OREANDA-NEWS. The Straits Times Index (STI) is made up of 30 blue chip stocks that account for more than half the market capitalisation of Singapore’s stock market. FTSE Russell also published the five highest ranking non-constituents of the STI at the time of the quarterly reviews. The Reserve List will be used in the event that one or more constituents are deleted during the period leading up to the next quarterly review. Completing the STI Reserve list are Suntec REIT, CapitaLand Commercial Trust, Singapore Post, Neptune Orient Lines and First Resources. These stocks have a combined market capitalisation of S$17.7 billion.

To be eligible for inclusion in the STI, companies have to meet a minimum liquidity threshold. The new STI liquidity rule announced earlier this year will essentially double the current threshold, ensuring Singapore’s largest blue-chip stocks meet a more stringent liquidity standard before being included in the STI. If an existing constituent is removed from the STI for not meeting an index criteria, the new index entrant could potentially be from the STI Reserve List, which comprises of the five highest ranking non-constituents. 

Recent Performance

These five STI Reserve List stocks averaged year-to-date and three-year total returns of 1.2% and 17.2% respectively, and maintain an average dividend yield of 4.7%. They currently trade at price-earnings (P/E) and price-to-book (P/B) ratios of 14.4 and 1.6.

The stocks are tabled below, and clicking on a stock name will take you to its relevant page on StockFacts.

 

Capitaland Commercial Trust

CapitaCommercial Trust invests in real estate and real estate-related assets, which are primarily used for commercial purposes in Singapore. Its portfolio primarily consists of office buildings and transport facilities. The REIT was listed on SGX in May 2004 and is the largest commercial REIT by market capitalisation listed on SGX.

According to its website, CapitaCommercial Trusts portfolio include:

§  Capital Tower, a Grade A office tower

§  Six Battery Road, a Grade A office tower

§  One George Street, a Grade A office tower

§  Raffles City (60% interest via the RCS Trust), a mixed-use development with an office tower, a shopping mall and two hotels and a convention centre

§  CapitaGreen (40% interest in development via the MSO Trust), a Grade A office tower obtained Temporary Occupation Permit on 18 December 2014

§  Twenty Anson, a prime office building

§  HSBC Building, a prime office building on lease back to HSBC

§  Wilkie Edge, a mixed use development with office and ancillary retail units

§  Bugis Village, shop houses for office and retail use

§  Golden Shoe Car Park, a car park with over 1,000 lots and retail shops on the ground floor

Suntec REIT

Suntec REIT was formed in November 2004, and is a REIT launched and managed by the ARA Trust Management (Suntec) Limited. The fund invests in real estate and real estate-related assets that are primarily used for retail or office purposes.

According to its website, Suntec REIT’s portfolio comprises of:

§  Commercial properties in Suntec City

§  Park Mall

§  One-third interest in One Raffles Quay,

§  One-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall.

§  A 60.8% interest in Suntec Singapore Convention & Exhibition Centre

§  100.0% interest in a commercial building located at 177 Pacific Highway, North Sydney Australia.

Singapore Post

Singapore Post was founded in 1819, and operates and provides postal, logistics, and retail services in Singapore and internationally. The company operates through three segments: Mail, Logistics, and Retail & eCommerce. The Mail segment offers services for collecting, sorting, transporting, and distributing domestic and international mail, as well as sells philatelic products. Its International mail service includes handling of incoming and outgoing international mail. This segment also provides ePost hybrid mail service, which integrates electronic data communication with traditional mail. The Logistics segment offers a range of logistics solutions, including freight, warehousing, domestic and international distribution, and delivery services. Its services include ecommerce logistics, warehousing, fulfilment and distribution, and other value-added services; and parcel delivery, freight forwarding, and self-storage solutions. The Retail & eCommerce segment provides various products and services, such as agency services, financial services, and front-end e-commerce solutions. The company also offers electronic printing and dispatching services; electronic platform and recyclable lockers for merchandise distribution; and customs brokerage services, as well as rents commercial properties.

Neptune Orient Lines

Neptune Orient Lines was founded in 1968, and owns and charters vessels and other related assets. The company offers container transportation services for dry, climate-controlled, hazardous, and oversized goods, as well as special cargo. It also provides container shipping services in trade lanes comprising the Trans-Pacific, Trans-Atlantic, Latin America, Asia-Europe, and Intra-Asia trades. The company operates a fleet of approximately 90 vessels. In addition, it provides ship management services. The company employs more than 7000 employees in over 45 countries.

First Resources

First Resources was founded in 1992, and engages in the cultivation and maintenance of oil palm plantations primarily in Singapore and Indonesia. It operates through two segments, Plantations and Palm Oil Mills, and Refinery and Processing. The company is also involved in harvesting and milling the fresh fruit bunches into crude palm oil (CPO) and palm kernel products, as well as process CPO and palm kernel into value palm-based products, such as biodiesel, refined, bleached and deodorised (RBD) olein, RBD stearin, palm kernel oil, and palm kernel expeller. In addition, it engages in oil palm seed breeding and rubber plantation activities; and marketing and selling processed palm based products. The company manages approximately 190,000 hectares of oil palm plantations; and operates 12 palm oil mills in Indonesia.