The Singapore Exchange (SGX) is Singapore’s primary equities, fixed income, derivatives, commodities and foreign currency exchange. It is the largest stock exchange in South East Asia, with a massive average daily trading volume of over $1 billion. While trading the stocks listed on the SGX is possible for foreigners through brokerage accounts, there are also several other ways to invest in and capitalise on Singapore-based markets. We’ll be taking you through a look at the Singapore Exchange, the SGX Nifty, The Straits Times Index (STI) that tracks the top fifty companies, and various other indexes available.
Trading The Singapore Exchange
To trade on the SGX, a trader or investor needs to have an account at an international brokerage. While individual stocks each exhibit unique growth, SGX shares are a reliable measure of the Singapore Exchange’s performance as a whole. When looking at the metrics, the Singapore Exchange and its derivative funds appear to offer relatively good stability amid today’s global volatility.
Over the last year, SGX stock has been down 6.04%, but year-to-date gains are at 6.08% as of the end of April. So far, 2022 has been good for the exchange, and analysts forecast earnings growth of 9.9% for the year. The reliable dividend is expected to grow by 3.25% as well. While the EPS beat expectations in the first half of 2022 by about 2%, revenues are lagging behind forecasts by roughly 1.3% SGX shares are trading in a 52-week range of 12.13 SGD to 9.93 SGD and have a median price target for 2022 of 10.753 SGD, with a low of 8.82 and a high of 11.60.
The main ETF traded in the majority is the Straits Times Index, but there are no less than 35 ETFs listed on SGX. Let’s take a closer look at the STI, what it tracks, and which other indexes are available.
The Straits Times Index (STI)
The Straits Times Index is composed of the largest thirty companies listed on SGX as determined by market capitalization. Here is a breakdown of the companies tracked by the STI as of April 2022 in descending order according to the highest volume traded:
Singapore Telecommunications Limited (SGX: Z74) – Telecommunications
Yangzijiang Shipbuilding (Holdings) Ltd. (SGX: BS6) – Shipbuilding & Repairing
CapitaLand Integrated Commercial Trust (SGX: C38U) – Real Estate
Thai Beverage PCL (SGX: Y92) – Beverages
Genting Singapore Ltd (SGX: G13) – Hospitality
Mapletree Logistics Trust (SGX: M44U) – Real Estate
ComfortDelGro Corporation (SGX: C52) – Land Transport
Wilmar International (SGX: F34) – Food & Agriculture
Mapletree Commercial Trust (SGX: N2IU) – Real Estate
Singapore Airlines Ltd. (SGX: C6L) – Air Transport
Ascendas Reit (SGX: A17U) – Real Estate
Frasers Logistics & Commercial Trust (SGX: BUOU) – Real Estate
SembCorp Industries Limited (SGX: U96) – Energy
Singapore Technologies Engineering Ltd (SGX: S63) – Aerospace & Technology
Oversea-Chinese Banking Corporation, Limited (SGX: O39) – Banking & Financial Services
Mapletree Industrial Trust (SGX: ME8U) – Real Estate
CapitaLand Investment Management (SGX: 9CI) – Real Estate
United Overseas Bank Limited (SGX: U11) – Banking & Financial Services
City Developments Limited (SGX: C09) – Real Estate
Keppel DC Reit (SGX: AJBU) – Real Estate
Singapore Exchange Limited (SGX: S68) – Securities & Derivatives Trading, Financial Services
Keppel Corporation (SGX: BN4) – Real Estate
Hongkong Land Holdings Limited (SGX: H78) – Real Estate
DBS Group Holdings Ltd (SGX: D05) – Banking & Financial Services
UOL Group Limited (SGX: U14) – Real Estate
SATS Ltd. (SGX: S58) – Airport Gateway And Food Services (80% Of Changi Airport’s Handling & Catering)
Venture Corporation Ltd (SGX: V03) – Technology (Electronics Component Manufacturing)
Dairy Farm International Holdings Ltd (SGX: D01) – Retail
Jardine Cycle & Carriage Limited (SGX: C07) – Investment
Jardine Matheson Holdings Limited (SGX: J36) – Investment
As one can clearly see, the STI is an index heavily weighted towards real estate. With most of the property investments held in Singapore and spread across Asia, it is an index that’s isolated from the supply chain issues and transport problems plaguing the west but also directly impacted by Asian logistical difficulties and other challenges.
Furthermore, the Singapore Exchange also offers the following indexes:
iEdge-CNBC China Growth Economy Index
iEdge-FactSet Global Internet Index
iEdge-FactSet Global 5G Index
iEdge S-REIT Leaders Index SGD
iEdge-UOB APAC Yield Focus Green REIT Index (SGD)
Refinitiv/iEdge SFI Index
iEdge SG ESG Leaders Index
iEdge-GateEq Aviation and Travel Index
There are also three third-party indexes tied to the SGX:
Shenzhen Stock Exchange Indices
CFETS-BOC Traded Bond Indices
The Singapore Stock Exchange Nifty should not be confused for the Singapore Stock Exchange. The SGX Nifty is where the Credit Rating Information Services of India Limited (CRISIL) and the National Stock Exchange of India, together known as the Indian CNX, are traded on the Singapore Stock Exchange. SGX Nifty is a derivative product of the NIFTY 50, which is an index on the National Stock Exchange of India that tracks the top fifty Indian companies across twelve industries and makes it possible for Asian investors to trade Indian investments locally.
SGX – Ample Opportunities For Keen Investors
The Singapore Exchange is filled with opportunities for those who know what they’re looking for. Whether you’re capitalising on insight into Singapore city-state matters and trading individual stocks or seeking to reap considerable growth such as the 26.69% returns provided by the STI ETF over the last five years, the SGX may just be the next best place to begin diversifying your portfolio towards.
Note: Please do not invest money or assets in the financial markets that you cannot afford to lose. This article should not be construed to be investment advice and is for information purposes only