OREANDA-NEWS. The SGX MOE Index is a free-float, market capitalisation-weighted index that measures the performance of listed maritime and offshore (MOE) companies in Singapore. Constituents in the index include shipyard operators, shipping companies and companies providing offshore services.

The SGX MOE Index finished yesterday at a level of 433.41, after ending 2015 at 455.51. The lowest level reached by the Index in the 2016 year-to-date was 364.07 on 12 February. Hence, while the SGX MOE Index has declined 4.9% in the year-to-date, the Index has gained 19% from the 12 February low. The recent swing is illustrated below alongside moves in the Brent Oil Futures priced in US$ per barrel.

Source: Bloomberg

The three-year history of the SGX MOE Index and Brent Oil Futures is illustrated below. As seen from the chart, there is a directional relationship between the Index, with the SGX MOE Index demonstrating less observable downside risk over the period. Average correlation of the two markets, however, was quite low over the three years, with only one-fifth of the weekly swings correlating.  

Source: Bloomberg

Index Methodology

The SGX MOE Index is part of a suite of equity indices representing four key segments of the SGX Securities market. The indices are designed to measure the performance of key investable themes in Singapore – real estate; healthcare; mineral, oil and gas (MOG); and maritime & offshore (MOE).

Business activities within the maritime & offshore (MOE) sector include, but are not limited to, shipyard operators, shipping companies and companies providing offshore services. To be eligible for index inclusion, new constituents must either: (i) derive at least 50% of sales revenue from the MOE industry; or (ii) maintain at least 50% of operating assets within the MOE industry. To be eligible for index inclusion, existing constituents must either: (i) derive at least 40% of sales revenue from the MOE industry; or (ii) maintain at least 40% of operating assets within the MOE industry.

The SGX MOE Index, which consists of 30 constituents, have a combined market capitalisation of S$31.8 billion. In the month thus far, these 30 stocks averaged a total return of 14.7%, which brought their one-year and three-year returns to negative 5.1% and negative 27.1% respectively.

In the month thus far, the five best-performing stocks of the Index have been Ezra Holdings (+75.0%), IEV Holdings (+65.5%), Rickmers Maritime (+49.1%), Vard Holdings (+30.7%) and Dyna-Mac Holdings (+27.6%). Together, they averaged a 49.6% month-to-date total return. In the year thus far, the five best-performing stocks of the Index have been IEV Holdings (+74.5%), Jaya Holdings (+42.1%), Ezra Holdings (+13.1%), Beng Kuang Marine (+9.8%) and Charisma Energy Services (+8.3%). Together, they averaged a 29.6% year-to-date total return.

The table below details the 30 stocks, and is sorted according to market capitalisation. Click on each stock to visit its profile page on SGX StockFacts.

Source: SGX, Bloomberg & SGX StockFacts (data as of 21 March 2016)

*Please note total return of the stock is based on return since its IPO date

^Please note Mercator Lines Singapore has been suspended from trading

Source: SGX, Bloomberg & SGX StockFacts (data as of 21 March 2016)

^Please note Mercator Lines Singapore has been suspended from trading

Source: SGX, Bloomberg & SGX StockFacts (data as of 21 March 2016)

^Please note Mercator Lines Singapore has been suspended from trading