An Afternoon Stroll Through Singapore’s Mid-Cap Stock Universe

Some like it hot. Some like it cold. Some like it somewhere in-between.

Similarly, some investors prefer big blue chip companies for their established presence. Others prefer small companies for their growth potential. Meanwhile, there are investors who would like a bit of both – for them, medium-sized companies might fit the bill.

In Singapore’s stock market, there is the FTSE ST Mid-Cap Index which tracks mid-cap stocks in Singapore. A recent report by bourse operator Singapore Exchange Limited (SGX: S68) may help shed some light on the index as well as its various constituents.

Here’s a few things worth noting about the FTSE ST Mid-Cap Index from the report (data as of 8 April 2016, unless otherwise stated):

  1. There were 44 constituents in the index. The biggest among the mid-cap index would be Golden Agri-Resources Ltd (SGX: E5H). The palm oil producer weighed in with a market capitalisation of $5.2 billion. Meanwhile, airline catering and airport services provider SATS Ltd (SGX: S58) tipped the scales at $4.4 billion in terms of its market cap. Elsewhere, the commercial-focused real estate investment trust, CapitaLand Commercial Trust (SGX: C61U), held court in third-place with its market cap of $4.2 billion. Incidentally, all three are components of Singapore’s stock market barometer, the Straits Times Index (SGX: ^STI).
  2. The aforementioned trio of Golden Agri-Resources, SATS, and CapitaLand Commercial have had very different share price performances over the past five years. Golden Agri-Resources had seen its shares decline by nearly 40% in total even after accounting for reinvested dividends. SATS, on the other hand,  more than doubled while CapitaLand Commercial Trust clocked a total return of 32%. The pair of Mapletree Commercial Trust (SGX: N21U) and Mapletree Industrial Trust (SGX: ME8U) were up there with SATS; both REITs had delivered total returns which exceeded 100% over the past five years.
  3. There are stocks with high dividend yields amongst the mid-cap universe. Mapletree Industrial Trust offered a trailing yield of 6.8%. Keppel REIT (SGX: K71U) is up there with 6.8% as well. Suntec Real Estate Investment Trust (SGX: T82U) came in close with a 6.1% trailing distribution yield. In contrast, the SPDR STI ETF (SGX: ES3), an exchange traded fund that mimics the fundamentals of the Straits Times Index, had offered a dividend yield of 3.4%, as of 14 April 2016.

Winning stocks may come in all shapes and sizes.

Whether your preference is a big blue-chip company or a small company or anything in between, what’s important is how the underlying business is doing. Furthermore, we have to determine whether a stock’s business can continue to perform over the long run. With that, investors can then decide whether a stock is worthy enough to be included in their portfolios.

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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 units in Suntec REIT.