SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.





Real Estate, Manufacturing and Food &amp; Beverage stocks made up close to half of Singapore’s top 200 stocks by turnover in the first 5 months of 2019. The stocks representing tech–laden Manufacturing were the best performers in 2019 YTD and preceding two years, with F&amp;B the best performer in 2016. 
	 
	
Distinct drivers of the three sectors included interest rate outlooks and property prices for Real Estate, technological advancements, value chain integration and global trade for Manufacturing while incomes, tastes, preferences and tourism drove Food &amp; Beverage sales.  
	 
	
Real estate stocks showed the most consistency in returns, with the least standard deviation amongst the individual stock performances, followed by food &amp; beverage stocks, with the individual manufacturing stocks showing the most performance deviation in past years.  
	 
	Returns amongst the relevant 23 manufacturing stocks have been more constant in the 2019 YTD, with the 18% average total return generated by  19 gainers and four decliners, and a median total return of 19%. Hi-P Int, Frencken &amp; Sunpower led the manufacturers over the 23 weeks. 

As 2019 rapidly approaches the halftime mark of 30 June, clear drivers of investor sentiment in the year thus far have included concerns of global growth deceleration at home and abroad, resumption of trade frictions amongst the world’s two largest economies in early May, and a more dovish outlook for US interest rates.

In Singapore, the Straits Times index (“STI”) has generated  a total return of 6.8% in the 2019 year-to-date, in-line with the FTSE ASEAN All Share Index which has gained 7.4%. 

Looking beyond the STI, the 200 most actively traded stocks have generated an average total return of 8.0%. This does not include the average total returns of RHT Health Trust, Memtech International and Indofood Agri Resources which averaged 89.2% gains on premium cash offers for these businesses.

60 Real Estate Stocks Amongst Top 200 Stocks by Turnover 

Singapore’s strong property and infrastructure fundamentals have provided beachheads for Singapore’s listed Real Estate Sector. For the first five months of 2019, the 60 Real Estate stocks amongst the 200 most active traded stocks by turnover accounted for the most day-to-day market turnover, which was followed by Financial Services. As discussed recently (click here) this year Singapore REITs have attracted investment flows from global funds which has included private equity funds.

The 23 manufacturing stocks that were amongst the 200 stocks by turnover accounted for the most day-to-day turnover after the 11 financial services stocks. After Real Estate’s 60 stocks, the 23 manufacturing stocks led by the likes of Yangzijiang Shipbuilding, Venture Corporation and Singapore Tech Engineering, contributed the next most number of stocks in the top 200 by turnover. Note these manufacturing stocks do not include Food Manufacturers or Processors, and span diverse business from advanced electronics to healthcare products.

With Food and Beverage (“F&amp;B”) contributing 14 stocks to the top 200 by turnover, and the next highest number of stocks after Manufacturing, the three sectors of Real Estate, Manufacturing and F&amp;B together made up 97 stocks. This was close to half the top 200 stocks by turnover. The average total returns of the three genres of stocks over recent years are illustrated in the chart below. 

      
    
    Total Returns of Three Genres
The average total returns illustrated above were built on various levels of consistency across the performances of each of the Sector’s stocks. For instance, the 60 real estate stocks showed the most consistency, with the least standard deviation amongst the individual stock performances in all four time periods.

This was followed by F&amp;B, which saw more consistency in the performances across its relevant 14 stocks than Manufacturing over the past three years ending 2018. As noted above, Singapore manufacturing stocks span a wide range of industries, with the diversification exponentiated by the geographical reach of these businesses. This was a contributing factor to the individual manufacturing stocks showing the most performance deviation over the preceding three years.  However, in the 2019 year to date, performances across manufacturing stocks have seen marginally less deviation than the F&amp;B stocks. 

The comparative performances of the relevant stocks are tabled below, with each table sorted by stocks with the most turnover over the first five months of 2019.  The 60 real estate stocks maintain a combined market capitalisation of S$175 billion, the 23 manufacturing stocks maintain a total market capitalisation of S$35 billion and the 14 F&amp;B stocks maintain a total market capitalisation of S$60 billion. Note the designated F&amp;B stocks do not include Palm Oil producers.




			Real Estate
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			4.6
			
			
			27.4
			
			
			0.3
			
			
			18.7
			
		


			CAPITALAND
			
			
			C31
			
			
			-7.2
			
			
			20.1
			
			
			-9.0
			
			
			13.4
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			16.6
			
			
			42.1
			
			
			-5.0
			
			
			19.3
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			3.0
			
			
			19.5
			
			
			12.7
			
			
			16.3
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			10.8
			
			
			38.7
			
			
			1.5
			
			
			24.9
			
		


			HONGKONG LAND HOLDINGS
			
			
			H78
			
			
			-4.8
			
			
			5.5
			
			
			-6.1
			
			
			10.8
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			10.3
			
			
			53.1
			
			
			-33.8
			
			
			12.9
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			13.2
			
			
			37.6
			
			
			-12.8
			
			
			9.5
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			14.9
			
			
			23.0
			
			
			7.6
			
			
			25.5
			
		


			UOL GROUP
			
			
			U14
			
			
			-1.5
			
			
			51.2
			
			
			-28.8
			
			
			18.7
			
		


			MAPLETREE NORTH ASIA COMMERC
			
			
			RW0U
			
			
			11.7
			
			
			38.3
			
			
			-1.1
			
			
			22.9
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			17.0
			
			
			30.1
			
			
			-5.2
			
			
			11.3
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			15.8
			
			
			32.2
			
			
			-0.7
			
			
			15.5
			
		


			FRASERS LOGISTICS &amp; INDUSTRI
			
			
			BUOU
			
			
			0.0
			
			
			34.0
			
			
			-4.2
			
			
			19.1
			
		


			KEPPEL DC REIT
			
			
			AJBU
			
			
			26.1
			
			
			27.0
			
			
			-0.7
			
			
			24.6
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			9.1
			
			
			24.8
			
			
			2.2
			
			
			20.3
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2.4
			
			
			20.2
			
			
			-6.1
			
			
			22.6
			
		


			FRASERS COMMERCIAL TRUST
			
			
			ND8U
			
			
			7.0
			
			
			27.1
			
			
			-1.7
			
			
			17.7
			
		


			CDL HOSPITALITY TRUSTS
			
			
			J85
			
			
			8.7
			
			
			39.9
			
			
			-8.6
			
			
			13.6
			
		


			YANLORD LAND GROUP
			
			
			Z25
			
			
			33.1
			
			
			25.6
			
			
			-21.6
			
			
			7.9
			
		


			CAPITALAND RETAIL CHINA TRUS
			
			
			AU8U
			
			
			-1.0
			
			
			29.4
			
			
			-12.5
			
			
			16.3
			
		


			ESR-REIT
			
			
			J91U
			
			
			3.6
			
			
			12.0
			
			
			-1.8
			
			
			12.7
			
		


			CROMWELL EUROPEAN REIT
			
			
			CNNU
			
			
			0.0
			
			
			0.0
			
			
			-13.3
			
			
			16.0
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			4.7
			
			
			11.6
			
			
			-6.5
			
			
			13.7
			
		


			YING LI INTERNATIONAL REAL E
			
			
			5DM
			
			
			-10.2
			
			
			1.3
			
			
			-23.2
			
			
			20.7
			
		


			CACHE LOGISTICS TRUST
			
			
			K2LU
			
			
			-3.5
			
			
			19.0
			
			
			-12.2
			
			
			12.4
			
		


			FAR EAST HOSPITALITY TRUST
			
			
			Q5T
			
			
			-3.1
			
			
			27.9
			
			
			-10.8
			
			
			9.8
			
		


			MANULIFE US REAL ESTATE INV
			
			
			BTOU
			
			
			0.0
			
			
			18.3
			
			
			-7.2
			
			
			18.5
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			23.3
			
			
			19.1
			
			
			0.2
			
			
			27.7
			
		


			OUE HOSPITALITY TRUST
			
			
			SK7
			
			
			-1.1
			
			
			38.2
			
			
			-16.0
			
			
			6.6
			
		


			SASSEUR REAL ESTATE INVESTME
			
			
			CRPU
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			31.7
			
		


			OXLEY HOLDINGS
			
			
			5UX
			
			
			1.0
			
			
			71.9
			
			
			-44.7
			
			
			8.0
			
		


			SPH REIT
			
			
			SK6U
			
			
			5.4
			
			
			16.8
			
			
			0.6
			
			
			7.8
			
		


			APAC REALTY
			
			
			CLN
			
			
			0.0
			
			
			0.0
			
			
			-46.4
			
			
			27.8
			
		


			HONG FOK CORP
			
			
			H30
			
			
			-2.4
			
			
			38.2
			
			
			-19.9
			
			
			23.9
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			2.9
			
			
			30.8
			
			
			-3.6
			
			
			25.8
			
		


			LIPPO MALLS INDONESIA RETAIL
			
			
			D5IU
			
			
			27.3
			
			
			17.5
			
			
			-50.6
			
			
			28.6
			
		


			WING TAI HOLDINGS
			
			
			W05
			
			
			-6.1
			
			
			47.1
			
			
			-11.8
			
			
			5.2
			
		


			KEPPEL-KBS US REIT
			
			
			CMOU
			
			
			0.0
			
			
			0.0
			
			
			-23.9
			
			
			28.3
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			-1.8
			
			
			29.3
			
			
			-4.7
			
			
			4.6
			
		


