Travel & Leisure stocks Outperform in 2012

The Singapore stock market as represented by the Straits Times Index (STI) closed at a year high of 3168.43 on Friday. This represents a year-to-date gain of +19.7%. While three of the 30 STI stocks represent services from the Travel & Leisure sector, the sector is also represented by an additional 26 stocks that are listed on the Mainboard of Singapore Exchange (SGX).  
Price performances of these stocks have varied from +163.7% for Rowsley Ltd [A50] to -14.2% for SBS Transit [S61] in the year thus far. The average price appreciation of the 29 Mainboard Travel & Leisure stocks over the period has been +30.1%.
Of the 29 stocks, there have been 6 decliners and 22 gainers, while the stock price of Stamford Land Corp [H07] is unchanged in the year thus far. Note Stamford Land Corp special cash dividends and normal dividends boosted the year-to-date total return of the stock to +7.3% as of Friday. Of the relevant 29 stocks, 22 maintained indicative dividend yields that ranged from 6.8% for Thai Village [596] to 0.51% for Superbowl Holdings [S48]. A detailed table of the Mainboard listed stocks of the Travel & Leisure sector as of the Friday close can be found here.
The primary businesses of these 29 stocks range from Airlines, Gambling, Hotels, Recreational Services, Restaurants & Bars to Travel & Tourism as stated by the Industry Classification Benchmark (ICB).  The two airlines of the sector, Singapore Airlines [C6L] and Tiger Airways Holdings [J7X] have appreciated by +7.2% and +12.6% respectively in the year thus far. The aforementioned investment holding company, Rowsley Ltd is the single stock categorised to the Gambling subsector by ICB.
Eleven of the thirteen Hotel stocks generated price gains in the year thus far. Hotels were led by the Far East Orchard [010] gain of +126.2%, followed by Hotel Properties [H15] gain of +65.4% and HL Global Enterprises Ltd [L18] gain of +62.9%. The two hotel stocks that have declined in the year-to-date are Global Premium Hotels Ltd [P9J] and Mandarin Oriental International USD [M04] with price declines of -3.9% and -5.3% respectively. The three biggest hotel stocks by market capitalisation are Overseas Union Enterprise [LJ3] which gained +31.9% in the year thus far, followed by Mandarin Oriental International and Hotel Properties. The 2012 performance of the full 13 Hotel stocks listed on the Mainboard can be found here.
Three of the four stocks that represent Recreational Services, have posted gains in the year-to-date. Superbowl Holdings [S48] gained +73.7%, Straco Corp [S85] gained +44.4% and Genting Hong Kong [S21] gained +28.3%. STI component Genting Singapore PLC [G13] has declined -9.3% in the year-to-date.
Four of the five Mainboard stocks that represent Restaurant & Bars have posted gains in the year-to-date. Note each of these five stocks maintain a full market capitalisation lower than S$50 million. The two Restaurant & Bar stocks with the highest market capitalisation have been the outperformer and underperformer of the five stocks in the year to date. Outperforming Sakae Holdings [5DO] gained +76.5% while underperforming Soup Restaurant Group [5KI] declined -8.4%.
Two of the four stocks that represent Travel & Tourism, ComfortDelGro Corp [C52] and Penguin International [P13] have posted respective price gains of +26.5% and +7.4% in the year this far. Meanwhile, SMRT Corp [S53] and SBS Transit Ltd [S61] have posted respective declines of -6.2% and -14.2%.
A sectoral perspective of the stocks and portfolio products that are listed on SGX can assist investor understanding in the objective of diversifying the risk and return of their assets. Next year, SGX My Gateway will be working with established stock market educators to provide a number of sectoral education events and updates.

Source: SGX My Gateway

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