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SGX Highlight of the week, 10 February 2014

As of Friday, Japan’s Nikkei 225 had declined as much as 11.2% and Hong Kong’s China H-Share Index had declined as much as 10.8% in the year-to-date. The Hang Seng Index declined 7.2% over the timeframe while the Straits Times Index (SGX: ^STI) had declined 4.9%. Like the better relative performances, volatility of the STI was almost two-thirds less of the Nikkei 225 levels and almost half as much as the China H-share levels. Performances of the 30 STI stocks have been varied, from some stocks posting year-to-date gains to some stocks declining almost as much as the Nikkei 225 and China H-Share Index.

The 30 constituents of the STI varied significantly in individual performance. Like the index decline, the average return of the 30 constituents was a decline of 4.7% in the year-to-date. A total of 17 stocks declined less than 4.7% and two stocks, Hongkong Land (SGX:H78) and Jardine Matheson Holdings (SGX:J36) have posted respective gains of 2.3% and 1.7%. Jardine Matheson Holdings is the largest capitalised representative of the Industrials stock in the STI, while Hongkong Land is the fourth largest capitalised financials stock. Hongkong Land is also a member of the Jardine Matheson Group and the largest capitalised representative of the Real Estate sector in the STI. While the revenue focus of these two companies is not necessarily Singapore, the majority of the revenue of the two companies is reported in the Asia Pacific.

Looking at the performance in relation to the regional level, on average as much as 84% of the geographically reported revenue associated with the 30 STI companies is in the Asia Pacific. The 18 STI companies that reported more than 90% of their last FY revenue in the Asia Pacific have averaged a 3.2% decline. Weighing the performances of 18 companies in accordance with their full market capitalisation reveals the 18 companies, as a capitalised group, declined 3.5% in the year-to-date. This is about three-fifths of the 5.7% decline generated by the MSCI Asia Pacific Index over the same timeframe.  The MSCI Asia Pacific Index is expressed in USD versus the SGD denomination of the majority of the 18 relevant STI companies. Coinciding with Singapore’s more defensive performance have been the ongoing gradual and moderate gains of the Singapore Dollar (SGD) – which has firmed by 0.4% to the US Dollar in the year-to-date, versus the Bloomberg JP Morgan Asia Dollar Index which has declined 0.6% to the US Dollar. The Singapore Fixed Income Index (SFI), which is also denominated in SGD has gained 1.0% over the period.

The 30 STI components and year-to-date returns, indicative dividend yields and reported share of Asia Pacific revenue are detailed in the table below.

Short Name SGX Code Market Cap S$M Total Return YTD % in SGD Dvd Ind Yld % Asia Pacific Geo Revenue last FY
HONGKONG LAND USD H78

17930

2.3

2.8

100

JARDINE MATHESON USD J36

45710

1.7

2.6

93.8

STARHUB LTD CC3

7295

-1.2

4.7

100

JARDINE STRAT USD J37

44690

-1.3

0.8

98.9

HUTCHISON PORT-USD NS8U

7290

-1.8

7.3

100

THAI BEVERAGE Y92

13308

-1.9

3.0

96.0

OLAM INTERNATION O32

3573

-2.6

2.7

40.8

CAPITAMALL TRUST C38U

6314

-2.8

6.0

100

JARDINE CYCLE & C07

12365

-3.3

4.4

100

SINGAP PRESS HLG T39

6367

-3.4

3.8

96.6

GLOBAL LOGISTIC MC0

13280

-3.5

1.4

99.7

SINGAPORE TELECO Z74

55962

-4.1

4.8

100

CITY DEVELOPS C09

8366

-4.2

0.9

60.5

SEMBCORP INDUS U96

9365

-4.4

2.9

61.0

DBS GROUP HLDGS D05

39983

-4.4

3.4

96.3

COMFORTDELGRO CO C52

4081

-4.5

3.4

80.8

GOLDEN AGRI-RESO E5H

6676

-4.6

2.3

89.6

SINGAP TECH ENG S63

11717

-4.8

1.9

58.9

WILMAR INTERNATI F34

20669

-5.6

1.7

80.5

SINGAPORE EXCH S68

7265

-5.9

4.1

100

UNITED OVERSEAS U11

31341

-6.4

3.0

94.0

CAPITALAND LTD C31

11991

-6.9

2.5

93.3

GENTING SINGAPOR G13

17010

-7.0

0.7

99.6

SIA ENGINEERING S59

5229

-7.3

4.7

88.7

KEPPEL CORP LTD BN4

18757

-7.3

3.9

84.4

SEMBCORP MARINE S51

8468

-8.8

2.7

26.3

OCBC BANK O39

31929

-8.8

3.7

99.0

SINGAPORE AIRLIN C6L

11081

-9.3

2.9

72.1

NOBLE GROUP LTD N21

6429

-9.3

2.3

16.7

CAPITAMALLS ASIA JS8

6812

-10.7

2.0

100

Source: Bloomberg (data as of 7 Feb 2014)

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