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Recent Swings of the STI Sectors

In the second quarter of 2015 to-date, the three sectors that generated higher average gains than the Straits Times Index (STI) were two Financials sectors, followed by Consumer Staples. The Real Estate Management & Development Sector has generated an average price increase of 5.1% in the quarter to-date. This was followed by Banks and Consumer Staples, averaging marginal declines of 0.1% and 0.3% respectively. 

These sector performances are based on average price changes for each of the stocks that are categorised to these segments by the Global Industry Classification Standard (GICS®). Because there are as many as 10 STI stocks in the Financial Sector, this segment can be broken down into sub-sectors that have multiple representations in the STI – Banks, Real Estate Management & Development and Real Estate Investment Trusts (REITs). 

A representation of the different sector performances is illustrated below, with the varied performances resembling a colorful patchwork quilt. In each of the past three quarters, the seven sectors depicted below moved on average twice as much as the STI.  

Recent Quarterly Performances of Key STI Sectors 

  3Q14 4Q14 1Q15

2Q15 to-date

Banks Banks Telco Real Estate M & D
4.8% 9.6% 8.6% 5.1%
Cons Staples REITs REITs Banks
1.0% 6.3% 8.3% -0.1%
STI STI Real Estate M & D Cons Staples
0.7% 2.7% 6.2% -0.3%
Real Estate M & D Telco STI STI
-0.9% 1.7% 2.4% -0.9%
Telco Real Estate M & D Cons Staples Cons Discretion
-1.2% 0.3% 0.5% -1.3%
REITs Cons Discretion Industrials REITs
-2.7% -1.9% -1.4% -1.7%
Industrials Industrials Banks Industrials
-4.2% -4.1% -2.1% -2.0%
Cons Discretion Cons Staples Cons Discretion Telco
-5.5% -7.4% -6.3% -7.0%

 Source: SGX My Gateway, please note performances are based on the average price performances of the STI stocks relevant to those GICS ® Sectors. Data as of 28 May 2015

Just as pieces of patchwork make up a quilt, sectors are building blocks of the STI.  This means the recent STI performance stems from a combination of all the different sectors – those that performed best and those that performed least. While the strongest sector in each of the last three quarters generated a return of 23%, the least performing sector in each of the last three quarters registered a 19% decline. Overall, the STI posted a 5.8% price gain or 7.7% return, including dividends over the previous three quarters.

Over those previous three quarters, there have been some distinctively different sector performances. Recent swings include the Telecommunications sector, which was the best performer among the STI stocks in last quarter, but registered the least performance in the quarter-to-date. The Bank sector was the second-least performing sector in last quarter, but was the second-strongest performer in the quarter-to-date.

The STI stocks and their relevant sectors are detailed in the table below. Effective this year, the reduction of standard board lot sizes to 100 shares or units has provided investors with the means of balancing their exposure across industries.

Company Name SGX Code Mkt. Cap.in S$ mm Last Close S$ 52 Week High S$ 52 Week Low S$ Price vs. High in % Price vs. Low in % P/E GICS Sector
Singapore Telecommunications Z74 65,663 4.120 4.570 3.630 -9.9 13.5 17.6 Telecommunication Services
Jardine Matheson Holdings J36 58,577 84.829 91.808 77.093 -7.6 10.0 13.9 Industrials
Jardine Strategic Holdings J37 51,687 45.985 51.530 43.726 -10.8 5.2 11.5 Industrials
DBS Group Holdings D05 50,419 20.340 21.230 16.720 -4.2 21.7 12.5 Financials
Oversea-Chinese Banking Corporation O39 40,817 10.250 10.920 9.380 -6.0 9.0 10.1 Financials
United Overseas Bank U11 37,862 23.630 25.050 21.530 -5.7 9.8 12.0 Financials
Hongkong Land Holdings H78 27,208 11.564 11.902 8.737 -2.8 32.4 15.5 Financials
Wilmar International F34 21,488 3.360 3.420 2.920 -1.8 15.1 12.7 Consumer Staples
Thai Beverage Public Company Y92 18,833 0.750 0.810 0.610 -7.0 23.0 20.2 Consumer Staples
Keppel Corporation BN4 16,006 8.810 11.150 7.910 -21.0 11.4 8.5 Industrials
CapitaLand C31 15,019 3.520 3.790 2.930 -7.1 20.1 13.8 Financials
Jardine Cycle & Carriage C07 14,175 39.850 47.700 38.500 -16.5 3.5 13.2 Consumer Discretionary
Global Logistic Properties MC0 13,502 2.790 2.960 2.390 -5.7 16.7 20.0 Financials
Singapore Airlines C6L 13,353 11.430 12.910 9.570 -11.5 19.4 38.0 Industrials
Genting Singapore PLC G13 11,185 0.925 1.360 0.905 -32.0 2.2 32.2 Consumer Discretionary
Singapore Technologies Engineering S63 10,725 3.450 3.950 3.140 -12.7 9.9 20.5 Industrials
City Developments C09 9,466 10.410 10.950 9.150 -4.9 13.8 12.8 Financials
Singapore Exchange S68 9,308 8.690 8.800 6.800 -1.3 27.8 28.3 Financials
Hutchison Port Holdings Trust NS8U 7,833 0.899 1.028 0.879 -12.5 2.3 Industrials
CapitaLand Mall Trust C38U 7,653 2.210 2.280 1.885 -3.1 17.2 12.2 Financials
Sembcorp Industries U96 7,414 4.150 5.540 4.050 -25.1 2.5 10.0 Industrials
StarHub CC3 6,910 4.000 4.460 4.000 0.0 0.0 19.0 Telecommunication Services
Singapore Press Holdings T39 6,671 4.130 4.350 4.060 -5.1 1.7 17.9 Consumer Discretionary
ComfortDelGro Corporation C52 6,577 3.070 3.260 2.280 -5.8 34.7 22.9 Industrials
Sembcorp Marine S51 6,245 2.990 4.150 2.850 -28.0 4.9 11.5 Industrials
Ascendas Real Estate Investment Trust A17U 5,990 2.490 2.710 2.190 -8.1 13.7 13.2 Financials
Noble Group N21 5,459 0.810 1.480 0.800 -45.3 1.3 43.1 Industrials
Golden Agri-Resources E5H 5,299 0.415 0.590 0.395 -29.7 5.1 145.3 Consumer Staples
Olam International O32 4,857 1.990 2.690 1.925 -26.0 3.4 29.3 Consumer Staples
SIA Engineering Company S59 4,440 3.960 5.150 3.910 -23.1 1.3 21.5 Industrials

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