The S$10 Billion Stock Club: These Are the Top Performers

There are billion dollar companies, and then there are S$10-billion dollar companies.

The Singapore stock market boasts 10 primary-listed companies with market capitalisations of over S$10 billion. This select group are among the largest listed stocks in Singapore. A recent report provides some insights to the performance of these gargantuan stocks.

Here’re some highlights from the report (figures as of 13 May 2016, unless otherwise stated):

  1. The SPDR STI ETF (SGX: ES3), an exchange traded fund that mimics the fundamentals of the Straits Times Index (SGX: ^STI), may serve as a good benchmark for performance comparisons. In the five years ended 30 April 2016, the SPDR STI ETF had delivered a total annual return of 0.55%.
  2. Asian telco giant Singapore Telecommunications Limited (SGX: Z74), with its market cap of S$61.9 billion, is the top dog in terms of size. The company has generated a total return of nearly 60% over the past five years, a showing that makes it the third best performing stock in the exclusive S$10 billion group.
  3. Thai Beverage Public Company Limited (SGX: Y92) comes out tops in terms of performance among the 10 giant stocks. The maker of Chang Beer has total returns of 216% over the past five years. It is the sixth biggest stock in the group.
  4. Singapore’s banking trio of DBS Group Holdings Ltd (SGX: D05)Oversea-Chinese Banking Corp Limited (SGX: O39), and United Overseas Bank Ltd (SGX: U11) occupy the second to fourth positions of the group. Unfortunately, only DBS Group had been able to deliver double-digit total returns over the past five years. This could be due to concerns around the banking industry’s exposure to the oil and gas industry. My colleague Lawrence Nga also recently noted that the trio are trading at lower valuations relative to where they have historically traded.
  5. OCBC’s subsidiary, Great Eastern Holdings Limited  (SGX: G07), has had a respectable performance over the past five years. The insurance firm, which had a market cap of S$10.2 billion, posted total returns of above 67%, making it the S$10 billion group’s second best performer.
  6. Big stocks does not always equate to big returns. Agri-business firm Wilmar International Limited (SGX: F34) and Singapore Airlines Ltd  (SGX: C6L) are both in the exclusive group, but have both delivered negative total returns in the past five years.

As always, we should do our due diligence before committing our hard earned cash into stocks, even if those stocks have huge market capitalizations of above S$10 billion.

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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 doesn’t own shares in any companies mentioned.