The Biggest Consumer Staple Stocks in the Singapore Stock Market

Fears of a downturn may send investors scrambling for shelter. Shelter, in this case, may be in the form of consumer-staple stocks. These are companies that provide essential products such as food, beverages or other household products.

The general idea is that consumption of daily staples will continue, even in the face of changing economic conditions, hence giving consumer staple companies more stability in their businesses.

Let’s dig a little deeper to find out more.

According to a recent report from bourse operator Singapore Exchange Limited (SGX: S68) that was published just yesterday, the 10 largest consumer staple stocks in Singapore make up 7.5% of the total market capitalisation for listed stocks here.

The following are a few interesting points worth noting:

  1. The two largest consumer staple stocks, namely Thai Beverage Public Company Limited (SGX: Y92) and Wilmar International Limited (SGX: F34), happen to be component stocks of the Straits Times Index (SGX: STI)Golden Agri-Resources Ltd (SGX: E5H) is another Straits Times Index component that makes it into the list of the 10 largest consumer staple stocks.
  2. Sheng Siong Group Ltd (SGX: OV8) is ranked second from last in terms of market cap. However, the supermarket chain had punched above its weight in 2015, topping the aforementioned group with a 26.4% total return. Chocolate confectionary firm Petra Foods Limited  (SGX: P34) was the worst performer, with a hefty negative total return of 43.3%.
  3. Oil palm companies make up a good portion of the 10 largest consumer staple stocks. Besides Golden Agri-Resources, First Resources Ltd (SGX: EB5) and Bumitama Agri Ltd (SGX: P8Z) also feature in the list.
  4. When it comes to dividends, Sheng Siong takes the crown again with a 4% trailing yield as of 18 January 2015. Dairy Farm International Holding Ltd  (SGX: D01) comes in second best with a 3.7% yield.

Looking back helps us understand how the companies had fared over the past year and gives us clues as to which companies might be worth following. This may give us a head-start on our investing homework that follows.

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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 contributor Chin Hui Leong owns shares in Dairy Farm International Holdings.