The term ?commodities? can mean many things for different people and that?s not surprising as there are really many different types of commodities that exist in the world.
For anyone who?s interested in getting exposure to the commodities market, here are a list of a wide-range of commodities and the Singapore-listed companies that are involved with them.
Oil and gas
Singapore, being one of the leading refined-oil exporters in the world, sees its stock market as a home to many oil & gas-related companies. To name just two examples, firms like Ezion Holdings Ltd (SGX: 5ME) and SembCorp Marine Ltd (SGX: S51) are all highly…
The term “commodities” can mean many things for different people and that’s not surprising as there are really many different types of commodities that exist in the world.
For anyone who’s interested in getting exposure to the commodities market, here are a list of a wide-range of commodities and the Singapore-listed companies that are involved with them.
Oil and gas
Singapore, being one of the leading refined-oil exporters in the world, sees its stock market as a home to many oil & gas-related companies. To name just two examples, firms like Ezion Holdings Ltd (SGX: 5ME) and SembCorp Marine Ltd (SGX: S51) are all highly dependent on the oil and gas market in their respective roles as a services provider and an oil-rig builder.
The price of oil has received a real shellacking over the past year with it falling by more than half from over US$100 per barrel in mid-2014 to less than US$50 today. But if you believe that oil can recover, then the pair mentioned above (as well as many more!) might be ones to watch.
The oil that’s derived from the palm fruit is one of the most popular commodities in Southeast Asia. With Malaysia and Indonesia being the two largest palm oil exporters globally, it is perhaps no real surprise to find that there are many palm-oil related companies that are listed here in Singapore.
Some of the companies with huge stakes in the palm oil business include vertically integrated outfits, like Golden Agri-Resources Ltd (SGX: E5H) and Indofood Agri Resources Ltd (SGX: 5JS), and pure upstream producers like Bumitama Agri Ltd (SGX: P8Z).
Vertical integration in the palm oil industry is a fancy way of saying that a company’s involved with the entire value chain, from the growing of the palm fruit to the production of crude palm oil, and from the refining of the crude palm oil into the manufacture of consumer products like cooking oil.
Rubber has been a familiar crop in Southeast Asia ever since it was first introduced by the British in Malaya more than a century ago. Today, rubber is still widely used for the production of tyres, gloves, escalator handrails, many different types of hoses, and more.
A rubber-related company that’s listed here in Singapore is Sri Trang Agro-Industry PCL (SGX: NC2). The company is also a vertically integrated outfit in the rubber industry as it has its fingers in the complete value chain, from rubber plantations to the production of rubber gloves.
Cocoa is the main ingredient used to make chocolate. Here in Singapore, Petra Foods Limited (SGX: P34) used to be a major cocoa producer in the global scene but the firm had sold its cocoa business to Barry Callebaut back in 2012. Today, the only cocoa related company listed in Singapore is JB Foods Ltd (SGX: Q0W), a Malaysia-based firm that makes cocoa-ingredient products.
There are many different types of commodities available in the market. Investors can gain exposure to a particular commodity by investing in a company that deals with it, instead of investing directly in the commodity.
The companies mentioned above are just some of the firms that you can find in Singapore which have businesses dealing with various types of commodities.
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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 writer Stanley Lim doesn't own shares in any companies mentioned.