SGX Research 1

New Developments in China-Focused Indices, Stocks & Products

Bilateral China & Singapore trade increased 15% over the first 7M of 2018. In addition increased financial cooperation between the two countries has seen four milestone agreements conclude this week between financial regulators & financial institutions from both countries. Last week SGX launched 5x leveraged single stock DLCs, that include DLCs on Tencent, Ping An, CNOOC & PetroChina. Following the first week of trading, Tencent DLCs were the most actively traded, with implied volatility of the underlying stock as high as 41% on 13 Nov.
SGX Research 2

Tencent Leads Single Stock DLC Activity with Q3 Earnings in Focus

Tencent is expected to release their 3Q2018 earnings result on Wednesday 14 November. According to brokers, median consensus is a net profit estimates of RMB18.6 billion, representing a yearly change of +9%. For the first four sessions following the 7 Nov launch, Tencent DLCs were the most actively traded with a total turnover of S$14 million, almost half the total turnover of the Single Stock DLCs.
SGX Research 1

New Single Stock Daily Leverage Certificates with 5x Leverage

Effective from 7 Nov, SGX is launching Long and Short 5x Daily Leveraged Certificates (DLCs) on DBS, OCBC, UOB, Singtel, Keppel Corp and Venture stocks. DLCs will also be available on four HKEx-listed stocks - Tencent, Ping An, CNOOC and PetroChina.
SGX Research 2

October Buybacks at S$60M, Seven Stocks Begin New Mandates

In October, 29 SGX-listed stocks repurchased 31 million shares for a total consideration of S$60 million. This brought the total buyback consideration over the first 10 months of 2018 to SS$1.34 billion, which is more than three times the total buyback consideration in 2017. The 29 stocks included six STI constituents - DBS, CDL, SATS, SPH, SGX & Sembcorp Industries. Buybacks by these STI stocks made up as much as S$43 million, or 72%, of the S$60 million consideration. STI Reserve stock Keppel REIT bought back S$6 million in units.
SGX Research 2

Nine Trusts Raised S$2.7 Billion via Rights Issues in Last 18 Months

There are 34 REITs, six stapled trusts and three property trusts listed on SGX. The sector has a combined market capitalisation of close to S$100 billion, with Retail, Industrial and Office REITs making up the three largest segments. Between January 2017 and June 2018, eight REITs and one stapled trust have raised a total of S$2.7 billion in funds through rights issues, mostly to finance new property investments. They are: Frasers Logistics, Manulife REIT, ESR-REIT, CCT, Mapletree Logistics, Cache, CDL, Ascott Residence, and Sabana REIT.
SGX Research 2

Thermal Coal Demand Underpinned By Uptick in Asian Consumption

Statistics show that global coal consumption and production has picked up for the first time in 2017, after several years of declining growth, mainly driven by increased consumption from Asian countries, namely India (+4.5%), Japan (+1.2%) and China (+0.2%), according to a report from BP. Despite tough rhetoric on environmental protection and pollution crackdown, China’s coal consumption picked up for the first time since 2013, increasing by 3.5 million tonnes of oil equivalent (Mtoe) or 0.2% to 1,892 million tonnes of oil equivalent. China alone contributed 51% of global coal consumption in 2017.
SGX Research 1

Three Largest Agriculture Stocks Averaged 8% Total Return in 3Q18

SGX lists six stocks with a market capitalisation above S$1 billion that maintain a significant agriculture business. The six – Wilmar, Olam, Golden Agri-Resources, First Resources, Japfa and Bumitama Agri – have a combined market capitalisation of more than S$30 billion. In 3Q18, the best-performing agri stocks were Bumitama Agri (+9.2%), First Resources (+8.5%) and Wilmar (+6.4%). These three plays averaged a total return of 8.0% over the quarter, reversing their negative returns in 1H18. Japfa was the only stock that registered positive total returns of +3.1% and +25.8% for 3Q18 and 1H18 respectively.
SGX Research 2

Nine REITs in the New FTSE ST Singapore Shariah Index

The FTSE ST Singapore Shariah Index was launched last week, with 48 constituents that are selected from the FTSE ST All-Share Index, meeting criteria involving both business activity screenings and financial ratios screenings. The Index includes nine REITs with a combined market capitalisation of S$11.8 billion. The property assets of the REITs, span industrial, e-commerce, commercial and retail space. The nine REITs average an indicative distribution yield of 6.7%.
SGX Research 1

SGX Oil & Gas Stocks Gained in 3Q18 as Crude Oil Climbed

The iEdge SG Oil & Gas Index is a free-float, market capitalisation-weighted index that measures the performance of listed oil and gas (O&G) companies in Singapore. The 15 constituents in the Index have a combined market capitalisation of about S$2.6 billion.
SGX Research 2

NetLink NBN Trust Threads Through Digital Singapore

"NetLink plays a very important role in putting Singapore on the global map - we've been ranked highly in various global studies on broadband connection speeds, and this is something we can all be proud of," Tong pointed out. According to US-based Ookla's Net Index, Singapore surpassed 132 other countries in July 2017 to clock the fastest average broadband surfing speed on computers. In a separate report by UK-based Internet consultancy firm Cable.co.uk, the city-state also topped a ranking of 189 countries for average surfing speeds, based on data collected across 12 months up to May last year.