I had recently taken a look at the 10 largest real estate investment trusts listed in Singapore?s stock market in terms of market capitalisation. I thought it will be interesting as well to have an overview of the largest stocks listed here.
It is easy to assume that all the 10 largest Singapore-listed companies would be part of the Straits Times Index (SGX: ^STI) given that one of the index’s criteria for inclusion is a company’s market capitalisation. But that?s not true. In fact, one of the 10 is not part of the index.
In this article, I?d be looking at the first to fourth largest…
I had recently taken a look at the 10 largest real estate investment trusts listed in Singapore’s stock market in terms of market capitalisation. I thought it will be interesting as well to have an overview of the largest stocks listed here.
It is easy to assume that all the 10 largest Singapore-listed companies would be part of the Straits Times Index (SGX: ^STI) given that one of the index’s criteria for inclusion is a company’s market capitalisation. But that’s not true. In fact, one of the 10 is not part of the index.
Counting Down To No.1
At fourth place is United Overseas Bank Ltd (SGX: U11), one of the largest financial companies in Southeast Asia. The Singapore-based bank provides a wide range of financial services globally. UOB has a market capitalisation of S$33.6 billion.
At third is another financial institution, Oversea-Chinese Banking Corp Limited (SGX: O39). The bank has a market capitalisation of S$37.6 billion. It is involved in many areas of banking and even has a large insurance arm through its listed subsidiary, Great Eastern Holding Limited (SGX: G07).
The second spot is occupied by yet another finance company – this time it is DBS Group Holdings Ltd (SGX: D05). The bank has branches in 18 markets but has a strong presence in Singapore and Hong Kong. The S$44.3 billion bank reported an asset base of more than S$458 billion in 2015. For perspective, UOB and OCBC had total assets of S$316 billion and S$390 billion, respectively.
Finally, the largest listed company in Singapore is none other than Singapore Telecommunications Limited (SGX: Z74). Singtel, as it is more commonly known, is a global telecommunications giant.
Beyond Singapore, it has investments in telcos in Australia, Thailand, the Philippines, Indonesia, and India. The India-based telco, Bharti Airtel, also has a presence in a number of countries in the African continent. In all, Singtel serves over 630 million customers in 23 countries. It has a market capitalisation of S$60.0 billion and is now valued at 15 times earnings with a 4.8% dividend yield.
One important takeaway in my scan of the 10 largest stocks in Singapore’s stock market is that many of the largest companies have business interests around the word and thus still have avenues for growth despite the restricted market size in Singapore.
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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 shares in United Overseas Bank. Motley Fool Singapore writer Stanley Lim does not own shares in any of the companies mentioned above.