			AIMS APAC REIT
			
			
			O5RU
			
			
			3.4
			
			
			13.5
			
			
			3.9
			
			
			10.1
			
		


			ACCORDIA GOLF TRUST
			
			
			ADQU
			
			
			31.0
			
			
			17.0
			
			
			-21.1
			
			
			11.1
			
		


			OUE COMMERCIAL REAL ESTATE I
			
			
			TS0U
			
			
			14.6
			
			
			11.0
			
			
			-22.6
			
			
			9.3
			
		


			SOILBUILD BUSINESS SPACE REI
			
			
			SV3U
			
			
			-8.7
			
			
			14.2
			
			
			-6.2
			
			
			8.9
			
		


			OUE
			
			
			LJ3
			
			
			0.5
			
			
			8.2
			
			
			-22.2
			
			
			12.2
			
		


			FRASERS PROPERTY
			
			
			TQ5
			
			
			-1.2
			
			
			39.0
			
			
			-17.4
			
			
			15.1
			
		


			SABANA SHARIAH COMP IND REIT
			
			
			M1GU
			
			
			-33.5
			
			
			12.2
			
			
			6.8
			
			
			18.2
			
		


			TUAN SING HOLDINGS
			
			
			T24
			
			
			-10.6
			
			
			60.8
			
			
			-18.9
			
			
			2.3
			
		


			GUOCOLAND
			
			
			F17
			
			
			4.4
			
			
			28.1
			
			
			-16.3
			
			
			10.0
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			0.0
			
			
			8.0
			
			
			-1.2
			
			
			16.1
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			0.0
			
			
			0.0
			
			
			7.3
			
			
			5.4
			
		


			BUKIT SEMBAWANG ESTATES
			
			
			B61
			
			
			6.7
			
			
			47.1
			
			
			-7.0
			
			
			-1.4
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			12.9
			
			
			17.3
			
			
			0.8
			
			
			8.1
			
		


			HO BEE LAND
			
			
			H13
			
			
			3.8
			
			
			24.3
			
			
			0.1
			
			
			4.5
			
		


			PROPNEX
			
			
			OYY
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			18.2
			
		


			UNITED INDUSTRIAL CORP
			
			
			U06
			
			
			-2.8
			
			
			20.6
			
			
			-16.8
			
			
			8.9
			
		


			FORTUNE REIT
			
			
			F25U
			
			
			17.5
			
			
			8.0
			
			
			-0.4
			
			
			23.6
			
		


			BOUSTEAD SINGAPORE
			
			
			F9D
			
			
			-0.6
			
			
			9.8
			
			
			-3.4
			
			
			-2.5
			
		


			SINGHAIYI GROUP
			
			
			5H0
			
			
			-13.4
			
			
			30.7
			
			
			-22.5
			
			
			11.8
			
		


			CENTURION CORP
			
			
			OU8
			
			
			-10.7
			
			
			65.9
			
			
			-16.5
			
			
			1.1
			
		


			Average:
			
			
			 
			
			
			4.1
			
			
			24.7
			
			
			-10.0
			
			
			14.7
			
		

 




			Manufacturing
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			-22.3
			
			
			86.3
			
			
			-11.4
			
			
			19.2
			
		


			VENTURE CORP
			
			
			V03
			
			
			28.0
			
			
			115.4
			
			
			-29.1
			
			
			19.1
			
		


			SINGAPORE TECH ENGINEERING
			
			
			S63
			
			
			12.3
			
			
			5.0
			
			
			11.8
			
			
			20.3
			
		


			AEM HOLDINGS
			
			
			AWX
			
			
			195.3
			
			
			498.6
			
			
			1.5
			
			
			22.4
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			-19.3
			
			
			34.9
			
			
			-15.9
			
			
			-1.9
			
		


			HI-P INTERNATIONAL
			
			
			H17
			
			
			4.6
			
			
			326.5
			
			
			-50.8
			
			
			57.1
			
		


			VALUETRONICS HOLDINGS
			
			
			BN2
			
			
			34.3
			
			
			103.5
			
			
			-22.8
			
			
			-2.3
			
		


			SUNPOWER GROUP
			
			
			5GD
			
			
			57.4
			
			
			-11.6
			
			
			-27.6
			
			
			53.0
			
		


			CREATIVE TECHNOLOGY
			
			
			C76
			
			
			-11.9
			
			
			10.9
			
			
			254.2
			
			
			0.5
			
		


			FRENCKEN GROUP
			
			
			E28
			
			
			30.3
			
			
			132.4
			
			
			-18.9
			
			
			53.9
			
		


			HAW PAR CORP
			
			
			H02
			
			
			14.9
			
			
			27.2
			
			
			7.9
			
			
			18.8
			
		


			SUNNINGDALE TECH
			
			
			BHQ
			
			
			22.4
			
			
			83.6
			
			
			-21.9
			
			
			-2.8
			
		


			FU YU CORP
			
			
			F13
			
			
			27.2
			
			
			6.6
			
			
			10.1
			
			
			13.2
			
		


			SARINE TECHNOLOGIES
			
			
			U77
			
			
			20.9
			
			
			-42.4
			
			
			-52.0
			
			
			-29.2
			
		


			RIVERSTONE HOLDINGS
			
			
			AP4
			
			
			-25.0
			
			
			25.6
			
			
			7.9
			
			
			-17.9
			
		


			INNOTEK
			
			
			M14
			
			
			48.6
			
			
			32.7
			
			
			18.3
			
			
			30.0
			
		


			MANUFACTURING INTEGRATION TE
			
			
			M11
			
			
			-25.7
			
			
			48.3
			
			
			18.1
			
			
			22.0
			
		


			CHUAN HUP HOLDINGS
			
			
			C33
			
			
			-15.7
			
			
			37.5
			
			
			-3.7
			
			
			32.1
			
		


			JEP HOLDINGS
			
			
			1J4
			
			
			-31.0
			
			
			86.2
			
			
			-3.6
			
			
			12.6
			
		


			HANWELL HOLDINGS
			
			
			DM0
			
			
			-9.4
			
			
			31.3
			
			
			-43.6
			
			
			41.5
			
		


			MIYOSHI
			
			
			M03
			
			
			19.0
			
			
			62.8
			
			
			-39.6
			
			
			4.9
			
		


			AVARGA
			
			
			U09
			
			
			64.7
			
			
			1.8
			
			
			-23.4
			
			
			20.7
			
		


			HALCYON AGRI CORP
			
			
			5VJ
			
			
			-8.3
			
			
			-5.7
			
			
			-29.8
			
			
			24.4
			
		


			Average:
			
			
			 
			
			
			17.9
			
			
			73.8
			
			
			-2.8
			
			
			17.9
			
		

 




			F&amp;B
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			27.2
			
			
			11.3
			
			
			-31.7
			
			
			40.8
			
		


			WILMAR INTERNATIONAL
			
			
			F34
			
			
			25.0
			
			
			-12.1
			
			
			4.3
			
			
			10.8
			
		


			SATS
			
			
			S58
			
			
			30.9
			
			
			10.9
			
			
			-7.2
			
			
			8.2
			
		


			JAPFA
			
			
			UD2
			
			
			94.0
			
			
			-42.8
			
			
			44.6
			
			
			-19.6
			
		


			OLAM INTERNATIONAL
			
			
			O32
			
			
			12.2
			
			
			6.5
			
			
			-15.9
			
			
			15.7
			
		


			KOUFU GROUP
			
			
			VL6
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			14.8
			
		


			SINO GRANDNESS FOOD INDUSTRY
			
			
			T4B
			
			
			-33.8
			
			
			-8.9
			
			
			-38.2
			
			
			-61.0
			
		


			DELFI
			
			
			P34
			
			
			12.0
			
			
			-35.1
			
			
			-5.3
			
			
			-6.8
			
		


			QAF
			
			
			Q01
			
			
			37.8
			
			
			-16.4
			
			
			-45.0
			
			
			36.5
			
		


			JUMBO GROUP
			
			
			42R
			
			
			49.4
			
			
			-9.6
			
			
			-31.4
			
			
			1.7
			
		


			FRASER AND NEAVE
			
			
			F99
			
			
			2.8
			
			
			26.0
			
			
			-32.1
			
			
			4.4
			
		


			BREADTALK GROUP
			
			
			CTN
			
			
			5.4
			
			
			52.1
			
			
			-1.6
			
			
			-2.5
			
		


			JB FOODS
			
			
			BEW
			
			
			32.0
			
			
			69.2
			
			
			38.7
			
			
			11.3
			
		


			KIMLY
			
			
			1D0
			
			
			0.0
			
			
			0.0
			
			
			-30.6
			
			
			2.8
			
		


			Average:
			
			
			 
			
			
			21.1
			
			
			3.7
			
			
			-10.8
			
			
			4.1
			
		

Source: SGX StockFacts, Bloomberg (Data as of 11 June 2019). Note TR = Total Return which assumes dividends are reinvested.

Distinct drivers of the three sectors included interest rate outlooks and property prices for real estate, technological advancements, value chain integration and global trade for manufacturing while incomes, tastes, preferences and tourism drive F&amp;B sales.



