OREANDA-NEWS. Following the FTSE ST Index Series Semi-Annual Review for March 2016, 11 stocks are set to join the FTSE ST Catalist Index effective the open of 21 March 2016. These 11 stocks include security solutions provider Secura Group, which made its trading debut on 28 January 2016. The 11 stocks also include Eindec Corporation and GS Holdings which made their trading debut on 15 January and 18 January respectively.

FTSE ST Catalist Index

The FTSE ST Catalist Index is currently made up 160 companies listed on SGX Catalist. The index is a free float adjusted market-capitalisation weighted index representing the performance of sponsored companies in the SGX Catalist. There are no liquidity requirements for constituents of the FTSE ST Catalist Index. The Index has averaged a total return of negative 6.9% in the 2016 year thus far. The two biggest sectors that are represented by the Index are the Industrials Sector with a 27% weighting and Healthcare with a 21% weighting.

The 11 Catalist stocks that will join the FTSE ST Catalist Index effective 21 March have a combined market capitalisation of S$733 million. Among the 11 additions, the three strongest performers in terms of year-to-date total return were OLS Enterprise, Transcorp Holdings and Jumbo Group at 16.7%, 12.4% and 8.0% respectively.

The new additions are tabled below. Please note that clicking a stock’s name in the table below will direct you to its relevant page on StockFacts. There are no scheduled deletions for the FTSE ST Catalist Index.

Name SGX Code P/E P/B Last Price in S$ 12M High in S$ 12M High Date 12M Low in S$ 12M Low Date
Jumbo Group 42R 28.4 5.3 0.485 0.485 01/19/2016 0.300 11/13/2015
The Trendlines Group 42T N/A N/A 0.220 0.395 12/07/2015 0.133 01/29/2016
Secura Group 43B N/A 5.8 0.205 0.255 01/28/2016 0.196 03/01/2016
TLV Holdings 42L N/A N/A 0.123 0.330 09/21/2015 0.115 01/25/2016
Axcelasia 42U 0.1 0.1 0.210 0.275 11/27/2015 0.160 12/16/2015
ecoWise Holdings 5CT N/A 0.7 0.035 0.074 05/19/2015 0.026 01/21/2016
GS Holdings 43A N/A 0.1 0.255 0.280 01/18/2016 0.235 01/25/2016
Transcorp Holdings T19 N/A 1.2 0.118 0.200 03/09/2015 0.094 02/17/2016
Eindec Corporation 42Z 8.4 1.5 0.185 0.265 01/15/2016 0.185 02/19/2016
OLS Enterprise ADJ N/A 3.4 0.007 0.014 05/28/2015 0.003 03/24/2015
LifeBrandz L20 N/A N/A 0.004 0.009 06/18/2015 0.001 03/25/2015
Average   12.3 2.2          

The Catalist Board provides investors access to less established, fast-growing companies. There is no quantitative entry criteria required by SGX for Catalist stocks, and businesses seeking a primary listing on Catalist must be brought to list by approved Sponsors via an Initial Public Offering (IPO) or through a Reverse Takeover (RTO). To help facilitate the growth of the business, Catalist provides a greater scope for secondary fundraisings and easier acquisitions. Over the past three years, the secondary fundraising activities of Catalist stocks outstripped fundraising by IPOs, thus exemplifying the use of capital funding as these businesses pursue their growth plans.

As noted in Catalist offer documents, companies listed on Catalist may carry higher investment risk when compared with larger or more established companies listed on the Mainboard. Furthermore, companies may list on Catalist without a track record of profitability and there is no assurance that there will be a liquid market in the shares or units of shares traded on Catalist. These documents point out that investors should be aware of the risks of investing in such companies and should make the decision to invest only after careful consideration and, if appropriate, consultation with professional advisers.

The quotation, trading and settlement processes of a stock listed on Catalist are identical to that of a stock listed on the Mainboard.