Highlights

SGX Market Updates

Author: SGX   |   Latest post: Thu, 2 Feb 2023, 9:02 AM

 

What's Trending: What You Need to Know About the SG Market in 2023

Author: SGX   |  Publish date: Thu, 2 Feb 2023, 9:02 AM


What you need to know about the SG market 

#whatstrending feat. Beansprout

Ever wondered what is currently driving the local and regional markets? #whatstrending is a new series addressing some of the most trending questions/topics on the markets for investors. Designed to be educational, expect to get factual information on what is driving sectors and stocks listed on SGX, featuring insights from professionals in the community.
 

Today, we hear more from Beansprout, a MAS-licensed investment advisory platform offering expert insights on Singapore stocks, REITs, ETFs and bonds. Gerald Wong, founder and CEO, shares his thoughts on market developments.
 

Q:  How’s the economic environment as we step into the new year?

From Gerald, founder and CEO of Beansprout:

The global economic outlook remains challenging in 2023. The International Monetary Fund (IMF) expects global growth to slow to 2.7% in 2023 from 3.2% in 2022. It is also noteworthy that the IMF chief expects one-third of the world’s economies to be in recession.

Locally, the Ministry of Trade and Industry (MTI) expects Singapore’s economy to grow by 0.5% to 2.5% this year. This is a slower pace of growth compared to the 3.8% expansion in 2022.

The good news is that we have seen some easing of inflation, with consumer prices in the US coming down in December from the previous month. Likewise, we have seen consumer price inflation in Singapore easing in December 2022.

With price pressures abating, central banks are slowing down the pace of interest rate hikes. The Fed raised interest rates by 0.25% on 1 February, after 0.50% in December 2022 and four consecutive hikes of 0.75% earlier last year.

What

Q: What are key developments affecting the Singapore market to look out for?

From Gerald, founder and CEO of Beansprout:

China has relaxed its Covid-19 measures at a faster pace than what most investors were expecting. Together with various measures to support the property sector, it would seem like Chinese authorities are prioritising growth once again. This could provide a much-needed boost to the global economy.

Economists are expecting a slower pace of interest rate increases by the US Federal Reserve (Fed) this year. Some are even expecting the Fed to start cutting interest rates before the end of the year. We could start to see lower interest rates in Singapore too if rates in the US were to start falling. This could affect investor sentiment toward the interest-rate sensitive sectors, such as real estate investment trusts (REITs).

Companies may also choose to undertake corporate action to improve their returns with the slowing global growth. As a result, there could be more mergers and acquisitions (M&A) activity amongst Singapore-listed corporates, continuing a trend that we have seen over the past year. 

What

For more insights on Singapore stocks, REITs, ETFs and bonds, visit growbeansprout.com.

  Be the first to like this.
 

STI Posts 3.5% Gain in January, Led by REITs & China Outlook

Author: SGX   |  Publish date: Wed, 1 Feb 2023, 9:02 AM


  • The STI booked a 3.5% gain in Jan, with five REITs ranking among the seven best performing STI constituents for the month. As 10yr UST yields declined to 3.5%, these five REITs averaged 9.5% total returns on the month, following their 16.4% average declines in total return in 2022.
     
  • STI stocks that saw the biggest moves up in Jan turnover rankings included Genting Singapore, DFI Retail Group Holdings and Thai Beverage PCL. Genting Singapore saw more than double its 2022 daily trading turnover in Jan, as the stock traded above S$1.00 for the first time since April 2019.
     
  • As the internet and semiconductor industries led the global stock market in Jan, in Singapore, the Technology Sector booked the most net fund inflows for the month, after seeing the most net fund outflows in 2022. Among the 100 most traded Singapore stocks in Jan, eight stocks represented the Technology Sector, averaging 11% total returns in Jan, following a 36% decline in total return in 2022. With 70% revenue exposure to China back in 2021, ISDN Holdings led the performance of the eight technology stocks with a 39% total return in Jan.
     