Real Estate, Manufacturing and F&B Shares on the Move in 1H19    

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<li>
Real Estate Developers (excluding REITs) was the third best-performing sector in March, with a total return of +2.7%. March was also the third straight month of positive returns for the sector, after it registered total returns of +0.7% and +7.8% in Feb and Jan respectively. 
	 </li>
	<li>
The Real Estate Developers sector also saw strong investor interest in March, with net institutional inflows of S$25.9 million. It was a net buy sector for the second straight month, after chalking up net inflows of S$32.1 million in February, SGX data showed. 
	 </li>
	<li>In the 2019 YTD, the five best-performing, largest capitalised real estate developers were: Hong Fok (+34.6%), OUE (+23.8%), CapitaLand (+18.6%), Yanlord Land (+17.2%), and UOL Group (+16.0%). The five averaged a total return of +22.0% in the YTD.</li>
</ul>
There are about 70 real estate developers and operators listed on SGX. Among these, the 20 largest capitalised property plays have a combined market cap of over S$80 billion.

Positive Returns, Investor Interest

Real Estate Developers (excluding REITs) was the third best-performing sector in March, with a total return of +2.7%, after Information Technology’s +4.1% total return and the REIT sector’s +3.2% total return. March was also the third straight month of positive returns for the Real Estate (non-REITs) sector, after registering total returns of +0.7% and +7.8% in February and January respectively.

The Real Estate Developers sector saw strong investor interest in March, with net institutional inflows of S$25.9 million. It was a net buy sector for the second straight month, after chalking up net inflows of S$32.1 million in February, SGX data showed.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-04/tia.PNG" alt="PicT">
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 <div class="content-caption">PicT</div>
YTD Best Performers 
In the 2019 year-to-date, the five best-performing, largest capitalised real estate developers were: Hong Fok Corp (+34.6%), OUE Ltd (+23.8%), CapitaLand Ltd (+18.6%), Yanlord Land Group (+17.2%), and UOL Group (+16.0%). These five stocks have averaged a total return of +22.0% in the YTD, bringing their one-year and three-year total returns to +0.4% and +27.4% respectively.

The table below details the 20 largest capitalised real estate developers on SGX, sorted by YTD total return.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			P/B (x)
			</td>
			<td>
			Div Yld (%)
			</td>
		</tr>
<tr>
<td>
			HONG FOK CORP
			</td>
			<td>
			H30
			</td>
			<td>
			798
			</td>
			<td>
			34.6
			</td>
			<td>
			21.1
			</td>
			<td>
			33.4
			</td>
			<td>
			0.3
			</td>
			<td>
			1.1
			</td>
		</tr>
<tr>
<td>
			OUE LTD
			</td>
			<td>
			LJ3
			</td>
			<td>
			1,596
			</td>
			<td>
			23.8
			</td>
			<td>
			0.1
			</td>
			<td>
			12.0
			</td>
			<td>
			0.4
			</td>
			<td>
			1.1
			</td>
		</tr>
<tr>
<td>
			CAPITALAND LTD
			</td>
			<td>
			C31
			</td>
			<td>
			15,281
			</td>
			<td>
			18.6
			</td>
			<td>
			5.6
			</td>
			<td>
			35.2
			</td>
			<td>
			0.8
			</td>
			<td>
			3.3
			</td>
		</tr>
<tr>
<td>
			YANLORD LAND GROUP
			</td>
			<td>
			Z25
			</td>
			<td>
			2,743
			</td>
			<td>
			17.2
			</td>
			<td>
			-9.8
			</td>
			<td>
			25.5
			</td>
			<td>
			0.6
			</td>
			<td>
			4.6
			</td>
		</tr>
<tr>
<td>
			UOL GROUP LTD
			</td>
			<td>
			U14
			</td>
			<td>
			5,986
			</td>
			<td>
			16.0
			</td>
			<td>
			-15.0
			</td>
			<td>
			30.9
			</td>
			<td>
			0.6
			</td>
			<td>
			2.4
			</td>
		</tr>
<tr>
<td>
			CITY DEVELOPMENTS
			</td>
			<td>
			C09
			</td>
			<td>
			8,452
			</td>
			<td>
			15.4
			</td>
			<td>
			-26.0
			</td>
			<td>
			17.4
			</td>
			<td>
			0.9
			</td>
			<td>
			0.9
			</td>
		</tr>
<tr>
<td>
			HONGKONG LAND
			</td>
			<td>
			H78
			</td>
			<td>
			22,895
			</td>
			<td>
			14.9
			</td>
			<td>
			9.1
			</td>
			<td>
			28.4
			</td>
			<td>
			0.4
			</td>
			<td>
			3.1
			</td>
		</tr>
<tr>
<td>
			FRASERS PROPERTY
			</td>
			<td>
			TQ5
			</td>
			<td>
			5,286
			</td>
			<td>
			14.2
			</td>
			<td>
			-1.6
			</td>
			<td>
			25.7
			</td>
			<td>
			0.7
			</td>
			<td>
			4.7
			</td>
		</tr>
<tr>
<td>
			OXLEY HOLDINGS
			</td>
			<td>
			5UX
			</td>
			<td>
			1,298
			</td>
			<td>
			8.0
			</td>
			<td>
			-31.3
			</td>
			<td>
			6.7
			</td>
			<td>
			0.9
			</td>
			<td>
			3.9
			</td>
		</tr>
<tr>
<td>
			GUOCOLAND LTD
			</td>
			<td>
			F17
			</td>
			<td>
			2,296
			</td>
			<td>
			7.8
			</td>
			<td>
			-3.3
			</td>
			<td>
			21.7
			</td>
			<td>
			0.5
			</td>
			<td>
			3.6
			</td>
		</tr>
<tr>
<td>
			PERENNIAL REAL ESTATE
			</td>
			<td>
			40S
			</td>
			<td>
			1,072
			</td>
			<td>
			7.3
			</td>
			<td>
			-20.9
			</td>
			<td>
			-27.0
			</td>
			<td>
			0.4
			</td>
			<td>
			0.6
			</td>
		</tr>
<tr>
<td>
			HO BEE LAND LTD
			</td>
			<td>
			H13
			</td>
			<td>
			1,690
			</td>
			<td>
			7.2
			</td>
			<td>
			5.2
			</td>
			<td>
			30.1
			</td>
			<td>
			0.5
			</td>
			<td>
			3.2
			</td>
		</tr>
<tr>
<td>
			UNITED INDUSTRIAL CORP
			</td>
			<td>
			U06
			</td>
			<td>
			4,154
			</td>
			<td>
			7.0
			</td>
			<td>
			-9.6
			</td>
			<td>
			1.5
			</td>
			<td>
			0.6
			</td>
			<td>
			1.2
			</td>
		</tr>
<tr>
<td>
			WING TAI HOLDINGS
			</td>
			<td>
			W05
			</td>
			<td>
			1,573
			</td>
			<td>
			5.7
			</td>
			<td>
			4.7
			</td>
			<td>
			23.2
			</td>
			<td>
			0.5
			</td>
			<td>
			1.5
			</td>
		</tr>
<tr>
<td>
			SINARMAS LAND
			</td>
			<td>
			A26
			</td>
			<td>
			1,107
			</td>
			<td>
			4.0
			</td>
			<td>
			-29.1
			</td>
			<td>
			-41.8
			</td>
			<td>
			0.5
			</td>
			<td>
			0.8
			</td>
		</tr>
<tr>
<td>
			FRAGRANCE GROUP
			</td>
			<td>
			F31
			</td>
			<td>
			920
			</td>
			<td>
			1.5
			</td>
			<td>
			-9.6
			</td>
			<td>
			-20.8
			</td>
			<td>
			0.7
			</td>
			<td>
			1.5
			</td>
		</tr>
<tr>
<td>
			UNITED OVERSEAS AUSTRALIA
			</td>
			<td>
			EH5
			</td>
			<td>
			906
			</td>
			<td>
			0.8
			</td>
			<td>
			-4.6
			</td>
			<td>
			43.0
			</td>
			<td>
			0.6
			</td>
			<td>
			3.8
			</td>
		</tr>
<tr>
<td>
			FIRST SPONSOR GROUP
			</td>
			<td>
			ADN
			</td>
			<td>
			844
			</td>
			<td>
			0.8
			</td>
			<td>
			6.2
			</td>
			<td>
			23.1
			</td>
			<td>
			0.6
			</td>
			<td>
			1.8
			</td>
		</tr>
<tr>
<td>
			BUKIT SEMBAWANG ESTATES
			</td>
			<td>
			B61
			</td>
			<td>
			1,460
			</td>
			<td>
			0.0
			</td>
			<td>
			-3.9
			</td>
			<td>
			51.0
			</td>
			<td>
			1.1
			</td>
			<td>
			0.7
			</td>
		</tr>
<tr>
<td>
			UNITED ENGINEERS
			</td>
			<td>
			U04
			</td>
			<td>
			1,607
			</td>
			<td>
			-0.4
			</td>
			<td>
			-2.7
			</td>
			<td>
			17.1
			</td>
			<td>
			0.8
			</td>
			<td>
			1.2
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			10.2
			</td>
			<td>
			-5.8
			</td>
			<td>
			16.8
			</td>
			<td>
			0.6
			</td>
			<td>
			2.3
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 8 April 2019)

Residential Sector Outlook

Following the Singapore government’s move in the second half of 2018 to further tighten rules on property purchases, which included higher stamp duty rates and tougher loan-to-value limits, home buyers have been more cautious, resulting in slower sales and lower transaction volumes, analysts noted.

Analysts expect residential property prices to be range-bound in 2019, with forecasts of small decline to a small increase. OCBC Investment Research said in a <a href="https://research.sginvestors.io/2019/04/sg-residential-sector-ocbc-investment-research-2019-04-02.html">report</a> published 2 April 2019 that it is keeping its private residential property price growth forecast of -3% to 2% for this year, but noted the full-year figure could come in at the lower end of its projections.

