Singapore’s Straits Times Index (SGX: ^STI), home to the 30 largest companies in Singapore, has fallen by over 8% since the start of the year. But it’s not all doom and gloom. If we lengthen our horizon from months to years, we will see that a good number of STI companies have done quite well. As a baseline, the index provided a total return of 9.9% over the past three years. However, according to a recent SGX report, there were at least 10 companies that produced returns that are three times better than the index. Let’s have a look at…
Singapore’s Straits Times Index (SGX: ^STI), home to the 30 largest companies in Singapore, has fallen by over 8% since the start of the year. But it’s not all doom and gloom.
If we lengthen our horizon from months to years, we will see that a good number of STI companies have done quite well. As a baseline, the index provided a total return of 9.9% over the past three years. However, according to a recent SGX report, there were at least 10 companies that produced returns that are three times better than the index.
Let’s have a look at the top 10 performers (data as of 30 August 2018). For the first five companies, click here.
6. Genting Singapore Ltd (SGX: G13), an integrated resorts company in the leisure, gaming and hospitality sector, takes sixth place on the list. The last three years has seen Genting posted a total return of 51.2%. At current prices, the company has a market capitalisation that is just under S$13 billion. Genting shares, though, were among the biggest blue-chip losers for the month of August.
7. The seventh position belongs to Ascendas Real Estate Investment Trust (SGX: A17U), Singapore’s largest real estate investment trust (REIT). Ascendas REIT is an owner and manager of 132 industrial properties located in Singapore, UK and Australia. Currently, the REIT offers a 6% distribution yield, among the highest for blue-chips, and currently trades at a price to book (PB) ratio of 1.2. Over the past three years, Ascendas REIT has returned a sizable 47.8%.
8. Oversea-Chinese Banking Corp Limited (SGX: O39), Singapore’s second largest bank, lands in eighth place. Over the past three years, OCBC has posted total returns of 39.5%. Today, the bank offers a dividend yield of 3.6%, and sports a PB ratio of 1.17. With a market capitalisation of over S$46 billion, OCBC is one of the most influential components of the STI.
9. In ninth place we have Capitaland Limited (SGX: C31), one of the largest real estate companies in Asia with assets under management (AUM) worth a staggering S$93 billion. Capitaland has a market capitalisation of S$13.6 billion, and has provide patient investors with a total return of almost 32% over the past three years. Capitaland trades at an undemanding PB of 0.72 at the moment, and pays out a dividend of 3.6%.
10. Capitaland Mall Trust (SGX:C38U) wraps up the top ten outperformers over the past three years. Capitaland Mall Trust is probably a familiar name for many Singaporeans, given their presence in most neighbourhoods with a 16 malls spread out in the city state. It is also Singapore’s second largest REIT with market capitalisation of S$7.6 billion. Over the last three years, the REIT’s total returns came in at a respectable 29.2%. At current prices, CapitaLand Mall Trust provides a distribution yield of 5.3%.
The top 10 performers demonstrate that investing in individual stocks has to potential to generate better returns compared to buying an index fund, that provides market-matching returns. For the enterprising invest, it might be worth in the time and effort to research individual stocks.
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The Motley Fool Singapore contributor Esjay contributed to this article. Esjay owns shares in CapitaLand Mall Trust.
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 CapitaLand Mall Trust, and Singapore Exchange. Motley Fool Singapore writer Chin Hui Leong owns shares of CapitaLand Mall Trust and Singapore Exchange.