Jan 2023 Market Highlights

Finishing Jan at 3,365.67, the STI gained 3.5% on the month, formed a nine-month high on 30 Jan, with a close to 200-point trading range, that more than doubled the less than 90-point range seen in Dec. Mean reversion saw internet and semiconductor industries lead the global stock market in Jan. In Singapore the Technology Sector booked the most net fund inflows for the month, after seeing the most net fund outflows in 2022. The close to 40 traded stocks of Singapore’s Technology sector booked S$49 million in net fund inflows for the month, led by inflows to STI constituent Venture Corporation, followed by UMS Holdings, Frencken Group, and ISDN Holdings. The Lion-OCBC Securities Hang Seng Tech ETF also ranked as the most traded SGX-listed ETF in Jan, and the Shares Asia High Yield Bond ETF with 54% country allocation to China, HK and Macau recorded S$58 million in net inflows for month of Jan, following outflows of S$146 million seen in 4Q22.

STI Posts 3.5% Gain in January, led by REITs & China Outlook

The recent string of business-friendly policies adopted by China, also saw the global Consumer Cyclicals and Basic Material Sectors outpace in Jan. Singapore’s Consumer Cyclical booked the third highest inflows after Utilities, while the overall Singapore stock market booked net fund outflows in the vicinity of S$300 million.

STI Posts 3.5% Gain in January, led by REITs & China Outlook

In Jan, expectations for the US Federal Reserve at the 1 Feb FOMC also anchored to a 25bps hike rather than a 50bps hike, which saw 10-yr UST yields decline from 3.88% to 3.53%, while the USD/SGD depreciated from 1.34 to 1.31. Markets remain highly sensitive to interest rate outlooks, taking cues from Federal Reserve official speaking and media engagements, and inflation gauges between FOMCs.

The slightly less hawkish outlook for the US Fed Funds rate coincided with the mean reversion of sector performances extending to REITs, which saw the S-REIT Sector outpace the STI in Jan. Within the STI, Keppel DC REIT led the Index over Jan, following its ranking among the three biggest STI decliners in 2022 and 2021. Mapletree Pan Asia Commercial Trust, Frasers Logistics & Commercial Trust, Mapletree Logistics Trust, and Mapletree Industrial Trust also ranked among the seven strongest STI constituents for the month. Keppel DC REIT reported on 31 Jan that its FY22 (ended 31 Dec) distributable income grew 7.7% from FY21, while maintaining its continued pursuit of data centre growth opportunities with its disciplined capital management approach. In 2022, Keppel DC REIT was among the 18 S-REITs that announced acquisitions, expanding its presence in London, one of the top global data centre hubs and in Guangdong, one of China’s most established data centre markets.

On 31 Jan, the IMF estimated that global growth at 3.4% in 2022, would decelerate to 2.9% in 2023, then pick up to 3.1% in 2024. Both growth rates for 2022 and 2023 were slightly upwardly revised by 0.2%, on greater-than-expected resilience in Europe in 2022 and the outlook for emerging and developing economies in 2023. However, weighed by dampening global demand, global trade volume projections were revised slightly downwards to 2.4% in 2023 and 3.4% in 2024, with average oil prices expected to decline 16% in 2023. However, at the same time, global inflation was revised slightly upwards to 6.6% in 2023 and 4.3% in 2024, with pre-pandemic levels around 3.5% and 2022 inflation at 8.8%. The report emphasised that despite the “expected decline in the price of oil, upside risks to the inflation outlook remain primarily because core inflation remains stubbornly high across most regions, labor markets are still tight, energy prices remain pressured by Russia’s ongoing war in Ukraine, and supply chain disruptions may reappear”, which means global financial stability risks remain elevated.

 

Singapore’s Most Traded Stocks in Jan 2023

For the month of Jan, Singapore’s 100 most traded stocks saw a combined S$1.1 billion in daily trading turnover, while contributing the bulk of the near S$300 million in net fund outflows. The 100 stocks averaged 5% total returns, following on from the same 100 stocks generating 9% average total returns in 2022. Eight of the 100 stocks which represented the Technology Sector averaged 11% total returns in Jan, following 36% declines in total return in 2022. With 70% revenue exposure to China back in 2021, ISDN Holdings led the performance of the eight technology stocks with a 39% total return in Jan. The Telecommunications Sector led the net fund outflows of the 100 stocks and broader Singapore stock market, with Singapore Telecommunications booking the highest net fund outflows of S$181 million, after it booked the highest net fund inflows, in the vicinity of S$840 million in 2022.

