IT sector best performer on SGX with 29.8% total return for first 7 months

In July, Singapore's information technology saw a total return of 1.3 per cent but saw a net outflow of $57.6 million, according to the Singapore Exchange.
In July, Singapore's information technology saw a total return of 1.3 per cent but saw a net outflow of $57.6 million, according to the Singapore Exchange.PHOTO: ST FILE

SINGAPORE - Singapore's information technology (IT) sector was the best performing sector on the Singapore Exchange (SGX) for the first seven months of 2019, generating a total return of 29.8 per cent.

In July, the sector saw a total return of 1.3 per cent but saw a net outflow of $57.6 million, according to SGX's media statement on Tuesday (Aug 27).

The five largest IT plays with the highest dividend indicated yields are CSE Global at 6.5 per cent, Sunningdale Technology at 6.2 per cent, Venture Corp at 6.1 per cent, GP Industries at 6.1 per cent and UMS Holdings at 5.8 per cent. Indicated yield is the dividend yield on a stock if its most recent dividend is annualized.

These five stocks average an indicated yield of 6.1 per cent, compared with the benchmark Straits Times Index's (STI) yield of about 4 per cent.

The 20 largest IT stocks on SGX have a combined market capitalisation of $15 billion, with an average dividend indicated yield of 3.8 per cent and price-to-earnings ratio of 14.1 times. Total return year to date is at 24 per cent.

In terms of market capitalisation, Venture Corp is the highest at $4.39 billion, followed by NetLink NBN Trust at $3.47 billion.

According to SGX, the top institutional net buy stocks for the IT sector in July were NetLink NBN Trust, with total inflows of $32.5 million, and AEM Holdings, with total inflows of $12.7 million.