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.

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In Jan 2019, Consumer Staples and Consumer Discretionary were top net buy sectors after REITs, garnering institutional net inflows of S$50.3 million and S$49.2 million respectively, SGX data showed. Consumer Staples was also ranked the 4th best-performing sector with a total return of 8.4%. 
	 </li>
	<li>
The 10 largest F&amp;B stocks on SGX with a market capitalisation of above S$200 million that were best performers in the YTD have a combined market cap of over S$36 billion. The 10 stocks are characterised by diversity – in terms of the types of businesses as well as their geographical spread, with most of them reporting revenues from across the region. 
	 </li>
	<li>Among them, the five best performers in the YTD were: Thai Beverage (+35.5%), QAF (+21.4%), Olam (+17.0%), JB Foods (+12.9%), and Indofood Agri Resources (+12.6%). These five stocks have averaged a total return of +19.9% in the YTD, bringing their 1Y and 3Y total returns to -9.1% and +49.8% respectively.</li>
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SGX lists more than 140 consumer stocks with a combined market capitalisation of over S$130 billion. Among these, more than 40 belong to the Consumer Staples sector, while the remainder are classified under the Consumer Discretionary segment.

The retail and distribution of packaged foods and meats, production of agricultural goods, as well as beverage manufacturers like breweries are categorised under the Consumer Staples sector. This segment is typically regarded as defensive, as companies in this sector are involved in the non-cyclical businesses of food, beverages and other household items.

Given the backdrop of slower global growth and higher macro risks, analysts have recommended investors to focus on stocks with robust balance sheets, stable earnings and good dividends. In its Singapore Strategy 2019 <a href="https://api2.sgx.com/sites/default/files/2019-01/SG_Strategy%202019%20Investor%20Feedback_Strategy_20190123_RHB.pdf">report</a> published last month, RHB Research rated the Consumer space “Overweight”, highlighting it as a defensive sector pick.

Last month, the International Monetary Fund (IMF) cut its global growth forecasts for 2019 and 2020 to 3.5% and 3.6% respectively for the second time in three months. In a January update of its World Economic Outlook <a href="https://www.imf.org/en/Publications/WEO/Issues/2019/01/11/weo-update-january-2019">report</a>, the global lending agency cited weakness in Europe and some emerging markets, and noted that failure to resolve trade tensions could further destabilise a slowing global economy. Other key risks include a bigger-than-expected slowdown in China and a possible "No Deal" Brexit.

In January 2019, Consumer Staples and Consumer Discretionary were top net buy sectors on SGX after REITs, garnering institutional net inflows of S$50.3 million and S$49.2 million respectively, SGX data showed. In particular, Thai Beverage PCL attracted the second-highest net inflow of S$49.3 million during the month. Consumer Staples was also ranked the fourth best-performing sector with a total return of 8.4%.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-02/Capture_3.PNG" alt="F&amp;B Stocks ">
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 <div class="content-caption">F&amp;B Stocks </div>
The 10 largest food and beverage stocks on SGX with a market capitalisation of above S$200 million that were the best performers in the 2019 year-to-date have a combined market capitalisation of over S$36 billion. These 10 plays are characterised by diversity – in terms of the types of businesses as well as their geographical spread, with most of them reporting revenues from across the Asia-Pacific region.

Among the 10, the five best performers in the YTD were: Thai Beverage PCL (+35.5%), QAF Ltd (+21.4%), Olam International (+17.0%), JB Foods (+12.9%), and Indofood Agri Resources (+12.6%). These five stocks have averaged a total return of +19.9% in the YTD, bringing their one-year and three-year total returns to -9.1% and +49.8% respectively.

The table below details the 10 largest F&amp;B stocks above S$200 million that were best performers in the YTD, sorted by YTD total returns.

