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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<ul>
<li>
In June 2019, 25 primary-listed stocks on SGX repurchased close to 40 million shares with a total consideration of S$55 million. This was down from S$123 million in May 2019 and down from S$174 million in June 2018. 
	 </li>
	<li>
After 13 stocks commenced new buyback mandates in May, seven stocks commenced new buybacks in the month of June 2019:  Boustead Singapore, Telechoice International, KSH Holdings, CDW Holding, Goodland Group, Global Palm Resources Holdings and Straco Corporation. 
	 </li>
	<li>Buyback consideration was led by OCBC &amp; DBS. The current mandate has seen DBS buy back 0.121% of its shares &amp; OCBC buy back 0.118% as of 30 June. The previous year mandate saw DBS buy back 0.478% and OCBC buy back 0.378% of its shares.</li>
</ul>
Total share buyback consideration for the month of June 2019 totaled S$55.1 million. There were 25 SGX-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 37.5 million shares or units.

The S$55.1 million in buyback consideration was less than the buyback consideration of S$123.1 million filed in May 2019 (click <a href="https://www2.sgx.com/research-education/market-updates/20190603-may-share-buyback-consideration-s123m-9-month-high">here</a> for more) and more similar to the average total monthly consideration of S$58 million over the preceding six months.

Last month, the Straits Times Index (“STI”) recovered 6.5%, retracing much of the ground lost in May which saw a 7.0% decline in total return. As discussed <a href="http://edm.sgx.com/a/hBdGeCvB86%24MfB9y77MAAApi2Gw/link1?t_params=DR0Q7IvW39xpsce5NsVVGSWaA5UEBTEA796wfcx9xSUWx0hJ5bhLD8FYfi-2oS4bJOnNRK8WgqJrNDmTPmJOykBpKcP">here</a> June’s gains took the STI total return for the first six months of 2019 to 10.5%. This was in-line with the region with the FTSE All-Share ASEAN Index which gained 10.2% and the FTSE Asia Pacific Index which gained 9.6%.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-07/Monthly%20Share%20Buyback%20Consideration%20%26%20STI%20Month-End%20Levels.JPG" alt="Monthly Share Buyback Consideration &amp; STI Month-End Levels">
 </figure>
 <div class="content-caption">Monthly Share Buyback Consideration &amp; STI Month-End Levels</div>
Seven Stocks Commenced New Mandates Commenced in June 2019 

The table below summarises the buyback considerations in June 2019. The table is sorted by the value of the total consideration amount for the month, which combines the amount of shares or units purchased and the purchasing price of the transactions. The seven stocks that commenced new mandates are highlighted in Bold.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stocks
			</td>
			<td>
			Max of Number of Shares/units Authorised for Purchase in Current Mandate
			</td>
			<td>
			June 2019 Total Number of Shares/units Purchased
			</td>
			<td>
			June 2019 Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares
			</td>
			<td>
			Cumulative Number of Shares/units purchased in Mandate to date*
			</td>
		</tr>
<tr>
<td>
			OVERSEA-CHINESE BANKING CORPORATION
			</td>
			<td>
			212,257,935
			</td>
			<td>
			2,250,000
			</td>
			<td>
			$24,753,300
			</td>
			<td>
			5,030,000
			</td>
		</tr>
<tr>
<td>
			DBS GROUP HOLDINGS
			</td>
			<td>
			51,165,438
			</td>
			<td>
			500,000
			</td>
			<td>
			$12,056,286
			</td>
			<td>
			3,100,000
			</td>
		</tr>
<tr>
<td>
			OLAM INTERNATIONAL
			</td>
			<td>
			159,528,593
			</td>
			<td>
			2,437,300
			</td>
			<td>
			$4,673,113
			</td>
			<td>
			2,547,900
			</td>
		</tr>
<tr>
<td>
			KEPPEL REIT MANAGEMENT
			</td>
			<td>
			170,210,715
			</td>
			<td>
			3,350,000
			</td>
			<td>
			$4,165,898
			</td>
			<td>
			9,740,700
			</td>
		</tr>
<tr>
<td>
			STAMFORD LAND CORPORATION
			</td>
			<td>
			86,408,798
			</td>
			<td>
			5,368,200
			</td>
			<td>
			$2,561,500
			</td>
			<td>
			43,346,700
			</td>
		</tr>
<tr>
<td>
			BOUSTEAD SINGAPORE 
			</td>
			<td>
			49,298,483
			</td>
			<td>
			3,298,300
			</td>
			<td>
			$2,544,854
			</td>
			<td>
			3,298,300
			</td>
		</tr>
<tr>
<td>
			GLOBAL INVESTMENTS
			</td>
			<td>
			168,741,864
			</td>
			<td>
			12,331,600
			</td>
			<td>
			$1,643,505
			</td>
			<td>
			24,610,300
			</td>
		</tr>
<tr>
<td>
			TELECHOICE INTERNATIONAL 
			</td>
			<td>
			45,438,718
			</td>
			<td>
			2,600,000
			</td>
			<td>
			$573,952
			</td>
			<td>
			2,600,000
			</td>
		</tr>
<tr>
<td>
			KSH HOLDINGS 
			</td>
			<td>
			56,973,564
			</td>
			<td>
			1,100,000
			</td>
			<td>
			$468,220
			</td>
			<td>
			1,100,000
			</td>
		</tr>
<tr>
<td>
			SINGAPORE EXCHANGE
			</td>
			<td>
			107,164,240
			</td>
			<td>
			31,900
			</td>
			<td>
			$235,291
			</td>
			<td>
			910,748
			</td>
		</tr>
<tr>
<td>
			SINGAPORE SHIPPING CORPORATION
			</td>
			<td>
			43,701,979
			</td>
			<td>
			698,400
			</td>
			<td>
			$200,179
			</td>
			<td>
			12,520,200
			</td>
		</tr>
<tr>
<td>
			AEM HOLDINGS
			</td>
			<td>
			27,096,300
			</td>
			<td>
			200,000
			</td>
			<td>
			$185,124
			</td>
			<td>
			1,100,000
			</td>
		</tr>
<tr>
<td>
			TUAN SING HOLDINGS
			</td>
			<td>
			118,620,496
			</td>
			<td>
			480,000
			</td>
			<td>
			$172,237
			</td>
			<td>
			2,795,000
			</td>
		</tr>
<tr>
<td>
			KOUFU GROUP
			</td>
			<td>
			55,516,300
			</td>
			<td>
			249,300
			</td>
			<td>
			$170,066
			</td>
			<td>
			349,300
			</td>
		</tr>
<tr>
<td>
			JUMBO GROUP
			</td>
			<td>
			64,109,130
			</td>
			<td>
			411,000
			</td>
			<td>
			$154,196
			</td>
			<td>
			503,300
			</td>
		</tr>
<tr>
<td>
			GRP
			</td>
			<td>
			19,370,161
			</td>
			<td>
			763,000
			</td>
			<td>
			$153,319
			</td>
			<td>
			1,707,200
			</td>
		</tr>
<tr>
<td>
			CDW HOLDING 
			</td>
			<td>
			22,724,200
			</td>
			<td>
			641,800
			</td>
			<td>
			$117,687
			</td>
			<td>
			641,800
			</td>
		</tr>
<tr>
<td>
			RAFFLES MEDICAL GROUP
			</td>
			<td>
			179,835,340
			</td>
			<td>
			100,000
			</td>
			<td>
			$101,151
			</td>
			<td>
			200,000
			</td>
		</tr>
<tr>
<td>
			GOODLAND GROUP 
			</td>
			<td>
			36,059,491
			</td>
			<td>
			330,000
			</td>
			<td>
			$63,307
			</td>
			<td>
			330,000
			</td>
		</tr>
<tr>
<td>
			NORDIC GROUP
			</td>
			<td>
			39,251,910
			</td>
			<td>
			138,500
			</td>
			<td>
			$39,865
			</td>
			<td>
			615,600
			</td>
		</tr>
<tr>
<td>
			THE STRAITS TRADING COMPANY
			</td>
			<td>
			40,767,817
			</td>
			<td>
			16,800
			</td>
			<td>
			$36,588
			</td>
			<td>
			92,400
			</td>
		</tr>
<tr>
<td>
			JAPFA
			</td>
			<td>
			186,466,879
			</td>
			<td>
			57,200
			</td>
			<td>
			$29,051
			</td>
			<td>
			912,700
			</td>
		</tr>
<tr>
<td>
			GLOBAL PALM RESOURCES HOLDINGS 
			</td>
			<td>
			19,600,350
			</td>
			<td>
			90,200
			</td>
			<td>
			$18,929
			</td>
			<td>
			90,200
			</td>
		</tr>
<tr>
<td>
			STRACO CORPORATION 
			</td>
			<td>
			86,411,428
			</td>
			<td>
			17,000
			</td>
			<td>
			$12,932
			</td>
			<td>
			17,000
			</td>
		</tr>
<tr>
<td>
			CHEUNG WOH TECHNOLOGIES
			</td>
			<td>
			30,221,180
			</td>
			<td>
			40,000
			</td>
			<td>
			$5,045
			</td>
			<td>
			318,900
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			                  37,500,500 
			</td>
			<td>
			$55,135,597
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
*Percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolutions.   
Source: SGX May Gateway (Data as of 30 June 2019)

