In 2018, stocks that are listed on Singapore’s Straits Times Index (STI) has seen an increase in volatility compared to 2017. This heightened volatility has also translated into a higher trading turnover for more than half of the STI stocks.
Read Also: Complete Guide To Investing In The STI ETF
Trading turnover is simply calculated as the price of a stock multiplied by its trading volume.
When a stock’s trading turnover surges, it usually means there is more interest in the company. This can be either a good or bad thing as investors find reasons to buy up the stock or sell down the stock.
A surge in trading volume can also represent institutional investors actively investing in or selling the stock.
As the STI has declined by close to 11.2% in 2018, it shouldn’t come as a surprise that majority of its component STI stocks has also experienced a share price decline in 2018, even if turnover had increased.
Here are the 4 STI stocks with the biggest increase in turnover in 2018.
Venture Corporation Limited (SGX: V03)
Venture Corp is in the business of supplying technology solutions, products and services globally, and counts Fortune 500 corporations and leading technology companies as its clients. The past decade has seen the technology sector come to the forefront of the biggest economies in the world, and Venture Corp has been able to tap on this growth.
With a market capitalisation of $4.4 billion, Venture Corp is the smallest STI component stocks. As of Nov 2018, its 12-month daily average turnover is $10.5 billion, an increase of 200% compared to the $3.5 billion in average daily turnover in the prior 12-month period as of Nov 2017.
In the year-to-date 2018, its share price has declined 24.3%. In the past five years, its share price has soared 81.1%, even after accounting for its 2018 decline.
Dairy Farm International Holdings Limited (SGX: D01)
Dairy Farm’s businesses are very defensive in nature, including supermarket, hypermarkets, convenience stores, health and beauty stores, home furnishing stores and food & beverage outlets. During times of heightened volatility, defensive stocks tend to be of higher interest to investors.
Dairy Farm has a market capitalisation of $16.4 billion. As reflected by its defensive businesses, it has returned 18.6% in the year-to-date 2018. The increase in investor interest in the group also translated to a 12-month average daily turnover of $2.2 billion as of Nov 2018, a 76% increase from the prior 12-month period.
In the past 5-year period, its share price has actually declined 4.0%, even after accounting the 18.6% increase in 2018.
Genting Singapore Limited (SGX: G13)
Genting Singapore is in the business of gaming and integrated resort development in Singapore, Australia, the Bahamas, Malaysia, the Philippines and the UK.
Genting Singapore market capitalisation is $12.2 billion. In the year-to-date 2018, its share price has declined by 27.1%. As of Nov 2018, Genting Singapore’s average daily turnover has increased 59% to $9.6 billion, from $6.1 billion in the prior 12-month period.
Its 5-year share price movements have also made it one of the more volatile stocks, ranging from a high of $1.48 in December 2013 to a low of $0.68 in February 2016. Today, it trades at $0.98, or 33.3% lower than five years ago.
United Overseas Bank Limited (SGX: U11)
At a market capitalisation of $42.9 billion, UOB is one of the largest Singapore-listed companies. In addition, market interest in banking and financial stocks has naturally increased on the back of rising interest rates globally.
Its 12-month average daily turnover has increased 44% to $17.6 billion. This is also among the highest average daily turnover among all Singapore-listed stocks.
Trading at $24.35, its share price has declined 2.0% in 2018, while in the past 5 years, its share price has actually increased 15.1%.