OREANDA-NEWS. May 13, 2015. In the first four months of 2015, the ten FTSE ST Industry Indices that cover the 179 stocks of the FTSE All Share Index have all produced positive returns, ranging from 0.5% for the FTSE ST Technology Index to 24.9% for the FTSE ST Utilities Index. This brings the FTSE ST All-Share Index total returns to 5.6% in the first four months this year.

Stocks that are a part of the FTSE ST all Share Index are assigned to an ST Industry Index based on which industry they are categorised to by the Industrial Classification Benchmark (ICB). For instance, Singtel, Starhub and M1 which are a part of the FTSE ST All Share Index will make up the FTSE ST Telecommunications Index because these three stocks are categorised to the Telecommunications industry by ICB.

The Industry Index that has the most representation in terms of the number of stocks and the most impact on the FTSE ST All Share Index in terms of Index weighting is the FTSE ST Financials Index. As illustrated below, there are 56 constituents of the FTSE ST Financials Index, followed by FTSE ST Industrials with 43 constituents and FTSE ST Consumer Services with 23 constituents.

FTSE ST Industry Indices – Number of Constituents

Source: FTSE Group (Data as of 30 April 2015)

As mentioned above, all ten FTSE ST industry indices generated positive returns in the first four months of 2015, with FTSE ST Utilities leading with its  24.9% total returns. This was followed by FTSE ST Health Care with 23.2% total returns and FTSE ST Basic Materials with 17.2%. On average the ten indices generated 9.2% total returns from January to April 2015, and have an average annualised volatility of 14.5%, while maintaining an average dividend yield of 2.6%.

FTSE ST Industry Indices – Total Returns (Jan-Apr 2015)


Source: FTSE Group (Data as of 30 April 2015)

Index % Jan-Apr Total Returns % Annualised Volatility % Dividend Yield
FTSE ST Utilities 24.9 19.6 0.6
FSTE ST Health Care 23.2 12.8 3.9
FTSE ST Basic Materials 17.2 19.2 3.2
FTSE ST Telecommunications 12.4 15.6 4.3
FTSE ST Financials 6.7 10.2 2.9
FTSE ST Consumer Services 3.6 14.4 0.8
FTSE ST Industrials 1.6 7.9 3.4
FTSE ST Consumer Goods 1.5 9.5 2.7
FTSE ST Oil & Gas 0.6 12.0 2.4
FTSE ST Technology 0.5 24.2 1.5
  9.2 14.5 2.6

Source: FTSE Group (Data as of 30 April 2015)

At the same period last year, the FTSE ST All Share Index generated a lower total return of 4.4%. The three best performing ST Industry Indices last year were the FTSE ST Health Care Index (+15.7%), the FTSE ST Utilities Index (+15.4%) and the FTSE ST Consumer Goods Index (+10.2%) - click here to read more on the Market Update in May 2014.

The indices and largest capitalised constituents, rather than largest stock weightings, are detailed below.

FTSE ST Utilities Index

The Utilities Index, also the best performing industry index in terms of total returns, has gained +24.9% in the first four months of 2015. The biggest three stocks of the Index are China Everbright Water (U19), SIIC Environment Holdings (5GB), and Hyflux (600). In the first four months of 2015, the three stocks gained +12.0%, +63.0% and +14.2% respectively.

In the 12 months ending April, the annualised volatility of the Index was 19.6%. The dividend yield of Index stood at 0.6% at the end of April.

FTSE ST Health Care Index

The Health Care Index has gained +23.2% in the first four months of 2015. The biggest three stocks of the Index are Raffles Medical Group (R01), Tianjin ZhongXin Pharmaceutical Group (T14), and Biosensors International Group (B20). In the first four months of 2015, the three stocks gained +3.6%, +48.9% and +41.0% respectively.

In the 12 months ending April, the annualised volatility of the Index was 12.8%. Note the Index does not include the secondary listing of IHH Healthcare Berhad which has a total market capitalisation of S\\$12.2 billion which approximately five times the market capitalisation of Raffles Medical Group. The dividend yield of Index stood at 3.9% at the end of April.

The SGX indicative healthcare index provides a broader measure of the healthcare stocks listed on SGX and was discussed in a Market Update last month found here.