Last week, the Urban Redevelopment Authority (URA) released the <a href="https://www.ura.gov.sg/Corporate/Media-Room/Media-Releases/pr19-16">flash estimate</a> of Singapore’s private residential property price index for the first quarter of 2019. The private residential property index fell 0.6% in 1Q 2019 from the previous quarter, extending the 0.1% decline seen in 4Q 2018. On a year-on-year basis, the index gained 3.2%. The landed property segment remained resilient in 1Q 2019, with a rise of 1.1% QoQ, while the non-landed property segment suffered a decline of 1.0%.

The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-March. The URA will release its full set of real estate statistics for 1Q 2019 on 26 April 2019.
</body></html>





Real Estate Developers (excluding REITs) was the third best-performing sector in March, with a total return of +2.7%. March was also the third straight month of positive returns for the sector, after it registered total returns of +0.7% and +7.8% in Feb and Jan respectively. 
	 
	
The Real Estate Developers sector also saw strong investor interest in March, with net institutional inflows of S$25.9 million. It was a net buy sector for the second straight month, after chalking up net inflows of S$32.1 million in February, SGX data showed.  
	 
	In the 2019 YTD, the five best-performing, largest capitalised real estate developers were: Hong Fok (+34.6%), OUE (+23.8%), CapitaLand (+18.6%), Yanlord Land (+17.2%), and UOL Group (+16.0%). The five averaged a total return of +22.0% in the YTD.

There are about 70 real estate developers and operators listed on SGX. Among these, the 20 largest capitalised property plays have a combined market cap of over S$80 billion.

Positive Returns, Investor Interest

Real Estate Developers (excluding REITs) was the third best-performing sector in March, with a total return of +2.7%, after Information Technology’s +4.1% total return and the REIT sector’s +3.2% total return. March was also the third straight month of positive returns for the Real Estate (non-REITs) sector, after registering total returns of +0.7% and +7.8% in February and January respectively.

The Real Estate Developers sector saw strong investor interest in March, with net institutional inflows of S$25.9 million. It was a net buy sector for the second straight month, after chalking up net inflows of S$32.1 million in February, SGX data showed.

      
    
    PicT
YTD Best Performers 
In the 2019 year-to-date, the five best-performing, largest capitalised real estate developers were: Hong Fok Corp (+34.6%), OUE Ltd (+23.8%), CapitaLand Ltd (+18.6%), Yanlord Land Group (+17.2%), and UOL Group (+16.0%). These five stocks have averaged a total return of +22.0% in the YTD, bringing their one-year and three-year total returns to +0.4% and +27.4% respectively.

The table below details the 20 largest capitalised real estate developers on SGX, sorted by YTD total return.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			P/B (x)
			
			
			Div Yld (%)
			
		


			HONG FOK CORP
			
			
			H30
			
			
			798
			
			
			34.6
			
			
			21.1
			
			
			33.4
			
			
			0.3
			
			
			1.1
			
		


			OUE LTD
			
			
			LJ3
			
			
			1,596
			
			
			23.8
			
			
			0.1
			
			
			12.0
			
			
			0.4
			
			
			1.1
			
		


			CAPITALAND LTD
			
			
			C31
			
			
			15,281
			
			
			18.6
			
			
			5.6
			
			
			35.2
			
			
			0.8
			
			
			3.3
			
		


			YANLORD LAND GROUP
			
			
			Z25
			
			
			2,743
			
			
			17.2
			
			
			-9.8
			
			
			25.5
			
			
			0.6
			
			
			4.6
			
		


			UOL GROUP LTD
			
			
			U14
			
			
			5,986
			
			
			16.0
			
			
			-15.0
			
			
			30.9
			
			
			0.6
			
			
			2.4
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			8,452
			
			
			15.4
			
			
			-26.0
			
			
			17.4
			
			
			0.9
			
			
			0.9
			
		


			HONGKONG LAND
			
			
			H78
			
			
			22,895
			
			
			14.9
			
			
			9.1
			
			
			28.4
			
			
			0.4
			
			
			3.1
			
		


			FRASERS PROPERTY
			
			
			TQ5
			
			
			5,286
			
			
			14.2
			
			
			-1.6
			
			
			25.7
			
			
			0.7
			
			
			4.7
			
		


			OXLEY HOLDINGS
			
			
			5UX
			
			
			1,298
			
			
			8.0
			
			
			-31.3
			
			
			6.7
			
			
			0.9
			
			
			3.9
			
		


			GUOCOLAND LTD
			
			
			F17
			
			
			2,296
			
			
			7.8
			
			
			-3.3
			
			
			21.7
			
			
			0.5
			
			
			3.6
			
		


			PERENNIAL REAL ESTATE
			
			
			40S
			
			
			1,072
			
			
			7.3
			
			
			-20.9
			
			
			-27.0
			
			
			0.4
			
			
			0.6
			
		


			HO BEE LAND LTD
			
			
			H13
			
			
			1,690
			
			
			7.2
			
			
			5.2
			
			
			30.1
			
			
			0.5
			
			
			3.2
			
		


			UNITED INDUSTRIAL CORP
			
			
			U06
			
			
			4,154
			
			
			7.0
			
			
			-9.6
			
			
			1.5
			
			
			0.6
			
			
			1.2
			
		


			WING TAI HOLDINGS
			
			
			W05
			
			
			1,573
			
			
			5.7
			
			
			4.7
			
			
			23.2
			
			
			0.5
			
			
			1.5
			
		


			SINARMAS LAND
			
			
			A26
			
			
			1,107
			
			
			4.0
			
			
			-29.1
			
			
			-41.8
			
			
			0.5
			
			
			0.8
			
		


			FRAGRANCE GROUP
			
			
			F31
			
			
			920
			
			
			1.5
			
			
			-9.6
			
			
			-20.8
			
			
			0.7
			
			
			1.5
			
		


			UNITED OVERSEAS AUSTRALIA
			
			
			EH5
			
			
			906
			
			
			0.8
			
			
			-4.6
			
			
			43.0
			
			
			0.6
			
			
			3.8
			
		


			FIRST SPONSOR GROUP
			
			
			ADN
			
			
			844
			
			
			0.8
			
			
			6.2
			
			
			23.1
			
			
			0.6
			
			
			1.8
			
		


			BUKIT SEMBAWANG ESTATES
			
			
			B61
			
			
			1,460
			
			
			0.0
			
			
			-3.9
			
			
			51.0
			
			
			1.1
			
			
			0.7
			
		


			UNITED ENGINEERS
			
			
			U04
			
			
			1,607
			
			
			-0.4
			
			
			-2.7
			
			
			17.1
			
			
			0.8
			
			
			1.2
			
		


			Average
			
			
			 
			
			
			 
			
			
			10.2
			
			
			-5.8
			
			
			16.8
			
			
			0.6
			
			
			2.3
			
		

Source: Bloomberg &amp; StockFacts (data as of 8 April 2019)

Residential Sector Outlook

Following the Singapore government’s move in the second half of 2018 to further tighten rules on property purchases, which included higher stamp duty rates and tougher loan-to-value limits, home buyers have been more cautious, resulting in slower sales and lower transaction volumes, analysts noted.

Analysts expect residential property prices to be range-bound in 2019, with forecasts of small decline to a small increase. OCBC Investment Research said in a report published 2 April 2019 that it is keeping its private residential property price growth forecast of -3% to 2% for this year, but noted the full-year figure could come in at the lower end of its projections.

Last week, the Urban Redevelopment Authority (URA) released the flash estimate of Singapore’s private residential property price index for the first quarter of 2019. The private residential property index fell 0.6% in 1Q 2019 from the previous quarter, extending the 0.1% decline seen in 4Q 2018. On a year-on-year basis, the index gained 3.2%. The landed property segment remained resilient in 1Q 2019, with a rise of 1.1% QoQ, while the non-landed property segment suffered a decline of 1.0%.

The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-March. The URA will release its full set of real estate statistics for 1Q 2019 on 26 April 2019.



Five Largest, Best-Performing Developers Averaged 22% YTD Total Return       

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
A second batch of Single Stock Daily Leverage Certificates (DLCs) consisting of 10 new underlying stocks will start trading on 26 February. The Single Stock DLCs provide 5X leverage exposure to the daily performance of the underlying stock on both Long and Short.   
	 </li>
	<li>
Of the 10 new underlying stocks, there are 4 Singapore names consisting of CapitaLand, Genting Singapore, Wilmar and Yangzijiang and 6 Hong Kong names consisting of AIA, China Construction Bank, Geely Auto, Galaxy Entertainment, HKEx and HSBC. 
	 </li>
	<li>The addition of these 10 new underlying stocks widens the Single Stock DLCs offering and provides traders with a cheaper alternative in terms of capital outlay and trading costs to gain exposure to some of these blue chip stocks.</li>
</ul>
Daily Leverage Certificates (DLCs) are financial instruments issued by a third-party financial institution, in this case Societe Generale, and are traded on the SGX securities market. DLCs seek to achieve short-term investment results that correspond to the daily magnified performance of the underlying index or stock.

With the addition of this second batch of Single Stock DLCs, DLC traders can look forward to a wider range of underlyings consisting of key Asian indices such as the MSCI Singapore Index and Hang Seng indices as well as a total of 20 Singapore and Hong Kong blue chip stocks.

