KEPPEL and Sembcorp Industries topped the performance among Straits Times Index (STI) companies for 2023 in terms of total returns, the Singapore Exchange (SGX) said last Wednesday (Jan 3). Both stocks generated 61 per cent total returns for the year.

These were deviations from the comparatively flat STI, which generated a 4.7 per cent total return in 2023, in line with the 3.7 per cent total return for the FTSE Asean Extended 60 Index in Singapore dollar terms.

Since the end of 2019, the STI has recorded a total return of 18.5 per cent, doubling the total return of the FTSE Asia Pacific ex-Japan Index at 9.1 per cent.

The trio of local banks – DBS, OCBC and UOB – averaged 43.6 per cent total returns over the four years, driving gains. Their combined quarterly net interest income gradually increased to S$8.4 billion in Q3 2023, from S$5.7 billion in Q4 2019, SGX added.

SGX noted that both of 2023’s leading stocks have continued to pursue renewable energy solutions.

Keppel, together with Mitsubishi Power and Jurong Engineering consortium, is developing Singapore’s first hydrogen-ready cogeneration plant. Its infrastructure division, which makes up two-thirds of its revenue, consists of an integrated power business and decarbonisation and sustainability solutions business.

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Meanwhile, Sembcorp’s recent developments include an energy storage system and upcoming hydrogen-ready power plant. It aims to triple its gross installed renewables capacity by 2028.

The two least-performing STI stocks in 2023 included Hongkong Land and ThaiBev, both of which generated 21 per cent declines in total return.

Seatrium, formed by Keppel Offshore & Marine’s merger with Sembcorp Marine, joined the STI in 2023. The market value of its stock stood at S$8 billion at year-end, significantly boosted by the merger. Its net order book of S$17.7 billion comprises about 40 per cent renewables and cleaner or green solutions.

In 2023, the STI was the second most traded stock index among Singapore exchange-traded funds (ETF) investors, behind the Hang Seng Tech Index tacked by the Lion-OCBC Securities Hang Seng Tech ETF.

Combined, the two STI tracking ETFs recorded trading turnover of S$636 million and combined assets under management of S$2.2 billion last year.

“The 30 STI constituents booked S$3.6 billion of net institutional outflow in 2023 and S$2 billion of net retail inflow in 2023,” SGX said.