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The Best Blue Chips This Year

StockMarketBoardWell blow me down with a feather! We’re already nearing the end of June, which means we are halfway through the calendar year.

To describe the first six months of 2013 as volatile is probably a gross understatement. The Straits Times Index (SGX: ^STI) stared the years at 3,167 points. It then climbed to a high of 3,454 points before nestling back almost where it started the year at 3,155 points.

But even though the benchmark index has gone nowhere in the last six months, 13 blue chips are higher than they were at the start of the year, while 17 are lower.

Thai Beverage Company (SGX: Y92) is the standout blue- chip performer at the mid-year stage with a gain of 52%. The shares have rocketed from S$0.39 to S$0.60. The brewer is still enjoying its day in the sun after its promotion to the top flight following a successful takeover of Fraser & Neave.

Aircraft maintenance company SIA Engineering (SGX: S59) is another share that has stood firm despite the stock market turbulence. Its shares, which currently cost S$5.06 a pop, are 15% higher compared to the start of the year. It’s not hard to see why. The company has hiked its full-year payout by 5% to S$0.22 per share.

Anyone who bought Singapore Telecom (SGX: Z74) shares at the beginning of the year should be 13% better off today. They have risen from S$3.30 to S$3.74. Investors should also have been reassured by the company’s confident outlook for next year. At the time of its full-year results, SingTel indicated that revenues should be stable and underlying earnings could grow in the single digit.

Elsewhere in the telecom sector StarHub (SGX: CC3), which is the subject of this week’s Tug-Of-Fools, has gained 10% in six months. In May, StarHub posted a modest 3% rise in first-quarter profits on revenues that slipped around 2%. However, Singapore’s second-largest telecom company expects to see a modest rise on revenues. Its shares are up 10% over the last six months.

Considering all that has happened in recent weeks, Singapore shares have been remarkably resilient. However, it is important to remember that investing is a marathon and not a sprint. The key to successful investing is reinvesting the dividends you receive to enjoy the benefits of compounding, which over the long term could deliver astonishing total returns on your investments.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.