10 new underlying stocks to widen the range of Single Stock DLCs 

Coming Tuesday 26 February, the Single Stock DLCs on 10 new underlying stocks will be listed for trading. There will be 4 Singapore names consisting of CapitaLand, Genting Singapore, Wilmar and Yangzijiang and 6 Hong Kong names consisting of AIA, China Construction Bank, Geely Auto, Galaxy Entertainment, HKEx and HSBC.

The performance of each of these stocks will be tradable via a 5x Long and 5x Short DLC. Tabled below are the details of the new Single Stock DLCs.

<table class="table table-striped"><tbody>
<tr>
<td>
			Market
			</td>
			<td>
			Underlying Stock
			</td>
			<td>
			Stock Code
			</td>
			<td>
			Counter Name
			</td>
			<td>
			Issue Price (SGD)*
			</td>
		</tr>
<tr>
<td rowspan="8">
			Singapore
			</td>
			<td rowspan="2">
			Genting Singapore
			</td>
			<td>
			DNEW
			</td>
			<td>
			DLC SG5xLong Genting
			</td>
			<td>
			0.25
			</td>
		</tr>
<tr>
<td>
			DMPW
			</td>
			<td>
			DLC SG5xShort Genting
			</td>
			<td>
			0.25
			</td>
		</tr>
<tr>
<td rowspan="2">
			CapitaLand
			</td>
			<td>
			DLQW
			</td>
			<td>
			DLC SG5xLong CapLand
			</td>
			<td>
			0.25
			</td>
		</tr>
<tr>
<td>
			DKFW
			</td>
			<td>
			DLC SG5xShort CapLand
			</td>
			<td>
			0.25
			</td>
		</tr>
<tr>
<td rowspan="2">
			Yangzijiang
			</td>
			<td>
			DJRW
			</td>
			<td>
			DLC SG5xLong YZJ
			</td>
			<td>
			0.25
			</td>
		</tr>
<tr>
<td>
			DXUW
			</td>
			<td>
			DLC SG5xShort YZJ
			</td>
			<td>
			0.25
			</td>
		</tr>
<tr>
<td rowspan="2">
			Wilmar
			</td>
			<td>
			DFHW
			</td>
			<td>
			DLC SG5xLong Wilmar
			</td>
			<td>
			0.25
			</td>
		</tr>
<tr>
<td>
			DNXW
			</td>
			<td>
			DLC SG5xShort Wilmar
			</td>
			<td>
			0.25
			</td>
		</tr>
<tr>
<td rowspan="12">
			Hong Kong
			</td>
			<td rowspan="2">
			HSBC
			</td>
			<td>
			DZLW
			</td>
			<td>
			DLC SG5xLong HSBC
			</td>
			<td>
			2.20
			</td>
		</tr>
<tr>
<td>
			DYAW
			</td>
			<td>
			DLC SG5xShort HSBC
			</td>
			<td>
			2.20
			</td>
		</tr>
<tr>
<td rowspan="2">
			CCB
			</td>
			<td>
			DXMW
			</td>
			<td>
			DLC SG5xLong CCB
			</td>
			<td>
			0.50
			</td>
		</tr>
<tr>
<td>
			DWBW
			</td>
			<td>
			DLC SG5xShort CCB
			</td>
			<td>
			0.50
			</td>
		</tr>
<tr>
<td rowspan="2">
			HKEx
			</td>
			<td>
			DVOW
			</td>
			<td>
			DLC SG5xLong HKEx
			</td>
			<td>
			2.20
			</td>
		</tr>
<tr>
<td>
			DVVW
			</td>
			<td>
			DLC SG5xShort HKEx
			</td>
			<td>
			2.20
			</td>
		</tr>
<tr>
<td rowspan="2">
			  Galaxy Ent
			</td>
			<td>
			DTNW
			</td>
			<td>
			DLC SG5xLong Galaxy
			</td>
			<td>
			0.60
			</td>
		</tr>
<tr>
<td>
			DSCW
			</td>
			<td>
			DLC SG5xShort Galaxy
			</td>
			<td>
			0.60
			</td>
		</tr>
<tr>
<td rowspan="2">
			  Geely Auto
			</td>
			<td>
			DRWW
			</td>
			<td>
			DLC SG5xLong Geely
			</td>
			<td>
			0.40
			</td>
		</tr>
<tr>
<td>
			DQDW
			</td>
			<td>
			DLC SG5xShort Geely
			</td>
			<td>
			0.40
			</td>
		</tr>
<tr>
<td rowspan="2">
			AIA
			</td>
			<td>
			DPWW
			</td>
			<td>
			DLC SG5xLong AIA
			</td>
			<td>
			0.80
			</td>
		</tr>
<tr>
<td>
			DAAW
			</td>
			<td>
			DLC SG5xShort AIA
			</td>
			<td>
			0.80
			</td>
		</tr>
</tbody></table>
* The Issue Price as tabled above will be taken as the intrinsic close value of the DLC on 25 February. When trading starts on Tuesday, 26 February, the 5x performance of the DLC will be with reference to this intrinsic close value on 25 February. Investors should refer to the term sheets published on the issuer’s website (dlc.socgen.com) and SGX company announcement website for the full details. 

Source: SGX (Note that all of the above Single Stock DLCs have an expiry date of 25 February 2022)

 

5x Leverage Exposure on the Daily Performance of the Underlying Stock

While the expiry date of the Single Stock DLCs above is in three years, i.e. 25 February 2022, they are generally designed for short term trading, with typical holding periods ranging from intra-day to five trading sessions.

With five times leverage on the daily performance of the underlying stock, the DLCs provide investors with the ability to make enhanced returns within a short period of time but also the risk of substantial losses if the underlying stock moves against the investor.

Tabled below are the simulated absolute daily performance of the 5x DLCs using historical absolute daily performance (close-to-close) of the underlying stocks. The data below is aimed at providing traders with a sense of the daily volatility of the underlying stock and the corresponding daily movement on the 5x DLC.

<table class="table table-striped"><tbody>
<tr>
<td>
			 
			</td>
			<td>
			Genting 
			</td>
			<td>
			CapitaLand
			</td>
			<td>
			YZJ
			</td>
			<td>
			Wilmar
			</td>
			<td>
			HSBC
			</td>
			<td>
			CCB
			</td>
			<td>
			HKEx
			</td>
			<td>
			Galaxy 
			</td>
			<td>
			Geely 
			</td>
			<td>
			AIA
			</td>
		</tr>
<tr>
<td>
			Absolute Median Daily % Change of the underlying stock (close-to-close)
			</td>
			<td>
			0.9%
			</td>
			<td>
			0.7%
			</td>
			<td>
			1.6%
			</td>
			<td>
			0.6%
			</td>
			<td>
			0.6%
			</td>
			<td>
			0.9%
			</td>
			<td>
			1.1%
			</td>
			<td>
			1.5%
			</td>
			<td>
			1.9%
			</td>
			<td>
			1.2%
			</td>
		</tr>
<tr>
<td>
			Simulated absolute daily performance on the 5x DLC 
			</td>
			<td>
			4.6%
			</td>
			<td>
			3.3%
			</td>
			<td>
			8.1%
			</td>
			<td>
			3.1%
			</td>
			<td>
			3.1%
			</td>
			<td>
			4.3%
			</td>
			<td>
			5.4%
			</td>
			<td>
			7.5%
			</td>
			<td>
			9.5%
			</td>
			<td>
			6.1%
			</td>
		</tr>
</tbody></table>
Source: Bloomberg (data period from 1 January 2018 to 21 February 2019). Performances of the DLCs are based on the assumption of no costs and fees and currency exchange impact. The performances can be a gain or a loss depending on directional view of the trader with respect to the actual underlying movement. The information on the above is for illustrative purposes only, and is not indicative of future performance.

Compounding Effect

Investors that hold the DLCs for longer than one Trading Day will notice that the return could be more or less than the leverage factor that is embedded within the DLC. This is because the performances of the underlying asset and the DLCs are reset at the end of each Trading Day.

When markets open on the next day, the performances of the underlying asset and the DLCs will be measured from the intrinsic closing levels recorded on the previous Trading Day. What this means, in practice, is the performance each day is locked in, and any subsequent returns are on top of what was achieved the day before. This is a process referred to as 'compounding'.

The compounding effect can positively enhance returns in trending markets (upward or downward) whilst negatively impacting returns when the markets are more volatile or trend sideways for long periods. To learn more about the compounding effect and other features of the DLCs, click <a href="https://www2.sgx.com/research-education/securities-products#Daily%20Leverage%20Certificates">here</a>.

DLCs offer a cheaper alternative to gain exposure to blue chip stocks

The Single Stock DLCs will be priced between S$0.25 to S$2.20 depending on the underlying stock. This means that investors can gain 5x leverage exposure to the underlying stock with a lower capital outlay.

Taking AIA for example and assuming AIA is currently at HKD75 (S$13), the investor would need capital of S$2,600 (S$13 x min lot size 200 units) to gain exposure to AIA as compared to a capital of S$80 (S$0.80 issue price of the AIA DLC x min lot size 100 units) if the investor uses the DLC.

In addition to a lower capital outlay, the intraday trading costs for DLCs is cheaper than trading the stock for an investor who wishes to gain S$10,000 worth of exposure to the underlying stock as highlighted in a previous market update <a href="https://www2.sgx.com/research-education/market-updates/20181105-new-single-stock-daily-leverage-certificates-5x-leverage">here</a>.

