Billionaire stocks on SGX average 23.1% total returns in 2017

Singapore now has 105 stocks with market capitalisation above S$1 billion, the Singapore Exchange (SGX) said on Dec 13, 2017. PHOTO: ST FILE

SINGAPORE - Singapore now has 105 stocks with market capitalisation above S$1 billion, the Singapore Exchange (SGX) said on Wednesday (Dec 13).

So far this year, these billionaire stocks, which span both local and international businesses operating across a number of different sectors and industries, have averaged 23.1 per cent total returns, including dividends which are assumed to be re-invested.

This is in line with the performance of the Straits Times Index (STI), which generated a total return of 24.1 per cent for the same period.

Among the 105 stocks, 47 represented the real estate sector through developers, managers and trusts. Together these 47 averaged 25.5 per cent total returns in the year to date.

The group of 105 stocks include primary listings and the comparatively active secondary listings and hence do not include Prudential, Alibaba Pictures Group and Pan Ocean Co.

For the quarter so far, the billionaire stocks averaged total returns of 4.4 per cent, with 74 stocks posting gains, four stocks unchanged and 27 stocks declining.

The top billionaire performers in the quarter so far, as represented by those that were in the top 20 performance percentile, came from eight sectors, five cyclical and three defensive - healthcare, telecommunications and utilities.

This represents a broader base than the stocks that made up the top 20 performance percentile for the year to date, which came from five cyclical sectors: information technology, consumer discretionary, industrials, real estate and financials.

"This means that gains in the quarter to date have been more broad-based, and not limited to the cyclical sectors. Healthcare stock Top Glove Corporation Berhad gained 23 per cent in the December quarter, telecommunications services stock StarHub gained 16 per cent, while utilities stock AusNet Services gained 8 per cent," the SGX noted.

The three strongest billionaire stocks of the quarter were Cosco Shipping International (Singapore), Hi-P International and Oxley Holdings.

Cosco recently proposed to buy out logistics manager Cogent Holdings, following shareholder approval to sell shipyard assets which is expected to be completed by the end of this quarter.

The stock has gained 58 per cent in the quarter to date, taking its year-to-date total return to 60.7 per cent.

Cosco has stated the disposal of its shipyard businesses will enable the company to exit from a loss-making business and create opportunities to invest in new businesses that will support China's Belt and Road Initiative.

Hi-P International has been the strongest performer of the billionaire stocks in the year thus far, in addition to the second best performer in the final quarter to date.

For its third quarter ending Sept 30, the contract manufacturer and Apple supplier reported 25 per cent year-on-year growth in net profit.

The stock price has gained more than 200 per cent in the year to date, with a 30 per cent gain generated for the quarter to date.

Oxley Holdings, meanwhile, has gained 24 per cent so far this quarter.

The home-grown property developer, with a business presence in 12 geographical markets, reported on Nov 1 that its net profit of S$45.9 million for the first quarter grew 199 per cent year on year.

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