SGX: Singapore Outperformed Asia Pacific By 6% Over Past 4 Weeks

Compared to the FTSE Asia Pacific Index, the STI was 6.0% stronger in performance from the 4 February close through to the 1 March close.
On 4 February, the price of the STI relative to the price of the FTSE Asia Pacific Index was stretched beyond standard deviations to a five-year low.
Over the four weeks from 4 February, the strongest five stocks of the STI were Sembcorp Industries, Genting Singapore PLC, Keppel Corporation, Global Logistic Properties and Singapore Technologies Engineering.

Over the four week period from 4 February 2016, the Straits Times Index (STI) has outperformed the FTSE Asia Pacific Index by 6.0%. Over the period the STI gained 4.8% in price compared to the FTSE Asia Pacific Index decline of 1.2%.

The FTSE Asia Pacific Index is USD Denominated Index made up of 1441 constituents with largest country weights Japan (44.0%), Australia (12.0%) and China (11.0%). On a Singapore Dollar basis, the FTSE Asia Pacific Index decline of 1.2% from 4 February was trimmed to a decline of 0.8%.

The first four sessions of February were important for the relationship between the STI and the FTSE Asia Pacific Index. During those four sessions the price ratio of the STI to the FTSE Asia Pacific Index reached a low of 0.899 on the 4 February 2016 close, from a base of 1.000 on 2 March 2015. On 4 February, the price ratio of the STI to the FTSE Asia Pacific Index closed at its lowest level in the not just the past 12 months but the past five years.

On both 2 February and 4 February the price ratio of the STI to the FTSE Asia Pacific Index was stretched to beyond two standard deviations of the 12 month and five year average price ratios. Theoretically, this should statistically occur less than 5% of the time.

The 12 month price moves of both indices are illustrated in the table below with changes in addition to changes in the price ratio of the two indices. From the base of 1.000 on 2 February 2016, the price ratio stood at 0.955 as of yesterday’s close, back near the 12 month average price ratio of the two indices at 0.962.

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