Share buyback transactions involve share issuers repurchasing some of their outstanding shares from shareholders through the open market. Once the shares are bought back, they will be converted into treasury shares, which means they are no longer categorised as shares outstanding. Other motivations for share buybacks include companies moving to align stock valuations with balance sheet objectives.

The date of the relevant share buyback mandate is also provided in the table above, in addition to the amount of shares authorised to be bought back under the mandate. The total number of shares purchased under the mandate and the percentage of the companies that issued shares that have been repurchased under the mandate are also provided.

Share buyback information can be found on the company disclosure page on the SGX website, using the Announcement category and sub-category of Share Buy Back-On Market (click <a href="http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/company_announcements">here</a>). As best practice, companies should refrain from buying back their shares during the two weeks immediately before its quarterly financial statements and one month immediately before the full-year financial statements.
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In June 2019, 25 primary-listed stocks on SGX repurchased close to 40 million shares with a total consideration of S$55 million. This was down from S$123 million in May 2019 and down from S$174 million in June 2018. 
	 
	
After 13 stocks commenced new buyback mandates in May, seven stocks commenced new buybacks in the month of June 2019:  Boustead Singapore, Telechoice International, KSH Holdings, CDW Holding, Goodland Group, Global Palm Resources Holdings and Straco Corporation.  
	 
	Buyback consideration was led by OCBC &amp; DBS. The current mandate has seen DBS buy back 0.121% of its shares &amp; OCBC buy back 0.118% as of 30 June. The previous year mandate saw DBS buy back 0.478% and OCBC buy back 0.378% of its shares.

Total share buyback consideration for the month of June 2019 totaled S$55.1 million. There were 25 SGX-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 37.5 million shares or units.

The S$55.1 million in buyback consideration was less than the buyback consideration of S$123.1 million filed in May 2019 (click here for more) and more similar to the average total monthly consideration of S$58 million over the preceding six months.

Last month, the Straits Times Index (“STI”) recovered 6.5%, retracing much of the ground lost in May which saw a 7.0% decline in total return. As discussed here June’s gains took the STI total return for the first six months of 2019 to 10.5%. This was in-line with the region with the FTSE All-Share ASEAN Index which gained 10.2% and the FTSE Asia Pacific Index which gained 9.6%.

      
    
    Monthly Share Buyback Consideration &amp; STI Month-End Levels
Seven Stocks Commenced New Mandates Commenced in June 2019 

The table below summarises the buyback considerations in June 2019. The table is sorted by the value of the total consideration amount for the month, which combines the amount of shares or units purchased and the purchasing price of the transactions. The seven stocks that commenced new mandates are highlighted in Bold.




