Post-Brexit rally boosts listed firms' market value

Singtel's market value has risen 1.2 per cent since June 30 to $66.6 billion.
Singtel's market value has risen 1.2 per cent since June 30 to $66.6 billion.PHOTO: REUTERS

Total cap rises to $860b, but oil and gas firms hard hit by volatility in the sector

The post-Brexit rally boosted the market value of the top listed companies here in July but the choppy business conditions took their toll on banks, and oil and gas firms.

When trading ended for the month yesterday, the total market capitalisation of companies listed on the Singapore Exchange rose 1.4 per cent from June to $860.43 billion.

The Singapore market's largest company by market cap, Singtel, saw its value edge up 1.2 per cent from June 30 to $66.6 billion. Its shares gained 1.2 per cent over the month to $4.18, part of the 1 per cent gain to the Straits Times Index in the same period.

Since the Brexit vote on June 23, the STI has put on some 4.9 per cent, joining the key global benchmarks in a multi-week run, including the Dow Jones Industrial Average, which has risen 6.1 per cent.

And as the capital flowed into the regional markets, dividend stocks such as telcos were among the favourite picks. Alongside Singtel, StarHub shares gained 3.4 per cent this month to $3.92, pushing its market cap up one spot to 23rd.

The top 10 market-cap positions were mostly unchanged from last month. Prudential remained in second place, with a market cap of $60.27 billion; Jardine Matheson Holdings was third at $57.01 billion, and Jardine Strategic Holdings fourth at $46.37 billion.

DBS, OCBC and United Overseas Bank came in fifth, sixth and seventh respectively, their market-cap positions unchanged from June.

  • 1.4% Rise in total market capitalisation of companies listed on the Singapore Exchange from June when trading ended for the month yesterday.

    4.9% Rise in STI since the Brexit vote on June 23. The STI joined the key global benchmarks in a multi-week run, including the Dow Jones Industrial Average.

DBS shares dropped 2.2 per cent from the end of last month to $15.41 yesterday, OCBC was down 1 per cent to $8.60 and UOB was off 1.2 per cent to $18.20.

The local banks are now facing scrutiny over their exposure to the oil and gas sector, with UOB and OCBC revealing further build-up of non-performing loans in their second-quarter results briefings this week.

DBS, which will announce its results on Aug 8, has also sparked concerns over its $700 million exposure to Swiber Holdings.

The offshore and marine sector itself continued to struggle. Keppel Corp shares shed 4.5 per cent this month to $5.25, pushing its market-cap position down three spots to 19th place at $9.55 billion.

Sembcorp Marine came in at 52nd - down six spots from last month - with a market cap of $2.95 billion, while its shares pared 9 per cent to $1.41.

Meanwhile, Thai Beverage stood out as the top-gaining blue chip this month, as investors cheered its efforts in broadening product range and deepening market share across South-east Asia. The counter rose 13.7 per cent to $1.035 at yesterday's close, with a market cap of $25.99 billion to put it in No. 8.

Wilmar International dropped one spot to 10th, with a market cap of $19.79 billion. Shares of the agri-business slipped 5.2 per cent this month to close at $3.09, following its recent warning that it may report a US$230 million net loss on Aug 11.

A version of this article appeared in the print edition of The Straits Times on July 30, 2016, with the headline 'Post-Brexit rally boosts listed firms' market value'. Print Edition | Subscribe