Suntec REIT to replace Olam International in SGX’s SiMSCI Index

As four firms get added to the MSCI Singapore Small Cap Index.

In 2014 year-to-date, the SiMSCI Index generated a total return of 4.2% in SGD terms, and maintains a dividend yield of 3.6%. In addition, the price/earnings ratio of the SiMSCI Index stood at 12.8. The dividend yield of the Index is slightly higher than the Straits Times Index (STI) because of the SIMSCI’s inclusion of Keppel Land, CapitaCommercial Trust and Yangzijiang Shipbuilding Holdings which have dividend yields above 4.0%.

Suntec Real Estate Investment Trust (REIT) will replace Olam International in the SiMSCI Index as of the open of 26 November 2014. At that time the SiMSCI will include 24 of the 30 STI constituents in addition to the five stocks of the STI Reserve List.

According to the MSCI’s website, the MSCI Singapore Small Cap Index cover all investable small cap securities with a market capitalisation below that of the companies in the MSCI Standard Index, targeting approximately 14% of each market’s free-float adjusted market capitalisation. There are 85 constituents in the MSCI Singapore Small Cap Index.

PACC Offshore Services Holdings, Japfa, Frasers Hospitality Trust and Accordia Golf Trust will replace Keppel Infrastructure Trust, Stamford Land Corporation, Suntec REIT and Swiber Holdings in the MSCI Singapore Small Cap Index as of the close of 25 November 2014.

In 2014 year-to-date, the MSCI Singapore Small Cap Index generated a total return of 4.6% and a dividend yield of 4.4%. In addition, the price/earnings ratio of the MSCI Singapore Small Cap Index stood at 11.9%. Over the past three years, the Index generated an annualised total return of 10.0%.

The four additions to the MSCI Singapore Small Cap Index were securities listed on Singapore Exchange (SGX) in 2014. PACC Offshore Services Holdings was listed in April while the remaining three were listed in the second half of 2014. Frasers Hospitality Trust was listed in July and Accordia Golf Trust & Japfa were listed in August. These four stocks were all listed on the SGX’s Mainboard.