Chart of the Day: Which developers are the worst performers so far this year?

Developer stocks outperformed the STI.

Developer stocks have had a good showing so far this year, according to Maybank Kim Eng.

The chart shows that developers as a whole have outperformed the STI by a wide margin, with developer stocks booking a 16.6% gain compared to a measly 2.4% for the STI.

However, a few poor performers remain. These are United Engineers, Oxley and Fragrance.

The report noted that three themes characterised the outperformers among developer stocks. Firstly, high-end developers also outperformed as stocks are seen as a good proxy for a potential bottoming of the luxury market.

Second, developers that offer an exposure to China did well after the government eased home purchase restriction in Apr 2015.

Lastly, the privatisation theme regained prominence after Keppel Corp’s privatisation offer for Keppel Land.