, Singapore

Chart of the Day: Transpo stocks beat index slump after averaging 8% total returns YTD

This compares to a 3.1% decline in the FTSE ST All Share Index.

Singapore's key transportation stocks, which includes SIA, ComfortDelGro and SBS Transit, have performed better than the index after averaging 8% total returns in 2018 YTD compared to 3.1% decline in the FTSE ST All Share Index, according to market updates from the bourse. 

Despite volatile oil prices in recent sessions which have traded at above US$73bbl, these three stocks performed comparatively strongly compared to their peers in capital goods or financial verticals. 

Over the past five years the trio of stocks have averaged 9.5% annualised total returns – ranging from 5.0% for Singapore Airlines to 15.1% for SBS Transit.

On a shorter-term basis, the key transportation trio averaged 1.6% return compared to an 8.2% decline in the FTSE ST All Share Index. 

The world’s largest transportation stocks generally maintain dividend yields close to 2.0%. However Singapore’s three transportation stocks currently maintain an average indicative dividend yield that is more aligned with the FTSE ST All Share Index at an average of 3.7% indicative dividend yield.

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