24 July 2017
STI at Two-Year High, 15% YTD Gain Led by Developers & Banks
  • The STI opened this week at 3307, after trading above the 3300 level last week for the first time since July 2015. The STI has generated a 15% price gain in the 2017 YTD, which compares to an average of 9% for the US, Japan & Hong Kong benchmarks.
  • STI gains have been led by the Real Estate and Bank Sectors, representing seven of the eight top performing YTD STI stocks. Yangzijiang Shipbuilding Holdings has been the STI’s best performing stock in the 2017 YTD, a turnaround from being the STI’s least performer in 2016.
  • More 2H17 outlooks on STI stocks will be available this week as SIA Engineering Co, Oversea-Chinese Banking Corp, Singapore Airlines, Ascendas REIT, Singapore Exchange, United Overseas Bank are scheduled to report their quarterly earnings.

The Straits Times Index (STI) opened this week at 3307, some 426 points, or 14.8% above the 2016 end of year level of 2881.  Last week the STI broke above the 3300 level for the first time in two years, with momentum taking the bellwether to an intra-week high of 3331. The STI maintains one of the region’s highest dividend yields, with 2017 year-to-date distributions boosting the STI’s total return to 16.6%. 

 

Comparative Performances of the STI & Dow Jones

 

The comparative total return of the Dow Jones Industrial Average was 4.2% on a Singapore Dollar (“SGD”) basis.  Taking the comparison back to April 2002, when SGX first listed for trading an Exchange Traded Fund (“ETF”) on the STI,  the Singapore Index has also performed comparatively stronger than the Dow Jones benchmark. Since mid-April 2002, the SPDR® STI ETF has generated a 197% total return, compared to 125% for the SPDR® Dow Jones Industrial Average ETF Trust, on a SGD basis.

 

The recent year-to-date total return of the Indices and the annualised long term returns of the ETFs are detailed in the chart below.

 

Note: Above total returns include dividends

Source: SGX, Bloomberg (ETF performance data of SPDR® STI spans 17 April 2002 to 21 July 2017)

 

Both the above bellwethers are made up 30 stocks. While the Real Estate Sector, led by Developers, and Banks have been the STI’s strongest sectors in the year-to-date, the strongest sectors of the Dow Jones Industrial Average have been the Materials and the Consumer Discretionary Sectors. Yangzijiang Shipbuilding Holdings has been the STI’s best performing stock in the 2017 YTD, a turnaround from being the STI’s least performer in 2016.

 

More 2H17 outlooks on STI stocks will be available this week as SIA Engineering Co, Oversea-Chinese Banking Corp, Singapore Airlines, Ascendas REIT, Singapore Exchange, United Overseas Bank are scheduled to report their quarterly earnings.

 

A guide to the confirmed and expected dates of earning reports is tabled below. To see more details on each stock in SGX StockFacts, click on the stock name.

Name

SGX Code

Date

Confirmed/ Estimated

Period

Price $

Price Change YTD %

Singapore Press Hldgs

T39

7/14/2017

Confirmed

Q3 17

2.980

-15.6

CapitaLand Commercial Trust

C61U

7/19/2017

Confirmed

Q2 17

1.750

18.2

Hutchison Port Hldgs Trust

NS8U

7/19/2017

Confirmed

Q2 17

0.450

3.4

Keppel Corp

BN4

7/20/2017

Confirmed

Q2 17

6.580

13.6

CapitaLand Mall Trust

C38U

7/21/2017

Confirmed

Q2 17

2.030

7.7

SATS

S58

7/21/2017

Confirmed

Q1 18

5.080

4.7

SIA Engineering Co

S59

7/25/2017

Confirmed

Q1 18

4.060

20.5

Oversea-Chinese Banking Corp

O39

7/27/2017

Confirmed

Q2 17

11.090

24.3

Singapore Airlines

C6L

7/27/2017

Confirmed

Q1 18

10.260

6.1

Ascendas REIT

A17U

7/27/2017

Confirmed

Q1 18

2.680

18.1

Singapore Exchange

S68

7/27/2017

Confirmed

Y 17

7.510

4.9

United Overseas Bank

U11

7/28/2017

Confirmed

Q2 17

23.980

17.5

Jardine Cycle & Carriage

C07

7/28/2017

Estimated

Q2 17

41.860

1.5

StarHub

CC3

8/2/2017

Confirmed

Q2 17

2.740

-2.5

CapitaLand

C31

8/3/2017

Confirmed

Q2 17

3.740

23.8

Hongkong Land Hldgs

H78

8/3/2017

Confirmed

S1 17

7.600

20.1

Sembcorp Industries

U96

8/3/2017

Confirmed

Q2 17

3.290

15.4

Genting Singapore PLC

G13

8/3/2017

Confirmed

Q2 17

1.125

24.3

DBS Group Hldgs

D05

8/4/2017

Confirmed

Q2 17

21.480

23.9

Yangzijiang Shipbuilding Hldgs

BS6

8/4/2017

Estimated

Q2 17

1.345

65.0

Jardine Matheson Hldgs

J36

8/4/2017

Confirmed

S1 17

63.670

15.2

UOL Group

U14

8/4/2017

Confirmed

Q2 17

7.920

32.2

Global Logistic Properties

MC0

8/8/2017

Confirmed

Q1 18

3.320

50.9

Wilmar International

F34

8/10/2017

Confirmed

Q2 17

3.370

-6.1

City Developments

C09

8/11/2017

Confirmed

Q2 17

11.050

33.5

Singapore Telecommunications

Z74

8/11/2017

Estimated

Q1 18

3.910

7.1

ComfortDelGro Corp

C52

8/11/2017

Estimated

Q2 17

2.290

-7.3

Golden Agri-Resources

E5H

8/11/2017

Estimated

Q2 17

0.385

-10.5

Singapore Technologies Engineering

S63

8/11/2017

Estimated

Q2 17

3.770

16.7

Thai Beverage PCL

Y92

8/11/2017

Estimated

Q3 17

0.930

9.4

Average

 

 

 

 

 

14.5

Source: SGX StockFacts & Bloomberg (data as of 21 July 2017). Note prices and price changes are in USD for Hutchison Port Hldgs Trust, Hongkong Land Hldgs and Jardine Matheson Hldgs.

 

The SGX also listed for trading another ETF on the STI, the Nikko AM STI ETF in 2009. Since its debut in late February 2009 this ETF generated a total return of 147%. Brokers and banks have also launched Regular Shares Saving plans on the STI ETFs.

 

The most recent STI-relevant portfolio products to launch are Daily Leverage Certificates (DLCs) on the highly correlated MSCI Singapore Net Total Return Index – click here for more information.


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