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…
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
|Banks||Banks||Telco||Real Estate M & D|
|STI||STI||Real Estate M & D||Cons Staples|
|Real Estate M & D||Telco||STI||STI|
|Telco||Real Estate M & D||Cons Staples||Cons Discretion|
|Cons Discretion||Cons Staples||Cons Discretion||Telco|
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|
|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|
|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|
|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|
|Singapore Press Holdings||T39||6,671||4.130||4.350||4.060||-5.1||1.7||17.9||Consumer Discretionary|
|Ascendas Real Estate Investment Trust||A17U||5,990||2.490||2.710||2.190||-8.1||13.7||13.2||Financials|
|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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