STI stocks that were listed for trading for the entire 2022 that saw the biggest moves up in Jan turnover rankings included Genting Singapore, DFI Retail Group Holdings and Thai Beverage PCL.

  • Genting Singapore’s principal activities are the development, management and operations of integrated resort destinations including gaming, attractions, hospitality, MICE, leisure, and entertainment facilities. The company will report its FY22 (ended 31 Dec) results after the 20 Feb close. On 10 Nov, Genting Singapore noted while the overall improvement in RWS’ operating performance reflects the ongoing recovery of regional travel markets, the recovery has yet to return to the pre-pandemic levels. In Jan, the Singapore Tourism Board estimated that visitor arrivals to Singapore are expected to reach around 12 to 14 million visitors this year bringing in approximately $18 to 21 billion in tourism receipts – around two-thirds to three-quarters of the levels in 2019, but well up from the 6.3 million visitors in 2022. Since the end of October, Genting Singapore’s share price has rallied from S$0.805 to S$0.990 on 31 Jan. Note on 12 Jan, Genting Singapore announced its shares had been included under the Central Provident Fund Board’s CPFIS – Ordinary Account with effect from 11 Jan.
     
  • DFI Retail Group Holdings is the parent company of leading pan-Asian retailer, DFI Retail Group. The Group, together with its associates and joint ventures, operates over 10,300 outlets – including supermarkets, hypermarkets, convenience stores, health and beauty stores, home furnishings stores and restaurants. The Group noted with its 1HFY22 (ended 30 June) financials that the pandemic had continued to have a significant adverse effect on all of the Group’s businesses, with the first quarter particularly difficult on the Chinese mainland and in Hong Kong. The Group reported in an interim update that its underlying profitability improved in 3Q22, compared to 1H22 and within the subsidiaries, Health and Beauty, Convenience and IKEA businesses all benefitted from stronger sales growth, however as flagged with the 1HFY22 results, the Group maintained that its profits for FY22 are expected to be materially lower than FY21. With majority of its revenue reported to North Asia, rather than Southeast Asia, since the end of October, the share price of DFI Retail Group Holdings has rallied from US$2.24 to US$3.19 on 31 Jan.
     
  • Thai Beverage PCL (“ThaiBev”) is a leading beverage company in Southeast Asia and the largest in Thailand, with four core business segments of spirits, beer, non-alcoholic beverages, and food.  For its FY22 (ended 30 Sep), ThaiBev reported its revenue increased 13% from FY21, as the easing of pandemic and travel restrictions drove growth in all business segments, with net profit rising 26%.  Back on 25 Nov, ThaiBev observed that conditions in Thailand’s service sectors have also improved in tandem with the increase in foreign tourist arrivals. Prior to COVID-19, Thailand tourism receipts contributed 11.0% to Thailand’s GDP which decreased to a 0.4% contribution in 2021 and is forecast to increase to 5.4% in 2023 and 8.3% in 2024. Since the end of Oct, ThaiBev’s share price has rallied from S$0.575 to S$0.700 on 31 Jan.

Non-STI stocks that were listed for trading for the entire 2022, among the 100 trades stocks in Jan that also saw the biggest moves up in month’s turnover rankings included China Aviation Oil (Singapore) Corporation, TOTM Technologies and Tianjin Pharmaceutical Da Ren Tang Group Corporation:

  • China Aviation Oil (Singapore) Corporation (“CAO”) is the largest physical jet fuel trader in Asia Pacific. The Group will report its FY22 (ended 31 Dec) results on 28 Feb and is also a subsidiary of China National Aviation Fuel Group and a key supplier of imported jet fuel to the PRC Civil Aviation industry. CAO also supplies to 39 international airports outside mainland China, and thus the China and regional re-openings have been key developments that have coincided with the CAO share price rallying from S$0.665 at the end of Oct to S$1.05 on 31 Jan. For its 1HFY22, the Group reported 7% YoY revenue growth while net profit declined 19% YoY due mainly to lower contributions from the Group's associates and a decline in other operating income mainly attributable to higher exchange loss as RMB weakened against USD in 1H22. In 2H22, the RMB further weakened to the USD, from 6.70 to 7.30, before returning to 6.90 on 31 Dec. With the China re-opening momentum, this has seen the CAO share price rally from S$0.665 at the end of Oct to S$1.04 on 31 Jan.  
     