			Stocks
			
			
			Max of Number of Shares/units Authorised for Purchase in Current Mandate
			
			
			June 2019 Total Number of Shares/units Purchased
			
			
			June 2019 Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares
			
			
			Cumulative Number of Shares/units purchased in Mandate to date*
			
		


			OVERSEA-CHINESE BANKING CORPORATION
			
			
			212,257,935
			
			
			2,250,000
			
			
			$24,753,300
			
			
			5,030,000
			
		


			DBS GROUP HOLDINGS
			
			
			51,165,438
			
			
			500,000
			
			
			$12,056,286
			
			
			3,100,000
			
		


			OLAM INTERNATIONAL
			
			
			159,528,593
			
			
			2,437,300
			
			
			$4,673,113
			
			
			2,547,900
			
		


			KEPPEL REIT MANAGEMENT
			
			
			170,210,715
			
			
			3,350,000
			
			
			$4,165,898
			
			
			9,740,700
			
		


			STAMFORD LAND CORPORATION
			
			
			86,408,798
			
			
			5,368,200
			
			
			$2,561,500
			
			
			43,346,700
			
		


			BOUSTEAD SINGAPORE 
			
			
			49,298,483
			
			
			3,298,300
			
			
			$2,544,854
			
			
			3,298,300
			
		


			GLOBAL INVESTMENTS
			
			
			168,741,864
			
			
			12,331,600
			
			
			$1,643,505
			
			
			24,610,300
			
		


			TELECHOICE INTERNATIONAL 
			
			
			45,438,718
			
			
			2,600,000
			
			
			$573,952
			
			
			2,600,000
			
		


			KSH HOLDINGS 
			
			
			56,973,564
			
			
			1,100,000
			
			
			$468,220
			
			
			1,100,000
			
		


			SINGAPORE EXCHANGE
			
			
			107,164,240
			
			
			31,900
			
			
			$235,291
			
			
			910,748
			
		


			SINGAPORE SHIPPING CORPORATION
			
			
			43,701,979
			
			
			698,400
			
			
			$200,179
			
			
			12,520,200
			
		


			AEM HOLDINGS
			
			
			27,096,300
			
			
			200,000
			
			
			$185,124
			
			
			1,100,000
			
		


			TUAN SING HOLDINGS
			
			
			118,620,496
			
			
			480,000
			
			
			$172,237
			
			
			2,795,000
			
		


			KOUFU GROUP
			
			
			55,516,300
			
			
			249,300
			
			
			$170,066
			
			
			349,300
			
		


			JUMBO GROUP
			
			
			64,109,130
			
			
			411,000
			
			
			$154,196
			
			
			503,300
			
		


			GRP
			
			
			19,370,161
			
			
			763,000
			
			
			$153,319
			
			
			1,707,200
			
		


			CDW HOLDING 
			
			
			22,724,200
			
			
			641,800
			
			
			$117,687
			
			
			641,800
			
		


			RAFFLES MEDICAL GROUP
			
			
			179,835,340
			
			
			100,000
			
			
			$101,151
			
			
			200,000
			
		


			GOODLAND GROUP 
			
			
			36,059,491
			
			
			330,000
			
			
			$63,307
			
			
			330,000
			
		


			NORDIC GROUP
			
			
			39,251,910
			
			
			138,500
			
			
			$39,865
			
			
			615,600
			
		


			THE STRAITS TRADING COMPANY
			
			
			40,767,817
			
			
			16,800
			
			
			$36,588
			
			
			92,400
			
		


			JAPFA
			
			
			186,466,879
			
			
			57,200
			
			
			$29,051
			
			
			912,700
			
		


			GLOBAL PALM RESOURCES HOLDINGS 
			
			
			19,600,350
			
			
			90,200
			
			
			$18,929
			
			
			90,200
			
		


			STRACO CORPORATION 
			
			
			86,411,428
			
			
			17,000
			
			
			$12,932
			
			
			17,000
			
		


			CHEUNG WOH TECHNOLOGIES
			
			
			30,221,180
			
			
			40,000
			
			
			$5,045
			
			
			318,900
			
		


			Total
			
			
			 
			
			
			                  37,500,500 
			
			
			$55,135,597
			
			
			 
			
		

*Percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolutions.   
Source: SGX May Gateway (Data as of 30 June 2019)

Share buyback transactions involve share issuers repurchasing some of their outstanding shares from shareholders through the open market. Once the shares are bought back, they will be converted into treasury shares, which means they are no longer categorised as shares outstanding. Other motivations for share buybacks include companies moving to align stock valuations with balance sheet objectives.

The date of the relevant share buyback mandate is also provided in the table above, in addition to the amount of shares authorised to be bought back under the mandate. The total number of shares purchased under the mandate and the percentage of the companies that issued shares that have been repurchased under the mandate are also provided.

Share buyback information can be found on the company disclosure page on the SGX website, using the Announcement category and sub-category of Share Buy Back-On Market (click here). As best practice, companies should refrain from buying back their shares during the two weeks immediately before its quarterly financial statements and one month immediately before the full-year financial statements.



25 Companies Conducted Share Buybacks in June   





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    

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
In 1Q2019, Consumer Staples was the second-best performing sector with +13.9% total return, reversing the -2.9% total return in calendar year 2018. It was also amongst the top net buy sectors for the quarter, garnering total institutional inflows of S$61.5 million. 
	 </li>
	<li>
The 20 largest capitalised Consumer Staples stocks on SGX have a combined market cap of more than S$80 billion, and are well-diversified – both in terms of product range as well as geographical spread. The majority of these players report more than half their revenues to the Asia Pacific and/or global markets, excluding Singapore. 
	 </li>
	<li>Among the 20, the five best performers in the YTD were: Indofood Agri Resources (+46.6%), QAF Ltd (+44.4%), Thai Beverage PCL (+38.0%), Golden Agri-Resources (+20.4%), and First Resources (+19.5%). They averaged a YTD total return of +33.8%.</li>
</ul>
Second-Best Performing Sector in 1Q19

In the first quarter of 2019, Consumer Staples was the second-best performing sector on SGX with a total return of +13.9%, after Information Technology’s +28.6% total return. Consumer Staples’ strong performance in 1Q19 also reverses the -2.9% total return it generated in calendar year 2018.

Consumer Staples was also among the top net buy sectors for the January-March quarter, garnering total institutional inflows of S$61.5 million, according to SGX data. This comprised inflows of S$50.3 million, S$9.0 million, and S$2.2 million for January, February and March 2019 respectively.

Geographical Diversity

The 20 largest capitalised Consumer Staples stocks on SGX have a combined market cap of more than S$80 billion and are well-diversified – both in terms of product range as well as geographical spread. The majority of these players report more than half their revenues to the Asia Pacific and/or global markets, excluding Singapore.

In the 2019 year-to-date, these 20 largest Consumer Staples stocks have averaged a total return of +12.9%, bringing their one-year and three-year total returns to -1.4% and +22.6% respectively. They have also averaged a price-earnings ratio of 24.5x and a dividend indicated yield of 2.5%.

Among the 20, the five best performers in the YTD were: Indofood Agri Resources (+46.6%), QAF Ltd (+44.4%), Thai Beverage PCL (+38.0%), Golden Agri-Resources (+20.4%), and First Resources (+19.5%). They have averaged a YTD total return of +33.8%.

