With uncertainty about how escalating trade tensions between the US and China will play out, investors have been more risk-adverse, concerned about broader ripple effects on global economic growth. The same has been observed in the Singapore market.
As you know, the Straits Times Index (STI) is made up of 30 of the largest and most liquid stocks listed on the Singapore Exchange (SGX). Last year saw one of the most amazing bull runs in recent years, with STI generating total returns of 22% in 2017. The good times came to an end in 2018 as the market corrected pretty dramatically, with the STI generating a total return of -2.3% in 1H18. This was followed by a modest recovery, with a total return of 0.1% in 2H2018 to date.
The 6 best-performing STI stocks that led the STI recovery for 2H2018 (30 June to 30 August) were: Yangzijiang Shipbuilding (+24.9%), Singtel (+9.4%), CapitaLand (+8.9%), SPH (+8.5%), CapitaLand Commercial Trust (+7.1%), and Jardine Cycle & Carriage (5.9%). These stocks enjoyed strong year-on-year earnings growth as reported in their recent quarterly results.
On this week’s edition of 4 Stocks This Week, we will look at 4 of the 6 best-performing stocks listed on the SGX.
Read Also: Complete Guide To Investing In The STI ETF
CapitaLand Limited (SGX: C31)
CapitaLand, a leading real estate developer with global footprint in both developed and emerging markets. Operating through its four segments of CapitaLand Singapore, CapitaLand China, CapitaLand Mall Asia, and Ascott, the company has an impressive portfolio of integrated property development, including shopping malls, serviced residences, offices and homes. The largest shareholder of CapitaLand is Temasek Holdings, which owns 40.37% of shares.
On 8 August, CapitaLand reported unaudited group earnings results for 2Q2018 quarter and 1H2018 ended June 30, 2018. For the quarter, revenues were $1.342 billion compare to $0.992 billion a year ago. This increase in revenue was mainly attributable to higher contributions from development projects in China, rental income from newly acquired and opened properties, as well as contributions from CapitaLand Mall Trust (CMT), CapitaLand Retail China Trust (CRCT) and RCS Trust (RCST).
This week, CapitaLand also announced that it is acquiring a prime 60,000 square-metre site in Ho Chi Minh City for approximately S$81.4 million. CapitaLand plans to build its 13th residential development in Vietnam on this site, consisting of 100 landed residential units by 2021.
CapitaLand closed at $3.43 this week, giving it a market capitalisation of $14.28 billion.
Singapore Press Holdings Limited (SGX: T39)
Singapore Press Holdings (SPH) is a media company that produces and publishes newspapers, magazines, books, as well as operates online properties and offers digital advertising services. Investors would probably be familiar with ShareInvestor, a financial data company owned by SPH. The company also has a radio arm, a convenience retail chain (SPH Buzz) and own Orange Valley, a nursing home operator.
In July, SPH reported unaudited consolidated earnings results for the third quarter and nine months ended May 31, 2018. Operating profit was $44.41 million against $34.27 million a year ago.
With a market cap of $ 4.52 billion, SPH closed at $2.80 this week.
CapitaLand Commercial Trust (SGX: C61U)
CapitaLand Commercial Trust (CCT) is Singapore’s first and largest commercial REIT. It has a market capitalisation of about S$6.6 billion.
As at 30 June 2018, it has a portfolio of 10 prime commercial properties in Singapore and 1 property in Frankfurt, Germany acquired on 18 June 2018. The properties in Singapore include Capital Tower, CapitaGreen, Asia Square Tower 2, Raffles City (60.0% interest through RCS Trust), HSBC Building, Bugis Village and an upcoming 51-storey integrated development in Raffles Place.
CCT is managed by an external manager, CapitaLand Commercial Trust Management Limited, which is a wholly-owned subsidiary of CapitaLand Limited (SGX: C31).
On June 29, 2018, an undisclosed buyer entered into a sale and purchase agreement to acquire Twenty Anson, one of CCT’s portfolio properties, for $520 million. The acquisition of Twenty Anson was completed this week on August 29, 2018. CapitaLand Commercial Trust closed at $1.77.
Jardine Cycle & Carriage Limited (SGX: C07)
Jardine Cycle & Carriage engages in a range of businesses, primarily the automotive industry, in Indonesia, Singapore, and around the world.
The companyts automotive business manufactures, assembles, distributes motor vehicles and motorcycles as well as provides after-sales services. It also has large a financial services arm that provides consumer financing, banking, and general and life insurance services. Jardine C&C is a member of the Jardine Matheson Group.
Jardine C&C closed this week at USD $23.65 (S$ 32.44), giving it a market capitalisation on S$ 12.82 billion.
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.