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Singapore’s $10 Billion Dollar Stock Club: Here’re the Best Performers

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

A recent report by bourse operator Singapore Exchange Limited (SGX: S68) showed that the Singapore stock market had 15 companies with market capitalisations above $10 billion. It also provided some insights on the performance of these gargantuan stocks.

The performance of the SPDR STI ETF (SGX: ES3), an exchange traded fund that mimics the fundamentals of the Straits Times Index (SGX: ^STI), can serve as useful context for the returns generated by the giant companies in the market. In the past five years up till the end of July this year, the SPDR STI ETF has had a total annual return of 0.77%.

Here’re some highlights from the report (figures as of 15 August 2016, unless otherwise stated):

  1. Thai Beverage Public Company Limited (SGX: Y92) comes out tops in terms of performance. The maker of Chang Beer and spirits has seen its total returns vault to almost 370% over the past five years. It is currently the seventh biggest stock in this exclusive group.
  2. Speaking of size, telco giant Singapore Telecommunications Limited (SGX: Z74) is the top dog in terms of market capitalisation. Despite its size, Singtel has also generated a total return of 77.8% over the past five years. The company happens to be the second best performing stock in the select group of $10 billion dollar stocks too. Apparently, elephants can jump.
  3. Great Eastern Holding Limited  (SGX: G07), the insurance subsidiary of local banking outfit Oversea-Chinese Banking Corp Limited (SGX: O39), also clocked in a handsome return of 74.6% over the past five years. This dwarfs OCBC’s own return of 15% over the same period.
  4. The sprawling conglomerate Jardine Matheson Holdings Limited (SGX: J36) lands in fourth spot with a total return of over 50% over the last five years. The diverse conglomerate is also the second largest company of the group with a market cap of $57.6 billion.
  5. Rounding out the top five performers would be Singapore Technologies Engineering Ltd (SGX: S63). The engineering firm, which has interests ranging from electronics to land systems, marine engineering, and aerospace, brought home returns of around 49% over the past five years. ST Engineering has a market cap of $10.6 billion.
  6. To be sure, size does not equal performance. Agri-business firm Wilmar International Limited (SGX: F34) has fallen short in terms of total returns over the last five years. The firm recorded total losses of over 30% in the five year timeframe. Wilmar has a market cap of around $19.5 billion.

As always, we should do our due diligence before committing our hard earned cash into stocks. This applies whether we are looking at companies that have a market cap of above $10 billion, or otherwise.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended Singapore Exchange. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.