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

China Everbright Water / Equity Bottom-Up

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The Utilities Sector is typically made up of stocks that provide gas, electricity or water, with population growth the underlying driver of demand for these services.  As a result, the sector has traditionally been seen as more defensive than cyclical in nature. 
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SGX’s Utilities Sector was the top performing sector in September 2019, generating a total return of 3.7%. It outperformed total returns of 2.2% for Banks, 1.4% for Real Estate (excluding REITs), 1.3% for Technology and 1.0% for REITs for the month. 
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In the YTD, the three largest, best-performing Utilities stocks were: China Jinjiang Environment (+28.3%), Keppel Infrastructure Trust (+21.5%) and China Everbright Water (+8.7%). The trio averaged a YTD total return of +19.5%, bringing their 1Y total return to +12.5%. 
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The Utilities Sector is typically made up of stocks that provide gas, electricity or water, with population growth the underlying driver of demand for these services.  As a result, the sector has traditionally been seen as more defensive than cyclical in nature. Against a backdrop of increasing geopolitical uncertainty, market volatility and slowing global growth, analysts are recommending that investors include high-yielding, defensive stocks in their portfolios.

SGX’s Utilities Sector was the top performing sector in September 2019, generating a total return of 3.7%. It outperformed total returns of 2.2% for Banks, 1.4% for Real Estate (excluding REITs), 1.3% for Technology and 1.0% for REITs.
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 <img src='https://api2.sgx.com/sites/default/files/2019-10/Sept%202019%20Total%20Returns.png' alt='Sept 2019 Total Returns' />
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 <div class='content-caption'>Sept 2019 Total Returns</div>
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Source: SGX data 
 

Between January and September 2019, Utilities was the fourth-best performing sector on SGX with a total return of 14.8%, after total returns of 42.1% for Technology, 24.2% for REITs, and 17.8% for Consumer Non-Cyclicals.
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 <img src='https://api2.sgx.com/sites/default/files/2019-10/9M2019%20Total%20Returns%20Utilities.png' alt='9M2019 Utilities TR' />
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 <div class='content-caption'>9M2019 Utilities TR</div>
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Source: SGX data

 

SGX’s largest capitalised Utilities plays are Sembcorp Industries (whose Energy and Power operations account for more than 60% of group revenue), Keppel Infrastructure Trust, China Everbright Water, China Jinjiang Environment, CITIC Environment and SIIC Environment. These six stocks have a combined market capitalisation of almost S$10 billion.

In the 2019 year-to-date, the three largest, best-performing Utilities stocks were: China Jinjiang Environment (+28.3%), Keppel Infrastructure Trust (+21.5%) and China Everbright Water (+8.7%). The trio have averaged a YTD total return of +19.5%, bringing their one-year total return to +12.5%.

The table below details the six largest Utilities 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>
		</tr>
<tr>
<td>
			CHINA JINJIANG ENVIRONMENT
			</td>
			<td>
			BWM
			</td>
			<td>
			859
			</td>
			<td>
			28.3
			</td>
			<td>
			25.5
			</td>
		</tr>
<tr>
<td>
			KEPPEL INFRASTRUCTURE TRUST
			</td>
			<td>
			A7RU
			</td>
			<td>
			2,747
			</td>
			<td>
			21.5
			</td>
			<td>
			21.3
			</td>
		</tr>
<tr>
<td>
			CHINA EVERBRIGHT WATER
			</td>
			<td>
			U9E
			</td>
			<td>
			886
			</td>
			<td>
			8.7
			</td>
			<td>
			-9.4
			</td>
		</tr>
<tr>
<td>
			SIIC ENVIRONMENT
			</td>
			<td>
			BHK
			</td>
			<td>
			638
			</td>
			<td>
			-11.6
			</td>
			<td>
			3.4
			</td>
		</tr>
<tr>
<td>
			SEMBCORP INDUSTRIES
			</td>
			<td>
			U96
			</td>
			<td>
			3,753
			</td>
			<td>
			-16.8
			</td>
			<td>
			-28.4
			</td>
		</tr>
<tr>
<td>
			CITIC ENVIROTECH
			</td>
			<td>
			CEE
			</td>
			<td>
			742
			</td>
			<td>
			-19.5
			</td>
			<td>
			-36.2
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 18 Oct 2019)

