Some investors believe that companies with large market capitalisations offer stability.
Other investors believe that smaller cap companies offer more growth compared to their larger counterparts. To find out more about the latter, we can take a peek into the FTSE ST Small Cap Index to see what a smaller cap company would look like. A recent SGX report provided a sneak peek on the companies with the largest weightage within the small cap index.
Here’re the five stocks with the highest weightage:
1. In first place is Frasers Logistics and Industrial Trust (SGX: BUOU) at 4.8%. The real estate investment trust (REIT) has a market capitalisation of $1.4 billion and has 54 industrial properties located in Australia.
2. Next up is Keppel DC REIT (SGX: AJBU). The REIT, which owns data centres, has a market cap of $1.3 billion and a weightage of 4%. Keppel DC REIT has properties located around Asia Pacific and Europe.
3. Another REIT, Lippo Malls Indonesia Retail Trust (SGX: D5IU), sits in third place with a 3.9% weightage in the FTSE ST Small Cap Index. The REIT owns retail malls and retail spaces in Indonesia and has a market cap of $1.1 billion.
4. From Indonesia, we now move to India for the next most influential component of the FTSE ST Small Cap Index. This time, Ascendas India Trust (SGX: CY6U) takes fourth place with a 3.8% weightage on the index. The trust owns seven IT parks in India and has a market cap of $996 million.
5. Rounding up the top five would be Cambridge Industrial Trust (SGX: J91U). Unlike the first four, this REIT is focused on properties in Singapore, and more specifically, local industrial properties. Cambridge Industrial Trust has a market cap of $744 million.
As it turns out, the five stocks with the highest weightage in the FTSE ST Small Cap Index are all from the REIT space and they each offer different geographical coverage.
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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.