Singapore’s $5 Billion Dollar Stock Club: Here’re the Best Performers

recent report by bourse operator Singapore Exchange Limited (SGX: S68) showed that the Singapore stock market has 28 companies with market capitalisations of over $5 billon (as of 15 August 2016).  The report also provided some insights on the returns of these large 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 large companies in the market. In the five years ended July this year, the SPDR STI ETF has generated a total annual return of 0.77%.

Here’re some highlights from the Singapore Exchange report, along with information I’ve collated elsewhere (figures as of 15 August 2016, unless otherwise stated):

  1. Thai Beverage Public Company Limited (SGX: Y92) is the best performer. The Thailand-based spirits maker and beer brewer notched up a total return of 369% in the past five years. Notably, Thai Beverage was also the top performer (in terms of returns) for the club of companies with a market cap of more than $10 billion.
  2. In second place would be SATS Ltd (SGX: S58). The airline caterer and ground handling services provider has generated total returns of around 200% during the previous five years. SATS weighs in with a market cap of $5.4 billion. Revenue growth for SATS in its last reported quarter was tepid, but profit was up strongly.
  3. ComfortDelGro Corporation Ltd (SGX: C52) is another company that has provided multi-bagging returns. The land transport giant has a market cap of a little over $6 billion and its shares are up over 160% over the last five years. ComfortDelGro saw its revenue dip slightly in its latest quarter, though the good thing is its profit managed to step up by 5%.
  4. A pair of telcos occupied the fourth and fifth spot in terms of total return. StarHub Ltd (SGX: CC3) nudged past Singapore Telecommunications Limited (SGX: Z74) with a total return of around 86% over the past five years. As for Singtel, it generated a total return of 77.8%. It’s an impressive performance, given Singtel’s near-$68 billion market cap.
  5. To be sure, size does not equal performance. Genting Singapore PLC (SGX: G13) is the weakest performer in the $5 billion stock club. The casino and integrated resort operator has shed more than half its value over the last five years. Genting is also not alone. Agri-business firm Wilmar International Limited (SGX: F34) and marine engineering and property development conglomerate Keppel Corporation Limited (SGX: BN4) both have negative total returns as well.

As always, we should do our due diligence before committing our hard earned cash into stocks. This applies whether we are looking at large companies that have a market cap of above $5 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.