 

In July 2017, SGX’s Utilities Sector saw a new addition with the Catalist listing of Union Gas Holdings. Union Gas, with a market cap of S$56 million, is an established provider of fuel products in Singapore, with over 40 years of operating track record in the business of Retail LPG, CNG and Diesel. In the YTD, the stock has generated a total return of 8.4%.
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The Utilities Sector is typically made up of stocks that provide gas, electricity or water, with population growth the underlying driver of demand for these services.  As a result, the sector has traditionally been seen as more defensive than cyclical in nature. 
	 
	
SGX’s Utilities Sector was the top performing sector in September 2019, generating a total return of 3.7%. It outperformed total returns of 2.2% for Banks, 1.4% for Real Estate (excluding REITs), 1.3% for Technology and 1.0% for REITs for the month. 
	 
	
In the YTD, the three largest, best-performing Utilities stocks were: China Jinjiang Environment (+28.3%), Keppel Infrastructure Trust (+21.5%) and China Everbright Water (+8.7%). The trio averaged a YTD total return of +19.5%, bringing their 1Y total return to +12.5%. 
	 

The Utilities Sector is typically made up of stocks that provide gas, electricity or water, with population growth the underlying driver of demand for these services.  As a result, the sector has traditionally been seen as more defensive than cyclical in nature. Against a backdrop of increasing geopolitical uncertainty, market volatility and slowing global growth, analysts are recommending that investors include high-yielding, defensive stocks in their portfolios.

SGX’s Utilities Sector was the top performing sector in September 2019, generating a total return of 3.7%. It outperformed total returns of 2.2% for Banks, 1.4% for Real Estate (excluding REITs), 1.3% for Technology and 1.0% for REITs.



      
    
    Sept 2019 Total Returns


Source: SGX data 
 

Between January and September 2019, Utilities was the fourth-best performing sector on SGX with a total return of 14.8%, after total returns of 42.1% for Technology, 24.2% for REITs, and 17.8% for Consumer Non-Cyclicals.



      
    
    9M2019 Utilities TR


Source: SGX data

 

SGX’s largest capitalised Utilities plays are Sembcorp Industries (whose Energy and Power operations account for more than 60% of group revenue), Keppel Infrastructure Trust, China Everbright Water, China Jinjiang Environment, CITIC Environment and SIIC Environment. These six stocks have a combined market capitalisation of almost S$10 billion.

In the 2019 year-to-date, the three largest, best-performing Utilities stocks were: China Jinjiang Environment (+28.3%), Keppel Infrastructure Trust (+21.5%) and China Everbright Water (+8.7%). The trio have averaged a YTD total return of +19.5%, bringing their one-year total return to +12.5%.

The table below details the six largest Utilities stocks on SGX, sorted by YTD total return.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
		


			CHINA JINJIANG ENVIRONMENT
			
			
			BWM
			
			
			859
			
			
			28.3
			
			
			25.5
			
		


			KEPPEL INFRASTRUCTURE TRUST
			
			
			A7RU
			
			
			2,747
			
			
			21.5
			
			
			21.3
			
		


			CHINA EVERBRIGHT WATER
			
			
			U9E
			
			
			886
			
			
			8.7
			
			
			-9.4
			
		


			SIIC ENVIRONMENT
			
			
			BHK
			
			
			638
			
			
			-11.6
			
			
			3.4
			
		


			SEMBCORP INDUSTRIES
			
			
			U96
			
			
			3,753
			
			
			-16.8
			
			
			-28.4
			
		


			CITIC ENVIROTECH
			
			
			CEE
			
			
			742
			
			
			-19.5
			
			
			-36.2
			
		

Source: Bloomberg &amp; StockFacts (data as of 18 Oct 2019)

 

In July 2017, SGX’s Utilities Sector saw a new addition with the Catalist listing of Union Gas Holdings. Union Gas, with a market cap of S$56 million, is an established provider of fuel products in Singapore, with over 40 years of operating track record in the business of Retail LPG, CNG and Diesel. In the YTD, the stock has generated a total return of 8.4%.



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