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.

Asia’s leading multi-asset exchange

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

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

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<ul>
<li>
10 Energy-related stocks ranked amongst Singapore’s most traded 200 stocks of 2019, generating a median total return of 23% for the year. The 10 stocks maintain a combined market capitalisation of S$24 billion, and contributed close to S$50 million in daily turnover in 2019. 
	 </li>
	<li>
The 10 Energy-related stocks also saw 40% median volatility in 2019, with the second-best performer of the group in 2019, Interra, seeing the highest volatility. Interra’s price gains coincided with drilling updates on the Kuala Pambuang exploration well in 4Q19. 
	 </li>
	<li>Rex and Sunpower were also amongst the strongest gainers in 2019.  Rex is a developer of proprietary technology, with oil exploration interests in Oman and Norway. Sunpower is an environmental protection solutions specialist with established manufacturing &amp; services arm.</li>
</ul>
Last year, the price of WTI Crude Oil ended near US$61/bbl, up from US$45/bbl at the end of 2018. Presently the WTI Crude Oil price is at US$59/bbl with short term to longer term annualised volatility gauges, all above broader market averages, near 35%. Similarly, Singapore’s 10 most Energy-related stocks that ranked amongst its 200 most traded stocks of 2019, generated median volatility near 40% last year.  These 10 stocks generated a median total return of 23% in 2019 with the skewed average total return at 64%. There were eight gainers amongst the 10 stocks and two decliners for the year.

Combined, the 10 stocks maintain a market capitalisation of S$24 billion, whilst their combined day-to-day trading turnover in 2019 was close to S$50 million. This means that as of the end of 2019, the 10 stocks made up 2.6% of the total market capitalisation of all stocks listed in Singapore, while contributing 4.6% of the 2019 average daily turnover. The 10 most energy-related stocks that ranked amongst the 200 most traded stocks of 2019 are tabled below, and sort by average daily turnover in 2019.

<table class="table table-striped"><tbody>
<tr>
<td>
			Energy-related Stocks amongst 200 Most traded stocks in 2019 
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Mkt Cap ($M)
			</td>
			<td>
			2019 Volatility
			</td>
			<td>
			2019 Price Change
			</td>
			<td>
			2019 Total Return
			</td>
			<td>
			2020 Price Return YTD
			</td>
			<td>
			2019 Average Daily Turnover (S$M)
			</td>
		</tr>
<tr>
<td>
			KEPPEL CORP
			</td>
			<td>
			BN4
			</td>
			<td>
			12,460
			</td>
			<td>
			21%
			</td>
			<td>
			15%
			</td>
			<td>
			19%
			</td>
			<td>
			1%
			</td>
			<td>
			21.7
			</td>
		</tr>
<tr>
<td>
			SEMBCORP INDUSTRIES
			</td>
			<td>
			U96
			</td>
			<td>
			4,141
			</td>
			<td>
			23%
			</td>
			<td>
			-10%
			</td>
			<td>
			-8%
			</td>
			<td>
			1%
			</td>
			<td>
			8.0
			</td>
		</tr>
<tr>
<td>
			SEMBCORP MARINE
			</td>
			<td>
			S51
			</td>
			<td>
			2,782
			</td>
			<td>
			33%
			</td>
			<td>
			-14%
			</td>
			<td>
			-14%
			</td>
			<td>
			1%
			</td>
			<td>
			7.8
			</td>
		</tr>
<tr>
<td>
			REX INTERNATIONAL HOLDING
			</td>
			<td>
			5WH
			</td>
			<td>
			245
			</td>
			<td>
			66%
			</td>
			<td>
			273%
			</td>
			<td>
			273%
			</td>
			<td>
			-8%
			</td>
			<td>
			4.8
			</td>
		</tr>
<tr>
<td>
			KEPPEL INFRASTRUCTURE TRUST
			</td>
			<td>
			A7RU
			</td>
			<td>
			2,697
			</td>
			<td>
			16%
			</td>
			<td>
			13%
			</td>
			<td>
			21%
			</td>
			<td>
			0%
			</td>
			<td>
			3.8
			</td>
		</tr>
<tr>
<td>
			SUNPOWER GROUP
			</td>
			<td>
			5GD
			</td>
			<td>
			503
			</td>
			<td>
			48%
			</td>
			<td>
			91%
			</td>
			<td>
			92%
			</td>
			<td>
			0%
			</td>
			<td>
			1.1
			</td>
		</tr>
<tr>
<td>
			CHINA AVIATION OIL SINGAPORE
			</td>
			<td>
			G92
			</td>
			<td>
			1,092
			</td>
			<td>
			25%
			</td>
			<td>
			20%
			</td>
			<td>
			24%
			</td>
			<td>
			0%
			</td>
			<td>
			0.9
			</td>
		</tr>
<tr>
<td>
			GSS ENERGY
			</td>
			<td>
			41F
			</td>
			<td>
			52
			</td>
			<td>
			50%
			</td>
			<td>
			14%
			</td>
			<td>
			14%
			</td>
			<td>
			0%
			</td>
			<td>
			0.5
			</td>
		</tr>
<tr>
<td>
			DYNA-MAC HOLDINGS
			</td>
			<td>
			NO4
			</td>
			<td>
			157
			</td>
			<td>
			60%
			</td>
			<td>
			47%
			</td>
			<td>
			47%
			</td>
			<td>
			-9%
			</td>
			<td>
			0.3
			</td>
		</tr>
<tr>
<td>
			INTERRA RESOURCES
			</td>
			<td>
			5GI
			</td>
			<td>
			48
			</td>
			<td>
			100%
			</td>
			<td>
			174%
			</td>
			<td>
			174%
			</td>
			<td>
			-4%
			</td>
			<td>
			0.1
			</td>
		</tr>
<tr>
<td>
			Median
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			41%
			</td>
			<td>
			17%
			</td>
			<td>
			23%
			</td>
			<td>
			0%
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
 Source: SGX StockFacts, Thomson Reuters, Bloomberg (Data as of 10 January 2020)

