• The FTSE ST Small Cap Index comprises 65 constituents that average a market cap of S$750 million, ranging from S$103 million to S$2.6 billion. Beyond the Index are nearly 200 stocks listed on SGX that fall within this market cap range.
  • The 10 largest constituents of the FTSE ST Small Cap Index account for about 40% of index weight, and represent the Real Estate sector. Nine of them are REITs, while one is a real estate developer. Given the significant Real Estate weighting, the Index maintains a relatively high dividend yield of 3.8%, almost on par with the STI’s 4.0% yield.
  • In the YTD, the five best-performing Index constituents were: China Sunsine Chemical (+69.4%), BreadTalk (+40.9%), Japfa (+27.8%), Tianjin Zhongxin Pharma (+20.1%), and HRnetGroup (+19.1%). These five stocks averaged a +35.5% total return in the YTD, bringing their average 12-month total return to +28.6%.

The FTSE ST Small Cap Index is a free float-adjusted, market capitalisation-weighted index. It represents the performance of small-capitalised companies, which pass size, free float and liquidity screens, and trade on SGX Mainboard.

The FTSE ST Small Cap Index comprises 65 constituents with an average market capitalisation of S$750 million, and that range extends from S$103 million to S$2.6 billion. More broadly, beyond the Index are nearly 200 stocks listed on SGX that fall within this market capitalisation range.

The 10 largest constituents of the FTSE ST Small Cap Index account for about 40% of index weight, and represent the Real Estate sector. Nine of these constituents are Real Estate Investment Trusts (REITs), while one is a real estate developer. Given the significant Real Estate weighting – with majority of the constituents being REITs – the Index maintains a relatively high dividend yield of 3.8%, almost on par with the benchmark Straits Times Index’s (STI) yield of around 4.0%.

The table below details the 10 largest constituents of the FTSE ST Small Cap Index, sorted by market capitalisation. Click on the stock name to view its profile in StockFacts.

Name SGX Code Index Weight % Market Cap S$M 11 July Closing Price Total Returns YTD % Total Returns 1Y % Total Returns 3Y % P/E (x) Dvd Ind Yld %
Tianjin Zhongxin Pharma T14 1.3 2,669 1.070 20.1 14.2 -8.3 9.9 2.8
Frasers Logistics & Industrial BUOU 5.3 2,127 1.060 -5.9 6.5 N/A 14.7 6.2
Thomson Medical Group A50 2.1 2,008 0.077 -39.5 16.7 -49.3 N/A N/A
Keppel DC REIT AJBU 4.8 1,851 1.370 -1.3 15.0 60.9 22.5 5.2
Sheng Siong Group OV8 2.0 1,609 1.070 16.6 12.3 43.0 22.7 3.1
Manulife US REIT* BTOU 5.7 1,479 0.855 0.6 5.0 N/A 12.5 6.8
Cromwell European REIT* CNNU 1.7 1,467 0.585 7.0 N/A N/A N/A N/A
Bukit Sembawang Estates B61 4.3 1,375 5.310 -7.2 -14.9 21.4 25.4 0.8
China Aviation Oil Singapore G92 1.6 1,263 1.460 -4.8 -10.6 111.4 10.4 3.1
Frasers Hospitality Trust ACV 2.2 1,280 0.685 -10.5 0.2 10.2 8.1 7.2

Source: Bloomberg & SGX StockFacts (data as of 11 July 2018)

*Note: Tianjin Zhongxin Pharmaceutical and Manulife US REIT are traded in USD, while Cromwell European REIT is traded in EUR; their SGD equivalents are shown in the table.

In the 2018 year-to-date, the five best-performing constituents of the Index were: China Sunsine Chemical (+69.4%), BreadTalk (+40.9%), Japfa (+27.8%), Tianjin Zhongxin Pharmaceutical (+20.1%), and HRnetGroup (+19.1%). These five constituents – from the Materials, Consumer and Healthcare sectors – have averaged a +35.5% total return in the YTD. This brings their average 12-month total return to +28.6%.

The table below details the five best-performing constituents of the FTSE ST Small Cap Index, sorted by YTD total returns. Click on the stock name to view its profile in StockFacts.

Name SGX Code Index Weight % Market Cap S$M 11 July Closing Price Total Returns YTD % Total Returns 1Y % Total Returns 3Y % P/E (x) Dvd Ind Yld %
China Sunsine Chemical CH8 0.9 649 1.320 69.4 68.7 288.1 6.9 2.3
BreadTalk Group CTN 1.3 648 1.150 40.9 56.5 77.8 54.2 1.7
Japfa UD2 1.0 1,237 0.670 27.8 2.6 89.8 55.9 0.8
Tianjin Zhongxin Pharma T14 1.3 2,669 1.070 20.1 14.2 -8.3 9.9 2.8
HRnetGroup CHZ 0.8 862 0.855 19.1 1.2 N/A 16.3 2.7
Average 35.5 28.6 32.0

Source: Bloomberg & SGX StockFacts (data as of 11 July 2018)

*Note: Tianjin Zhongxin Pharmaceutical is traded in USD; its SGD equivalents are shown in table.

 Over the same period, the five least-performing constituents of the Index were: Indofood Agri Resources (-42.3%), Thomson Medical Group (-39.5%), Courts Asia (-36.9%), Hi-P International (-36.2%), and Yoma Strategic (-33.3%). These five constituents – from the Healthcare, Consumer, Real Estate and Information Technology sectors – have averaged a -37.7% total return in the YTD, bringing their average 12-month total return to -13.3%.

This article was originally published on SGX.