25 fun facts that you probably didn’t know about Singapore’s stock exchange

2021-08-09     drwealth
25 fun facts that you probably didn’t know about Singapore’s stock exchange

Happy National Day!

Did you know…

#1 – The SGX was formed by combining 3 entities

The Singapore Exchange (SGX) was formed on 1 December 1999. SGX came into formation after combining three entities, namely Stock Exchange of Singapore, Singapore International Monetary Exchange and Securities Clearing and Computer Services Pte.

Compared to New York Stock Exchange and Nasdaq, which was formed on 17 May 1792 and 8 February 1971, SGX is relatively young.

#2 – SGX had only 400 companies when it IPO-ed

SGX started with an estimate of 400 companies listed on its exchange when its IPO back in 2000. At present, it has now increased to 700 companies.

#3 – STI was launched in 1966

The Straits Time Index (STI) is a market capitalisation weighted index which dates back to 1966. As of 2021, it currently tracks the performance of the top 30 most prominent and most liquid companies listed on SGX.

#4 – STI used to have 50 holdings!

Did you know STI used to have 50 holdings?

It was reduced to 30 on 10 January 2008 after it was revamped.

#5 – STI ETF returned 238.30% since inception!

The first STI ETF (SPDR Straits Time Index ETF) was listed in April 2002.

Since its inception, it returned 238.30% with dividends reinvested. Annualising it, we will get 6.58% per year.

#6 – Only 19 of OG STI companies are still in the index

The STI index has also changed a lot since 2003.

19 Companies that are still on the index are:

  • HongKong Land Holdings Limited
  • Dairy Farm International Holdings Limited
  • Venture Corporation Limited
  • ComfortDelGro Corporation Limited
  • Singapore Exchange Limited
  • Singapore Technologies Engineering Ltd
  • CapitaLand Limited
  • Sembcorp Industries Ltd
  • Jardine Cycle & Carriage Limited
  • Ascendas REIT
  • United Overseas Bank Limited
  • Singapore Telecommunications Limited
  • UOL Group Limited
  • Jardine Matheson Holdings Limited
  • DBS Group Holding Limited
  • Singapore Airlines Limited
  • City Developments Limited
  • Oversea Chinese Banking Corporation Limited
  • Keppel Corporation Limited

As a comparison, the chart below shows the holdings in 2005.

#7 – Delisting on SGX seems common

Between 2009 to 2019, there were 279 new companies listed on SGX.

However, in the same period, there were more delisting at 302.

#8 – SGX contains foreign listings

SGX does not just have Singapore Companies listed on it.

In fact, approximately 40% of them are foreign listings.

#9 – Smallest SGX Company sells audio devices

Currently, the smallest company on SGX in terms of market capitalisation is Plastoform (SGX:AYD) with a total market cap of $500K.

Plastoform was founded in 1982, headquartered in Hong Kong and it is involved in design, development, and manufacture of audio devices. 

#10 – Largest SGX Company is a bank

The largest company on SGX in terms of market capitalisation is DBS (SGX:D05), with a total market cap of $80 billion.

#11 – Cheapest stock on SGX is a commodity stock

The cheapest company on SGX in terms of price to earnings ratio is BlackGold Natural Resources (SGX:41H), with a P/E of 0.012.

BlackGold Natural Resources was founded in 1997 and is headquartered in Singapore. However, they focus on the supply of coal to power plants located in Riau province, Sumatra, Indonesia.

#12 – Most Expensive stock on SGX is a commodity stock

The most expensive company on SGX in terms of Price to Earnings ratio is Suntar Eco-City (SGX:BKZ), with a P/E of 1,785.

Suntar Eco-City was founded in 2006. It manufactures and sells pharmaceutical ingredient products and is involved in Property Development. Its business operates mostly in the China domestic market.

#13 – There are 5 blue chip stocks with more than 4% yield!

5 Singapore Blue Chip Stocks with more than 4% yield currently are:

  • HongKongLand
  • Olam
  • Sheng Siong
  • StarHub
  • UOB Kay Hian

#14 – You can lend your stocks in CDP for income

Did you know that CDP operates a Securities Borrowing & lending (SBL) programme, which allows you to lend your securities held in CDP accounts?

