The Straits Times Index (SGX: ^STI) is up just 1.2% so far for the year. With the US-China trade war, Hong Kong protests, Brexit, and general economic slowdown worrying investors, it’s not surprising to see the Singapore stock market languishing. If you are looking for stock ideas amid all the macro fears, you have come to the right place.
Using our data provider, S&P Global Market Intelligence, and a Magic Formula methodology popularised by Joel Greenblatt, we found some of the best stocks for the month that could go on to perform 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 of 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’s a list of the best 30 shares in Singapore’s stock market for September 2019:
|1) Noble Group Limited (SGX:CGP)|
|2) Valuetronics Holdings Limited (SGX:BN2)|
|3) China Sunsine Chemical Holdings Ltd (SGX:CH8)|
|4) Best World International Limited (SGX:CGN)|
|5) Delong Holdings Limited (SGX:BQO)|
|6) AEM Holdings Ltd (SGX:AWX)|
|7) HRnetGroup Limited (SGX:CHZ)|
|8) Yangzijiang Shipbuilding (Holdings) Ltd (SGX:BS6)|
|9) Spindex Industries Limited (SGX:564)|
|10) Meghmani Organics Limited (SGX:M30)|
|11) Challenger Technologies Limited (SGX:573)|
|12) Kimly Limited (SGX:1D0)|
|13) Cortina Holdings Limited (SGX:C41)|
|14) Hi-P International Limited (SGX:H17)|
|15) Straco Corporation Limited (SGX:S85)|
|16) Hock Lian Seng Holdings Limited (SGX:J2T)|
|17) Fortress Minerals Limited (SGX:OAJ)|
|18) TPV Technology Limited (SGX:T18)|
|19) Fu Yu Corporation Limited (SGX:F13)|
|20) Penguin International Limited (SGX:BTM)|
|21) The Hour Glass Limited (SGX:AGS)|
|22) Frencken Group Limited (SGX:E28)|
|23) Venture Corporation Limited (SGX:V03)|
|24) International Cement Group Ltd (SGX:KUO)|
|25) Sinopec Shanghai Petrochemical Company Limited (SGX:K3DD)|
|26) JB Foods Limited (SGX:BEW)|
|27) CNMC Goldmine Holdings Limited (SGX:5TP)|
|28) Genting Singapore Limited (SGX:G13)|
|29) Golden Energy and Resources Limited (SGX:AUE)|
|30) Duty Free International Limited (SGX:5SO)|
As seen from the list above, the Magic Formula could throw up companies that may not be doing well. That is why diversification is essential when using this strategy. For important lessons learnt from the previous exercises, you can jump into the article here.
This exercise merely 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.
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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, HRnetGroup Ltd, Spindex, and Straco. Motley Fool Singapore contributor Sudhan P owns shares in HRnetGroup and Straco.