15 March 2017
Singapore Small Cap Index Stronger than Regional Peers in YTD
  • The FTSE ST Small Cap Index constitutes 64 stocks with an average market capitalisation of S$580 million. Currently, the 10 largest constituents of the Index account for 38% of the Index weight and are all from the Real Estate Sector.
  • The FTSE ST Small Cap Index averaged a 4.8% YTD total return, doubling the 2.4% return of the regional FTSE Developed Asia Pacific Small Cap Ex Japan Index, with 600 constituents.
  • The FTSE ST Small Cap Index also marginally outperformed the regional FTSE Developed Asia Pacific Small Cap Ex Japan Index over the past 12 months, in addition to the past five years.
  • The five strongest YTD performers within the FTSE ST Small Cap Index were Best World International, Geo Energy Resources, UMS Holdings, PEC and Sabana Shari'ah Compliant Industrial REIT.

The FTSE ST Small Cap Index is comprised of the next biggest, actively traded stocks after the 66 stocks within the FTSE ST Large & Mid Cap Index. The FTSE ST Small Cap Index is currently made up of 64 stocks with an average market capitalisation of S$580 million. This compares to the average size of S$2.6 billion for the stocks of the FTSE ST Mid Cap Index & S$9.6 billion for the stocks of the FTSE ST Large & Mid Cap Index. 

 

Currently, the 10 largest constituents of the FTSE ST Small Cap Index account for 38% of the Index weight and all represent the Real Estate Sector. The Real Estate Sector, as defined by the Global Industry Classification Standards (GICS®), is represented by 18 of the 64 stocks, however they make up as much as 51% of the Index weightings.

 

With the significant Real Estate weightage, of which the majority representation is via Real Estate Investment Trusts, the Index maintains a higher than average dividend yield of 5.1%. This compares to a 2.7% dividend yield of the FTSE Developed Asia Pacific Small Cap Ex Japan Index, which is made up of 600 constituents listed across the region.

 

The FTSE ST Small Cap Index averaged a 4.8% total return in the year to date, double the return of the FTSE Developed Asia Pacific Small Cap Ex Japan Index, which gained 2.4% in Singapore dollar terms. On a 12 month basis, the returns were more in-line with a marginal outperformance by the FTSE ST Small Cap Index. These comparative returns are illustrated below.

 

YTD & 12M Index Total Return % (SGD)

Index Dividend Yield %

Source: SGX StockFacts, Bloomberg (Data as of 14 March 2017)

 

Longer term, the FTSE ST Small Cap Index outperformed FTSE Developed Asia Pacific Small Cap Ex Japan Index by 6.5% over the past five years.

 

The table below details the 10 largest constituents of the FTSE ST Small Cap Index, and is sort by Index weighting. Click on each stock to visit its profile page on SGX Stock Facts.

 

Name

SGX Code

Weight %

Market Cap S$M

Total Return YTD %

Total Return 1 Yr %

ROE %

Dvd Ind Yld %

GICS® Sector Name

Frasers Logistics & Industrial Trust

BUOU

4.8

1,365

3.2

N/A

N/A

1.9

Real Estate

Keppel DC REIT

AJBU

4.0

1,336

1.1

17.5

5.4

4.8

Real Estate

Lippo Malls Indonesia Retail Trust

D5IU

3.9

1,094

7.8

40.3

2.7

8.9

Real Estate

Ascendas India Trust

CY6U

3.8

996

4.9

30.9

19.2

5.1

Real Estate

Cambridge Industrial Trust

J91U

3.7

744

5.6

9.8

0.8

7.2

Real Estate

Frasers Commercial Trust

ND8U

3.7

1,002

2.0

6.9

5.9

8.0

Real Estate

Cache Logistics Trust

K2LU

3.5

729

2.3

5.5

-3.2

9.1

Real Estate

Yoma Strategic Holdings

Z59

3.5

1,103

7.7

19.4

3.0

0.4

Real Estate

Manulife US REIT

BTOU

3.4

744

3.2

N/A

N/A

4.3

Real Estate

First REIT

AW9U

3.4

1,000

3.3

13.3

4.9

6.6

Real Estate

Average

 

 

 

4.1

18.0

4.8

5.6

 

Source: SGX, Bloomberg & SGX StockFacts (data as of 14 March 2017)

 

Best & Least Performing Constituents in YTD

 

In the year thus far, the five strongest performers within the FTSE ST Small Cap Index were Best World International, Geo Energy Resources, UMS Holdings, PEC and Sabana Shari'ah Compliant Industrial REIT. These stocks have businesses related to personal care products, thermal coal mining, semiconductors, maritime and offshore services and industrial property. To read more about Best World International in the kopi-C: the Company brew article, click here. A recent kopi-C: the Company brew on the second best performer in the year thus far, Geo Energy Resources, can also be read here.

 

The table below detail the five best performers of the FTSE ST Small Cap Index in the year to date, sorted by total returns in the year thus far. Click on each stock to visit its profile page on SGX Stock Facts.

 

Name

SGX Code

Market Cap S$M

Total Return YTD %

Total Return 1 Yr %

ROE %

Dvd Ind Yld %

GICS® Sector Name

Best World International

5ER

713

83.6

683.5

37.6

2.4

Consumer Staples

Geo Energy Resources

RE4

345

37.8

158.3

20.4

3.3

Energy

UMS Holdings

558

339

27.0

55.7

13.8

6.3

Information Technology

PEC

IX2

167

23.6

70.4

7.9

2.9

Industrials

Sabana Shari'ah Compliant Industrial REIT

M1GU

479

22.5

-10.3

-10.3

7.7

Real Estate

Average

 

 

38.9

191.5

13.9

4.5

 

Source: SGX, Bloomberg & SGX StockFacts (data as of 14 March 2017)

 

The five least performing stocks of the FTSE ST Small Cap Index in the year thus far were Ezra Holdings, Swiber Holdings, Nam Cheong, Falcon Energy Group and Japfa. Four of these five stocks have businesses relevant to the Maritime & Offshore Services industry, which has been in a prolonged down-cycle. As discussed in a February Market Update (click here), aside from analysts’ expectations and earnings estimates, potential sector drivers to look out for include: order books momentum, positive operating cash flows, and balance sheet strengths.

 

The table below details five these stocks. Note that while Japfa declined 11.6% in the year thus far, the stock was the sixth best performer of the 64 stocks over the past 12 months with a 42.6% total return.

 

Click on each stock to visit its profile page on SGX Stock Facts.

 

Name

SGX Code

Market Cap S$M

Total Return YTD %

Total Return 1 Yr %

ROE %

Dvd Ind Yld %

GICS® Sector Name

Ezra Holdings

5DN

35

-77.6

-90.7

-132.8

N/A

Energy

Swiber Holdings

BGK

N/A

-48.1

-64.4

-5.8

N/A

Energy

Nam Cheong

N4E

99

-24.2

-58.8

-3.1

N/A

Industrials

Falcon Energy Group

5FL

103

-18.4

-29.9

-0.1

N/A

Energy

Japfa

UD2

1442

-11.6

42.6

18.4

0.6

Consumer Staples

Average

 

 

-36.0

-40.2

-24.7

0.6

 

Source: SGX, Bloomberg & SGX StockFacts (data as of 14 March 2017)


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