OREANDA-NEWS. On Tuesday night, the price of WTI Crude Oil closed at its highest price for the 2016 year to date, with a 4.5% session gain seeing the price of WTI Crude Oil end above US$42/bbl. In turn, the SGX Maritime & Offshore (MOE) Index gained 4.9% yesterday. This has brought the month-to-date total return of the SGX MOE Index to 1.8% and trimmed the year-to-date total return of the SGX MOE Index to a 5.1% decline.

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. It consists of 23 constituents with a combined market capitalisation of S$36.5 billion. Constituents in the index include shipyard operators, shipping companies and companies providing offshore services. Index methodology information can be found below, after the two constituent tables.

SGX MOE Index

Source: SGX &Bloomberg (data as of 13 April 2016)

Historically, the SGX MOE Index has a strong relationship with the Straits Times Index (STI). Despite the STI outperforming the SGX MOE Index in the year thus far, the correlation of the two indices is currently above 0.80, where 1.00 represents a perfect relationship and 0.00 represents no relationship. This correlation is based on the similarities of the price moves the two indices over the past 120 trading sessions. This simple correlation measure was at 0.49 in July 2015 before ending 2015 at 0.77.

There are two key reasons for the similarities in performance of the SGX MOE Index and STI. The first is that half of the SGX MOE index weights are STI stocks – Keppel Corporation, Sembcorp Marine, Sembcorp Industries, Yangzijiang Shipbuilding (Holdings) and Hutchison Port Holdings Trust. The second is that, like the MOE companies, many of the other 25 STI stocks can be impacted by the price and state of the oil & gas industry. For instance, the oil & gas industry fuels transportation stocks and can be financed from the banks through debt.

Recent Constituent Performance

In the month thus far, the 23 SGX MOE Index constituents averaged a total return gain of 2.3%, bringing their year-to-date total return to 0.7%. These stocks also maintain an average dividend yield of 4.1%.

In terms of month-to-date total returns, the five best-performing stocks of the Index have been Rickmers Maritime (+27.8%), Sembcorp Marine (+10.3%), Jaya Holdings (+8.9%), Charisma Energy Services (+8.3%) and Triyards Holdings (+6.3%). Together, they averaged a 12.3% month-to-date total return.

In terms of year-to-date total returns, the five best-performing constituents have been IEV Holdings (+70.9%), Jaya Holdings (+50.9%), Pacific Radiance (+9.7%), Charisma Energy Services (+8.3%) and Ezra Holdings (+8.1%). Together, they averaged a 29.6% year-to-date total return.

The table below details the 23 SGX MOE Index constituents, and is sort according to Index weight. Click on each stock to visit its profile page on SGX StockFacts.

Name SGX Code Index Weight % Market Cap in S$M Total Return 1 Day % Total Return YTD % GICS® Sub Industry Name
Keppel Corporation BN4 10.3 11,000 4.7 -6.9 Industrial Conglomerates
Sembcorp Marine S51 10.2 3,803 17.0 4.0 Construction Machinery & Heavy Trucks
Ezion Holdings 5ME 10.1 901 4.6 -7.4 Oil & Gas Equipment & Services
Sembcorp Industries U96 10.0 5,497 6.9 1.0 Industrial Conglomerates
Yangzijiang Shipbuilding (Holdings) BS6 9.8 3,755 3.2 -10.9 Construction Machinery & Heavy Trucks
Hutchison Port Holdings Trust NS8U 9.2 6,000 4.6 -2.9 Marine Ports & Services
Neptune Orient Lines N03 8.9 3,306 0.0 3.3 Marine
Ezra Holdings 5DN 6.4 314 3.9 8.1 Oil & Gas Equipment & Services
Vard Holdings MS7 3.0 225 3.8 -20.4 Construction Machinery & Heavy Trucks
Nam Cheong N4E 2.9 210 4.2 -25.9 Construction Machinery & Heavy Trucks
Vallianz Holdings 545 2.3 157 2.2 2.2 Oil & Gas Equipment & Services
Singapore Shipping Corporation S19 2.2 133 0.0 0.0 Marine
AusGroup 5GJ 2.1 90 2.5 -20.8 Construction & Engineering
First Ship Lease Trust D8DU 2.0 88 0.7 -14.3 Specialized Finance
Charisma Energy Services 5QT 1.9 169 8.3 8.3 Construction & Engineering
Rickmers Maritime B1ZU 1.8 89 3.1 3.1 Marine
Pacific Radiance T8V 1.7 243 3.0 9.7 Oil & Gas Equipment & Services
Falcon Energy Group 5FL 1.6 141 2.4 -17.1 Oil & Gas Equipment & Services
Triyards Holdings RC5 1.3 138 0.0 -2.3 Industrial Machinery
Swissco Holdings ADP 1.0 128 2.7 -15.1 Oil & Gas Equipment & Services
Nordic Group MR7 0.7 74 -1.1 -1.1 Industrial Machinery
Jaya Holdings BJE 0.5 17 2.4 50.9 Construction Machinery & Heavy Trucks
IEV Holdings 5TN 0.4 27 0.0 70.9 Oil & Gas Equipment & Services
Average       3.4 0.7  

