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Dividends boost Maritime Index gain to 6.4% in 2013 YTD

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  • The FTSE ST Maritime Index is made up of nine companies that belong either to the Marine Transportation or the Commercial Vehicles and Trucks subsector based on the Industry Classification Benchmark.
  • In the year-to-date, the FTSE ST Maritime Index has generated a total return of 6.4%. The Index has been stronger in the later half of the year with a 19.6% total return over the past six months.
  • The three biggest stocks in the index namely, Yangzijiang Shipbuilding (SGX:BS6), Neptune Orient Lines (SGX:N03), and Cosco Corporation (SGX:F83) account for nearly 84% of the index based on November end data. Their respective index weightings are 49%, 20%, and 15%.

The nine companies in the FTSE ST Maritime Index are categorised either as Marine Transportation stocks or as Commercial Vehicles and Trucks stocks based on the Industry Classification Benchmark. These companies are firstly part of the broader FTSE ST All Share Index and secondly derive at least 55% of their revenue from maritime related activities, which include manufacturing, ownership, operation and repairing of commercial vessels.

So far this year, the FTSE ST Maritime Index has generated a total return of 6.4%. The index has been stronger in the later half of the year with a 19.6% total return over the past 6 months. This has been helped by the performance of Yangzijiang Shipbuilding, the largest stock in the index with a weighting of 49.23%. Next in size is Neptune Orient Lines, with a weighting of 19.66% followed by Cosco Corporation with a weighting of 14.73%.

In price terms, Yangzijiang Shipbuilding has risen by 20.3% so far this year and 42.6% in the past six months. It is the best performer in the past six months and the largest constituent of the index with a market capitalisation of S$4.4 billion. The group produces commercial vessels which range from bulk carriers to chemical tankers. According to its FY12 annual report, the group derived 70.7% of its revenue from China. In August this year, the group has introduce trading of its shares in RMB using SGX’s dual currency trading platform. The exchange code of the SGD stock is BS6 while the exchange code of the RMB stock is SO7.

Neptune Orient Lines has a market capitalisation of S$2.7 billion. The group operates a global container shipping and logistics business through two key brands, APL and APL Logistics. It reported 52.6% of its revenue from the Americas and 28.4% from Asia and the Middle East. The group’s price has declined by 7.4% since the start of 2013.

Cosco Corporation has a market capitalisation of S$1.6 billion. The Beijing investment holding company is involved in ship repair, ship building and offshore marine engineering operations in China. According to its FY12 annual report, the company derived 98.1% of its revenue from China. Its stock price has declined 17.3% this year thus far.

The table below details the nine constituents of the FTSE ST Maritime Index. Price performances over the year to date period range from Jes International’s (SGX: EG0) decline of 39.7% to Pan United Corporation’s (SGX: P52) gain of 21.9%.

Short Name

SGX Code

Market Cap (S$m)

Px Chg Pct YTD (%)

Px Chg Pct:M-6 (%)

Dvd Ind Yld (%)

Total Return YTD (%)

Total Return:M-6 (%)

YANGZIJIANG SHIP

BS6

4,369

20.31

42.59

4.33

27.00

42.59

NEPTUNE ORIENT

N03

2,732

-7.42

1.44

N/A

-7.42

1.44

COSCO CORP SINGA

F83

1,601

-17.32

0.68

2.70

-15.46

0.68

PAN-UNITED CORP

P52

529

21.94

5.59

4.23

27.32

7.41

JAYA HLDGS LTD

J10

525

2.27

14.41

5.93

8.47

20.47

OTTO MARINE

G4F

293

-19.40

-11.44

N/A

-19.40

-11.44

RICKMERS MARITIM

B1ZU

241

-4.53

5.56

10.50

5.23

11.22

JES INTERNATIONA

EG0

139

-39.70

-21.05

N/A

-39.70

-21.05

MARCO POLO MARIN

5LY

126

-6.49

-2.70

3.89

-2.96

0.98

Source: Bloomberg (Data as of 13 December 2013)

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