The three strongest performers of the 10 energy-related stocks in 2019 were Rex International, Interra Resources and Sunpower Group.

<ul>
<li>
Rex International is listed on Catalist and went into 2019 outside Singapore’s top 400 stocks by market capitalisation.  The stock was amongst Singapore’s 50 most traded stocks in 2019 and ended the year amongst Singapore’s 200 largest stocks by market capitalisation. Rex International is a developer of proprietary technology with oil exploration interests in Oman and Norway.  The company registered profit after tax of US$25.9 million in 9MFY19 (ended 30 Sep), as compared to loss after tax of US$6.6 million in 9MFY19. For more information click <a href="https://links.sgx.com/1.0.0/corporate-announcements/PF09ZWPF0V9USXE2/7278d6d51712d05807fe29b62e9f33eae97f7ffd89e435bebb77a74eff164f06">here</a>. 
	 </li>
	<li>
Interra Resources exploration and production activities span South-East Asia and the stock generated its 2019 price gains in its 4QFY19. For its 9MFY19 (ended 30 Sep), Interra Resources reported its revenue was up 5% YoY at US$11.7 million with a net loss of US$1.1 million, compared to a net profit of US$1.2 million in 9MFY18. Interra Resources’ most recent  Kuala Pambuang Exploration Project Update was on 11 December (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/8TOXDTUE0FZ3T0DB/faa31f58b22785ddba68c3250e20cd1e87b2ac749d6e8bdcd42f0bf23c775560">here</a>) and the most recent Myanmar Chauk Development Well Drilling commencement update was on 31 December (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/J7JVD7APRRM4KRYD/6e58f6613410209621baab9be0490c8e97f8c3b4d15e8ce5425ccc5b17a217bf">here</a>). For more information on Interra Resources click <a href="https://links.sgx.com/1.0.0/corporate-announcements/Z9PZ6YXE2CZMBFA2/96fff0a268296622b0f53b9189cfad80dd15e9cd9f080057d676bf094ad26555">here</a>. 
	 </li>
	<li>
Sunpower Group is an environmental protection solutions specialist with established Manufacturing &amp; Services business, expanding into anti-pollution investment projects (Green Investments). On 18 December the company announced it had made its first-ever entry into the China Energy Group Top 500 List. Sunpower's Green Investments business operates plants that generate steam, heat and electricity.  The Green Investments segment contributed 26% (8% in FY17) of FY18 group revenue and 46% (22% in FY17) of FY18 operating profit.  The company reported 47% YoY growth in underlying net profit for its 9MFY19 (ended 30 Sep) and is expected to report FY19 results in the last week of February. For more information click <a href="https://links.sgx.com/1.0.0/corporate-announcements/5MAY2V9ODV8PQD67/5c0c649f9357d2b3eeb63402b6ccb33c4ae00f4326c405b39699fa3555481379">here</a>. </li>
</ul>
 