<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/E (x)
			</td>
			<td>
			ROE (%)
			</td>
			<td>
			Div Yld (%)
			</td>
		</tr>
<tr>
<td>
			THAI BEVERAGE
			</td>
			<td>
			Y92
			</td>
			<td>
			20,468
			</td>
			<td>
			35.5
			</td>
			<td>
			-2.0
			</td>
			<td>
			33.0
			</td>
			<td>
			20.8
			</td>
			<td>
			16.3
			</td>
			<td>
			2.0
			</td>
		</tr>
<tr>
<td>
			QAF LTD
			</td>
			<td>
			Q01
			</td>
			<td>
			408
			</td>
			<td>
			21.4
			</td>
			<td>
			-30.8
			</td>
			<td>
			-18.8
			</td>
			<td>
			72.5
			</td>
			<td>
			0.8
			</td>
			<td>
			8.5
			</td>
		</tr>
<tr>
<td>
			OLAM INTL
			</td>
			<td>
			O32
			</td>
			<td>
			6,142
			</td>
			<td>
			17.0
			</td>
			<td>
			-8.0
			</td>
			<td>
			35.3
			</td>
			<td>
			13.1
			</td>
			<td>
			8.2
			</td>
			<td>
			3.9
			</td>
		</tr>
<tr>
<td>
			JB FOODS
			</td>
			<td>
			BEW
			</td>
			<td>
			212
			</td>
			<td>
			12.9
			</td>
			<td>
			34.3
			</td>
			<td>
			249.6
			</td>
			<td>
			4.9
			</td>
			<td>
			29.0
			</td>
			<td>
			1.5
			</td>
		</tr>
<tr>
<td>
			INDOFOOD AGRI RESOURCES
			</td>
			<td>
			5JS
			</td>
			<td>
			300
			</td>
			<td>
			12.6
			</td>
			<td>
			-38.9
			</td>
			<td>
			-50.0
			</td>
			<td>
			47.2
			</td>
			<td>
			0.3
			</td>
			<td>
			3.0
			</td>
		</tr>
<tr>
<td>
			FIRST RESOURCES
			</td>
			<td>
			EB5
			</td>
			<td>
			2,725
			</td>
			<td>
			11.7
			</td>
			<td>
			2.4
			</td>
			<td>
			-5.0
			</td>
			<td>
			15.0
			</td>
			<td>
			15.1
			</td>
			<td>
			2.0
			</td>
		</tr>
<tr>
<td>
			DELFI LTD
			</td>
			<td>
			P34
			</td>
			<td>
			886
			</td>
			<td>
			9.8
			</td>
			<td>
			1.8
			</td>
			<td>
			-28.5
			</td>
			<td>
			30.2
			</td>
			<td>
			10.7
			</td>
			<td>
			1.6
			</td>
		</tr>
<tr>
<td>
			BUMITAMA AGRI
			</td>
			<td>
			P8Z
			</td>
			<td>
			1,182
			</td>
			<td>
			9.7
			</td>
			<td>
			-0.3
			</td>
			<td>
			-0.7
			</td>
			<td>
			9.8
			</td>
			<td>
			17.9
			</td>
			<td>
			3.9
			</td>
		</tr>
<tr>
<td>
			FRASER AND NEAVE
			</td>
			<td>
			F99
			</td>
			<td>
			2,666
			</td>
			<td>
			8.9
			</td>
			<td>
			-21.4
			</td>
			<td>
			-0.3
			</td>
			<td>
			20.2
			</td>
			<td>
			6.1
			</td>
			<td>
			2.5
			</td>
		</tr>
<tr>
<td>
			JAPFA LTD
			</td>
			<td>
			UD2
			</td>
			<td>
			1,458
			</td>
			<td>
			8.2
			</td>
			<td>
			69.8
			</td>
			<td>
			77.5
			</td>
			<td>
			17.4
			</td>
			<td>
			13.1
			</td>
			<td>
			0.7
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			14.8
			</td>
			<td>
			0.7
			</td>
			<td>
			29.2
			</td>
			<td>
			25.1
			</td>
			<td>
			11.7
			</td>
			<td>
			2.9
			</td>
		</tr>
</tbody></table>
Source: StockFacts &amp; Bloomberg (data as of 15 Feb 2019)
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In Jan 2019, Consumer Staples and Consumer Discretionary were top net buy sectors after REITs, garnering institutional net inflows of S$50.3 million and S$49.2 million respectively, SGX data showed. Consumer Staples was also ranked the 4th best-performing sector with a total return of 8.4%. 
	 
	
The 10 largest F&amp;B stocks on SGX with a market capitalisation of above S$200 million that were best performers in the YTD have a combined market cap of over S$36 billion. The 10 stocks are characterised by diversity – in terms of the types of businesses as well as their geographical spread, with most of them reporting revenues from across the region. 
	 
	Among them, the five best performers in the YTD were: Thai Beverage (+35.5%), QAF (+21.4%), Olam (+17.0%), JB Foods (+12.9%), and Indofood Agri Resources (+12.6%). These five stocks have averaged a total return of +19.9% in the YTD, bringing their 1Y and 3Y total returns to -9.1% and +49.8% respectively.

 

SGX lists more than 140 consumer stocks with a combined market capitalisation of over S$130 billion. Among these, more than 40 belong to the Consumer Staples sector, while the remainder are classified under the Consumer Discretionary segment.

The retail and distribution of packaged foods and meats, production of agricultural goods, as well as beverage manufacturers like breweries are categorised under the Consumer Staples sector. This segment is typically regarded as defensive, as companies in this sector are involved in the non-cyclical businesses of food, beverages and other household items.

Given the backdrop of slower global growth and higher macro risks, analysts have recommended investors to focus on stocks with robust balance sheets, stable earnings and good dividends. In its Singapore Strategy 2019 report published last month, RHB Research rated the Consumer space “Overweight”, highlighting it as a defensive sector pick.

