The Top 5 Billion-Dollar Giants of the Straits Times Index

The Straits Times Index (SGX: ^STI) is home to 30 Singapore-listed companies.

All 30 companies have billion-dollar market caps, but there would naturally be huge variances in size. According to a recent report by bourse operator Singapore Exchange, the smallest company in the Straits Times Index as of 12 May 2017 was SIA Engineering Company Ltd (SGX: S59) with a market cap of $4.4 billion. Here are the five largest Straits Times Index companies (figures as of 12 May 2017):

1. Jardine Matheson Holdings Limited  (SGX: J36) reigns as the largest company in the Straits Times Index with a market cap of $67.2 billion. The centuries-old conglomerate has delivered a total return of 70.8% over the last five years. What’s interesting about Jardine Matheson is that it has controlling stakes over a number of Singapore-listed companies such as Mandarin Oriental International Limited (SGX: M04) and fellow Straits Times Index constituent Jardine Cycle & Carriage Ltd (SGX: C07).

2. Singapore Telecommunications Limited (SGX: Z74) is the second biggest company with a market cap of $60.6 billion. Singapore’s biggest telco has produced a five-year total return of 43%. One surprising thing about Singtel is that the bulk of its profit comes from outside of Singapore – in its fiscal year ended 31 March 2016, Singapore only accounted for 29% of its profit.

3. DBS Group Holdings Ltd (SGX: D05) turns up in third place with a market cap of $52.6 billion. Singapore’s biggest bank – both in terms of assets and market cap – has also rewarded investors with a total return of 76.4% over a five-year period.

4. Another Singaporean bank, Oversea-Chinese Banking Corp Limited (SGX: O39), emerges in fourth place with a market capitalisation of $44.1 billion. OCBC’s five-year total return is a respectable 42.5%. It also happens to be Singapore’s oldest bank with its roots tracing back over a century ago to 1912.

5. Rounding up the top five blue chips by market cap is United Overseas Bank Ltd (SGX: U11). As the third largest of the three major banks in Singapore, UOB has a market cap of $38.6 billion. UOB has produced a total return of 54.5% over a five-year timeframe.

The average total return for a Straits Times Index stock over the past five years is 44.9%. Of the five stocks mentioned above, three managed to outpace the average performance. It goes to show that a bigger market cap may not limit the returns a company’s stock can produce.

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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 and United Overseas Bank. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.