Note a key risk of the traditional exploration &amp; production businesses is that there are no guarantees that a company exploring for oil and gas will find anything of value. The consequence of a failed exploration program is a financial loss. This means companies may undergo long periods of time without economic realisation, and may return to the market for several rounds of fund raising for further project development. Exploration success by discovering a new oil or gas field, or extending an existing field, generates an asset that adds value to a company.

Last year, global stocks involved in exploration &amp; production, integrated oil operations, midstream oil and gas, oil and gas services and equipment in addition to renewable energy, generated a median decline in total return of 4%, with Singapore stocks of the same genre in-line with a 5% decline.

Singapore is a focal point for the oil and gas industry, as Asia’s largest physical oil trading hub and price discovery centre. Last year the world’s two largest capitalised Energy stocks, ExxonMobil and Royal Dutch Shell, announced expansions in Singapore operations, with ExxonMobil expanding its refinery at Jurong to upgrade oil-based production &amp; Shell increasing its storage capacity at Bukom.
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10 Energy-related stocks ranked amongst Singapore’s most traded 200 stocks of 2019, generating a median total return of 23% for the year. The 10 stocks maintain a combined market capitalisation of S$24 billion, and contributed close to S$50 million in daily turnover in 2019. 
	 
	
The 10 Energy-related stocks also saw 40% median volatility in 2019, with the second-best performer of the group in 2019, Interra, seeing the highest volatility. Interra’s price gains coincided with drilling updates on the Kuala Pambuang exploration well in 4Q19.  
	 
	Rex and Sunpower were also amongst the strongest gainers in 2019.  Rex is a developer of proprietary technology, with oil exploration interests in Oman and Norway. Sunpower is an environmental protection solutions specialist with established manufacturing &amp; services arm.

Last year, the price of WTI Crude Oil ended near US$61/bbl, up from US$45/bbl at the end of 2018. Presently the WTI Crude Oil price is at US$59/bbl with short term to longer term annualised volatility gauges, all above broader market averages, near 35%. Similarly, Singapore’s 10 most Energy-related stocks that ranked amongst its 200 most traded stocks of 2019, generated median volatility near 40% last year.  These 10 stocks generated a median total return of 23% in 2019 with the skewed average total return at 64%. There were eight gainers amongst the 10 stocks and two decliners for the year.

Combined, the 10 stocks maintain a market capitalisation of S$24 billion, whilst their combined day-to-day trading turnover in 2019 was close to S$50 million. This means that as of the end of 2019, the 10 stocks made up 2.6% of the total market capitalisation of all stocks listed in Singapore, while contributing 4.6% of the 2019 average daily turnover. The 10 most energy-related stocks that ranked amongst the 200 most traded stocks of 2019 are tabled below, and sort by average daily turnover in 2019.




			Energy-related Stocks amongst 200 Most traded stocks in 2019 
			
			
			SGX Code
			
			
			Mkt Cap ($M)
			
			
			2019 Volatility
			
			
			2019 Price Change
			
			
			2019 Total Return
			
			
			2020 Price Return YTD
			
			
			2019 Average Daily Turnover (S$M)
			
		


			KEPPEL CORP
			
			
			BN4
			
			
			12,460
			
			
			21%
			
			
			15%
			
			
			19%
			
			
			1%
			
			
			21.7
			
		


			SEMBCORP INDUSTRIES
			
			
			U96
			
			
			4,141
			
			
			23%
			
			
			-10%
			
			
			-8%
			
			
			1%
			
			
			8.0
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			2,782
			
			
			33%
			
			
			-14%
			
			
			-14%
			
			
			1%
			
			
			7.8
			
		


			REX INTERNATIONAL HOLDING
			
			
			5WH
			
			
			245
			
			
			66%
			
			
			273%
			
			
			273%
			
			
			-8%
			
			
			4.8
			
		


			KEPPEL INFRASTRUCTURE TRUST
			
			
			A7RU
			
			
			2,697
			
			
			16%
			
			
			13%
			
			
			21%
			
			
			0%
			
			
			3.8
			
		


