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Five Best-Performing STI Stocks Averaged 12% Total Return in 2H18 To-Date

SGX Research
  • The STI consists of the 30 largest and most active stocks traded on SGX. After a 22.0% total return in 2017, the STI generated a total return of -2.3% in 1H18, and has followed with a 0.1% gain in the 2H18-to-date.
  • In the 2H18-to-date, the five best-performing STI constituents were: Yangzijiang Shipbuilding (+24.9%), Singtel (+9.4%), CapitaLand (+8.9%), SPH (+8.5%) & CapitaLand Commercial Trust (+7.1%). These five stocks have averaged a total return of 11.7% over this period.
  • Their stock performances have benefited from a combination of factors, including strong YoY earnings growth – as reported by SPH, Yangzijiang and CapitaLand Commercial Trust in their latest quarterly results – and the completion of asset acquisitions in Singtel’s case.

The Straits Times Index (STI), which consists of the 30 largest and most active stocks traded on SGX, is a highly competitive and diversified benchmark index. These 30 constituents have foundations spanning three centuries and multiple sectors, while maintaining a balance between local and regional economic exposures.

In the 2018 year-to-date, the STI has generated a total return of -2.1%. After a 22.0% total return in 2017, the STI generated a total return of -2.3% in 1H18, and has followed with a 0.1% gain in the 2H18-to-date.

Market sentiment has been impacted in recent weeks by escalating trade tensions between the US and China, which have stoked fears of a broader knock-on effect on global economic growth. Capital flows out of emerging market assets have also added to increased risk aversion among investors.

In 2H18 through to 30 August, the five best-performing STI constituents were: Yangzijiang Shipbuilding (+24.9%), Singtel (+9.4%), CapitaLand (+8.9%), SPH (+8.5%), and CapitaLand Commercial Trust (+7.1%). These five stocks have averaged a total return of 11.7% over this period.

Their stock performances have benefited from a combination of factors, including strong year-over-year earnings growth – as reported by SPH, Yangzijiang and CapitaLand Commercial Trust in their latest quarterly results – and the completion of asset acquisitions in Singtel’s case.

Since the start of the year, these five stocks have averaged a total return of -4.0%, which brings their average 12-month and three-year total returns to -3.9% and 18.7% respectively. These five constituents also maintain an average dividend yield of 4.1%.

The table below details the 30 constituent stocks of the STI, sorted by total returns between 30 June 2018 and 30 August 2018. Click on the stock name to view its profile in StockFacts.

STI-table