  • TOTM Technologies is a leading integrated solutions and services provider in identity management and biometric technology. On 14 Jan, the Catalist-listed company reported that the Group’s revenue for 1H23 (ended 30 Nov) more than doubled YoY to S$17 million. On 10 Jan, TOTM Technologies also completed the acquisition of the remaining 49.0% of the shareholding in the share capital of International Biometrics Pte Ltd which is now a wholly owned subsidiary of the company. In Jan, the share price of TOTM Technologies increased from S$0.096 to S$0.110 on 31 Jan.
     
  • Tianjin Pharmaceutical Da Ren Tang Group Corporation is mainly engaged in the production, operation, and scientific research of green traditional Chinese medicine (TCM). Back on 28 Oct, the group reported that despite the COVID-19 pandemic, its 9MFY22 (ended 30 Sep) operating income increased 4% YoY to RMB 5.56 billion and net profit attributable to the parent of RMB 729 million, representing a 10% YoY increase. In 2022, the company implemented various measures including change of its company name to give full play to the role of time-honored brands, optimisation of its organisational restructure to improve management efficiency, continuous reduction of cost and improvement of production efficiencies, continuous exploration of the market to promote sales growth, strengthening scientific research and innovation and refining financial control. Since the end of October, the share price has increased from US$0.98 to US$1.14 on 31 Jan.

There were also 23 primary listed companies that bought back their shares in Jan for a total consideration of S$25.5 million, which was down from the S$52.9 million in consideration in Jan 2022. Leading the buyback consideration tally (and avg price paid per share) were Oversea-Chinese Banking Corporation (S$12.59), Best World International (S$2.04), HRnetGroup (S$0.802), Singapore Technologies Engineering (S$3.39) and First Resources (S$1.41).

The 100 most traded SGX-listed stocks in Jan are tabled below.

100 most traded Singapore listed Stocks in Jan

Code

Mkt Cap S$M

Jan Avg Daily T/O S$M

Jan Total Return %

Jan Net Fund Flow S$M

2022 Total Return %

Past 5 Sessions Avg Bid/Ask Spread (bps)

Sector

DBS

D05

92,111

140.5

6

2.6

8

4

Financial Services

UOB

U11

49,954

124.9

-3

-309.4

19

5

Financial Services

OCBC Bank

O39

58,113

69.7

6

92.4

12

8

Financial Services

Singtel

Z74

41,425

68.5

-2

-181.0

16

40

Telecommunications

YZJ Shipbldg SGD

BS6

5,096

57.7

-5

-63.9

107

79

Industrials

Genting Sing

G13

11,951

41.1

4

6.7

26

70

Consumer Cyclicals

CapLand IntCom T

C38U

14,199

41.0

5

-0.7

3

47

REITs

SIA

C6L

17,586

30.6

7

47.0

13

17

Industrials

CapitaLandInvest

9CI

20,252

28.8

7

48.3

13

26

Financial Services

CapLand Ascendas REIT

A17U

12,107

28.7

5

-24.7

-2

35

REITs

Mapletree Log Tr

M44U

8,128

25.5

8

-0.2

-12

59

REITs

Keppel Corp

BN4

13,227

20.9

4

-7.7

49

14

Industrials

Mapletree PanAsia Com Tr

N2IU

9,530

20.1

9

5.2

-12

55

REITs

SGX

S68

9,853

19.3

3

-6.3

0

12

Financial Services

Wilmar Intl

F34

25,407

19.1

-2

-41.0

5

25

Consumer Non-Cyclicals

ThaiBev

Y92

17,585

19.1

2

23.5

7

70

Consumer Non-Cyclicals

JMH USD

J36

20,176

18.6

2

-3.9

-4

11

Industrials

ST Engineering

S63

11,454

16.2

10

27.7

-6

28

Industrials

Jardine C&C

C07

11,478

15.8

2

-15.8

45

9

Consumer Cyclicals

City Dev

C09

7,527

15.1

1

-15.4

27

15

Real Estate (excl. REITs)

HongkongLand USD

H78

14,933

14.0

4

8.9

-8

21

Real Estate (excl. REITs)

