The STI consists of the 30 largest blue chip companies and most active stocks traded on SGX. After a 22.0% aggregate ROI in 2017, the STI created an aggregate negative return of – 2.3% of every first 50% of 2018 and has taken after with a 0.1% gain in the 2H18-to-date.
In the first half of 2018, the five best-performing STI stocks were: Yangzijiang Shipbuilding (+24.9%), Singtel (+9.4%), CapitaLand (+8.9%), SPH (+8.5%) and CapitaLand Commercial Trust (+7.1%). These 5 stocks have given the investor some capital appreciation of an aggregate return of 11.7% over this period.
Increase in stock return is an outcome from a mix of components, including solid profit development – as detailed by SPH, CapitaLand Commercial Trust and Yangzijiang in their most recent Q1 results – and the finish of benefit acquisitions for Singtel’s situation.
The Straits Times Index is a highly competitive and diversified index consisting of 30 top valuations Singapore companies.
In 2018 year-to-date, the STI has produced an aggregate negative return of – 2.1%. After a 22.0% aggregate return in 2017, the STI created a return of – 2.3% out of first half-year of 2018 and has taken after with a 0.1% gain in the 2H18-to-date.
Their stock performances have benefited from a lot of positive factors, including strong yearly earnings growth – as reported by SPH, Yangzijiang and CapitaLand Commercial Trust in their quarterly results – and the completion of asset acquisitions in Singtel’s case.
Capital outflows from Foreign institutional investors from emerging market assets have also added to the increased risk among investors. Market outlook has been impacted in recent weeks by rising trade tensions between the US and China, which have stoked fears of a broader knock-on effect on global markets.
In 1st half 2018 through to 5th September, the five best-performing index constituents were:
Yangzijiang Shipbuilding (+24.9%), Singtel (+9.4%), CapitaLand (+8.9%), SPH (+8.5%), and CapitaLand Commercial Trust (+7.1%). These five stocks have averaged a total return of 11.7% over this period.
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