Note that earlier this month, Jakarta Stock Exchange-listed PT Indofood Sukses Makmur Tbk, controlled by Indonesian tycoon Anthoni Salim, offered S$0.28 per share to take Indofood Agri Resources private.

The table below details the 20 largest Consumer Staples stocks 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/E (x)
			</td>
			<td>
			Div Ind Yld (%)
			</td>
		</tr>
<tr>
<td>
			INDOFOOD AGRI RESOURCES*
			</td>
			<td>
			5JS
			</td>
			<td>
			391
			</td>
			<td>
			46.6
			</td>
			<td>
			-10.5
			</td>
			<td>
			-49.0
			</td>
			<td>
			NA
			</td>
			<td>
			2.5
			</td>
		</tr>
<tr>
<td>
			QAF LTD
			</td>
			<td>
			Q01
			</td>
			<td>
			492
			</td>
			<td>
			44.4
			</td>
			<td>
			-14.4
			</td>
			<td>
			-9.3
			</td>
			<td>
			59.5
			</td>
			<td>
			5.9
			</td>
		</tr>
<tr>
<td>
			THAI BEVERAGE PCL
			</td>
			<td>
			Y92
			</td>
			<td>
			20,719
			</td>
			<td>
			38.0
			</td>
			<td>
			6.1
			</td>
			<td>
			27.9
			</td>
			<td>
			21.2
			</td>
			<td>
			2.0
			</td>
		</tr>
<tr>
<td>
			GOLDEN AGRI-RESOURCES
			</td>
			<td>
			E5H
			</td>
			<td>
			3,757
			</td>
			<td>
			20.4
			</td>
			<td>
			-15.4
			</td>
			<td>
			-26.9
			</td>
			<td>
			NA
			</td>
			<td>
			2.0
			</td>
		</tr>
<tr>
<td>
			FIRST RESOURCES
			</td>
			<td>
			EB5
			</td>
			<td>
			2,931
			</td>
			<td>
			19.5
			</td>
			<td>
			15.5
			</td>
			<td>
			0.8
			</td>
			<td>
			17.9
			</td>
			<td>
			1.9
			</td>
		</tr>
<tr>
<td>
			WILMAR INTL
			</td>
			<td>
			F34
			</td>
			<td>
			23,034
			</td>
			<td>
			17.3
			</td>
			<td>
			17.8
			</td>
			<td>
			11.1
			</td>
			<td>
			14.8
			</td>
			<td>
			2.9
			</td>
		</tr>
<tr>
<td>
			BUMITAMA AGRI
			</td>
			<td>
			P8Z
			</td>
			<td>
			1,251
			</td>
			<td>
			16.9
			</td>
			<td>
			4.8
			</td>
			<td>
			-6.8
			</td>
			<td>
			12.0
			</td>
			<td>
			3.8
			</td>
		</tr>
<tr>
<td>
			OLAM INTL
			</td>
			<td>
			O32
			</td>
			<td>
			6,094
			</td>
			<td>
			15.8
			</td>
			<td>
			-13.7
			</td>
			<td>
			22.7
			</td>
			<td>
			21.0
			</td>
			<td>
			3.9
			</td>
		</tr>
<tr>
<td>
			YEO HIAP SENG
			</td>
			<td>
			Y03
			</td>
			<td>
			568
			</td>
			<td>
			12.0
			</td>
			<td>
			-11.7
			</td>
			<td>
			-22.1
			</td>
			<td>
			47.3
			</td>
			<td>
			2.0
			</td>
		</tr>
<tr>
<td>
			MEWAH INTL
			</td>
			<td>
			MV4
			</td>
			<td>
			420
			</td>
			<td>
			10.0
			</td>
			<td>
			-4.7
			</td>
			<td>
			2.3
			</td>
			<td>
			20.6
			</td>
			<td>
			2.4
			</td>
		</tr>
<tr>
<td>
			DEL MONTE PACIFIC
			</td>
			<td>
			D03
			</td>
			<td>
			276
			</td>
			<td>
			8.8
			</td>
			<td>
			-39.6
			</td>
			<td>
			-54.0
			</td>
			<td>
			11.9
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			FOOD EMPIRE HOLDINGS
			</td>
			<td>
			F03
			</td>
			<td>
			291
			</td>
			<td>
			6.7
			</td>
			<td>
			-15.1
			</td>
			<td>
			126.4
			</td>
			<td>
			12.2
			</td>
			<td>
			1.2
			</td>
		</tr>
<tr>
<td>
			JB FOODS
			</td>
			<td>
			BEW
			</td>
			<td>
			188
			</td>
			<td>
			4.8
			</td>
			<td>
			13.7
			</td>
			<td>
			224.7
			</td>
			<td>
			5.1
			</td>
			<td>
			3.3
			</td>
		</tr>
<tr>
<td>
			OLD CHANG KEE
			</td>
			<td>
			5ML
			</td>
			<td>
			96
			</td>
			<td>
			4.6
			</td>
			<td>
			8.8
			</td>
			<td>
			41.0
			</td>
			<td>
			18.6
			</td>
			<td>
			3.8
			</td>
		</tr>
<tr>
<td>
			DELFI LTD
			</td>
			<td>
			P34
			</td>
			<td>
			856
			</td>
			<td>
			4.5
			</td>
			<td>
			-6.3
			</td>
			<td>
			-41.6
			</td>
			<td>
			29.8
			</td>
			<td>
			1.6
			</td>
		</tr>
<tr>
<td>
			BREADTALK GROUP
			</td>
			<td>
			CTN
			</td>
			<td>
			476
			</td>
			<td>
			3.7
			</td>
			<td>
			-10.1
			</td>
			<td>
			79.3
			</td>
			<td>
			39.2
			</td>
			<td>
			1.8
			</td>
		</tr>
<tr>
<td>
			FRASER &amp; NEAVE
			</td>
			<td>
			F99
			</td>
			<td>
			4,131
			</td>
			<td>
			3.6
			</td>
			<td>
			-2.1
			</td>
			<td>
			64.3
			</td>
			<td>
			19.9
			</td>
			<td>
			2.5
			</td>
		</tr>
<tr>
<td>
			SHENG SIONG GROUP
			</td>
			<td>
			OV8
			</td>
			<td>
			1,579
			</td>
			<td>
			-1.9
			</td>
			<td>
			5.3
			</td>
			<td>
			32.9
			</td>
			<td>
			22.1
			</td>
			<td>
			3.3
			</td>
		</tr>
<tr>
<td>
			JAPFA LTD
			</td>
			<td>
			UD2
			</td>
			<td>
			1,287
			</td>
			<td>
			-5.5
			</td>
			<td>
			43.8
			</td>
			<td>
			2.6
			</td>
			<td>
			8.9
			</td>
			<td>
			0.7
			</td>
		</tr>
<tr>
<td>
			DAIRY FARM INTL
			</td>
			<td>
			D01
			</td>
			<td>
			14,320
			</td>
			<td>
			-11.4
			</td>
			<td>
			-0.5
			</td>
			<td>
			26.1
			</td>
			<td>
			116.3
			</td>
			<td>
			2.7
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			12.9
			</td>
			<td>
			-1.4
			</td>
			<td>
			22.6
			</td>
			<td>
			24.9
			</td>
			<td>
			2.5
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 22 April 2019)

*privatisation offer announced by parent

SGX lists more than 140 consumer stocks with a combined market capitalisation of over S$135 billion. More than 40 of these 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 producers like soft drink makers and breweries, fall under the Consumer Staples sector.

