1. Singapore stocks have come alive this year, with the Straits Times Index (STI) reaching 3,633.18 points on September 19, 2024, its highest level since 2007 when it hit 3,906.16 points.
2. The STI is now just 7.5% shy of its all-time high, and with the current bullish momentum, achieving this record seems possible within the year.
3. Among the STI constituents, OCBC Bank (O39) and ST Engineering (S63) have already reached new all-time highs.
4. The STI’s rise is largely due to the performance of the banks, which make up almost half of the index. The bank rally this year has been a significant factor in pushing the STI higher. Year-to-date (YTD) performances of the three local banks are as follows:
– DBS (D05) +27%
– OCBC (O39) +19%
– UOB (U11) +15%
5. The next key sector is REITs, which have seen gains even before interest rates were cut. SGX reported that REIT ETFs reached a combined S$1 trillion in assets as of August, indicating strong buying demand prior to the rate cuts. The YTD performances of STI REITs, including dividends, are:
– CapLand IntCom Trust (C38U) +13%
– Frasers L&C Trust (BUOU) +7%
– Mapletree Industrial Trust (ME8U) +7%
– Frasers Centrepoint Trust (J69U) +5%
– Mapletree PanAsia Com Trust (N2IU) +3%
– CapLand Ascendas REIT (A17U) +2%
– Mapletree Logistics Trust (M44U) -10%
6. Other notable STI components delivering strong YTD returns include YZJ Shipbuilding (BS6) at 80%, Singtel (Z74) at 37%, SATS (S58) at 33%, and SGX (S68) at 16%.
7. Outside of the STI, but with a market cap above S$500 million, several companies have gained over 40% YTD, including Centurion (OU8), Dyna-Mac (NO4) (boosted by a buyout offer), Sri Trang Gloves (STG), Japfa (UD2), Sri Trang Agro (NC2), and Hong Leong Asia (H22).
8. The Thai Singapore Depository Receipts (SDRs) traded on SGX have also hit all-time highs, although they only began trading last year so their history is short. Nevertheless, they have performed well as a group, with the following YTD returns:
– Delta SDR (TDED) +52%
– Gulf SDR (TGED) +35%
– Kasikorn Bank SDR (TKKD) +32%
– AIS SDR (TADD) +29%
9. The Singapore stock market has been so bullish that its YTD returns have outpaced the S&P 500 and Nasdaq 100, making it the second-best performer among Asian markets, trailing only Malaysia.
– iShares MSCI Malaysia ETF (EWM) +28%
– iShares MSCI Singapore ETF (EWS) +23%
– S&P 500 ETF (SPY) +22%
– Invesco QQQ Trust (QQQ) +20%
– iShares MSCI India ETF (INDA) +19%
– iShares MSCI Philippines ETF (EPHE) +13%
– iShares MSCI Japan ETF (EWJ) +13%
– iShares MSCI Indonesia ETF (EIDO) +9%
– iShares MSCI China ETF (MCHI) +8%
– iShares MSCI Thailand ETF (THD) +7%
– VanEck Vietnam ETF (VNM) -1%
10. Singapore stocks have finally been revitalized, and it’s time to reclaim the lost decade and more. Despite the rally, the STI still offers a dividend yield of 4.3%, which remains attractive.