FTSE ST Basic Materials Index

The Basic Materials Index has gained 17.2% in the first four months of 2015. The biggest three stocks of the Index are NSL (N02), Midas Holdings (5EN), and C&G Environmental Protection Holdings (D79). In the first four months of 2015, the three stocks generated mixed performances of -1.2%, +56.0% and +4.6% respectively.

In the 12 months ending April, the annualised volatility of the Index was 19.2%. The dividend yield of Index stood at 3.2% at the end of April.

FTSE ST Telecommunications Index

The Telecommunications Index has gained +12.4% in the first four months of 2015. The three stocks of the Index are Singapore Telecommunications (Z74), StarHub (CC3), M1 (B2F) which are all categorised as Mobile Telecommunications by the ICB. In the first four months of 2015, the three stocks gained +13.6%, +3.1% and +1.7% respectively.

In the 12 months ending April, the annualised volatility of the Index was 15.6%. The dividend yield of Index stood at 4.3% at the end of April.

FTSE ST Financials Index

The Financials Index has gained +6.7% in the first four months of 2015. The biggest three stocks of the Index are DBS Group Holdings (D05), Oversea-Chinese Banking Corp (O39) and United Overseas Bank (U11) which are all categorised as Banks by the ICB. In the first four months of 2015, the three locally incorporated banks gained +3.8%, +3.8% and +2.1% respectively.

The FTSE ST Financials Index is also made up of Real Estate Developers and Real Estate Investment Trusts (REITs). As discussed in the SGX My Gateway Report yesterday, click here, the 28 REITs listed on SGX generated an average return of 5.7% in the 2015 year through to the 8 May close.

In the 12 months ending April, the annualised volatility of the Index was 10.2%. The dividend yield of Index stood at 2.9% at the end of April.

FTSE ST Consumer Services Index

The Consumer Services Index has gained 3.6% in the first four months of 2015. The biggest three stocks of the Index are Jardine Cycle & Carriage (C07), Singapore Airlines (C6L), and Genting Singapore PLC (G13). In the first four months of 2015, the three stocks generated mixed performances of -5.1%, +5.2% and -5.1% respectively. Jardine Cycle & Carriage is categorised as a General Retailer by the ICB while Genting Singapore PLC and Singapore Airlines Ltd are categorised to the Travel & Leisure sector.

In the 12 months ending April, the annualised volatility of the Index was 14.4%. The dividend yield of Index stood at 0.8% at the end of April.

FTSE ST Industrials Index

The Industrials Index has gained +1.6% in the first four months of 2015. The biggest three stocks of the Index are Jardine Matheson Holdings (J36), Jardine Strategic Holdings (J37), and Singapore Technologies Engineering (S63). In the first four months of 2015, the three stocks gained +3.4%, +1.2% and +9.7% respectively.

In the 12 months ending April, the annualised volatility of the Index was 7.9%. The dividend yield of Index stood at 3.4% at the end of April. As discussed in another Market Update today, click here, the largest capitalised stocks of the FTSE ST Industrials Index generated an average total return of 6.05 in the 2015 year thus far.

FTSE ST Consumer Goods Index

The Consumer Goods Index has gained +1.5% in the first four months of 2015. The biggest three stocks of the Index are Wilmar International (F34), Thai Beverage (Y92) and Golden Agri-Resources (E5H). In the first four months of 2015, the three stocks generated mixed performances of +0.6%, +6.2% and -7.5% respectively.

In the 12 months ending April, the annualised volatility of the Index was 9.5%. The dividend yield of Index stood at 2.7% at the end of April.

FTSE ST Oil & Gas Index

The Oil & Gas Index has gained +0.6% in the first four months of 2015. The biggest three stocks of the Index are Keppel Corp (BN4), Sembcorp Industries (U96) and Sembcorp Marine (S51) which are all categorised as Oil Equipment, Services & Distribution by the ICB. In the first four months of 2015, the three stocks generated mixed performances of +2.5%, +4.0% and -6.5% respectively.

In the 12 months ending April, the annualised volatility of the Index was 12.0%. The dividend yield of Index stood at 2.4% at the end of April.

FTSE ST Technology Index

The Technology Index has gained 0.5% in the first four months of 2015. The biggest three stocks of the Index are Silverlake Axis (5CP), Stats ChipPAC (S24) and OKH Global (S3N). In the first four months of 2015, the three stocks gained +2.0%, +5.2% and +20.4% respectively.

In the 12 months ending April, the annualised volatility of the Index was 24.2%. The dividend yield of Index stood at 1.5% at the end of April.