Venture

V03

5,372

13.9

8

31.3

-3

8

Technology

ComfortDelGro

C52

2,599

13.4

-2

-41.6

-8

84

Industrials

Frasers L&C Tr

BUOU

4,677

12.7

9

10.8

-19

79

REITs

Sembcorp Ind

U96

6,443

11.8

7

14.7

73

28

Utilities

Mapletree Ind Tr

ME8U

6,481

11.5

7

6.6

-13

42

REITs

Keppel DC REIT

AJBU

3,506

11.4

15

17.2

-25

49

REITs

Sembcorp Marine

S51

4,457

11.4

3

13.1

68

71

Industrials

Suntec REIT

T82U

4,041

10.8

3

-13.4

-3

71

REITs

SATS

S58

3,395

10.0

6

15.5

-27

33

Industrials

Keppel REIT

K71U

3,611

10.0

6

-10.0

-15

53

REITs

Lendlease REIT

JYEU

1,658

8.7

3

-11.5

-14

69

REITs

UMS

558

885

7.0

12

17.4

-19

76

Technology

UOL

U14

5,895

6.9

4

-2.2

-3

18

Real Estate (excl. REITs)

CapLand Ascott T

HMN

3,825

6.8

6

5.7

7

92

REITs

Frencken

E28

500

5.8

24

9.0

-51

90

Technology

Frasers Cpt Tr

J69U

3,783

5.6

6

1.9

-4

45

REITs

Nanofilm

MZH

947

5.2

4

-9.0

-63

70

Technology

YZJ Fin Hldg

YF8

1,366

4.6

4

10.6

N/A

133

Financial Services

AEM SGD

AWX

1,068

4.6

1

-0.4

-33

30

Technology

CapLand China T

AU8U

2,092

4.3

12

14.9

-1

81

REITs

Samudera Shipping

S56

647

4.3

43

2.4

84

91

Industrials

First Resources

EB5

2,399

4.2

3

-1.9

2

70

Consumer Non-Cyclicals

Best World

CGN

1,087

3.8

40

8.7

37

45

Consumer Cyclicals

NIO Inc. USD OV

NIO

23,556

3.5

14

1.4

N/A

23

Consumer Cyclicals

ESR-LOGOS REIT

J91U

2,553

3.4

3

1.6

-19

134

REITs

Golden Agri-Res

E5H

3,170

3.4

0

0.4

8

200

Consumer Non-Cyclicals

NetLink NBN Tr

CJLU

3,410

3.3

5

-1.4

-12

58

Telecommunications

DFIRG USD

D01

5,673

3.3

7

8.7

5

34

Consumer Non-Cyclicals

Olam Group

VC2

6,102

2.8

9

-3.5

-12

65

Consumer Non-Cyclicals

Sheng Siong

OV8

2,466

2.5

-1

1.1

18

60

Consumer Non-Cyclicals

CDL H Trust

J85

1,670

2.4

8

5.3

11

75

REITs

ISDN

I07

265

2.3

39

3.0

-38

88

Technology

Raffles Medical

BSL

2,690

2.1

4

7.0

5

69

Healthcare

PARAGONREIT

SK6U

2,743

2.1

8

11.7

-4

52

REITs

IFAST

AIY

1,524

2.1

-11

-1.0

-30

26

Technology

Kep Infra Tr

A7RU

2,870

1.9

6

-0.9

6

89

Utilities

China Aviation

G92

895

1.9

17

3.9

-3

101

Industrials

Geo Energy Res

RE4

461

1.8

2

-1.6

20

151

Energy/ Oil & Gas

RH Petrogas

T13

162

1.8

3

0.4

15

184

Energy/ Oil & Gas

Manulife REIT USD

BTOU

770

1.8

8

-1.6

-53

156

REITs

CapLand India T

CY6U

1,405

1.7

7

0.0

-15

84

REITs

Haw Par

H02

2,165

1.6

2

-2.1

-13

19

Healthcare

Prime US REITUSD

OXMU

808

1.5

26

-3.8

-47

100

REITs

ParkwayLife REIT

C2PU

2,456

1.5

8

-1.9

-25

29

REITs

Chip Eng Seng

C29

593

1.4

1

4.4

91

66

Real Estate (excl. REITs)

