OREANDA-NEWS. As noted over the weekend by IMF First Deputy Managing Director, Dr David Lipton, ASEAN’s 10 countries and 625 million people are “at diverse stages of development, with millions already having ascended into the middle class. Yet there is still much to accomplish.”

During this speech Dr Lipton noted past ASEAN resilience had reflected the dynamism of the ASEAN urban middle classes, who are driving consumption and investment, and that ASEAN also remains a magnet for foreign direct investment and portfolio flows, which hit a record high of $125 billion in 2013, accounting for 9% of the global total then.

There are also a number of Singapore stocks with business streams that involve our ASEAN neighbours, through revenue generation and/or the basing of  assets. This includes both international and local businesses listed in Singapore. In the 2016 year thus far, the largest of these stocks have performed similarly to their home benchmarks.

In the year thus far, the SET 50 Index has generated a total return of 9.1%, the Jakarta Composite Index has generated a total return of 8.0% and the FTSE Bursa Malaysia Index has generated a total return of 3.7%. Note these returns are denominated in Singapore Dollars.

Like the Indices, among the three largest capitalised Indonesia, Malaysia and Thailand plays listed on Singapore Exchange (SGX), the three Thailand plays, closely followed by the three Indonesia plays, have performed most strongly in the year-to-date.

This has followed from 2015 when regional business revenues were negatively impacted by a rising US Dollar, in addition to the region seeing less trade with China, and lower commodity prices. The largest of the ASEAN plays listed on SGX, Thai Beverage PCL, noted in its FY2015 financial results that negative factors in 2015 included a slowdown of the world economy. In particular, the main trading partners of Thailand such as China caused exports of goods to grow at a lower rate, while domestically, a drought and drop in agricultural prices caused lower farm income and a slowdown in household spending.

In the 2016 year-to-date, the US Dollar has depreciated in value against the major South East Asian currencies.

Largest Thailand Plays

As illustrated below, the three largest Thailand stocks listed on SGX – Thai Beverage PCL, Sri Trang Agro-Industry PCL and KrisEnergy – have averaged a 15.2% total return in the year-to-date. This compares with the SET 50 Index’s gain of 9.1%.

Largest Thailand Plays Average Total Return vs. SET 50 (%)

Source: SGX & Bloomberg (data as of 18 March 2016)

The table below details the three largest capitalised Thailand plays listed on SGX, and is sorted according to market capitalisation. Of the three stocks, Thai Beverage PCL is also a Straits Times Index (STI) constituent, while KrisEnergy makes up 6% of the weighting of the SGX Mineral, Oil & Gas Index. Click on each stock to visit its profile page on SGX StockFacts.

Largest Thailand Plays Stock Code Market Cap in S$B Total Return YTD % Total Return 3 Yrs % Total Return 5 Yrs % Dvd Ind Yld % GICS® Industry Name
Thai Beverage PCL Y92 18.2 5.8 32.5 208.7 3.2 Beverages
Sri Trang Agro-Industry PCL NC2 0.6 21.1 -27.9 -53.3 3.6 Auto Components
KrisEnergy SK3 0.3 18.7 -81.6* N/A N/A Oil, Gas & Consumable Fuels
Average     15.2 -25.7 77.7 3.4  

Source: SGX, Bloomberg & SGX StockFacts (data as of 18 March 2016)

*Please note total returns of the stocks are based on returns since their respective IPO date

Largest Indonesia Plays

The three largest Indonesia stocks listed on SGX – Jardine Cycle & Carriage, Golden Agri-Resources and First Resources – have averaged a 14.7% total return in the year-to-date. This compares with a 8.0% gain in Jakarta Composite Index (JCI) over the same period.

Largest Indonesia Plays Average Total Return vs. JCI (%)

Source: SGX & Bloomberg (data as of 18 March 2016)

The table below details the three largest capitalised Indonesia plays listed on SGX, and is sorted according to market capitalisation. The table includes two STI stocks, Jardine Cycle & Carriage and Golden Agri-Resources. The third stock, First Resources, is also on the STI Reserve List, effective today. Click on each stock to visit its profile page on SGX StockFacts.

Indonesia Plays Stock Code Market Cap in S$B Total Return YTD % Total Return 3 Yrs % Total Return 5 Yrs % Dvd Ind Yld % GICS® Industry Name
Jardine Cycle & Carriage C07 16.0 15.9 -12.5 45.9 2.3 Distributors
Golden Agri-Resources E5H 5.4 26.5 -22.7 -26.6 1.2 Food Products
First Resources EB5 3.1 1.8 12.9 73.7 1.3 Food Products
Average     14.7 -7.4 31.0 1.6  

Source: SGX, Bloomberg & SGX StockFacts (data as of 18 March 2016)

Largest Malaysia Plays

The three largest Malaysia plays listed on SGX  – IHH Healthcare Berhad, The Straits Trading Company and Yeo Hiap Seng – have averaged a 2.3% total return in the year-to-date. This compares with the FTSE Bursa Malaysia Kuala Lumpur Composite Index’s total return of 3.7%.

Largest Malaysia Plays Average Total Return vs. KLCI (%)

Source: SGX & Bloomberg (data as of 18 March 2016)

The table below details the three largest capitalised Malaysia plays listed on SGX, and is sorted according to market capitalisation. The table includes IHH Healthcare Berhad, which is a dually listed on Bursa Malaysia and SGX, in addition to being a constituent of the the FTSE Bursa Malaysia Kuala Lumpur Composite Index and MSCI Malaysia Index. IHH Healthcare Berhad also makes up 11.1% of the SGX Healthcare Index. Click on each stock to visit its profile page on SGX StockFacts.

Malaysia Plays Stock Code Market Cap in S$B Total Return YTD % Total Return 3 Yrs % Total Return 5 Yrs % Dvd Ind Yld % GICS® Industry Name
IHH Healthcare Berhad Q0F 1.8 2.4 59.2 96.0* 0.5 Health Care Providers & Services
The Straits Trading Company S20 0.9 6.9 -34.5 -33.9 1.8 Metals & Mining
Yeo Hiap Seng Y03 0.8 -2.2 -51.4 -10.8 1.5 Food Products
Average     2.3 -8.9 17.1 1.3  

Source: SGX, Bloomberg & SGX StockFacts (data as of 18 March 2016)