The Straits Times Index is made of the 30 largest and most liquid stocks listed in Singapore. It provides a measure for the benchmark return in Singapore, and investors use it to compare how their investment portfolios have performed.
The global stock markets have mostly turned red in 2018, and the STI was not spared either. In the YTD 2018, the STI has generated a return of -6.8%.
Even though the collective returns of the 30 constituent stocks was negative 6.8%, the four best performing STI stocks managed to deliver a return of nearly 13.9%. This should not be confused with 52-weeks high, as you will see in some of the charts below.
This week, we discuss the four best performing STI constituent stock in our column.
#1 Dairy Farm International (SGX: D01)
Dairy Farm has four main business segments: food; health and beauty; home furnishings; and restaurants.
Under its food segment, it manages supermarkets and hypermarkets, as well as convenience stores, in China, Taiwan, Hong Kong, Macau, Cambodia, The Philippines, Malaysia, Brunei, Singapore and Indonesia. Its brands include MarketPlace; Giant; Cold Storage; Jasons; 7-Eleven and many more.
Its health and beauty segment has products that are distributed via its stores in the various countries it operates in. Its home furnishing business mainly comprises IKEA. Its restaurants business is operated by an associate company called Maxim, and it operates close to 1,200 restaurants in six countries.
Dairy Farm has a market capitalization of $16.5 billion. Currently, its share price is trading at US$8.94, 12.7% higher compared to US$7.93 at the beginning of the year. Its total return in the year-to-date (YTD), including dividends, is 19.3%.
In the past 3 years, its total return has been 54.2%. Going even further back, its 5-year total return is nearly 4.6%.
Share price chart of Dairy Farm International between 2 January 2018 and 23 November 2018.
#2 Comfort Delgro (SGX: C52)
Comfort Delgro is one of the largest land transport companies in the world, operating in seven countries, with a fleet of close to 43,000 vehicles. Its businesses include, taxi, bus, rail, car rental and leasing, automotive engineering services, inspection and testing services, driving centres, non-emergency patient transport services, insurance broking services and outdoor advertising.
Comfort Delgro has a market capitalization of $4.6 billion. In the YTD, its share price has increased close to 5.0% to $2.11, from $2.01 at the beginning of the year. Including dividends, its total return for the year is 13.7%.
Share price chart of Comfort Delgro between 2 January 2018 and 23 November 2018.
#3 ST Engineering (SGX: S63)
ST Engineering is a global technology, defence and engineering grouping providing four main businesses: Aerospace; Electronics; Land Systems; and Marine.
ST Engineering has a market capitalization of $10.9 billion. Since the beginning of the year, its share price has risen close to 6.7% to $3.49 from $3.27. Including dividends, its total return is nearly 12.1% in the YTD 2018.
Share price chart of ST Engineering between 2 January 2018 and 23 November 2018.
#4 Jardine Matheson (SGX: J36)
Jardine Matheson is part of the Jardine group of companies. It is a conglomerate with businesses in property, motor vehicles, retail and restaurants, insurance broking, financial services, engineering, construction, mining, hotels and various other industries.
Jardine Matheson has a market capitalization of US$64.3 billion. In the YTD, its share price has increased close to 6.1% to US$64.54, from US$60.82 at the beginning of the year. It total return for the year is 10.4%.
Share price chart of Jardine Matheson between 2 January 2018 and 23 November 2018.
If you are interested to read more about Singapore stocks, you can check out our extensive archive of articles of 4 Stocks This Week. To stay up to date with the latest news on the Singapore Exchange, you also can check out the SGX My Gateway Market Updates to get more insights.
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