In return, you get to earn additional income just by holding the stock.

As of May 2021, the top securities on loan is MM2 Asia Ltd (SGX:1B0).

#15 – SG markets crashed 56% in 2008

During the 2008 Financial Crisis, Singapore Market crashed around 56% and lasted two years.

Imagine the heartpain.

#16 – M1 was delisted by Keppel and SPH

M1 was once listed on the exchange along with SingTel.

It was officially delisted in 2019 after Keppel and SPH accumulated over 90% of their shares.

#17 – SMRT was delisted by Temasek

SMRT Corporation Ltd was delisted in 2016 following a buyout by Temasek.

The move was to allow SMRT to focus on serving the commuters than maximise their profits.

In total, SMRT had only been a publicly listed entity for 16 years when it went public in 2000. (Will this happen to other companies like SBS transit or Singapore Airlines?)

#18 – NOL was delisted by foreign acquisition

Neptune Orient Lines (NOL), which was founded in 1968 as Singapore’s national flag carrier, was delisted in 2016 when French shipping giant CMA CGM acquired it.

This came after it racked up more than $1.5 billion in losses over the years while dealing with poor global demand.

#19 – SingTel delivered 4.5% annualised return since IPO

If you had held Singtel since its IPO, you would have received $2.967 in dividends, per share.

With the IPO price of $2 per share, it would have returned you 161%. Which is around 4.5% annualised return.

#20 – Temasek Holdings has full ownership of at least 8 Singapore companies

Temasek Holdings is an Investment company owned by the Singapore Government and its stake in companies are usually seen as a strong backer.

Here are some of the Singapore companies which Temasek has stakes in as of March 2020:

  • Singtel (52%)
  • Mediacorp Pte Led (100%)
  • DBS Group Holdings Ltd (29%)
  • Singapore Technologies Telemedia Pte Led (100%)
  • Keppel Corporation Limited (20%)
  • PSA International Pte Ltd (100%)
  • Sembcorp Industries Ltd (49%)
  • Singapore Technologies Engineering Ltd (51%)
  • Singapore Airlines Limited (55%)
  • SP Group (100%)
  • SMRT Corporation Ltd (100%)
  • CapitaLand Limited (51%)
  • Surbana Jurong Private Limited (100%)
  • Mandai Park Holdings Pte Ltd (100%)
  • Mapletree Investments Ptd Ltd (100%)
  • SATS Ltds (40%)

#21 – Temasek Holdings performance beats the MSCI World Index!

Since 1974, Temasek Holdings total shareholder return by market value was 14%, annualised.

This was double that of MSCI Singapore and MSCI World Index. (No wonder some Singaporeans try to copy Temasek’s portfolio.)

#22 – Temasek Holdings has more exposure to China market

As of 2020, Temasek Holdings exposure to China has exceeded Singapore.

Maybe it’s time to look into China stocks!

#23 – Ex-military chiefs in managerial positions, isn’t as common as we think

Here are some companies currently helmed by former SAF chiefs.

Ng Yat Chung, the current SPH CEO since 2017, served as the Chief of Defence Force in the SAF.

Before that, he was also Neptune Orient Lines President and CEO, which is now sold to French shipping giant CMA CGM.

  • SMRT Corporation Ltd

Neo Kian Hong, who is currently the CEO of SMRT, served as SAF Chief of Defence Force.

To be honest, I thought there were more, but I was wrong.

#24 – Creative Technology, our first ‘tech’ stock

Once a market darling and pride of Singapore, Creative Technology Ltd (SGX:C76) appears to have been left behind as its SoundBlaster become obsolete.

Bear in mind, this was a company that IPO at a share price of $25.80 and was well oversubscribed. That said, markets are always changing, and if the company fails to adapt, it will be left behind.

That said, Creative Technology has been working on new audio technology like its Super X-Fi and 3D sound, however the impact remains lacklustre.

#25 – SPH’s total dividend returns is 12%

If you had held SPH since 2005, you would have received around $3.41 in dividend per share.

Comparing it to its starting price of $4.62, SPH would have given you a total return of 12% if you held it till today. This is around 0.75% annualised return.

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