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Monday, 26 November 2018

Random thoughts - Government Linked Companies, how are they doing now?

Many people, rightfully or wrongly, view Government Linked Companies (GLCs) as blue-chip and safe investments. How are they doing in these troubled times?

Let's take a look at the FSSTI since the start of the year:


So basically not so good. 

How about the GLCs listed on the Singapore Stock Exchange?

Here is a list of companies that are considered GLCs.



-comparing their prices as of today against the 52 week lows, quite a number of them are at, or quite near these levels.

-looking at the dividend yields, a number of them appear quite juicy at the 4% or more range. Do note that special dividends may have been included in the data above, skewing some of them

-2009 was the nadir of the Great Financial Crisis and many stocks plumbed all time lows during the year. Comparing the current prices against the lowest price hit during that year, 1 company stands out: SIA

-taking the average price of the various companies during 2009, we can see that a large number of them are trading near the 2009 average levels. Some of them are trading lower than the average price during 2009


So price resilience wise, the GLCs are hit by the recent market turmoil, but on the bright side, stock pickers may wish to start checking some of them out.

None of the above should be construed as investment advice. Do your own due diligence as I will not be responsible for any loss/risk.




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