OREANDA-NEWS. This morning Singapore’s Gross Domestic Product (GDP) was reported to expand by 1.8% in the second quarter of 2015 over the same quarter in 2014. This takes Singapore’s average GDP growth rate to 3.2% over the 12 quarters of the past three years.

During the same timeframe, the Urban Redevelopment Authority Property Price Index (by residential type) generated an annualised 0.8% decline, while the Straits Times Index (STI) generated an 8.1% annualised gain which includes dividends. Since the end of the second quarter, the STI has declined by 3.0%.

Much of the social and economic internationality of Singapore resonates into the STI which represents more than half of the market capitalisation of the Singapore stock market. A unique regional attribute of the STI is that the majority of its constituents have significant international revenue reach which has developed over time.

In terms of business foundations, the chart below illustrates the year businesses associated with the STI stocks were established. The data is sourced by S&P Capital IQ, which also provides the stock information within SGX StockFacts.

A number of these stocks have evolved from businesses and services that predate their establishment year as illustrated above.

For instance, the first circulation of the Straits Times Newspaper dates back to 1845, Keppel Harbour’s first dry dock was built in 1859 and Singtel’s heritage dates back to a service of fifty lines in a telephone exchange in 1879. These three stocks are now the twelfth, seventh and third largest constituents of the STI respectively.

STI Exchange Traded Funds

As noted above, the STI generated a dividend-inclusive 8.1% annualised gain over the three years ending with the second quarter of 2015. Since the end of the second quarter, 3.0% has been given back in declines. This means that from June 2012 through to the Thursday close, the STI generated a 6.7% annualised total return.  The two Exchange Traded Funds (ETFs) that track the STI, the SPDR® STI ETF  and the Nikko AM Singapore STI ETF, generated average annualised gains of 6.2% over the period.

These two ETFs that track the STI pay dividends are also classified as non-Specified Investment Products (SIPs), otherwise referred to as Excluded Investment Products (EIPs). An EIP ETF generally invests in a basket of stocks that make up the index it is designed to track, rather than a derivative product that derives its value from the index. EIPs can be bought and sold by individual investors without having to complete a Customer Assessment Review, or take the online SIP test. There are a total of 19 ETFs listed on the SGX are now classified as EIPs.

Recent Moves of STI Constituents

The 30 STI constituents represent as many as 19 different industries. Industries with multiple representation include Banks, Food Products, Industrial Conglomerates, Real Estate Investment Trusts, Real Estate Management and Development and Transportation Infrastructure.

On average the 30 stocks are positioned approximately 20% off their 12 month highs and 9% above their 12 month lows. The stocks that closed Thursday closest to their 12 month high were Singapore Press Holdings, DBS Group Holdings, Thai Beverage PLC, Oversea-Chinese Banking Corporation and Wilmar International. Of those five stocks, Thai Beverage PLC and DBS Group Holdings were furthest away from their 12 month lows.

The stocks that are trading closest to their 12 month lows are SIA Engineering Company, Sembcorp Marine, Genting Singapore PLC, City Developments and United Overseas Bank. The STI constituents are detailed in the table below. Please do note that clicking on a stock name will take you to its relevant page on SGX StockFacts.

Over the past 12 months, the STI stocks that have been the most volatile included Noble Group, Golden Agri-Resources, Thai Beverage PLC, Genting Singapore PLC and Sembcorp Marine. Over the past 12 months, the share price of Noble Group swung on average 2% per session. Golden Agri Resources’ share price swung an average of 1.4% per session while Thai Beverage PLC and Genting Singapore PLC both averaged 1.2% swings per session with Sembcorp Marine averaging a 1.0% swing per session.

Dividends of STI Constituents

Together the 30 STI stocks average a 3.4% dividend yield. The highest yields are currently maintained by Hutchison Port Holdings Trust, Keppel Corporation, Ascendas REIT, CapitaLand Mall Trust and StarHub. Of these five, two stocks, CapitaLand Mall Trust  and Starhub currently pay dividends on a quarterly basis.

CapitaLand Mall Trust last went ex-dividend on 28 July with a 2.71 cent distribution per unit. Starhub’s second interim 5 cent per share dividend distribution is due to go ex-dividend on Thursday 13 August. Starhub has a history of paying 5 cent per share quarterly dividend distributions since 2010.

In addition to Starhub, four other STI stocks going ex-dividend this week include Oversea-Chinese Banking Corporation on 12 August, Sembcorp Marine on 13 August and on 14August Sembcorp Industries, and Wilmar International.