In the 2018 YTD, the five best-performing constituents of SGX’s Real Estate Index were Yanlord Land (+11.1%), United Engineers (+8.4%), Ho Bee Land (+6.0%), Hongkong Land (+4.9%), and Ocean Sky (+4.3%). The SGX Real Estate Developers & Operators Index comprises 25 constituents with a combined market cap of over S$70 billion. The component stocks with the five biggest weights are Hongkong Land (10.6%), UOL Group (9.8%), CapitaLand (9.8%), City Developments (9.2%) and Yanlord Land (9.0%).
ive of the 30 STI constituents have released earnings over the first two weeks of April, while the remainder are expected to report their quarterly or FY results in the coming weeks. Of the six STI constituents that have reported their latest quarterly results, five achieved positive YoY percentage growth in quarterly net profits.
Last week the STI added 2.1%, again led by Banks. Friday’s debutants, SLB Development and Asia Healthcare Specialists both finished the session firmer and were amongst the 20 most active stocks by turnover. Earnings Season will pick up a notch from last week, with a dozen REITs expected to report for the March 2018 quarter. This will include STI constituents Ascendas REIT, CapitaLand Commercial Trust, and on Wednesday, Venture Corporation reports.
Earnings season for Singapore REITs and Business Trusts began earlier this month with reports from SPH REIT, SoilBuild Business Space REIT and Keppel DC REIT. The remaining REITs and Business Trusts will release their results over the second half of April and during the month of May. The SGX S-REIT Index delivered total returns of +13.5% in the past 12 months, compared with the MSCI World Index and S&P Asia Pacific REIT Index’s total returns of +10.2% and -1.1% respectively in SGD terms. In the 2018 year-to-date, the SGX S-REIT Index has registered a total return of -2.7%. These total returns take into account price gains in the form of capital appreciation as well as dividends.
Asian Healthcare Specialists, which made its trading debut on SGX Catalist today, is a group of orthopaedic specialists who provide a wide spectrum of general and subspecialised treatments, including orthopaedic, trauma and sports services. The Group’s vision is to create a one-stop specialist clinic consisting of senior and experienced orthopaedic medical specialists. It harnesses advanced technologies, including robots, to perform surgeries, including minimally invasive and keyhole procedures.
The STI has been amongst the three strongest Indices of Asia Pacific in the 2018 YTD. The STI’s 1.5% total return compares to an average decline of 3.0% for the three benchmarks of Japan, Hong Kong and Australia. The STI has also seen an increase in its volatility, with its 30 day volatility gauge climbing to 17% which is the highest level for the past two years. Average 30 day volatility of the 30 constituents of the STI is as much as one-quarter higher compared to April 2017.
REITs was the second-best performing sector in the month of March, generating a market capitalisation-weighted total return of 0.8%, behind the best performing IT sector’s 1.0% total return. In comparison, the STI registered a 2.6% decline in total return during the month. The five largest REITs on SGX are Ascendas REIT, CapitaLand Mall Trust, CapitaLand Commercial Trust, Suntec REIT and Mapletree Commercial Trust, and they have a combined market capitalisation of about S$30 billion. They are catergorised by GICS under the Industrial, Retail and Office REIT sub-segments.
Information Technology (IT) was the best performing of Singapore’s Sectors in 1Q18. The IT Sector generated a capitalisation weighted 1.0% total return in March, taking its 1Q18 total return to 33%. Venture is the largest capitalised stock of Singapore’s IT Sector, joined the STI in January, and in late Feb reported net profit growth of 106% in FY17. The stock is scheduled to pay a S$0.60 dividend (+20%) with a 17 May 2018 ex-date.
In the 2018 year-to-date, the five best-performing constituents of the FTSE ST All-Share Index in terms of total returns were: Materials stock China Sunsine Chemical Holdings (53.3%), Consumer Staples play Best World International (39.4%), IT company Venture Corp (37.3%), Industrials stock Cosco Shipping International (26.7%) and IT play Hi-P International (23.0%).
The past three years have been muted in terms of consumer sentiment. However, 2018 is going to be a turnaround year, according to RHB. Improving job prospects, a higher wealth effect from rising property prices and stock market performances have all contributed to stronger consumer confidence. According to RHB, investors should take an overweight position on the consumer sector, thanks to recovering sentiment.