In comparison to other leveraged instrument such as Contract for Differences (CFDs), the trading commission charged by the broker for DLCs is on average lower than CFDs. Notably, the commission charge for the CFD is based on the entire contract value while that of the DLC is based on the amount of the DLC purchased (20% of contract value). The table below illustrates the comparison on commissions.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-02/DLC%20Info.PNG" alt="DLC info">
 </figure>
 <div class="content-caption">DLC info</div>
Investors should also read all listing documents provided by the issuer for other features such as the airbag mechanism, the risks and other information related to the product before trading the DLCs. The documents can be found under company information on SGX website or the Issuer’s website (dlc.socgen.com).

 

Specified Investment Products (SIPs)

Structured Warrants, Daily Leverage Certificates and synthetic ETFs are products with features that might be more complex in nature and are only suitable for investors who possess the investment knowledge of more complex products and have a high risk tolerance. Hence, all investors need to be qualified to trade in Specified Investment Products (“SIPs”) to be able to trade in these products. Speak to your broker to find out more on how you can qualify to trade SIPs.

Where can I find more information?

<table class="table table-striped"><tbody><tr>
<td>
			Benefits of ETFs 

			<ul>
<li>Educational videos (<a href="https://www2.sgx.com/research-education/securities-products#ETF">link</a>)</li>
				<li>Full list of SGX listed ETFs (<a href="https://api2.sgx.com/sites/default/files/2019-01/ETF_Summary_Info_03%20Jan%202019%20v2.pdf">link</a>)</li>
			</ul>
</td>
			<td>
			Trading Warrants

			<ul>
<li>Educational videos (<a href="https://www2.sgx.com/research-education/securities-products#Structured%20Warrants">link</a>)</li>
				<li>Investor guide (<a href="https://api2.sgx.com/sites/default/files/2018-12/SGX%20Structured%20Warrants%20Investor%20Guide.pdf">link</a>)</li>
			</ul>
</td>
			<td>
			Trading DLCs

			<ul>
<li>Factsheet (<a href="https://api2.sgx.com/sites/default/files/2018-10/SGX%20DLC%20Factsheet_Oct%202018_English.pdf">link</a>)</li>
				<li>Investor guide (<a href="https://api2.sgx.com/sites/default/files/2018-10/SGX97062_DLC_Brochure_Updates_October%202018.pdf">link</a>)</li>
			</ul>
</td>
		</tr></tbody></table>
</body></html>





A second batch of Single Stock Daily Leverage Certificates (DLCs) consisting of 10 new underlying stocks will start trading on 26 February. The Single Stock DLCs provide 5X leverage exposure to the daily performance of the underlying stock on both Long and Short.   
	 
	
Of the 10 new underlying stocks, there are 4 Singapore names consisting of CapitaLand, Genting Singapore, Wilmar and Yangzijiang and 6 Hong Kong names consisting of AIA, China Construction Bank, Geely Auto, Galaxy Entertainment, HKEx and HSBC.  
	 
	The addition of these 10 new underlying stocks widens the Single Stock DLCs offering and provides traders with a cheaper alternative in terms of capital outlay and trading costs to gain exposure to some of these blue chip stocks.

Daily Leverage Certificates (DLCs) are financial instruments issued by a third-party financial institution, in this case Societe Generale, and are traded on the SGX securities market. DLCs seek to achieve short-term investment results that correspond to the daily magnified performance of the underlying index or stock.

With the addition of this second batch of Single Stock DLCs, DLC traders can look forward to a wider range of underlyings consisting of key Asian indices such as the MSCI Singapore Index and Hang Seng indices as well as a total of 20 Singapore and Hong Kong blue chip stocks.

10 new underlying stocks to widen the range of Single Stock DLCs 

Coming Tuesday 26 February, the Single Stock DLCs on 10 new underlying stocks will be listed for trading. There will be 4 Singapore names consisting of CapitaLand, Genting Singapore, Wilmar and Yangzijiang and 6 Hong Kong names consisting of AIA, China Construction Bank, Geely Auto, Galaxy Entertainment, HKEx and HSBC.

The performance of each of these stocks will be tradable via a 5x Long and 5x Short DLC. Tabled below are the details of the new Single Stock DLCs.




			Market
			
			
			Underlying Stock
			
			
			Stock Code
			
			
			Counter Name
			
			
			Issue Price (SGD)*
			
		


			Singapore
			
			
			Genting Singapore
			
			
			DNEW
			
			
			DLC SG5xLong Genting
			
			
			0.25
			
		


			DMPW
			
			
			DLC SG5xShort Genting
			
			
			0.25
			
		


			CapitaLand
			
			
			DLQW
			
			
			DLC SG5xLong CapLand
			
			
			0.25
			
		


			DKFW
			
			
			DLC SG5xShort CapLand
			
			
			0.25
			
		


			Yangzijiang
			
			
			DJRW
			
			
			DLC SG5xLong YZJ
			
			
			0.25
			
		


			DXUW
			
			
			DLC SG5xShort YZJ
			
			
			0.25
			
		


			Wilmar
			
			
			DFHW
			
			
			DLC SG5xLong Wilmar
			
			
			0.25
			
		


			DNXW
			
			
			DLC SG5xShort Wilmar
			
			
			0.25
			
		


			Hong Kong
			
			
			HSBC
			
			
			DZLW
			
			
			DLC SG5xLong HSBC
			
			
			2.20
			
		


			DYAW
			
			
			DLC SG5xShort HSBC
			
			
			2.20
			
		


			CCB
			
			
			DXMW
			
			
			DLC SG5xLong CCB
			
			
			0.50
			
		


			DWBW
			
			
			DLC SG5xShort CCB
			
			
			0.50
			
		


			HKEx
			
			
			DVOW
			
			
			DLC SG5xLong HKEx
			
			
			2.20
			
		


			DVVW
			
			
			DLC SG5xShort HKEx
			
			
			2.20
			
		


			  Galaxy Ent
			
			
			DTNW
			
			
			DLC SG5xLong Galaxy
			
			
			0.60
			
		


			DSCW
			
			
			DLC SG5xShort Galaxy
			
			
			0.60
			
		


			  Geely Auto
			
			
			DRWW
			
			
			DLC SG5xLong Geely
			
			
			0.40
			
		


			DQDW
			
			
			DLC SG5xShort Geely
			
			
			0.40
			
		


			AIA
			
			
			DPWW
			
			
			DLC SG5xLong AIA
			
			
			0.80
			
		


			DAAW
			
			
			DLC SG5xShort AIA
			
			
			0.80
			
		

* The Issue Price as tabled above will be taken as the intrinsic close value of the DLC on 25 February. When trading starts on Tuesday, 26 February, the 5x performance of the DLC will be with reference to this intrinsic close value on 25 February. Investors should refer to the term sheets published on the issuer’s website (dlc.socgen.com) and SGX company announcement website for the full details. 

Source: SGX (Note that all of the above Single Stock DLCs have an expiry date of 25 February 2022)

 

5x Leverage Exposure on the Daily Performance of the Underlying Stock

While the expiry date of the Single Stock DLCs above is in three years, i.e. 25 February 2022, they are generally designed for short term trading, with typical holding periods ranging from intra-day to five trading sessions.

With five times leverage on the daily performance of the underlying stock, the DLCs provide investors with the ability to make enhanced returns within a short period of time but also the risk of substantial losses if the underlying stock moves against the investor.

Tabled below are the simulated absolute daily performance of the 5x DLCs using historical absolute daily performance (close-to-close) of the underlying stocks. The data below is aimed at providing traders with a sense of the daily volatility of the underlying stock and the corresponding daily movement on the 5x DLC.




			 
			
			
			Genting 
			
			
			CapitaLand
			
			
			YZJ
			
			
			Wilmar
			
			
			HSBC
			
			
			CCB
			
			
			HKEx
			
			
			Galaxy 
			
			
			Geely 
			
			
			AIA
			
		


			Absolute Median Daily % Change of the underlying stock (close-to-close)
			
			
			0.9%
			
			
			0.7%
			
			
			1.6%
			
			
			0.6%
			
			
			0.6%
			
			
			0.9%
			
			
			1.1%
			
			
			1.5%
			
			
			1.9%
			
			
			1.2%
			
		


			Simulated absolute daily performance on the 5x DLC 
			
			
			4.6%
			
			
			3.3%
			
			
			8.1%
			
			
			3.1%
			
			
			3.1%
			
			
			4.3%
			
			
			5.4%
			
			
			7.5%
			
			
			9.5%
			
			
			6.1%
			
		

Source: Bloomberg (data period from 1 January 2018 to 21 February 2019). Performances of the DLCs are based on the assumption of no costs and fees and currency exchange impact. The performances can be a gain or a loss depending on directional view of the trader with respect to the actual underlying movement. The information on the above is for illustrative purposes only, and is not indicative of future performance.

Compounding Effect

Investors that hold the DLCs for longer than one Trading Day will notice that the return could be more or less than the leverage factor that is embedded within the DLC. This is because the performances of the underlying asset and the DLCs are reset at the end of each Trading Day.

When markets open on the next day, the performances of the underlying asset and the DLCs will be measured from the intrinsic closing levels recorded on the previous Trading Day. What this means, in practice, is the performance each day is locked in, and any subsequent returns are on top of what was achieved the day before. This is a process referred to as 'compounding'.

The compounding effect can positively enhance returns in trending markets (upward or downward) whilst negatively impacting returns when the markets are more volatile or trend sideways for long periods. To learn more about the compounding effect and other features of the DLCs, click here.

