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5 Things You Should Know About Singapore Small Caps

Small cap stocks refer to companies with relatively small market capitalisations. A company’s market capitalisation is its outstanding shares multiplied by its share price. Here are five quick things investors should know about Singapore small cap stocks.

1) In Singapore, the FTSE ST Small Cap Index represents the performance of small-capitalised companies. According to a recent report by the Singapore Exchange, the index has 51 constituents with a combined market capitalisation of around S$40 billion, ranging from S$63 million to more than S$2 billion. The index was at 349.46 at end-April 2019, up around 7% from the start of 2019 to 30 April.

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2) Ten constituents of the FTSE ST Small Cap Index with the largest market capitalisations take up more than 30% of the index’s weighting. They are made up of six real estate investment trusts (REITs), two consumer companies, one healthcare stock, and one financial services provider. Some of those REITs are Frasers Logistics & Industrial Trust (SGX: BUOU), Keppel DC REIT (SGX: AJBU) and ESR-REIT (SGX: J91U).

3) The index has 32 non-REIT constituents, with dividend yields ranging from below 1% to over 9% (as of 30 April 2019). Of the 32 constituents, 12 shares have dividend yields of above 4%, with an average yield of 5.9%. One of the 12 shares is China Sunsine Chemical Holdings Ltd (SGX:CH8), with a dividend yield of 4.7%. China Sunsine was featured as one of the best shares to buy in May 2019 and beyond, and one of the top five dividend shares in Singapore.

4) The top five shares with the highest dividend yields (given in brackets) are Duty Free International Ltd (SGX: 5SO) (9.3%), Delong Holdings Limited (SGX: BQO) (9.2%), SIIC Environment Holdings Ltd (SGX: BHK) (6.3%), UMS Holdings Limited (SGX: 558) (6.2%), and QAF Limited (SGX: Q01) (6.0%).

5) Beyond the index, there are some 200 stocks listed on the Singapore stock exchange that fall within the market capitalisation range.

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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 Limited. Motley Fool Singapore contributor Sudhan P owns shares in Singapore Exchange Limited.