The Straits Times Index (SGX: ^STI) has rallied 2.1% as of the time of writing today. The spike comes after US President Donald Trump and Chinese President Xi Jinping agreed to a truce on the trade war over dinner on Saturday after the G20 summit.
If you are wondering what stocks you should consider for your portfolio amid the rally, you have to look no further. Using data from S&P Global Market Intelligence and the Magic Formula investing strategy developed by investor Joel Greenblatt, I found some of the best Singapore-listed stocks for December that could go on to do well.
The basic premise of the Magic Formula is to find the 30 best shares in the market as ranked by their cheapness and their quality, and to hold on to that basket shares for a year before repeating the ranking process. For a deeper understanding of how the formula works, here’s an article explaining the strategy.
With that, here are the top 30 stocks in Singapore’s market for December 2018:
1) Noble Group Limited (SGX:CGP)
2) Lung Kee (Bermuda) Holdings Limited (SGX: L09) (SEHK: 255)
3) China Sunsine Chemical Holdings Ltd (SGX:CH8)
4) Aspen (Group) Holdings Limited (SGX:1F3)
5) Delong Holdings Limited (SGX:BQO)
6) Sinostar PEC Holdings Limited (SGX:C9Q)
7) Valuetronics Holdings Limited (SGX:BN2)
8) Golden Energy and Resources Ltd (SGX:AUE)
9) AEM Holdings Ltd (SGX:AWX)
10) Yangzijiang Shipbuilding Holdings Ltd (SGX:BS6)
11) Challenger Technologies Limited (SGX:573)
12) PCI Limited (SGX:P19)
13) Geo Energy Resources Ltd (SGX:RE4)
14) Yanlord Land Group Limited (SGX:Z25)
15) Stamford Land Corporation Ltd (SGX:H07)
16) Hi-P International Ltd (SGX: H17)
17) Hock Lian Seng Holdings Limited (SGX:J2T)
18) Koufu Group Ltd (SGX:VL6)
19) Straco Corporation Ltd (SGX:S85)
20) Meghmani Organics Ltd (SGX:M30) (BSE:532865)
21) Chuan Hup Holdings Limited (SGX:C33)
22) APAC Realty Ltd (SGX:CLN)
23) The Hour Glass Ltd (SGX:AGS)
24) Boustead Singapore Limited (SGX:F9D)
25) HRnetGroup Ltd (SGX:CHZ)
26) JB Foods Ltd (SGX:BEW)
27) Kimly Ltd (SGX:1D0)
28) China Mobile Ltd (SGX:K3PD) (SEHK:941)
29) Sino Grandness Food Industry Group Ltd (SGX:T4B)
30) Venture Corporation Ltd (SGX:V03)
This exercise aims to provide some stock ideas for investors who are looking to do better than the market average. Take it like a stock screener where you screen for a specific set of criteria. It is not a recommendation to buy any of the stocks. Investors should carry out their research before purchasing any of the companies mentioned.
[Editor’s note: The Magic Formula could throw up companies that are not doing well now. That is why diversification is essential when using this strategy. For the lessons learnt from previous exercises, you can check out the post here.]
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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 AEM Holdings Ltd, Straco Corporation Ltd, Boustead Singapore Limited and HRnetGroup Ltd. Motley Fool Singapore contributor Sudhan P owns shares in Straco Corporation Ltd, APAC Realty Limited and Boustead Singapore Limited.