StarHub

CC3

1,971

1.4

10

0.7

-20

95

Telecommunications

Japfa

UD2

694

1.4

-1

-2.1

-11

152

Consumer Non-Cyclicals

Dyna-Mac

NO4

201

1.4

4

1.2

107

181

Industrials

Top Glove

BVA

2,082

1.3

-4

0.8

-65

187

Healthcare

DigiCore REIT USD

DCRU

930

1.2

12

-0.5

-52

88

REITs

The Place Hldg

E27

88

1.1

-32

-4.9

-72

614

Financial Services

Halcyon Agri

5VJ

646

1.1

3

5.5

72

126

Consumer Cyclicals

AIMS APAC REIT

O5RU

987

1.1

10

2.1

-8

73

REITs

SingPost

S08

1,260

1.1

8

2.2

-18

88

Industrials

HPH Trust USD

NS8U

2,346

1.1

4

-1.4

-8

226

Industrials

Medtecs Intl

546

82

1.1

-25

-1.0

-40

69

Healthcare

Yanlord Land

Z25

2,144

1.0

9

0.9

-2

94

Real Estate (excl. REITs)

Cromwell REIT EUR

CWBU

1,292

1.0

7

-3.1

-40

68

REITs

Emperador Inc.

EMI

7,711

0.9

-4

-2.3

N/A

112

Consumer Non-Cyclicals

Starhill Gbl REIT

P40U

1,281

0.9

6

0.0

-12

86

REITs

Far East H Trust

Q5T

1,334

0.9

8

1.2

10

75

REITs

SIA Engineering

S59

2,794

0.9

6

3.3

7

42

Industrials

TOTM Tech

42F

148

0.9

15

-1.5

-53

98

Technology

Sasseur REIT

CRPU

1,003

0.8

8

0.0

-2

64

REITs

Rex Intl

5WH

280

0.8

0

-0.9

-28

226

Energy/ Oil & Gas

Kep Pac Oak REIT USD

CMOU

734

0.8

14

-4.0

-38

96

REITs

MarcoPolo Marine

5LY

150

0.8

2

-0.5

52

233

Industrials

Golden Energy

AUE

2,071

0.7

0

1.7

171

64

Energy/ Oil & Gas

Jiutian Chemical

C8R

163

0.7

1

-0.7

16

122

Materials & Resources

Riverstone

AP4

956

0.7

5

1.2

9

87

Healthcare

Yoma Strategic

Z59

278

0.6

6

0.2

-11

84

Real Estate (excl. REITs)

Sabana REIT

M1GU

488

0.6

2

0.1

5

112

REITs

Frasers H Trust

ACV

963

0.6

12

-1.5

-1

104

REITs

OUE Com REIT

TS0U

1,913

0.6

4

-0.2

-19

137

REITs

Parkson Retail^

O9E

49

0.5

-12

0.3

645

143

Consumer Cyclicals

COSCO SHP SG

F83

428

0.5

7

-0.5

-30

54

Industrials

Hong Fok

H30

803

0.5

3

-0.7

26

71

Real Estate (excl. REITs)

Nippecraft

N32

31

0.5

2

0.0

102

121

Materials & Resources

TJ DaRenTang USD

T14

3,883

0.4

-1

-1.2

5

109

Healthcare

Total

 

653,418

1,104

 

-292

 

 

 

Average

 

 

 

5

 

9

 

 

Note ^ on SGX Watchlist.

Source: SGX, Refinitiv, Bloomberg (Data as of 31 Jan 2023). Note Fund Flows takes account of trades in the ‘Buying-in Market’ and ‘Unit Share Market’.

  Be the first to like this.
 

Technology Sector Led Global Stocks in January

Author: SGX   |  Publish date: Mon, 30 Jan 2023, 5:24 PM


  • Venture, UMS & Frencken have ranked as Singapore’s most traded Technology stocks over the past four weeks, with the trio averaging 14% gains, while booking S$48 million of net fund inflows. This follows average declines of 24% in total return in 2022 on S$139 million of net fund outflows.
     
  • Global stocks have been led by the Technology Sector and SEMI Industry over the past four weeks, after these segments led declines in 2022. The mean reversion was on the back of an uptick in the outlook for global consumer growth, as China presses ahead with business-friendly policies, with expectations the US Fed Funds Rate is near peak.    
     
