HUTCHISON PORT HOLDINGS TRUST (SGX:NS8U)
SINGAPORE PRESS HLDGS LTD (SGX:T39)
MAPLETREE COMMERCIAL TRUST (SGX:N2IU)
FSSTI Review For Sep 19 - Potential Inclusion & Exclusion Candidates
- Based on our quantitative analysis, we anticipate two significant movements in the FSSTI review for Sep 19:
- exclusion of Hutchison Port Holdings Trust (SGX:NS8U), and
- inclusion of Mapletree Commercial Trust (SGX:N2IU) from the FSSTI.
- This was due to the 31.7% fall in the market cap of Hutchison Port Holdings Trust in the past three months, creating a window for Mapletree Commercial Trust whose market cap has risen 4.7%.
- While Singapore Press Holdings (SPH, SGX:T39)’s market cap had fallen by 15.4% in the same time frame, its market cap ranking of 36th is still well above the threshold for exclusion.
Key criteria for inclusion in the FSSTI.
- For a company to be eligible as a constituent in the FSSTI, there are three key criteria to be fulfilled:
- market cap – a company could replace a constituent in the FSSTI if a particular FSSTI constituent falls below the top 40 position and/or a non-FSSTI company climbs above the 20th position based on market capitalisation,
- free float must exceed 15%, and
- liquidity requirements - securities must turn over at least 0.10% of their free float shares in issue based on their median daily trading volume per month in 10 of the 12 months prior to the review.
HPH Trust falls to 50th position ranked by market capitalisation, triggering potential exclusion from the FSSTI.
- Based on the market cap of companies that also met the FSSTI liquidity requirements, Hutchison Port Holdings Trust ranks 50th as of 26 Aug 19. This signals a potential exclusion of Hutchison Port Holdings Trust from the FSSTI as guidelines state that should a company fall to the 41st position (or below) four weeks prior to the review effective date (26 Aug 19), it will be subsequently be removed from the FSSTI at the quarterly review.
MCT is the prime candidate to replace HPH Trust in the FSSTI, MINT will likely enter the FSSTI reserve list.
- The top six eligible candidates for potential inclusion in the FSSTI include Mapletree Commercial Trust, Mapletree Logistics Trust (SGX:M44U), Suntec REIT (SGX:T82U), Mapletree Industrial Trust (SGX:ME8U), Mapletree North Asia Commercial Trust (SGX:RW0U) and Keppel REIT (SGX:K71U).
- Given that Mapletree Commercial Trust tops the list in terms of market capitalisation, it is the prime candidate to be added to the FSSTI, in the event that one of the existing constituents is removed from the FSSTI.
SPH is the lowest ranked FSSTI constituent after HPH Trust, but still far from the exclusion threshold.
- SPH is currently ranked 36th in terms of market cap of eligible candidates and it is the lowest ranked FSSTI constituent after Hutchison Port Holdings Trust. However, in order for it to be excluded, SPH’s market cap will have to fall by more than 14% (in order to fall below the 40th position) and/or Mapletree Logistics Trust’s market cap will have to increase by more than 47% (rising to the 20th position).
- In addition, we note that SPH has started a series of share buyback since 16 Jul 19, with the price of share buyback ranging from S$1.99 to S$2.27. We have a HOLD on SPH with a target price of S$2.33.
- See
- HUTCHISON PORT HOLDINGS TRUST (SGX:NS8U); Hutchison Port Holdings Trust Share Price; Hutchison Port Holdings Trust Target Price; Hutchison Port Holdings Trust Analyst Reports; Hutchison Port Holdings Trust Dividends; Hutchison Port Holdings Trust Announcements; Hutchison Port Holdings Trust Latest News.
- SINGAPORE PRESS HOLDINGS (SPH, SGX:T39); SPH Share Price; SPH Target Price; SPH Analyst Reports; SPH Dividends; SPH Announcements; SPH Latest News.
- See also
Singapore Research Team
UOB Kay Hian Research
|
https://research.uobkayhian.com/
2019-08-28
SGX Stock
Analyst Report
99998
SAME
99998
2.330
SAME
2.330
2.220
SAME
2.220
