The stock closed Friday at 41.5 cents, 9.8% below the offer price and offer details can be found here. The company focuses on the development and commercialisation of innovative therapies for pain management and male erectile dysfunction. The Company leverages its patented sublingual drug delivery technology, WaferiXTM, to develop proprietary products that incorporate FDA-approved pharmacologically active compounds. The Group currently have three drugs under development – Wafermine™, Wafernyl™ and PheoniX™.

The Group operates an integrated business model encompassing drug development, manufacturing and supply.

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Whether you are seeking new or established companies to invest in, SGX StockFacts can provide you with the information you need to identify and understand the stocks that best fit your investment strategy. Visit now at sgx.com/stockfacts.

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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.