  • ISDN, which reported 70% of its FY21 revenue to China, led the price performances of the most actively traded SGX-listed tech stocks over the past four weeks. ISDN flagged in April that COVID-19 measures in China were disrupting its supply chain and workforce. This coincided with its share price declining from 72.5 cents at the end of 2021, to 36.5 cents at the end of Oct, with recent re-opening momentum seeing the stock return to 57.0 cents on 27 Jan.
     

The Worldwide Semiconductor Trade statistics maintained back on 29 Nov that global semiconductor billings would contract by 4.1% in 2023, following 4.4% growth in 2022 and 26.2% growth in 2022. Since these estimates have been published, China has pressed ahead with pro-growth and business friendly policies, appointed its former ambassador to the United States as its new Foreign Minister, while also seeing some moderate growth tailwinds for December. This has seen the global stock market led by the Technology Sector and Semiconductor Industry over the past four weeks, after these segments led declines in 2022. The forward-looking, mean reversion has also been supported by expectations that the US Federal Reserve will hike rates by 25bps on 1 February and 22 March, with the 25bps hike on 8 March currently expected to be the peak/terminal rate before the FOMC pivots with no change to rates on 3 May.

The outlook for global inflation, however, is driven by both supply and demand factors which remain relatively fluid, and Singapore, South Korea and Taiwan’s exports have been registering YoY declines in recent months. As maintained by Deloitte’s 2023 technology industry outlook a “major challenge now for technology companies is how to weather a potential economic slowdown by trimming costs, increasing efficiency, and growing revenues”. The outlook added that “beleaguered by softening consumer spending, lower product demand, and falling market capitalisation, tech companies’ C-suites are feeling the urgency to increase margins and grow revenues” and “beyond workforce adjustments, approaches may include making business processes more efficient, relying more heavily on intelligent automation, modernizing legacy architectures, and considering strategic mergers and acquisitions.

For the first four weeks the former developments have seen 14 stocks of Singapore’s Technology Sector average daily turnover exceed S$50,000. These 14 stocks have averaged 10% gains over the past four weeks, while booking S$42 million of net fund inflows, outpacing the STI, and contrary to the broader Singapore stock market which has booked net fund outflows.  This follows average declines of 27% in total return in 2022 on S$327 million of net fund outflows for the 14 stocks.

The 14 stocks are tabled below.

Most Traded Technology Stocks in 2023 YTD

Code

Mkt Cap S$M

2022 Total Return %

2022 Net Fund Flow S$M

2022 Avg Daily T/O

S$M

2023 YTD Total Return %

2023 YTD Net Fund Flow S$M

2023 Avg Daily T/O S$M

Venture

V03

5,378

-3

-70.2

15.8

8

25.9

13.2

UMS

558

885

-19

-12.6

7.0

12

16.0

7.0

Frencken

E28

487

-51

-56.2

5.0

21

6.3

5.4

Nanofilm

MZH

960

-63

-99.1

4.3

5

-6.3

5.2

AEM SGD

AWX

1,065

-33

-34.3

8.6

1

-0.1

4.7

IFAST

AIY

1,541

-30

-52.7

3.0

-10

-0.7

2.2

ISDN

I07

250

-38

-3.1

0.9

31

1.8

2.2

TOTM Tech

42F

152

-53

-3.6

0.3

18

-1.1

0.9

Aztech Global

8AZ

672

4

-9.0

1.0

5

-0.6

0.3

Creative

C76

120

-41

0.8

0.0

20

0.1

0.3

CSE Global

544

228

-27

-6.3

0.2

9

0.4

0.2

Silverlake Axis

5CP

940

34

14.9

0.6

4

-0.5

0.2

Valuetronics

BN2

226

0

3.9

0.2

5

0.5

0.1

Grand Venture Tech

JLB

197

-57

0.6

0.2

15

-0.2

0.1

Average/Total

 

 

-27

-326.9

47.1

10

41.5

41.9

Source: Bloomberg, Refinitiv, SGX. Data as of 27 Jan 2023.

STI constituent Venture Corporation maintains the highest market capitalisation and average daily turnover of the above tabled stocks. It will be releasing its FY22 results after the 24 February close. For its 9MFY22 (ended 30 Sep) revenue increased 28.0% YoY to S$2,818.7 million, while net profit rose 24.9% YoY to S$271.7 million with all technology domains contributing to the robust 9MFY22 performance. Venture Corporation also noted its Malaysian entities delivered the most impressive contributions to the Group’s overall performance and that beyond FY22, the science and technology market segments may continue to see volatility if geopolitical tensions, COVID-19 lockdowns, and other headwinds remain unabated. Venture Corporation generated a decline of 3% in total return in 2022, and an 8% price gain over the first four weeks of 2023. At 4.1%, Venture Corporation’s dividend yield is marginally above its 5-year average dividend yield of 4.0%.