Defensive Nature

Given the backdrop of slower global growth and increased macro risks, analysts have recommended investors to focus on sectors with robust balance sheets, stable earnings and decent valuations. In a <a href="https://api2.sgx.com/sites/default/files/2019-04/SG_Consumer_Sector%20Update_20190405_RHB.pdf">report</a> published earlier this month, RHB Research maintained its overweight rating on the Consumer space, pointing to “pockets of opportunities” in companies with strong attributes. “We continue to favour players with market exposure to the region that are likely to benefit from stronger GDP growth and higher domestic consumption,” the brokerage added.

Earlier this month, the International Monetary Fund (IMF) cut its global growth outlook to the lowest rate since the Global Financial Crisis, forecasting 3.3% growth in 2019, down from a 3.5% projection made in January. In its latest World Economic Outlook <a href="https://www.imf.org/en/Publications/WEO/Issues/2019/03/28/world-economic-outlook-april-2019">report</a>, the agency cited downside risks from ongoing global trade tensions, as well as a slowdown in several major economies, including the Eurozone, Latin America, the US and the UK.
</body></html>





In 1Q2019, Consumer Staples was the second-best performing sector with +13.9% total return, reversing the -2.9% total return in calendar year 2018. It was also amongst the top net buy sectors for the quarter, garnering total institutional inflows of S$61.5 million. 
	 
	
The 20 largest capitalised Consumer Staples stocks on SGX have a combined market cap of more than S$80 billion, and are well-diversified – both in terms of product range as well as geographical spread. The majority of these players report more than half their revenues to the Asia Pacific and/or global markets, excluding Singapore.  
	 
	Among the 20, the five best performers in the YTD were: Indofood Agri Resources (+46.6%), QAF Ltd (+44.4%), Thai Beverage PCL (+38.0%), Golden Agri-Resources (+20.4%), and First Resources (+19.5%). They averaged a YTD total return of +33.8%.

Second-Best Performing Sector in 1Q19

In the first quarter of 2019, Consumer Staples was the second-best performing sector on SGX with a total return of +13.9%, after Information Technology’s +28.6% total return. Consumer Staples’ strong performance in 1Q19 also reverses the -2.9% total return it generated in calendar year 2018.

Consumer Staples was also among the top net buy sectors for the January-March quarter, garnering total institutional inflows of S$61.5 million, according to SGX data. This comprised inflows of S$50.3 million, S$9.0 million, and S$2.2 million for January, February and March 2019 respectively.

Geographical Diversity

The 20 largest capitalised Consumer Staples stocks on SGX have a combined market cap of more than S$80 billion and are well-diversified – both in terms of product range as well as geographical spread. The majority of these players report more than half their revenues to the Asia Pacific and/or global markets, excluding Singapore.

In the 2019 year-to-date, these 20 largest Consumer Staples stocks have averaged a total return of +12.9%, bringing their one-year and three-year total returns to -1.4% and +22.6% respectively. They have also averaged a price-earnings ratio of 24.5x and a dividend indicated yield of 2.5%.

Among the 20, the five best performers in the YTD were: Indofood Agri Resources (+46.6%), QAF Ltd (+44.4%), Thai Beverage PCL (+38.0%), Golden Agri-Resources (+20.4%), and First Resources (+19.5%). They have averaged a YTD total return of +33.8%.

Note that earlier this month, Jakarta Stock Exchange-listed PT Indofood Sukses Makmur Tbk, controlled by Indonesian tycoon Anthoni Salim, offered S$0.28 per share to take Indofood Agri Resources private.

The table below details the 20 largest Consumer Staples stocks on SGX, sorted by YTD total return.




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


			INDOFOOD AGRI RESOURCES*
			
			
			5JS
			
			
			391
			
			
			46.6
			
			
			-10.5
			
			
			-49.0
			
			
			NA
			
			
			2.5
			
		


			QAF LTD
			
			
			Q01
			
			
			492
			
			
			44.4
			
			
			-14.4
			
			
			-9.3
			
			
			59.5
			
			
			5.9
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			20,719
			
			
			38.0
			
			
			6.1
			
			
			27.9
			
			
			21.2
			
			
			2.0
			
		


			GOLDEN AGRI-RESOURCES
			
			
			E5H
			
			
			3,757
			
			
			20.4
			
			
			-15.4
			
			
			-26.9
			
			
			NA
			
			
			2.0
			
		


			FIRST RESOURCES
			
			
			EB5
			
			
			2,931
			
			
			19.5
			
			
			15.5
			
			
			0.8
			
			
			17.9
			
			
			1.9
			
		


			WILMAR INTL
			
			
			F34
			
			
			23,034
			
			
			17.3
			
			
			17.8
			
			
			11.1
			
			
			14.8
			
			
			2.9
			
		


			BUMITAMA AGRI
			
			
			P8Z
			
			
			1,251
			
			
			16.9
			
			
			4.8
			
			
			-6.8
			
			
			12.0
			
			
			3.8
			
		


			OLAM INTL
			
			
			O32
			
			
			6,094
			
			
			15.8
			
			
			-13.7
			
			
			22.7
			
			
			21.0
			
			
			3.9
			
		


			YEO HIAP SENG
			
			
			Y03
			
			
			568
			
			
			12.0
			
			
			-11.7
			
			
			-22.1
			
			
			47.3
			
			
			2.0
			
		


			MEWAH INTL
			
			
			MV4
			
			
			420
			
			
			10.0
			
			
			-4.7
			
			
			2.3
			
			
			20.6
			
			
			2.4
			
		


