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7 Things Investors Should Know About How Different Sectors Performed In The Stock Market Over The Past Year

The Straits Times Index (SGX: ^STI) started 2017 at 2,881 points and ended the year 18.1% higher at 3,403. Yet, this healthy return does not imply that all types of stocks in the local market did well.

In this article, I want to share some information about how different sectors (as defined by the Global Industry Classification Standard, or GICS) had performed over the past year, based on data published by stock exchange operator Singapore Exchange. Here they are:

1. In the 12 months ended 8 January 2018,  the two best performing sectors in our local stock market were Materials and Information Technology. The former was up by 110%, whilst the latter was up by 103%.

2. For the same period in the first point, the two worst performing sectors were Energy and Telecommunication Services. They were down by 7% and 2%, respectively.

3. Venture Corporation Ltd (SGX: V03) was the biggest company in the Information Technology sector at the end of 2016. It also outperformed the Straits Times Index in 2017 with a stock price gain of 107.2%.

4. The Financials sector did well in the 12 months ended 8 January 2018 too, as it was up by roughly 36%. The sector was undoubtedly helped by the performance of the local banks, DBS Group Holdings Ltd (SGX: D05), Oversea-Chinese Banking Corp Limited (SGX: O39), and United Overseas Bank Ltd (SGX: U11). All three significantly outperformed the Straits Times Index in 2017.

5. The Consumer Discretionary sector was another strong performer. It was up by around 29% in the 12 months ended 8 January 2018. But interestingly, the sector’s largest company at the end of 2016 – the conglomerate Jardine Cycle & Carriage Ltd (SGX: C07) – saw its stock price fall slightly by 1.4% in 2017. The sector’s second largest company – casino operator Genting Singapore PLC (SGX: G13) – was the one that did well. In 2017, Genting Singapore delivered a stock price gain of 44.8%.

6. Another market beating sector for the 12 months ended 8 January 2018 was Real Estate. It was up in excess of 25% in that time frame. Global Logistic Properties Ltd (SGX: MC0) and CapitaLand Limited (SGX: C31) were the largest companies in the Real Estate sector at the end of 2016; their shares were up by 56% and 20%, respectively, in 2017.

7. The REITs & Business Trust sector returned around 18% for the same period as all the other sectors described earlier. Within this sector, some of the top performers in 2017 were Mapletree Greater China Commercial Trust (SGX: RW0U), Suntec Real Estate Investment Trust (SGX: T82U), and CapitaLand Commercial Trust (SGX: C61U). The trio had stock price gains of 29.5%, 30.3%, and 30.4%, respectively.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool Singapore has recommendations for Singapore Exchange, DBS Group Holdings, and United Overseas Bank.