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The Worst Performing Blue Chips for 2016 (Plus 1 Quick Investing Lesson)

2016 recently came to an end and it is time to tally up the scores.

recent report from bourse operator Singapore Exchange Limited (SGX: S68) scored all 30 stocks that make up the Straits Times Index (SGX: ^STI) – these 30 stocks are often referred to as blue chips – and ranked them in terms of their total returns in 2016. Here are the five worst performers (figures as of 30 December 2016 unless otherwise stated):

  1. Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6) is holding up the rear with a negative total return of 22.3% for 2016. The shipbuilder has a market cap of around $3.1 billion.
  2. The next company is Starhub Ltd (SGX: CC3). The telco’s shares recorded a total loss of around 19.5% for 2016. StarHub has a market cap of around $4.9 billion.
  3. ComfortDelGro Corporation Ltd (SGX: C52) hit the reverse gear in 2016 and ended up as the third worst performer. The transport operator logged in a negative total return of 16.3%. ComfortDelGro weighs in with a market cap of $5.3 billion.
  4. Airline operator Singapore Airlines Ltd (SGX: C6L) also faced turbulence in 2016, landing in the fourth worst position. The firm recorded a total loss of around 10% and has a market cap of $11.4 billion.
  5. Hutchison Port Holdings Trust (SGX: NS8U) finds itself mired in the fifth worst position with a total return of around negative 8%. The container port business trust has a market cap of around $5.5 billion.

If you’re a Foolish investor, you may think that a one year timeframe is a short one. It is worthwhile to note that the list of worst performers can change from year to year. As an interesting comparison, ComfortDelGro was one of the top five blue chip winners in 2015. And as we already know, the transport giant finds itself as one of the worst-performing blue chips in 2016.

The lesson here is that a stock’s performance over a 12 month can’t give us much long-term insight. As investors, we might want to measure performances of a stock over at least three to five years to get a better picture of what long-term winners and losers look like.

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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 of Singapore Exchange. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.