			DEL MONTE PACIFIC
			
			
			D03
			
			
			276
			
			
			8.8
			
			
			-39.6
			
			
			-54.0
			
			
			11.9
			
			
			NA
			
		


			FOOD EMPIRE HOLDINGS
			
			
			F03
			
			
			291
			
			
			6.7
			
			
			-15.1
			
			
			126.4
			
			
			12.2
			
			
			1.2
			
		


			JB FOODS
			
			
			BEW
			
			
			188
			
			
			4.8
			
			
			13.7
			
			
			224.7
			
			
			5.1
			
			
			3.3
			
		


			OLD CHANG KEE
			
			
			5ML
			
			
			96
			
			
			4.6
			
			
			8.8
			
			
			41.0
			
			
			18.6
			
			
			3.8
			
		


			DELFI LTD
			
			
			P34
			
			
			856
			
			
			4.5
			
			
			-6.3
			
			
			-41.6
			
			
			29.8
			
			
			1.6
			
		


			BREADTALK GROUP
			
			
			CTN
			
			
			476
			
			
			3.7
			
			
			-10.1
			
			
			79.3
			
			
			39.2
			
			
			1.8
			
		


			FRASER &amp; NEAVE
			
			
			F99
			
			
			4,131
			
			
			3.6
			
			
			-2.1
			
			
			64.3
			
			
			19.9
			
			
			2.5
			
		


			SHENG SIONG GROUP
			
			
			OV8
			
			
			1,579
			
			
			-1.9
			
			
			5.3
			
			
			32.9
			
			
			22.1
			
			
			3.3
			
		


			JAPFA LTD
			
			
			UD2
			
			
			1,287
			
			
			-5.5
			
			
			43.8
			
			
			2.6
			
			
			8.9
			
			
			0.7
			
		


			DAIRY FARM INTL
			
			
			D01
			
			
			14,320
			
			
			-11.4
			
			
			-0.5
			
			
			26.1
			
			
			116.3
			
			
			2.7
			
		


			Average
			
			
			 
			
			
			 
			
			
			12.9
			
			
			-1.4
			
			
			22.6
			
			
			24.9
			
			
			2.5
			
		

Source: Bloomberg &amp; StockFacts (data as of 22 April 2019)

*privatisation offer announced by parent

SGX lists more than 140 consumer stocks with a combined market capitalisation of over S$135 billion. More than 40 of these 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 producers like soft drink makers and breweries, fall under the Consumer Staples sector.

Defensive Nature

Given the backdrop of slower global growth and increased macro risks, analysts have recommended investors to focus on sectors with robust balance sheets, stable earnings and decent valuations. In a report published earlier this month, RHB Research maintained its overweight rating on the Consumer space, pointing to “pockets of opportunities” in companies with strong attributes. “We continue to favour players with market exposure to the region that are likely to benefit from stronger GDP growth and higher domestic consumption,” the brokerage added.

Earlier this month, the International Monetary Fund (IMF) cut its global growth outlook to the lowest rate since the Global Financial Crisis, forecasting 3.3% growth in 2019, down from a 3.5% projection made in January. In its latest World Economic Outlook report, the agency cited downside risks from ongoing global trade tensions, as well as a slowdown in several major economies, including the Eurozone, Latin America, the US and the UK.



Singapore’s Largest Consumer Staples Stocks Returned 34% in YTD

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
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>
</ul>
 

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 ">
 </figure>
 <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)
</body></html>





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

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
The FTSE ST Consumer Goods &amp; Services Liquid 20 Index comprises the 20 most liquid Consumer Goods &amp; Services stocks within the FTSE ST All Share Index. Constituent liquidity is assessed at periodical Index reviews and ranked by preceding 12M traded values.  
	 </li>
	<li>
For 2019 YTD, the FTSE ST Consumer Goods &amp; Services Liquid 20 Index generated a 9.9% total return, a turnaround from its 9.2% decline in 2018. In 2019 YTD, as many as 18 of the 20 stocks have generated gains, with performances led by ThaiBev, Olam Int &amp; Genting SG. 
	 </li>
	<li>The median P/E of the Liquid 20 constituents is 17.6x and compares to 17.3x for the top quartile of Consumer Goods &amp; Services stocks by Market Cap, across the stock markets of Japan, Hong Kong, Taiwan, Korea, Australia and New Zealand.</li>
</ul>
 

Singapore’s offering of listed companies that represent the Consumer Goods &amp; Services industries are highly diversified by their scope of consumer business, in addition to their geographical exposures. As discussed <a href="https://www2.sgx.com/research-education/market-updates/20190219-five-largest-best-performing-fb-stocks-avg-20-ytd-total">here</a>, Singapore Exchange lists more than 140 consumer stocks with a combined market capitalisation of over S$130 billion.

Within the Consumer Goods &amp; Services industries are 20 stocks that have passed free float, capitalisation and liquidity screens at the last FTSE ST All-Share Index and FTSE ST Consumer Goods &amp; Services Liquid 20 Index  rebalance. The relevant 20 stocks must have been selected as constituents of the FTSE ST All-Share Index and aside from the Sector representation, maintained the highest median traded values for the past 12 months at the time of the previous Index review.

For the 2019 year through to 18 Feb, the FTSE ST Consumer Goods &amp; Services Liquid 20 Index generated a 9.9% total return, a turnaround from its 9.2% decline in 2018. 

In the 2019 year-to-date, as many as 18 of the 20 stocks have generated gains, with performances led by Thai Beverage PCL, Olam International and Genting Singapore. These three stocks averaged a gain of 22.2%. The three least performing stocks of the Index in the 2019 year-to-date were mm2 Asia, Dairy Farm International Holdings and Mandarin Oriental International with an average decline of 2.7% (in SGD terms).

The 10 largest of the 20 stocks of the FTSE ST Consumer Goods &amp; Services Liquid 20 Index are tabled below. 

