Dear readers, will you miss this Straits Times Index (STI) stock as it drops off from the Straits Times Index with effect from next Monday 22 Jun 2020? This stock is none other than Singapore Press Holdings (SPH) stock which will be replaced by Mapletree Industrial Trust with effect from 22 Jun 2020 arising from the most recent review of the Straits Times Index stock.
SPH stock closed 2.21% on 19 Jun 2020, its last day trading as a STI constituent stock to $1.33. At one of the heydays of SPH stock trading, the stock traded as high as $4.74 in 2007. Looking at SPH stock price now, the stock price is 28% of this former hey-day high stock price.
I would think that going forward, without the “pedigree” of a Straits Times Index constituent stock status, SPH stock price is likely to go lower. Just look at Hutchison Port Holding (HPH) Trust. Since being removed off the Straits Times Index, its stock price has followed the laws of gravity. HPH Trust last traded at USD 0.11, which is 10% of its IPO price.
SPH is undervalued at 0.55 Price-to-Book ratio with a dividend yield of 5.26%. I would think going forward, with its lacklustre stock performance, SPH will be privatised.
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