STI Constituents Change
- Jardine Strategic will substitute SIA Engineering as Straits Times Index (STI) constituents starting tomorrow (18-Sep). We continue to monitor if the inclusion as STI component stocks affects its share price.
The Jardines
- To recap, Jardine Strategic owns significant stakes in other SGX listed Jardine Group companies.
| Stock | Country | SGX Listing |
Other Listing |
Mkt Cap (S$m) |
Share Outstanding (m) |
Float % |
P/E | P/BV | D/E |
|---|---|---|---|---|---|---|---|---|---|
| JARDINE STRATEGIC HLDGS LTD (J37.SI) | Bermuda | Secondary | LSE, BSX | 34,872 | 577.33 | 15.44% | 6.736 | 0.891 | 22.33% |
| JARDINE CYCLE & CARRIAGE LTD (C07.SI) | Singapore | Primary | 15,667 | 395.24 | 22.74% | 15.004 | 1.895 | 55.12% | |
| JARDINE MATHESON HLDGS LTD (J36.SI) | Bermuda | Secondary | LSE, BSX | 28,016 | 317.08 | 79.78% | 6.862 | 1.008 | 22.49% |
| DAIRY FARM INT'L HOLDINGS LTD (D01.SI) | Bermuda | Secondary | LSE, BSX | 14,323 | 1,352.46 | 22.20% | 22.064 | 6.618 | 12.30% |
| MANDARIN ORIENTAL INTL LTD (M04.SI) | Bermuda | Secondary | LSE, BSX | 4,333 | 1,257.79 | 21.57% | 68.263 | 2.581 | 63.68% |
| HONGKONG LAND HOLDINGS LIMITED (H78.SI) | Bermuda | Secondary | LSE, BSX | 23,650 | 2,352.80 | 49.83% | 3.375 | 0.502 | 11.05% |
Source: SGX website, SGX StockFacts as of 15-Sep-2017.
Incorporated in Bermuda
- Jardine Strategic, Jardine Matheson, Mandarin Oriental, HongKong Land & Dairy Farm are incorporated in Bermuda. Cycle & Carriage was founded in Singapore and subsequently renamed as Jardine Cycle & Carriage with Jardine Matheson Group became the major stakeholder in 2004.
- Bermuda is described as "Tax Haven" for its near 0 corporate tax rate. About 30 over current SGX listed companies are incorporated in Bermuda, including Noble Group, Yuuzoo, Silverlake Axis, Valuetronics, United Food, Hotung Investment, etc, as well as many of the S-chips companies.
- According to SGX regulatory, the requirement for Director/Chief Executive Officer (“CEO”) to give notice of his interests in the securities of the Listed Issuer applies only to a director and where the Listed Issuer is a Singapore-incorporated company.
Listed on London Stock Exchange (LSE) and Bermuda Stock Exchange (BSX)
- Jardine Strategic, Jardine Matheson, Mandarin Oriental, HongKong Land & Dairy Farm are LSE (London Stock Exchange) and BSX (Bermuda Stock Exchange) listed too.
- Jardine Strategic & Jardine Matheson are classified as Standard Listing by LSE.
- Mandarin Oriental, HongKong Land & Dairy Farm are classified as Primary Listing (Premium Listing) by LSE.
- These 5 companies are listed on BSX (Bermuda Stock Exchange) as Secondary Listing.
- Trading activities for these 5 companies on LSE and BSX are near zero for the past years.
- According to LSE website:
- Issuers with a Premium Listing are required to meet the UK’s super-equivalent rules which are higher than the EU minimum requirements. A Premium Listing means the company is expected to meet the UK’s highest standards of regulation and corporate governance.
- A Standard Listing allows issuers to access the Main Market by meeting EU harmonised standards only rather than the UK ‘super-equivalent’ requirements.
- The regulatory approach for primary listings clearly differs from that of secondary listings. According to SGX website - The place of a company’s primary listing will fully impose its listing rules on the company. In contrast, where a company is secondary listed on an exchange, the host exchange will generally rely on the home exchange to regulate the company.