			SUNPOWER GROUP
			
			
			5GD
			
			
			503
			
			
			48%
			
			
			91%
			
			
			92%
			
			
			0%
			
			
			1.1
			
		


			CHINA AVIATION OIL SINGAPORE
			
			
			G92
			
			
			1,092
			
			
			25%
			
			
			20%
			
			
			24%
			
			
			0%
			
			
			0.9
			
		


			GSS ENERGY
			
			
			41F
			
			
			52
			
			
			50%
			
			
			14%
			
			
			14%
			
			
			0%
			
			
			0.5
			
		


			DYNA-MAC HOLDINGS
			
			
			NO4
			
			
			157
			
			
			60%
			
			
			47%
			
			
			47%
			
			
			-9%
			
			
			0.3
			
		


			INTERRA RESOURCES
			
			
			5GI
			
			
			48
			
			
			100%
			
			
			174%
			
			
			174%
			
			
			-4%
			
			
			0.1
			
		


			Median
			
			
			 
			
			
			 
			
			
			41%
			
			
			17%
			
			
			23%
			
			
			0%
			
			
			 
			
		

 Source: SGX StockFacts, Thomson Reuters, Bloomberg (Data as of 10 January 2020)

The three strongest performers of the 10 energy-related stocks in 2019 were Rex International, Interra Resources and Sunpower Group.



Rex International is listed on Catalist and went into 2019 outside Singapore’s top 400 stocks by market capitalisation.  The stock was amongst Singapore’s 50 most traded stocks in 2019 and ended the year amongst Singapore’s 200 largest stocks by market capitalisation. Rex International is a developer of proprietary technology with oil exploration interests in Oman and Norway.  The company registered profit after tax of US$25.9 million in 9MFY19 (ended 30 Sep), as compared to loss after tax of US$6.6 million in 9MFY19. For more information click here. 
	 
	
Interra Resources exploration and production activities span South-East Asia and the stock generated its 2019 price gains in its 4QFY19. For its 9MFY19 (ended 30 Sep), Interra Resources reported its revenue was up 5% YoY at US$11.7 million with a net loss of US$1.1 million, compared to a net profit of US$1.2 million in 9MFY18. Interra Resources’ most recent  Kuala Pambuang Exploration Project Update was on 11 December (click here) and the most recent Myanmar Chauk Development Well Drilling commencement update was on 31 December (click here). For more information on Interra Resources click here. 
	 
	
Sunpower Group is an environmental protection solutions specialist with established Manufacturing &amp; Services business, expanding into anti-pollution investment projects (Green Investments). On 18 December the company announced it had made its first-ever entry into the China Energy Group Top 500 List. Sunpower's Green Investments business operates plants that generate steam, heat and electricity.  The Green Investments segment contributed 26% (8% in FY17) of FY18 group revenue and 46% (22% in FY17) of FY18 operating profit.  The company reported 47% YoY growth in underlying net profit for its 9MFY19 (ended 30 Sep) and is expected to report FY19 results in the last week of February. For more information click here. 

 

Note a key risk of the traditional exploration &amp; production businesses is that there are no guarantees that a company exploring for oil and gas will find anything of value. The consequence of a failed exploration program is a financial loss. This means companies may undergo long periods of time without economic realisation, and may return to the market for several rounds of fund raising for further project development. Exploration success by discovering a new oil or gas field, or extending an existing field, generates an asset that adds value to a company.

Last year, global stocks involved in exploration &amp; production, integrated oil operations, midstream oil and gas, oil and gas services and equipment in addition to renewable energy, generated a median decline in total return of 4%, with Singapore stocks of the same genre in-line with a 5% decline.

Singapore is a focal point for the oil and gas industry, as Asia’s largest physical oil trading hub and price discovery centre. Last year the world’s two largest capitalised Energy stocks, ExxonMobil and Royal Dutch Shell, announced expansions in Singapore operations, with ExxonMobil expanding its refinery at Jurong to upgrade oil-based production &amp; Shell increasing its storage capacity at Bukom.



2019年に最も活発なエネルギー関連株の中央値上昇率は23% 

Sembcorp Industries

2019年に最も活発なエネルギー関連株の中央値上昇率は23%