DLCs offer a cheaper alternative to gain exposure to blue chip stocks

The Single Stock DLCs will be priced between S$0.25 to S$2.20 depending on the underlying stock. This means that investors can gain 5x leverage exposure to the underlying stock with a lower capital outlay.

Taking AIA for example and assuming AIA is currently at HKD75 (S$13), the investor would need capital of S$2,600 (S$13 x min lot size 200 units) to gain exposure to AIA as compared to a capital of S$80 (S$0.80 issue price of the AIA DLC x min lot size 100 units) if the investor uses the DLC.

In addition to a lower capital outlay, the intraday trading costs for DLCs is cheaper than trading the stock for an investor who wishes to gain S$10,000 worth of exposure to the underlying stock as highlighted in a previous market update here.

In comparison to other leveraged instrument such as Contract for Differences (CFDs), the trading commission charged by the broker for DLCs is on average lower than CFDs. Notably, the commission charge for the CFD is based on the entire contract value while that of the DLC is based on the amount of the DLC purchased (20% of contract value). The table below illustrates the comparison on commissions.

      
    
    DLC info
Investors should also read all listing documents provided by the issuer for other features such as the airbag mechanism, the risks and other information related to the product before trading the DLCs. The documents can be found under company information on SGX website or the Issuer’s website (dlc.socgen.com).

 

Specified Investment Products (SIPs)

Structured Warrants, Daily Leverage Certificates and synthetic ETFs are products with features that might be more complex in nature and are only suitable for investors who possess the investment knowledge of more complex products and have a high risk tolerance. Hence, all investors need to be qualified to trade in Specified Investment Products (“SIPs”) to be able to trade in these products. Speak to your broker to find out more on how you can qualify to trade SIPs.

Where can I find more information?



			Benefits of ETFs 

			
Educational videos (link)
				Full list of SGX listed ETFs (link)
			

			
			Trading Warrants

			
Educational videos (link)
				Investor guide (link)
			

			
			Trading DLCs

			
Factsheet (link)
				Investor guide (link)
			

		



Mark the Date, DLC Offering Expands on 26 February

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE: Toppan, Hyundai Heavy, Descente, Healthscope, Eclipx, Pioneer, Earthport

For the month of January, seventeen new deals were discussed on Smartkarma with an overall deal size of US$91bn, with ~81% of that figure from the <a href="https://www.smartkarma.com/entities/7410" target="_blank" data-smartkarma-citation="entities:7410:1">Celgene Corp (CELG US)</a> deal. This overall number does not include rumours on <a href="https://www.smartkarma.com/entities/7012" target="_blank" data-smartkarma-citation="entities:7012:1">Nexon Gt Co Ltd (041140 KS)</a> and <a href="https://www.smartkarma.com/entities/55" target="_blank" data-smartkarma-citation="entities:55:1">Capitaland Ltd (CAPL SP)</a>'s acquisition of <a href="https://www.smartkarma.com/entities/7012" target="_blank" data-smartkarma-citation="entities:7012:1">Ascendas-Singbridge.</a> The average transaction premium was 43%, or 26% if ignoring <a href="https://www.smartkarma.com/entities/23493" target="_blank" data-smartkarma-citation="entities:23493:1">Earthport plc (EPO LN)</a>.
<table class="table table-striped">
<colgroup></colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Target Company"}'>
<h2>New Deals</h2>
</td>
<td data-sheets-value='{"1":2,"2":"Industry"}'>
<h2>Industry</h2>
</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Premium for Deals Announced in January"}'>
<h2>Premium</h2>
</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Deal Size (US$m)"}' data-sheets-numberformat='[null,2,"#,##0",1]'>
<h2>Deal Size (US$m)</h2>
</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Deal Type"}'>
<h2>Deal Type</h2>
</td>
</tr>
<tr>
<td colspan="5" data-sheets-value='{"1":2,"2":"Healius Limited"}'>Australia</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Healius Limited"}'><a href="https://www.smartkarma.com/entities/6296" target="_blank" data-smartkarma-citation="entities:6296:1">Healius (HLS AU)</a></td>
<td data-sheets-value='{"1":2,"2":"Health Care"}'>Health Care</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.332}' data-sheets-numberformat='[null,3,"0.00%",1]'>33.2%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1809.78}' data-sheets-numberformat='[null,2,"#,##0",1]'>1,402</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Scheme"}'>Scheme</td>
</tr>
<tr>
<td colspan="5" data-sheets-value='{"1":2,"2":"New Sports Group"}'>Hong Kong</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"New Sports Group"}'><a href="https://www.smartkarma.com/entities/8706" target="_blank" data-smartkarma-citation="entities:8706:1">New Sports Group (299 HK)</a></td>
<td data-sheets-value='{"1":2,"2":"Communication Services"}'>Communication Services</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0357}' data-sheets-numberformat='[null,3,"0.00%",1]'>3.6%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":638.91}' data-sheets-numberformat='[null,2,"#,##0",1]'>82</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Off-Mkt"}'>Off-Mkt</td>
</tr>
<tr>
<td colspan="5" data-sheets-value='{"1":2,"2":"GRUH Finance"}'>India</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"GRUH Finance"}'><a href="https://www.smartkarma.com/entities/16072" target="_blank" data-smartkarma-citation="entities:16072:1">Gruh Finance (GRHF IN)</a></td>
<td data-sheets-value='{"1":2,"2":"Thrifts and Mortgage Finance"}'>Thrifts and Mortgage Finance</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.0761}' data-sheets-numberformat='[null,3,"0.00%",1]'>-7.6%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3154}' data-sheets-numberformat='[null,2,"#,##0",1]'>2,974</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Scheme"}'>Scheme</td>
</tr>
<tr>
<td colspan="5" data-sheets-value='{"1":2,"2":"GRUH Finance"}'>Indonesia</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"GRUH Finance"}'><a href="https://www.smartkarma.com/entities/135" target="_blank" data-smartkarma-citation="entities:135:1">Bank Danamon Indonesia (BDMN IJ)</a></td>
<td data-sheets-value='{"1":2,"2":"Thrifts and Mortgage Finance"}'>Finance</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.0761}' data-sheets-numberformat='[null,3,"0.00%",1]'>14.9%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3154}' data-sheets-numberformat='[null,2,"#,##0",1]'>4,000</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Scheme"}'>Offer</td>
</tr>
<tr>
<td colspan="5" data-sheets-value='{"1":2,"2":"Kosaido Co Ltd"}'>Japan</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kosaido Co Ltd"}'>
<a href="https://www.smartkarma.com/entities/7888" target="_blank" data-smartkarma-citation="entities:7888:1">Clarion Co Ltd (6796 JP)</a> </td>
<td data-sheets-value='{"1":2,"2":"Commercial Printing"}'>Audio/infotainment</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.438}' data-sheets-numberformat='[null,3,"0.00%",1]'>10.5%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":498.47}' data-sheets-numberformat='[null,2,"#,##0",1]'>1,300</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Off-Mkt"}'>Tender offer</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kosaido Co Ltd"}'><a href="https://www.smartkarma.com/entities/8225" target="_blank" data-smartkarma-citation="entities:8225:1">Descente Ltd (8114 JP)</a></td>
<td data-sheets-value='{"1":2,"2":"Commercial Printing"}'>Retailer</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.438}' data-sheets-numberformat='[null,3,"0.00%",1]'>49.7%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":498.47}' data-sheets-numberformat='[null,2,"#,##0",1]'>185</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Off-Mkt"}'>Partial offer</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kosaido Co Ltd"}'><a href="https://www.smartkarma.com/entities/1209" target="_blank" data-smartkarma-citation="entities:1209:1">Jiec Co Ltd (4291 JP)</a></td>
<td data-sheets-value='{"1":2,"2":"Commercial Printing"}'>Info Tech</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.438}' data-sheets-numberformat='[null,3,"0.00%",1]'>39.3%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":498.47}' data-sheets-numberformat='[null,2,"#,##0",1]'>52</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Off-Mkt"}'>Tender Offer</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kosaido Co Ltd"}'><a href="https://www.smartkarma.com/entities/15158" target="_blank" data-smartkarma-citation="entities:15158:1">Kosaido Co Ltd (7868 JP)</a></td>
<td data-sheets-value='{"1":2,"2":"Commercial Printing"}'>Commercial Printing</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.438}' data-sheets-numberformat='[null,3,"0.00%",1]'>43.8%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":498.47}' data-sheets-numberformat='[null,2,"#,##0",1]'>139</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Off-Mkt"}'>Tender offer</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Shinmaywa Industries Ltd"}'><a href="https://www.smartkarma.com/entities/18738" target="_blank" data-smartkarma-citation="entities:18738:1">Shinmaywa Industries (7224 JP)</a></td>
<td data-sheets-value='{"1":2,"2":"Industrials"}'>Industrials</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.105}' data-sheets-numberformat='[null,3,"0.00%",1]'>10.5%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":364.86}' data-sheets-numberformat='[null,2,"#,##0",1]'>365</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Off-Mkt"}'>Tender offer</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ascendas-Singbridge"}'><a href="https://www.smartkarma.com/entities/19831" target="_blank" data-smartkarma-citation="entities:19831:1">Veriserve Corp (3724 JP)</a></td>
<td data-sheets-value='{"1":2,"2":"Construction and Engineering"}'>Info tech</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.07}' data-sheets-numberformat='[null,3,"0.00%",1]'>44.6%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4481.45}' data-sheets-numberformat='[null,2,"#,##0",1]'>142</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Scheme"}'>Tender offer</td>
</tr>
<tr>
<td colspan="5" data-sheets-value='{"1":2,"2":"Ascendas-Singbridge"}'>Singapore</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Courts Asia Ltd"}'><a href="https://www.smartkarma.com/entities/13837" target="_blank" data-smartkarma-citation="entities:13837:1">Courts Asia Ltd (COURTS SP)</a></td>
<td data-sheets-value='{"1":2,"2":"Consumer Discretionary"}'>Consumer Discretionary</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.349}' data-sheets-numberformat='[null,3,"0.00%",1]'>34.9%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":80}' data-sheets-numberformat='[null,2,"#,##0",1]'>27</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Scheme"}'>Scheme</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"M1 Ltd"}'><a href="https://www.smartkarma.com/entities/412" target="_blank" data-smartkarma-citation="entities:412:1">M1 Ltd (M1 SP)</a></td>
<td data-sheets-value='{"1":2,"2":"Communication Services"}'>Communication Services</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.26}' data-sheets-numberformat='[null,3,"0%",1]'>26.0%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":932}' data-sheets-numberformat='[null,2,"#,##0",1]'>932</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Off-Mkt"}'>Off-Mkt</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Pci Ltd"}'><a href="https://www.smartkarma.com/entities/11743" target="_blank" data-smartkarma-citation="entities:11743:1">Pci Ltd (PCI SP)</a></td>
<td data-sheets-value='{"1":2,"2":"Information Technology"}'>Information Technology</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.28}' data-sheets-numberformat='[null,3,"0%",1]'>28.0%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":45}' data-sheets-numberformat='[null,2,"#,##0",1]'>45</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Scheme"}'>Scheme</td>
</tr>
<tr>
<td colspan="5" data-sheets-value='{"1":2,"2":"Panalpina Welttransport Holdin"}'>Taiwan</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Yungtay Engineering"}'><a href="https://www.smartkarma.com/entities/14121" target="_blank" data-smartkarma-citation="entities:14121:1">Yungtay Engineering (1507 TT)</a></td>
<td data-sheets-value='{"1":2,"2":"Industrials"}'>Industrials</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.22}' data-sheets-numberformat='[null,3,"0%",1]'>22.0%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":703.51}' data-sheets-numberformat='[null,2,"#,##0",1]'>704</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Off-Mkt"}'>Off-Mkt</td>
</tr>
<tr>
<td colspan="5" data-sheets-value='{"1":2,"2":"Earthport PLC"}'>Europe</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Earthport PLC"}'><a href="https://www.smartkarma.com/entities/23493" target="_blank" data-smartkarma-citation="entities:23493:1">Earthport plc (EPO LN)</a></td>
<td data-sheets-value='{"1":2,"2":"Information Technology"}'>Information Technology</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3.4}' data-sheets-numberformat='[null,3,"0%",1]'>340.0%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":277.2}' data-sheets-numberformat='[null,2,"#,##0",1]'>277</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Off-Mkt"}'>Off-Mkt</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Celgene"}'><a href="https://www.smartkarma.com/entities/22460" target="_blank" data-smartkarma-citation="entities:22460:1">Panalpina Welttransport Holdin (PWTN SW)</a></td>
<td data-sheets-value='{"1":2,"2":"Health Care"}'>Industrials</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.537}' data-sheets-numberformat='[null,3,"0.00%",1]'>24.0%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":99367.24}' data-sheets-numberformat='[null,2,"#,##0",1]'>4,083</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Scheme"}'>Off-Mkt</td>
</tr>
<tr>
<td colspan="5" data-sheets-value='{"1":2,"2":"Celgene"}'>US</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Celgene"}'><a href="https://www.smartkarma.com/entities/7410" target="_blank" data-smartkarma-citation="entities:7410:1">Celgene Corp (CELG US)</a></td>
<td data-sheets-value='{"1":2,"2":"Health Care"}'>Health Care</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.537}' data-sheets-numberformat='[null,3,"0.00%",1]'>53.7%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":99367.24}' data-sheets-numberformat='[null,2,"#,##0",1]'>74,000</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Scheme"}'>Scheme</td>
</tr>
</tbody>
</table>
<a href="https://www.smartkarma.com/entities/412" target="_blank" data-smartkarma-citation="entities:412:1">M1 Ltd (M1 SP)</a> is essentially an ongoing transaction; while <a href="https://www.smartkarma.com/entities/15529" target="_blank" data-smartkarma-citation="entities:15529:1">Mastercard Inc Class A (MA US)</a> trumped <a href="https://www.smartkarma.com/entities/8707" target="_blank" data-smartkarma-citation="entities:8707:1">Visa Inc Class A Shares (V US)</a>'s December offer for Earthport. <a href="https://www.smartkarma.com/entities/6296" target="_blank" data-smartkarma-citation="entities:6296:1">Healius (HLS AU)</a> rejected its proposal.
<a href="https://www.smartkarma.com/entities/135" target="_blank" data-smartkarma-citation="entities:135:1">Bank Danamon Indonesia (BDMN IJ)</a> is similarly an ongoing transaction and arguably the premium is higher than 14.9%, which is based on the last close.
Directly below is a summary of ongoing M&amp;A situations, followed by a recap of news associated with each event situation.
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/077/633/original/CaptureMonth%20summary.PNG?1549001321" class="editor-image img-responsive" data-smartkarma-image-id="77633"></figure>
<div style="text-align: left;" class="content-caption">Source: Company announcements, our workings</div>

