Small-cap stocks generally refer to companies with a relatively small market value of about $300 million to $1 billion. They may not be as well-known but offer great growth potential that comes with much higher returns.
This week, we take a look at the FTSE ST Small Cap Index. It’s an index that represents the performance of small-cap companies that pass size, free float and liquidity screens. These companies also trade on the SFX Mainboard.
The Index comprises of 49 constituents –19 Real Estate Investment Trusts (REITs) and 30 companies. They make up a combined market cap of about S$40 billion. The 2019 year-to-date (YTD) figures revealed that the FTSE ST Small Cap Index generated a total return of 13.3%, outperforming the benchmark Straits Times Index (STI) which stood at 8.9%.
Let’s take a look at the top 4 best performers for 2019 YTD in the FTSE ST Small Cap Index.
UMS (SGX: 558)
UMS is a precision engineering group that manufactories high precision components, and does complex electromechanical assembly and final testing in service of the semiconductor equipment manufacturers, aerospace and oil field precision component manufacturers.
The total returns for UMS in 2019 YTD was a gain of 84.4%.
Hi-P (SGX: H17)
Hi-P is an integrated contract manufacturing services provider. It specialises in precision plastic injection moulding, mould design and fabrication, assembly, surface furnishing and precision metal stamping. Hi-P’s customers are mainly multi-national original equipment manufacturers spanning across different industries such as telecommunications, consumer electronics and electrical to the life sciences.
The total 2019 YTD return for Hi-P was 83.6%.
Indofood Agri Resources (SGX: 5JS)
Indofood Agri Resources was formerly an investment holding company known as ISG Asia Limited before it was renamed CityAxis Holdings Limited. The group was subsequently renamed to Indofood Agri Resources Ltd in 2007 and became a major vertically integrated agribusiness model, following an acquisition.
Indofood Agri Resources Ltd’s principal activities span from research and development, cultivation, branding and marketing of cooking oil, margarine, shortening and other palm oil derivative products. The group also produces Crude Coconut Oil (CNO) in Indonesia.
In 2019 YTD figures, Indofood Agri Resources generated total returns of +71.7%.
Sasseur REIT (SGX: CRPU)
Sasseur REIT is a Singapore real estate investment trust. It’s established with the investment strategy of investing principally (directly or indirectly) in a diversified portfolio of income-producing real estate used primarily for retail outlet mall purposes and real estate-related assets.
Sasseur REIT closed 2019 with YTD total returns of 53.2%.
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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.