Top 25 tech stocks hit average returns of 5.7% in December

Venture's total returns was recorded at -25.3% in December YTD.

The Singapore Exchange (SGX) revealed that the returns of the top 25 technology stocks saw average returns hit 5.7% in December YTD whilst median returns were recorded at -15.9%.

Total returns of the said stocks in 2017 hit 87.3% and median returns recorded at 72.1%, data from SGX showed.

Amongst the 25 largest tech stocks primary listed in SGX, the local bourse noted that seven stocks have seen gains in 2018 YTD, including Creative Technology (416.8%), PCI (38.7%), CSE Global (22.7%), Procurri Corp (21.7%), Excelpoint Technology (8.2%), AEM Holdings (5.2%), and Chuan Hup Holdings (5%).

SGX also noted that the sector’s largest stock, Venture Corp, had joined the Straits Times Index (STI) in January and was the most traded stock relative to market capitalisation within the STI for the first 10 months of 2018.

“The stock averaged 2.6% daily swings between its daily high and low for the period and effective November is now tradable via SIP Daily Leverage Certificates,” SGX commented.

Venture’s total returns in December YTD hit -25.3%. In 2017, it’s total return was recorded at 115.4% for the whole year.

According to SGX, the top 25 stocks saw an average return on equity (ROE) of 13% and median ROE of 11%. They added that the said stocks saw averaged ROEs of 16% over the past five years.

"The technology sector is deemed to be highly cyclical," SGX explained. "Increased global demand for electronic products and services in recent years has coincided with expansion and new entrants within the Technology Sector. This has added to competition within the sector that has the economic impact of weighing both prices and margins."

The local bourse noted that trading of electronic products and services has been pressured by the US-China trade disputes, particularly since May when the US announced it would impose tariffs on industrially significant technology.