Investing in Singapore: Top 10 Listings on the SGX in 2016
When considering how to allocate the funds in your investment portfolio you will typically want to place some of your portfolio into relatively mature ‘blue chip’ stocks.
Typically these established companies will deliver steady results and will deliver less of the boom or bust returns that can be seen in newer and less mature companies.
Below are the top 10 companies listed on the SGX by market capitalisation (market cap), as of 31 December 2016, representing some of the blue chip investment options that exist.
Singapore Telecommunications Limited (SGX:Z74)
Market cap: S$59bil
Commonly referred to as Singtel, this Singapore-based telecommunications company actually operates in 25 countries and has over 600 million subscribers to their mobile and fixed line phone services worldwide.
The company is not only the dominant telephone network provider in Singapore but also has a significant presence in both India and Australia.
DBS Group Holdings Ltd. (SGX:D05)
Market cap: S$44bil
Previously known as The Development Bank of Singapore and established by the Government of Singapore, DBS is now the largest bank in South East Asia with a dominant market position in not only Singapore but Hong Kong as well.
With credit ratings among the highest of banks in Asia, it is one of the safest banks to place funds with in the 17 markets it operates in.
Oversea-Chinese Banking Corp. (SGX:039)
Market cap: S$37bil
Unsurprisingly, OCBC is another bank on the list. OCBC is the oldest established bank in the Singapore market, having opened for business in 1932 and still being run by the son of the original founder.
Considered another ‘safe bank’ within the broader Asian banking industry, they have established their position as a lower risk safe investment house.
United Overseas Bank Ltd. (SGX:U11)
Market cap: S$33bil
Opening just three years after OCBC this bank is another long established Singaporean based bank with an extensive presence in the South East Asian market.
With 68 branches in Singapore and 500 more in the rest of the region they have a broad foot print in 19 countries. They are also keeping themselves relevant by being involved with fintech startups in partnership with The FinLab.
Singapore Airlines Ltd. (SGX:C6L)
Market cap: S$14bil
The flag airline carrier of Singapore is one of the top ranked airlines in the world in terms of revenues, capitalisation and international passengers carried.
Aside from the core brand the company also has investments in 27 joint ventures in the industry, including low cost carriers Tigerair, Scoot, and SilkAir.
The company also invests outside of passenger airline travel, with development ventures with Boeing and Rolls-Royce, as well as a freight fleet.
CapitaLand Ltd. (SGX:C31)
Market cap: S$13bil
One of Asia’s largest real estate companies CapitaLand Ltd. was formed in 2000 as a merger between DBS Land (see DBS Group above) and Pidemco Land.
With investments in Singapore and China being their core focus they also have projects in Indonesia, Malaysia, and Vietnam. The company is fairly broad in their real estate focus with extensive residential and commercial portfolios.
Global Logistic Properties Ltd. (SGX:MC0)
Market cap: S$11bil
A leading provider of logistics facilities not only in Singapore but also in China, Japan and Brazil, this established company has a wide global presence.
With over 2500 properties completed in 113 cities, they have built significant infrastructure on which global trade and manufacturing is based.
In addition to constructing and designing properties, they also maintain a significant asset base of facilities they manage and rent to customers.
Keppel Corporation Limited (SGX:BN4)
Market cap: S$11bil
This Singapore based company specializes in marine construction as well as the development and management of marine properties and infrastructure.
Founded in 1968 initially as a shipyard, the company later moved into the local property market and later into banking and financial services as well.
Keppel Corporation is a fairly broad holding to invest in with exposure to multiple investment sectors. Diversification of sectors is something good to have in your investment portfolio.
Singapore Technologies Engineering Ltd (SGX:S63)
Market cap: S$10bil
ST Engineering is an engineering group that provides services to a broad range of sectors, from aerospace to land systems and electronics.
The company is one of the largest defence and engineering groups in Asia with more than 23,000 employees spread across 24 countries.
Great Eastern Holding Limited (SGX:G07)
Market cap: S$10bil
Great Eastern is the oldest insurance company in Asia, having been founded in Singapore in 1908. While the company is focused in Singapore and Malaysia, where it is the largest insurer in those markets, it has operations throughout South East Asia and offices in 15 countries.
The company has also focused on expanding in to the Chinese market with a joint venture established with Chongqing Land Properties Group. In terms of assets and market capitalization Great Eastern is the largest listed insurance company in Asia.