OREANDA-NEWS. Singapore Exchange (SGX) has recently launched a suite of thematic indices under its SGX Index Edge unit. As part of SGX Index Edge, SGX Thematic Indices offer equity indices based on the Real Estate, Healthcare, Minerals, Oil & Gas and Maritime & Offshore sectors in Singapore. 

One of the recently introduced indices, the SGX 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$31.5 billion. The index does not just consist of companies – two Real Estate Investment Trusts (REITs) and a business trust that invests in healthcare-related assets are included.

The MSCI Asia ex-Japan Healthcare Index comprises companies in the Asia ex-Japan region classified in the Health Care sector as per the Global Industry Classification Standard (GICS®). The Index has a combined market capitalisation of US$164.4 billion. In the year thus far, the MSCI Asia ex-Japan Healthcare Index generated a 0.2% dividend-exclusive total return. In comparison, the SGX All Healthcare Index has generated a 6.8% dividend-exclusive total return in the year-to-date, which brought the three-year return to 27.1%.

Currently, the five largest stocks by index weight are Biosensors International Group, IHH Healthcare Berhad, Tianjin Zhongxin Pharmaceutical Group Corporation, Parkway Life REIT and Haw Par Corporation, and they make up more than 50% of the Index. As of yesterday’s close, the five best year-to-date performers in the Index were Riverstone Holdings, UG Healthcare Corporation, Cordlife Group, Q & M Dental Group (Singapore) and Vicplas International. These five stocks averaged a year-to-date total return of 82.7%, with the median return being 70.4%.

The chart below illustrates the performances of the SGX Healthcare Index and the MSCI Asia ex-Japan Healthcare Index on a total-return basis, with a base price of 1,000 on 31 December 2014. The SGX Healthcare Index closed on 14 Dec 2015 at 1266.42, taking the total return to 6.8% in the year thus far.