Singapore’s Straits Times Index (SGX: ^STI) has had a rough 2018, falling 9.1% from the start of the year until the end of November. Some companies have performed even worse than the index. With that in mind, let’s look at the top five worst performing companies (data as of 30 November 2018)
- Thai Beverage Public Company Limited (SGX: Y92) or ThaiBev for short, is one of Southeast Asia’s largest beverage companies, with distilleries in Thailand, Scotland, Myanmar and China. ThaiBev has four core segments: spirits, beer, non-alcoholic beverage, and food. The first eleven months of 2018 have been rough for the beverage provider with its stock price declining 29.4% over that period. A possible reason for ThaiBev’s decline could be its high debt position which it took to purchase of a controlling stake in Vietnam’s Sabeco brewery. At its current stock price, the beverage provider sports a market capitalization of S$14.9 billion and a dividend yield of 2.7% at current prices.
- The fourth worst performer is UOL Group Limited (SGX: U14), a Singapore listed property company with S$20 billion of assets under management. The group’s activities include property development, hotels operations and property investment. UOL Group’s stock price has seen a 29.7% pull-back between January and November this year. The stock’s lacklustre performance could be due to the Singapore government’s recent property cooling measures. At current prices, UOL Group has a market capitalization of S$5.2 billion and a dividend yield of 2.8%.
- City Developments Limited (SGX: C09) is a real estate developer with a market capitalization of S$7.6 billion. The company’s business interests lie in developing both residential and commercial properties. In addition, City Developments owns 61% of Millennium & Copthorne Hotels Plc and other hotel properties, serviced apartments, and serviced offices. The first eleven months of the year have been rough on its stock price, posting negative returns of 31.3%. Like UOL Group, City Developments has been hit by the government’s cooling measures. At current prices, the real estate conglomerate sports a dividend yield of 2.4%.
- Hutchison Port Hldg Trust (SGX: NS8U) or HPH Trust is the world’s first publicly traded container port business trust with ports in Hong Kong and Mainland China. The trust has ended up second from the bottom in the STI’s performance ranking for the year so far where its stock price declined by 32.1%. HPH Trust runs the Hongkong International Terminals, COSCO-HIT Terminals, and Asia Container in Hong Kong as well as the Yantian International Container Terminals and Huizhou International Container Terminals in the Middle Kingdom. HPH Trust currently has a market capitalization of US$2.4 billion and a distribution yield of 9.5%.
- Golden Agri-Resources Ltd (SGX: E5H) or GAR rounds up the bottom five performers on the index over the January to November period. GAR is one of the largest palm oil plantation companies in the world and manages more than 500,000 hectares of palm oil plantations. From January to November, GAR has seen its stock price cut by more than a third due to weak crude palm oil prices. GAR has a market capitalization of S$3.3 billion.
To sum up, the bottom five companies have underperformed the index over the first eleven months of 2018. . While the period is only 11 months, the company above demonstrate that picking the wrong stocks can deliver negative returns. That is why it’s essential that investors put in the time and effort to research stocks before taking the plunge.
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The Motley Fool Singapore contributor Esjay contributed to this article. Esjay owns shares in ThaiBev.
The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore writer Chin Hui Leong does not owns any of the shares mentioned.