SGX reveals Singapore’s largest utility stocks

Together, they have a combined market cap of $20.7b.

Demand for utilities continues to grow with population, and the private sector is proven to be in the best position to address these needs.

A release by SGX says that there are eight securities that are either categorised to utilities or report more than one fifth of their revenue in utilities and maintain a market capitalisation of more than S$500 million.Together these eight securities have a combined market capitalisation of S$20.7 billion. The eight stocks have also generated an average turnover velocity of 34.3% over the past 12 months, with United Envirotech and SIIC Environment maintaining turnover velocity levels around 90%.

These eight stocks, in order of market capitalisation, are: Sembcorp Industries, Ausnet Services, SIIC Environment Holdings, Gallant venture, United Envirotech, Hyflux, Cityspring Infrastructure, and Keppel Infrastructure Trust.

SGX adds that the eight securities generated an average 2014 YTD total return of 8.4%, with a median total return of 2.8%. As of 19 September, the four best performing stocks in the YTD were United Envirotech, AusNet Services, CitySpring Infrastructure Trust and Keppel Infrastructure Trust.

Utilities companies are commonly involved in building the infrastructures related to utilities or providing utilities services in the area including gas, electric and water. The demand for utilities services typically grows in tandem with population growth. However, ballooning population growth and more recent fiscal constraints have resulted that more of the worlds’ utilities services have to come from and supported by the private sector.

The Industry Classification Benchmark (ICB) designated utilities stocks in the Asia Pacific region comprises 27% of the global market capitalisation of all primary-listed utility stocks. At the same time, Asia Pacific region houses 52.3% of the world’s population.

View more of the report here.