<table class="table table-striped"><tbody>
<tr>
<td>
			10 Largest Weights of the

			FTSE ST Consumer Goods &amp; Services Liquid 20 Index
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap S$M
			</td>
			<td>
			2016 Total Returns (%)
			</td>
			<td>
			2017 

			Total Returns (%)
			</td>
			<td>
			2018 Total Return (%)
			</td>
			<td>
			2019 YTD Return (%)
			</td>
			<td>
			Dividend Yield 

			(%)
			</td>
		</tr>
<tr>
<td>
			Wilmar International
			</td>
			<td>
			F34
			</td>
			<td>
			21,259
			</td>
			<td>
			25.0
			</td>
			<td>
			-12.1
			</td>
			<td>
			4.3
			</td>
			<td>
			7.7
			</td>
			<td>
			3.2
			</td>
		</tr>
<tr>
<td>
			Thai Beverage PCL
			</td>
			<td>
			Y92
			</td>
			<td>
			20,593
			</td>
			<td>
			27.2
			</td>
			<td>
			11.3
			</td>
			<td>
			-31.7
			</td>
			<td>
			36.3
			</td>
			<td>
			2.0
			</td>
		</tr>
<tr>
<td>
			Dairy Farm International
			</td>
			<td>
			D01
			</td>
			<td>
			16,472
			</td>
			<td>
			21.5
			</td>
			<td>
			3.5
			</td>
			<td>
			20.4
			</td>
			<td>
			-1.3
			</td>
			<td>
			2.4
			</td>
		</tr>
<tr>
<td>
			Jardine Cycle &amp; Carriage
			</td>
			<td>
			C07
			</td>
			<td>
			14,517
			</td>
			<td>
			21.6
			</td>
			<td>
			1.0
			</td>
			<td>
			-10.0
			</td>
			<td>
			3.9
			</td>
			<td>
			3.2
			</td>
		</tr>
<tr>
<td>
			Genting Singapore
			</td>
			<td>
			G13
			</td>
			<td>
			13,249
			</td>
			<td>
			22.0
			</td>
			<td>
			48.6
			</td>
			<td>
			-23.2
			</td>
			<td>
			12.8
			</td>
			<td>
			3.2
			</td>
		</tr>
<tr>
<td>
			Singapore Airlines
			</td>
			<td>
			C6L
			</td>
			<td>
			11,777
			</td>
			<td>
			-10.0
			</td>
			<td>
			12.5
			</td>
			<td>
			-8.2
			</td>
			<td>
			5.6
			</td>
			<td>
			3.8
			</td>
		</tr>
<tr>
<td>
			Olam International
			</td>
			<td>
			O32
			</td>
			<td>
			6,174
			</td>
			<td>
			12.2
			</td>
			<td>
			6.5
			</td>
			<td>
			-15.9
			</td>
			<td>
			17.6
			</td>
			<td>
			3.9
			</td>
		</tr>
<tr>
<td>
			ComfortDelGro
			</td>
			<td>
			C52
			</td>
			<td>
			5,218
			</td>
			<td>
			-16.3
			</td>
			<td>
			-16.4
			</td>
			<td>
			13.7
			</td>
			<td>
			12.1
			</td>
			<td>
			4.4
			</td>
		</tr>
<tr>
<td>
			Singapore Press Holdings
			</td>
			<td>
			T39
			</td>
			<td>
			4,011
			</td>
			<td>
			-6.1
			</td>
			<td>
			-21.0
			</td>
			<td>
			-6.9
			</td>
			<td>
			6.8
			</td>
			<td>
			3.6
			</td>
		</tr>
<tr>
<td>
			Golden-Agri Resources
			</td>
			<td>
			E5H
			</td>
			<td>
			3,247
			</td>
			<td>
			28.0
			</td>
			<td>
			-10.8
			</td>
			<td>
			-33.6
			</td>
			<td>
			4.1
			</td>
			<td>
			0.5
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td> </td>
			<td> </td>
			<td>
			12.5
			</td>
			<td>
			2.3
			</td>
			<td>
			-9.1
			</td>
			<td>
			10.6
			</td>
			<td>
			3.0
			</td>
		</tr>
</tbody></table>
Source: SGX StockFacts and Bloomberg (Data as of 18 February 2019)

The median Price-to-Earnings (“P/E”) ratio of the 20 FTSE ST Consumer Goods &amp; Services Liquid 20 Index is 17.6x. This compares to 17.3x for the top quartile of Consumer Goods &amp; Services stocks by market capitalisation, across the stock markets of Japan, Hong Kong, Taiwan, Korea, Australia and New Zealand.

By the same measure, the FTSE ST Consumer Goods &amp; Services Liquid 20 Index constituents also maintain comparatively similar median 12 month Return On Equity (“ROE”) ratios to the region.

FTSE ST Consumer Goods &amp; Services Liquid 20 Index Methodology

The key steps for Index inclusion are explained in more detail <a href="https://www.ftse.com/products/downloads/FTSE_ST_Index_Series.pdf?18">here</a>, however in summary involves the following:

<ul>
<li>The FTSE ST Consumer Goods &amp; Services Liquid 20 Index is comprised of 20  stocks that represent either the ICB Consumer Goods or the ICB Consumer Services Industries that are also a part of the FTSE ST All-Share Index. 
	 </li>
	<li>For inclusion at the March and September review a stock must have traded for at least 60 or more days in the last 252 trading days prior to the data cut-off date to be considered for inclusion. 
	 </li>
	<li>For each stock in the underlying index, the traded value for the last 252 trading days is calculated and includes days on which a stock is suspended. The median value is then taken with the Median Traded values of potential stocks sorted in descending order, the top 20 liquid stocks are then selected.</li>
</ul>
</body></html>





The FTSE ST Consumer Goods &amp; Services Liquid 20 Index comprises the 20 most liquid Consumer Goods &amp; Services stocks within the FTSE ST All Share Index. Constituent liquidity is assessed at periodical Index reviews and ranked by preceding 12M traded values.   
	 
	
For 2019 YTD, the FTSE ST Consumer Goods &amp; Services Liquid 20 Index generated a 9.9% total return, a turnaround from its 9.2% decline in 2018. In 2019 YTD, as many as 18 of the 20 stocks have generated gains, with performances led by ThaiBev, Olam Int &amp; Genting SG. 
	 
	The median P/E of the Liquid 20 constituents is 17.6x and compares to 17.3x for the top quartile of Consumer Goods &amp; Services stocks by Market Cap, across the stock markets of Japan, Hong Kong, Taiwan, Korea, Australia and New Zealand.

 

Singapore’s offering of listed companies that represent the Consumer Goods &amp; Services industries are highly diversified by their scope of consumer business, in addition to their geographical exposures. As discussed here, Singapore Exchange lists more than 140 consumer stocks with a combined market capitalisation of over S$130 billion.

Within the Consumer Goods &amp; Services industries are 20 stocks that have passed free float, capitalisation and liquidity screens at the last FTSE ST All-Share Index and FTSE ST Consumer Goods &amp; Services Liquid 20 Index  rebalance. The relevant 20 stocks must have been selected as constituents of the FTSE ST All-Share Index and aside from the Sector representation, maintained the highest median traded values for the past 12 months at the time of the previous Index review.