Last month, the International Monetary Fund (IMF) cut its global growth forecasts for 2019 and 2020 to 3.5% and 3.6% respectively for the second time in three months. In a January update of its World Economic Outlook report, the global lending agency cited weakness in Europe and some emerging markets, and noted that failure to resolve trade tensions could further destabilise a slowing global economy. Other key risks include a bigger-than-expected slowdown in China and a possible "No Deal" Brexit.

In January 2019, Consumer Staples and Consumer Discretionary were top net buy sectors on SGX after REITs, garnering institutional net inflows of S$50.3 million and S$49.2 million respectively, SGX data showed. In particular, Thai Beverage PCL attracted the second-highest net inflow of S$49.3 million during the month. Consumer Staples was also ranked the fourth best-performing sector with a total return of 8.4%.

      
    
    F&amp;B Stocks 
The 10 largest food and beverage stocks on SGX with a market capitalisation of above S$200 million that were the best performers in the 2019 year-to-date have a combined market capitalisation of over S$36 billion. These 10 plays are characterised by diversity – in terms of the types of businesses as well as their geographical spread, with most of them reporting revenues from across the Asia-Pacific region.

Among the 10, the five best performers in the YTD were: Thai Beverage PCL (+35.5%), QAF Ltd (+21.4%), Olam International (+17.0%), JB Foods (+12.9%), and Indofood Agri Resources (+12.6%). These five stocks have averaged a total return of +19.9% in the YTD, bringing their one-year and three-year total returns to -9.1% and +49.8% respectively.

The table below details the 10 largest F&amp;B stocks above S$200 million that were best performers in the YTD, sorted by YTD total returns.




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


			THAI BEVERAGE
			
			
			Y92
			
			
			20,468
			
			
			35.5
			
			
			-2.0
			
			
			33.0
			
			
			20.8
			
			
			16.3
			
			
			2.0
			
		


			QAF LTD
			
			
			Q01
			
			
			408
			
			
			21.4
			
			
			-30.8
			
			
			-18.8
			
			
			72.5
			
			
			0.8
			
			
			8.5
			
		


			OLAM INTL
			
			
			O32
			
			
			6,142
			
			
			17.0
			
			
			-8.0
			
			
			35.3
			
			
			13.1
			
			
			8.2
			
			
			3.9
			
		


			JB FOODS
			
			
			BEW
			
			
			212
			
			
			12.9
			
			
			34.3
			
			
			249.6
			
			
			4.9
			
			
			29.0
			
			
			1.5
			
		


			INDOFOOD AGRI RESOURCES
			
			
			5JS
			
			
			300
			
			
			12.6
			
			
			-38.9
			
			
			-50.0
			
			
			47.2
			
			
			0.3
			
			
			3.0
			
		


			FIRST RESOURCES
			
			
			EB5
			
			
			2,725
			
			
			11.7
			
			
			2.4
			
			
			-5.0
			
			
			15.0
			
			
			15.1
			
			
			2.0
			
		


			DELFI LTD
			
			
			P34
			
			
			886
			
			
			9.8
			
			
			1.8
			
			
			-28.5
			
			
			30.2
			
			
			10.7
			
			
			1.6
			
		


			BUMITAMA AGRI
			
			
			P8Z
			
			
			1,182
			
			
			9.7
			
			
			-0.3
			
			
			-0.7
			
			
			9.8
			
			
			17.9
			
			
			3.9
			
		


			FRASER AND NEAVE
			
			
			F99
			
			
			2,666
			
			
			8.9
			
			
			-21.4
			
			
			-0.3
			
			
			20.2
			
			
			6.1
			
			
			2.5
			
		


			JAPFA LTD
			
			
			UD2
			
			
			1,458
			
			
			8.2
			
			
			69.8
			
			
			77.5
			
			
			17.4
			
			
			13.1
			
			
			0.7
			
		


			Average
			
			
			 
			
			
			 
			
			
			14.8
			
			
			0.7
			
			
			29.2
			
			
			25.1
			
			
			11.7
			
			
			2.9
			
		

Source: StockFacts &amp; Bloomberg (data as of 15 Feb 2019)



Five Largest, Best-Performing F&B Stocks Avg 20% YTD Total Return

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SGX-Listed Stocks & ETFs with Exposure to Fast-Growing Malaysia

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JB Foods Ltd produces cocoa products.  The Company's products include cocoa powder, cocoa liquor, and cocoa butter.

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Jb Foods Ltd (JBF SP)

Five Largest, Best-Performing F&B Stocks Avg 20% YTD Total Return

In Jan 2019, Consumer Staples and Consumer Discretionary were top net buy sectors after REITs, garnering institutional net inflows of S$50.3...

Singapore Exchange Ltd (SGX)

SGX-Listed Stocks & ETFs with Exposure to Fast-Growing Malaysia

Singapore Exchange Ltd (SGX)

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