Genting SP is forming a Bull Flag on an uptrend channel. The stock is trading above 20D, 50D and 200D SMA. As long as Genting can hold above $1.425 (61.8% Fibonacci Retracement Level) and the 200D SMA, any dip is a good opportunity to accumulate for long term investing.
In the first three sessions of 2013 the Straits Times Index (STI) firmed +1.84%. This morning’s open extended the 2013 gain to +2.11%. The strongest sector index over the last three sessions has been Basic Materials, followed by Consumer Goods. While all Sector Indices provided by FTSE Group are in the green over the first three sessions of 2013, all have performed differently. The REIT index gained the least over the three sessions.
Dividing investments over different sectors is common practice for investors that seek to diversify risk and return. Consider the recent different performances and constituents of the FTSE ST Oil & Gas Index and FTSE ST Telecommunications Index. The FTSE ST Oil & Gas Index is made up of 12 stocks versus the FTSE ST Telecommunications Index which is made up of 3 stocks.
On Friday, the FTSE ST Oil & Gas Index declined -0.24% while the FTSE ST Telecommunications Index gained +0.24%. This brought the 2013 to date gain for the Oil & Gas and Telecommunications Sector indices to similar levels of +1.45% and +1.53% respectively.
Taking more time into consideration, the difference between sectoral performances has been more pronounced. Last year the FTSE ST Oil & Gas Index outperformed the STI by rising +23.8%. Taking reinvested dividends into consideration, the Oil & Gas Index return was boost to +27.9%. Meanwhile, the FTSE ST Telecommunications Index gained +8.6% over 2012 with dividends boosting the return to +13.8%. The simple average return of the two indices combined came to 20.9% including dividend distributions. By placing equal investment emphasis in the two sector indices, returns were smoothed across two sectors that performed differently.
The relative performance of the two indices was reversed in 2011. In 2011, the FTSE ST Oil & Gas Index declined -17.4%, while the Telecommunications Index gained +5.0%. Dividend distributions in 2011 meant the total return of the indices was boost to a -14.9% decline for Oil & Gas and a gain of +10.6% for Telecommunications. The simple average return of the two indices combined came to a decline of -2.2% including dividend distributions. Placing equal investment emphasis in the two sector indices reduced the risk of having all the eggs in an underperforming sector.
Both sector Indices have performed differently in the past with the Oil & Gas sector more cyclical than the Telecommunications Index. The past tendency for the Oil & Gas Index to swing more than Telecommunications is best exemplified through the volatility gauge for Telecommunications at 13.5%, less than half the same measure for Oil & Gas Index at 28.2% over a three year period ending December 31.
The five largest Oil & Gas stocks as categorised by Industry Classification Benchmark (ICB) and respective 2012 price performances are:
The five largest telecommunication stocks as categorised by ICB and respective 2012 price performances are:
Investors who wish to learn more about these stocks are encouraged to participate in the education events list below. Please note that two of the aforementioned Telco stocks, Total Access Communications and Keppel Telecommunications & Transportation are not highly active thus providing an element of liquidity risk.
Source: SGX MyGateWay
In 2012, the Straits Times Index (STI) rebounded from its 2011 decline, generating a gain of +19.7% over the year. Dividends boost the total return of the Index to +23.5% in 2012. Over the past three years the average annualised return of the STI including dividend distributions amounted to +6.4%.
The five best performing STI stocks over 2012 were CapitaMalls Asia (JS8, +72.1%), CapitaLand (C31, +67.4%), Global Logistics Properties (MC0, +58.4%), Fraser and Neave (F99, +55.8%) and Hong Kong Land (H78, +54.4%). The five underperforming STI stocks over 2012 were Wilmar International (F34, -33.0%), Olam International (O32, -26.8%), Genting Singapore (G13, -8.9%), Golden Agri Resources (E5H, -8.4%) and Jardine Cycle & Carriage (C07, -0.3%).
The broader universe of stocks as represented by the FTSE ST All-Share Index gained +22.2% in 2012. Reinvested dividends boosted the FTSE ST All-Share Index to +26.7%. The FTSE All Share Index is made up of the STI stocks, stocks of the FTSE ST Mid Cap Index and the stocks of the FTSE ST Small Cap Index. The FTSE ST Mid Cap Index generated a +31.7% gain for the year, while the FTSE ST Small Cap Index gained 30.7%. Reinvested dividends boosted the respective indices to +39.3% and +36.6%. Last Monday more constituents were added to the FTSE All-Share Index, bringing the total number of constituents to 166 stocks.
The FTSE ST All-Share Index also represents the selection of stocks that make up the FTSE ST Sector Indices. The two best performing Sector Indices of 2012 have been Real Estate Holdings & Development (+56.0%) and Financials (+36.8%), while the two underperforming Sector Indices in 2012 have been Consumer Goods (-17.5%) and Health Care (-4.1%). Please note that the Financials Sector Index is a broad benchmark that includes Banks, the aforementioned Real Estate Holding & Development stocks, REITs and diversified financials. The two FTSE ST Sector Indices that posted the most similar returns to the STI were the Oil & Gas Index which gained in +23.8% in 2012 and the Utilities Index which gained +15.0%. While the Oil & Gas index includes some STI constituents the Utilities Index does include STI constituents.
Source: SGX My Gateway