For the 2019 year through to 18 Feb, the FTSE ST Consumer Goods &amp; Services Liquid 20 Index generated a 9.9% total return, a turnaround from its 9.2% decline in 2018. 

In the 2019 year-to-date, as many as 18 of the 20 stocks have generated gains, with performances led by Thai Beverage PCL, Olam International and Genting Singapore. These three stocks averaged a gain of 22.2%. The three least performing stocks of the Index in the 2019 year-to-date were mm2 Asia, Dairy Farm International Holdings and Mandarin Oriental International with an average decline of 2.7% (in SGD terms).

The 10 largest of the 20 stocks of the FTSE ST Consumer Goods &amp; Services Liquid 20 Index are tabled below. 




			10 Largest Weights of the

			FTSE ST Consumer Goods &amp; Services Liquid 20 Index
			
			
			SGX Code
			
			
			Market Cap S$M
			
			
			2016 Total Returns (%)
			
			
			2017 

			Total Returns (%)
			
			
			2018 Total Return (%)
			
			
			2019 YTD Return (%)
			
			
			Dividend Yield 

			(%)
			
		


			Wilmar International
			
			
			F34
			
			
			21,259
			
			
			25.0
			
			
			-12.1
			
			
			4.3
			
			
			7.7
			
			
			3.2
			
		


			Thai Beverage PCL
			
			
			Y92
			
			
			20,593
			
			
			27.2
			
			
			11.3
			
			
			-31.7
			
			
			36.3
			
			
			2.0
			
		


			Dairy Farm International
			
			
			D01
			
			
			16,472
			
			
			21.5
			
			
			3.5
			
			
			20.4
			
			
			-1.3
			
			
			2.4
			
		


			Jardine Cycle &amp; Carriage
			
			
			C07
			
			
			14,517
			
			
			21.6
			
			
			1.0
			
			
			-10.0
			
			
			3.9
			
			
			3.2
			
		


			Genting Singapore
			
			
			G13
			
			
			13,249
			
			
			22.0
			
			
			48.6
			
			
			-23.2
			
			
			12.8
			
			
			3.2
			
		


			Singapore Airlines
			
			
			C6L
			
			
			11,777
			
			
			-10.0
			
			
			12.5
			
			
			-8.2
			
			
			5.6
			
			
			3.8
			
		


			Olam International
			
			
			O32
			
			
			6,174
			
			
			12.2
			
			
			6.5
			
			
			-15.9
			
			
			17.6
			
			
			3.9
			
		


			ComfortDelGro
			
			
			C52
			
			
			5,218
			
			
			-16.3
			
			
			-16.4
			
			
			13.7
			
			
			12.1
			
			
			4.4
			
		


			Singapore Press Holdings
			
			
			T39
			
			
			4,011
			
			
			-6.1
			
			
			-21.0
			
			
			-6.9
			
			
			6.8
			
			
			3.6
			
		


			Golden-Agri Resources
			
			
			E5H
			
			
			3,247
			
			
			28.0
			
			
			-10.8
			
			
			-33.6
			
			
			4.1
			
			
			0.5
			
		


			Average
			
			 
			 
			
			12.5
			
			
			2.3
			
			
			-9.1
			
			
			10.6
			
			
			3.0
			
		

Source: SGX StockFacts and Bloomberg (Data as of 18 February 2019)

The median Price-to-Earnings (“P/E”) ratio of the 20 FTSE ST Consumer Goods &amp; Services Liquid 20 Index is 17.6x. This compares to 17.3x for the top quartile of Consumer Goods &amp; Services stocks by market capitalisation, across the stock markets of Japan, Hong Kong, Taiwan, Korea, Australia and New Zealand.

By the same measure, the FTSE ST Consumer Goods &amp; Services Liquid 20 Index constituents also maintain comparatively similar median 12 month Return On Equity (“ROE”) ratios to the region.

FTSE ST Consumer Goods &amp; Services Liquid 20 Index Methodology

The key steps for Index inclusion are explained in more detail here, however in summary involves the following:


The FTSE ST Consumer Goods &amp; Services Liquid 20 Index is comprised of 20  stocks that represent either the ICB Consumer Goods or the ICB Consumer Services Industries that are also a part of the FTSE ST All-Share Index. 
	 
	For inclusion at the March and September review a stock must have traded for at least 60 or more days in the last 252 trading days prior to the data cut-off date to be considered for inclusion. 
	 
	For each stock in the underlying index, the traded value for the last 252 trading days is calculated and includes days on which a stock is suspended. The median value is then taken with the Median Traded values of potential stocks sorted in descending order, the top 20 liquid stocks are then selected.




Liquidity-themed Consumer Sector Index Posts 10% YTD Gain    

Singapore

Olam Group Limited is a global food and agri-business that sources, processes, packages, and merchandises agricultural products. It offers a wide range of food ingredients, feed, and fiber, including cocoa, coffee, nuts, spices, grains, and edible oils, as well as packaged foods. The company was founded in 1989 and is headquartered in Singapore.

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Olam (OLG 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)

Singapore’s Largest Consumer Staples Stocks Returned 34% in YTD

In 1Q2019, Consumer Staples was the second-best performing sector with +13.9% total return, reversing the -2.9% total return in calendar year...

Singapore Exchange Ltd (SGX)

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)

Liquidity-themed Consumer Sector Index Posts 10% YTD Gain

The FTSE ST Consumer Goods & Services Liquid 20 Index comprises the 20 most liquid Consumer Goods & Services stocks within the FTSE ST...

Singapore Exchange Ltd (SGX)

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25 Companies Conducted Share Buybacks in June

In June 2019, 25 primary-listed stocks on SGX repurchased close to 40 million shares with a total consideration of S$55 million. This was down...

Singapore Exchange Ltd (SGX)

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)

Singapore’s Largest Consumer Staples Stocks Returned 34% in YTD

In 1Q2019, Consumer Staples was the second-best performing sector with +13.9% total return, reversing the -2.9% total return in calendar year...

Singapore Exchange Ltd (SGX)

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)

Liquidity-themed Consumer Sector Index Posts 10% YTD Gain

The FTSE ST Consumer Goods & Services Liquid 20 Index comprises the 20 most liquid Consumer Goods & Services stocks within the FTSE ST...

Singapore Exchange Ltd (SGX)