Page 4 - Valuation in Abnormally Uncertain Times
P. 4

SECTION 1 :

        ANALYSIS OF SINGAPORE LISTCOS PRE AND POST COVID-19



        COVID-19 HAS CAUSED A SIGNIFICANT DECLINE IN MARKET VALUE


        We have analysed the change in Market Capitalisation of Singapore ListCos from 31 December 2019 to 30 April 2020 and set out
        the analysis categorised by industries below:

                                              Market Capitalisation (SGD MIllions) 31 December 2019 to 30 April 2020
                   Industry
                                        31/12/2019  31/01/2020 29/02/2020 31/03/2020 30/04/2020         Change
         Communication Services          65,782       64,454       59,261      50,826       55,814      (9,967)

         Consumer Discretionary          39,644       37,886      35,884       28,391       30,653      (8,991)
         Consumer Staples                 81,215      75,599       74,277      60,817       67,332      (13,884)
         Energy                           3,223       2,965        2,854        2,170       2,393        (830)
         Financials                      183,454      179,962     173,426      140,178     152,227      (31,227)
         Health Care                      11,562      11,704       11,040       9,521       10,717       (845)
         Industrials                     131,035      128,421     123,162      100,490     102,373      (28,661)
         Information Technology           11,857      11,324       10,817       8,709       10,428      (1,429)

         Materials                        3,421        3,281       3,100        2,571       2,783        (638)
         Real Estate                     194,886      194,229     185,118      147,168     161,079     (33,808)
         Utilities                        5,277       5,029        4,951        4,039       4,422        (855)
         Total                           731,356     714,855      683,889     554,880      600,221     (131,135)
         % change from 31 December 2019                -2%          -6%         -24%        -18%

        Source: CapitalIQ


           ▪ The total market value of shareholders equity of Singapore Listcos declined from SGD731 billion to SGD555 billion from 31
          December 2019 to 31 March 2020. By the end of first quarter of 2020, a total of SGD176 billion of shareholders value had
          evaporated, equivalent to a 24% decline.

           ▪ There was a slight rebound of the total market value by the end of April 2020 to about SGD600 billion equivalent to a total
          decline of 131 billion or approximately 18% from 31 December 2019 to 30 April 2020. It is, however, uncertain if the rebound will
          last.

           ▪ Industries that were hit the hardest (by 30 April 2020) were Real Estate (loss of SGD34 billion), followed by Financials (loss of
          SGD31 billion) and Industrials (loss of SGD29 billion).

           ▪ In terms of the decline rate, Energy was hit the hardest (26%), followed by Consumer Discretionary (23%) by 30 April 2020.






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