For the month of January, seventeen new deals were discussed on Smartkarma with an overall deal size of US$91bn, with ~81% of that figure from the Celgene Corp (CELG US) deal. This overall number does not include rumours on Nexon Gt Co Ltd (041140 KS) and Capitaland Ltd (CAPL SP)'s acquisition of Ascendas-Singbridge. The average transaction premium was 43%, or 26% if ignoring Earthport plc (EPO LN).





New Deals


Industry


Premium


Deal Size (US$m)


Deal Type



Australia


Healius (HLS AU)
Health Care
33.2%
1,402
Scheme


Hong Kong


New Sports Group (299 HK)
Communication Services
3.6%
82
Off-Mkt


India


Gruh Finance (GRHF IN)
Thrifts and Mortgage Finance
-7.6%
2,974
Scheme


Indonesia


Bank Danamon Indonesia (BDMN IJ)
Finance
14.9%
4,000
Offer


Japan



Clarion Co Ltd (6796 JP) 
Audio/infotainment
10.5%
1,300
Tender offer


Descente Ltd (8114 JP)
Retailer
49.7%
185
Partial offer


Jiec Co Ltd (4291 JP)
Info Tech
39.3%
52
Tender Offer


Kosaido Co Ltd (7868 JP)
Commercial Printing
43.8%
139
Tender offer


Shinmaywa Industries (7224 JP)
Industrials
10.5%
365
Tender offer


Veriserve Corp (3724 JP)
Info tech
44.6%
142
Tender offer


Singapore


Courts Asia Ltd (COURTS SP)
Consumer Discretionary
34.9%
27
Scheme


M1 Ltd (M1 SP)
Communication Services
26.0%
932
Off-Mkt


Pci Ltd (PCI SP)
Information Technology
28.0%
45
Scheme


Taiwan


Yungtay Engineering (1507 TT)
Industrials
22.0%
704
Off-Mkt


Europe


Earthport plc (EPO LN)
Information Technology
340.0%
277
Off-Mkt


Panalpina Welttransport Holdin (PWTN SW)
Industrials
24.0%
4,083
Off-Mkt


US


Celgene Corp (CELG US)
Health Care
53.7%
74,000
Scheme



M1 Ltd (M1 SP) is essentially an ongoing transaction; while Mastercard Inc Class A (MA US) trumped Visa Inc Class A Shares (V US)'s December offer for Earthport. Healius (HLS AU) rejected its proposal.
Bank Danamon Indonesia (BDMN IJ) is similarly an ongoing transaction and arguably the premium is higher than 14.9%, which is based on the last close.
Directly below is a summary of ongoing M&amp;A situations, followed by a recap of news associated with each event situation.

Source: Company announcements, our workings

Singapore

CapitaLand Limited is a real estate company focused on investment holding. The Company and its subsidiaries are principally engaged in investment holding, real estate development, investment in real estate financial products and real estate assets, investment advisory and management services, as well as the management of serviced residences.

Price Gauge
52-week Range	0.00 - 0.00
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Capitaland (CAPL SP)

Real Estate, Manufacturing and F&B Shares on the Move in 1H19

Real Estate, Manufacturing and Food & Beverage stocks made up close to half of Singapore’s top 200 stocks by turnover in the first 5 months...

Singapore Exchange Ltd (SGX)

Five Largest, Best-Performing Developers Averaged 22% YTD Total Return

Real Estate Developers (excluding REITs) was the third best-performing sector in March, with a total return of +2.7%. March was also the third...

Singapore Exchange Ltd (SGX)

Mark the Date, DLC Offering Expands on 26 February

A second batch of Single Stock Daily Leverage Certificates (DLCs) consisting of 10 new underlying stocks will start trading on 26 February. The...

Singapore Exchange Ltd (SGX)

Last Week in Event SPACE: Toppan, Hyundai Heavy, Descente, Healthscope, Eclipx, Pioneer, Earthport

Last Week in Event SPACE ... Toppan Printing (7911 JP)'s management prefers to run a long/short fund rather than support the company's...

David Blennerhassett

M&A: A Round-Up of Deals in January 2019

For the month of January, seventeen new deals were discussed on Smartkarma with an overall deal size of US$91bn, with ~81% of that figure from the...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)