ROEs of SGX mid-caps are a mixed bag, small-caps lag
Uneven ability to keep up with AI and interest-rate pressures are seen as two factors driving the divide
The Singapore Exchange (SGX) reveals a mixed picture for mid-cap companies, with small-cap firms performing poorly in terms of return on equity (ROE). A recent study shows that the average small-cap company on the SGX has an ROE of -4.44%, while the median small-cap company's ROE is a positive 1.58%. These figures, derived from five-year adjusted average ROE data from Bloomberg, indicate a significant disparity between the performance of small and mid-cap companies on the exchange.
A majority of small-cap companies on the SGX are clustered in the low single digits or negative territory, with representatives such as Marco Polo Marine (6.4%), Wee Hur (4.2%), Cosco Shipping (1.5%), and Hyflux (0.8%) trailing behind. This trend highlights the challenges faced by smaller companies in keeping up with the evolving landscape.
Notable mid-cap companies on the SGX include ComfortDelGro, ESR-Reit, Frasers Property, Centurion, and Fuyu. The latter has been a focus for investors, as Federal Reserve Chair Jerome Powell's hawkish stance at the Jackson Hole turn appears to favor soaring banks over struggling Singapore REITs. Meanwhile, the potential of AI technology in Singapore remains largely untapped by investors, presenting opportunities for future growth.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- ROEs of SGX mid-caps are a mixed bag, small-caps lag businesstimes.com.sg