Source: SGX, Bloomberg & SGX StockFacts (data as of 13 April 2016)

Of the 23 SGX MOE Index constituents, the five highest yielding stocks have been Hutchison Port Holdings Trust (9.2%), Falcon Energy Group (8.7%), Nordic Group (6.9%), Keppel Corporation (5.6%) and Yangzijiang Shipbuilding (Holdings) (4.6%). Together, these five stocks averaged a 7.0% dividend yield.

Note that among the 23 stocks, since Hutchison Port Holdings Trust trades in USD, the stock’s last closing price, 12-month high and 12-month low are displayed in USD and not SGD in the table below.

Name SGX Code P/E P/B Last Price in $ 12M High in $ 12M High Date 12M Low in $ 12M Low Date
Keppel Corporation BN4 6.9 0.9 6.070 9.490 4/14/2015 4.640 1/18/2016
Sembcorp Marine S51 N/A 1.3 1.780 3.140 4/16/2015 1.295 1/19/2016
Ezion Holdings 5ME 17.3 0.6 0.575 1.290 4/27/2015 0.480 1/26/2016
Sembcorp Industries U96 9.9 0.9 3.050 4.880 4/21/2015 2.160 1/21/2016
Yangzijiang Shipbuilding (Holdings) BS6 7.1 0.8 1.010 1.525 5/21/2015 0.865 1/19/2016
Hutchison Port Holdings Trust NS8U 19.0 0.8 0.510 0.700 4/14/2015 0.410 2/11/2016
Neptune Orient Lines N03 N/A 1.0 1.270 1.275 3/22/2016 0.770 8/24/2015
Ezra Holdings 5DN N/A 0.2 0.107 0.299 4/15/2015 0.048 2/11/2016
Vard Holdings MS7 N/A 0.3 0.189 0.660 4/27/2015 0.124 2/12/2016
Nam Cheong N4E 20.3 0.4 0.101 0.350 4/21/2015 0.091 1/21/2016
Vallianz Holdings 545 7.8 0.6 0.046 0.079 4/15/2015 0.038 2/10/2016
Singapore Shipping Corporation S19 7.0 1.3 0.310 0.360 4/17/2015 0.240 8/24/2015
AusGroup 5GJ N/A 0.5 0.121 0.260 4/15/2015 0.098 8/24/2015
First Ship Lease Trust D8DU 4.7 0.2 0.138 0.193 4/28/2015 0.128 2/11/2016
Charisma Energy Services 5QT N/A 1.8 0.013 0.033 4/14/2015 0.009 1/8/2016
Rickmers Maritime B1ZU N/A 0.1 0.103 0.290 4/14/2015 0.050 2/26/2016
Pacific Radiance T8V 36.4 0.4 0.340 0.745 4/15/2015 0.280 1/18/2016
Falcon Energy Group 5FL 2.5 0.3 0.174 0.305 4/15/2015 0.167 2/26/2016
Triyards Holdings RC5 3.3 0.5 0.430 0.545 4/16/2015 0.230 8/24/2015
Swissco Holdings ADP 2.5 0.4 0.193 0.520 4/28/2015 0.171 1/26/2016
Nordic Group MR7 7.3 1.3 0.187 0.240 11/23/2015 0.137 8/25/2015
Jaya Holdings BJE N/A 0.9 0.430 1.260 4/15/2015 0.240 12/17/2015
IEV Holdings 5TN 5.1 0.6 0.094 0.122 3/11/2016 0.042 8/27/2015
Average   10.5 0.7          

Source: SGX, Bloomberg & SGX StockFacts (data as of 13 April 2016)

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.