HomeMarketJardine Matheson Overtakes DBS Group By Market Cap
September 1, 2018
Jardine Matheson Overtakes DBS Group By Market Cap
The 5 Largest SGX Stocks
Prudential, Singtel, DBS Group, Jardine Matheson and Jardine Strategic have been the 5 largest SGX stocks by market cap for quite sometime (except for Apr-18 when OCBC Bank overtook Jardine Strategic by about 1 billion).
However, 3 out of the top 5 stocks ie Prudential, Jardine Matheson and Jardine Strategic are secondary listed on SGX.
Prudential is listed on London Stock Exchange, New York Stock Exchange, HongKong Stock Exchange and Singapore Stock Exchange concurrently.
Jardine Matheson and Jardine Strategic are both listed on London Stock Exchange, Bermuda Exchange and Singapore Exchange concurrently too. Both Jardine Matheson and Jardine Strategic are currently included as Straits Times Index STI constituents.
Only DBS Group and Singtel are the ‘local kings’ within the top 5.
Prudential has been maintaining its top position as the largest SGX stock since November 2016. However, trading volume of stock at SGX is negligible anyway. The stock was last traded on SGX 6 weeks ago, and average daily trade volume for the past 1 year is about 58 shares per day. (Note that it is 58 shares, and not 58 lots).
If you think that such inactive stock didn’t play an important role to SGX, then you are absolutely wrong. Prudential’s market cap of ~SGD80 billion on SGX actually represent ~8% of total market value of SGX listed companies, equivalent to the total market value for the bottom 620 out of the total of ~735 SGX stocks if we sort the stocks by their market value.
Jardine Strategic and Jardine Matheson are complicated due to the strong ties and ‘senses of belonging’ among the members of Jardine family including Jardine C&C, Dairy Farm, Hong Kong Land, Mandarin Oriental Hotel Group… see the diagram -> the Jardines family.
🙋🏻♂️ Son says : I have $10
🙋♀️ Daughter says: I have $20
👩👧👦 Mother says: I have $50, plus 50% of what my son has belong to me, and 80% of what my daughter has belong to me too, so I have $50 + $5 + $16 = $71, and I also…
💑 Father interrupts and says: I have $60, and 80% of what my wife has belong to me, so I have $60 + ($71 x 80%) + …
👩❤️💋👨 Mother says: … I haven’t finished… 50% of what my husband has belong to me too, so I have $71 + ($60 + ($71 x 80% +…)) x 50% = …..
🤦🏻♂️🤷♀️ Son and Daughter say: Alamak, now I don’t know how much my family has…
👨👩👧👦 Father says: It’s ok, we are the family of Crazy Rich Asians 🤫
… So the next time when guru tells you that buying REITs make you a property owner, you can tell the guru that you are already owning supermarkets, hotels, lands and trade companies as long as you hold the shares of Jardine Strategic.
DBS Group‘s market cap grew the most during the first 4 months in 2018, but falling back to where it was during the subsequent 4 months.
In fact, the market value of these 5 stocks already represents 1/3 of total market value of SGX stocks.