OREANDA-NEWS. Healthcare has played a key role in developing the sectorial depth of Asia’s stock markets. There are now approximately 1200 primary listed stocks that make up Asia Pacific’s Healthcare Sector with a combined market capitalisation of S$1.7 trillion. This is almost twice the number of healthcare stocks and three times the market capitalisation of 10 years ago.

In the 2016 year to date, a regional benchmark, the MSCI AC Asia Pacific Healthcare Index has declined 0.1%, compared to the parent Index, the MSCI AC Asia Pacific Index which has declined 3.8%. These declines are expressed in dividend inclusive total returns and are in Singapore Dollar terms.

In Singapore, the Straits Times Index has generated a year to date total return of 0.5% with the broader FTSE ST All Share Index generating a total return of 1.8%. The SGX All Healthcare Index has generated a 1.7% return over the period.

The SGX All Healthcare Index comprises stocks that report at least half their revenues from healthcare in the last financial year, and REITs with investments in healthcare facilities. The Index consists of 29 constituents with a combined market capitalisation of S$32.1 billion, which includes 26 stocks categorised to the Healthcare Sector by GICS® in addition to two REITs and Riverstone Holdings, a producer and distributor of clean room products.

The weightings of the SGX All Healthcare Index components are capped at a maximum 10% at each periodical rebalance, so that it is better diversified across a range of stocks. This also means that while IHH Healthcare Berhad accounts for more than half of the Healthcare Sector market capitalisation, it can only represent one-tenth of the Index at each rebalance.