Singapore stock market outperforms in 2022: Top STI performers revealed

What happened?

The past year has been marked by sharp falls in global equity markets as investors face an uncertain economic outlook amidst a higher interest rate environment.

If you were investing in the S&P 500, you would potentially be facing losses of close to 20%. 

Amidst the pessimism, investors in the Singapore market have more to cheer about. 

The Straits Times Index (STI) has outperformed all global stock benchmarks in total returns generated (inclusive of dividends and in US Dollars)

The STI saw a USD total return of 7% for 2022 (year-to-date till 16 December), far outperforming most other global indices. 

In fact, there were some stocks in the STI which saw gains of close to 84%! 

Let’s take a look at what are these stocks driving the strong performance of the STI. 

3 best performing stocks in the STI in 2022

#1 - Yangzijiang Shipbuilding (SGX: BS6)

Yangzijiang Shipbuilding’s share price has gained 84% in 2022 (as of 16 December 2022)

Earlier in the year, the Chinese shipbuilder spurn-off and listed its investment arm, Yangzijiang Financial Holding. This move was cheered by the market as it created a pure-play shipbuilding-focused entity. 

Soon after, Yangzijiang Shipbuilding secured its maiden contract win of two 175,000 CBM LNG carriers, a vessel type which has traditionally been predominantly served by Korean shipbuilders. 

Entering the new year, Yangzijiang Shipbuilding is confident of leveraging on the continued demand for LNG carriers and capturing a larger market share in this sector.

#2 - Sembcorp Industries (SGX: U96)

Sembcorp Industries’ share price has gained 65% in 2022 (as of 16 December 2022)

Investors have taken positively to the company’s brown to green transition to become a leading provider of sustainable solutions. 

As one of the leading power generation companies in Singapore, Sembcorp Industries has seen its profit grow with higher electricity prices in Singapore. 

Sembcorp Industries has also made meaningful strides in decarbonisation following its announced sale of Sembcorp Energy India Limited (SEIL) for about S$2.1 billion. 

SEIL is one of the largest independent power producers in India, operating two coal-fired plants with a capacity of 2.6GW.

#3 - Keppel Corporation (SGX: BN4)

Keppel Corp’s share price has gained 41% in 2022 (as of 16 December 2022)

The company is targeting to improve on its quality of earnings with higher recurring income as part of its Vision 2030.

Since October 2020, Keppel has monetised assets worth close to S$4.4b billion. This would include the sale Keppel Marina East Desalination Plant to Keppel Infrastructure Trust. 

It also looking to divest its Offshore and Marine business to Sembcorp Marine with the transaction potentially completed in 1H23. 

Moving into 2023, Keppel looks to continue to grow its renewables, clean energy and sustainable urban renewal businesses.

Keppel is also confident of achieving its target of divesting S$5 billion of assets by the end of 2023. 

What would Beansprout do?

Singapore has proven to be a “safe haven” amidst the global uncertainty that we’ve seen over the past year.

While economic growth is expected to slow down in 2023, you may still be able to find some stocks with improving fundamentals that could yield a good return. 

If you are looking at gaining exposure to the Singapore market but do not have the time to look at single stocks, you can consider looking at a STI ETF. 

The SPDR STI ETF and NikkoAM Singapore STI ETF were amongst the top ETFs purchased by SRS investors in Singapore, and provide investors with diversified exposure to the Singapore market.