- One of the key differences is that these companies only required to report financial status every 6 months, instead of following SGX regulatory requirements of quarterly reporting.
Share Price & Trading Volume
- Similar to the previous week (see article: Straits Times Index Constituents Change - The Jardines), it seems the impact to the share price of Jardine Strategic is minimal, though the average daily volume increased slightly this week.
| Stock | Share Price 31-Aug | Share Price 08-Sep | Share Price 15-Sep | 2-Wk Price Chg % | 1-Wk Avg Vol 08-Sep (,000) | 1-Wk Avg Vol 15-Sep (,000) | 3-Mth Avg Vol 31-Aug (,000) | 52-W Avg Vol 31-Aug (,000) | |
|---|---|---|---|---|---|---|---|---|---|
| JARDINE STRATEGIC HLDGS LTD (J37.SI) | USD 43.85 | 44.49 | 44.89 | +2.4 | 266 | 386 | 312 | 483 | |
| JARDINE CYCLE & CARRIAGE LTD (C07.SI) | SGD 39.93 | 39.30 | 39.64 | -0.7 | 190 | 294 | 263 | 284 | |
| DAIRY FARM INT'L HOLDINGS LTD (D01.SI) | USD 8.10 | 7.97 | 7.87 | -2.8 | 375 | 2455 | 374 | 389 | |
| HONGKONG LAND HOLDINGS LIMITED (H78.SI) | USD 7.41 | 7.28 | 7.47 | +0.8 | 1692 | 2711 | 1734 | 1887 | |
| JARDINE MATHESON HLDGS LTD (J36.SI) | USD 65.71 | 66.00 | 65.66 | -0.1 | 224 | 134 | 211 | 284 | |
| MANDARIN ORIENTAL INTL LTD (M04.SI) | USD 2.00 | 2.01 | 2.56 | +28.0 | 448 | 1832 | 816 | 342 |
- However, we saw unusual trading activities for Dairy Farm on Friday (15-Sep) where the trading volume of the day is ~25 times more than the average daily trading volume of past 3 months. We noticed increase in trading volume for HongKong Land too.
- Dairy Farm down 2.7% on 15-Sep with 10.278 million shares traded. See Dairy Farm Share Price History.
- For the latest list of stocks with unusual trading volume detected, see SGX Stocks With Surging Volume .
- Share price of Mandarin Oriental surged ~20% on Friday (15-Sep). The group announced receiving bids for The Excelsior, HongKong for the on-going strategic review of the property, only after market closed. (See Mandarin Oriental International Company Announcement dated 15-Sep-2017). SCMP reported that "The 848-room hotel is likely to be valued at between HK$24 billion and HK$34.2 billion (US$4.38 billion)".
- Note that Mandarin Oriental currently operates 30 hotels and eight residences in 20 countries and territories. The Group’s hotels are all 5-star luxury properties, with the exception of The Excelsior, Hong Kong with 4-star rating.
- Market Cap of Mandarin Oriental after the 20% price surge on Friday stands at US$3.22 billion (which is far below the valuation of The Excelsior Hong Kong, i.e. just 1 out of the 30 hotels).
- Check out the comments of the Facebook Post below for links to reports.
- Separately, SIA Engineering which is to be excluded from STI components stay flat in the past week, despite the slight increase in trading volume.
| Stock | Share Price 31-Aug | Share Price 08-Sep | Share Price 15-Sep | 1-Wk Price Chg % | 1-Wk Avg Vol 08-Sep (,000) | 1-Wk Avg Vol 15-Sep (,000) | 3-Mth Avg Vol 31-Aug (,000) | 52-W Avg Vol 31-Aug (,000) | |
|---|---|---|---|---|---|---|---|---|---|
| SIA ENGINEERING CO LTD (S59.SI) | SGD 3.52 | 3.41 | 3.41 | -3.13 | 685 | 460 | 402 | 289 |