ISDN Holdings was the strongest performing of the above tabled stocks over the past four weeks. ISDN Holdings which reported 70% of its FY21 (ended 31 Dec) revenue to China, reported 1HFY22 revenue and 3QFY22 revenue declined 12% and 10% respectively YoY with the company flagging back in April that the COVID-19 measures in China were disrupting its supply chain and workforce similarly to other multinational businesses operating in China. The share price declined from 72.5 cents at the end of 2021 to 36.5 cents at the end of October 2022, with the re-opening measures of the past 13 weeks seeing the ISDN Holdings share price since return to 57.0 cents on 27 January. At 2.5%, ISDN Holding’s dividend yield is trading above its 5-year average dividend yield of 2.2%. ISDN Holdings also announced on 3 January that its first mini hydropower plant, Lau Biang 1, has received its commercial operation date as of 31 December 2022, with investor presentation slides available here.

  Be the first to like this.
 

REIT Watch - S-Reits’ Upcoming 2022 Report Cards

Author: SGX   |  Publish date: Mon, 30 Jan 2023, 1:05 PM


S-Reits’ upcoming 2022 report cards

Source: Company announcements extracted as of 27 Jan 2023 before market opens. List above is based on trusts that have announced. For more updated earnings schedule, visit www.sgxacademy.com/eco-cal.
 

Five S-Reits have released their financial results or business updates for the latest reporting period, of which Suntec Reit announced its full year results. Another 26 S-Reits and property trusts have also confirmed the dates of their releases in the coming weeks.

Sabana Industrial Reit, originally scheduled to announce its FY2022 financial results on 26 Jan, has postponed the release as the Reit manager is clarifying certain matters in relation to the voluntary conditional cash partial offer by Volare Group for 10 per cent of the issued units in the Reit.

Paragon Reit, previously named SPH Reit, has changed it financial year end from Aug 31 to Dec 31. In its upcoming financial release, for which it has yet to confirm the release date, the Reit is expected to report a 16-month period from Sep 1, 2021 to Dec 31, 2022.

As the sector continues to face headwinds such as dampening economic expectations, rising interest rates and inflationary pressures, the sector’s operational efficiency and growth prospects (for example occupancy rates, rental reversion and ability to acquire new yield-accretive assets) as well as balance sheet resilience (for example gearing ratio and debt profile) will be placed under scrutiny. 

Suntec Reit reported 24 per cent year-on-year growth in net property income (NPI), which in turn saw distributable income grow 3.4 per cent on a full year basis. Second half FY22 distribution per unit (DPU) dipped 9.7 per cent to 3.674 cents due to higher financing costs. However, full year DPU grew 2.5 per cent to 8.884 cents due to higher NPI contribution and a capital distribution of S$23.0 million. To manage rising rates and weaker currencies, the Reit has increased its fixed interest rate borrowings from 53 per cent at end-FY21 to 66 per cent at end-FY22 and foreign currency income hedge from 45 per cent at end-FY21 to 60 per cent at end-FY22. 

REIT Watch is a weekly column on The Business Times, read the original version

  Be the first to like this.
 

A-Sonic & Singapore Shipping Directors Continue Acquisitions

Author: SGX   |  Publish date: Mon, 30 Jan 2023, 11:49 AM


A-Sonic and Singapore Shipping directors continue with their acquisitions

FOR the three trading sessions that spanned Jan 20 to 26, the Straits Times Index (STI) gained 3.1 per cent. Institutions were net sellers of Singapore stocks with S$157 million of net outflow.

Large caps OCBC, DBS, UOB, Singapore Telecommunications and Wilmar International led the net institutional outflow for the three sessions.

Meanwhile, Mapletree Logistics Trust, Singapore Technologies Engineering, CapitaLand Integrated Commercial Trust, SATS and UMS Holdings led the net institutional inflow for the three sessions.

This followed Mapletree Logistics Trust reporting after the close of Jan 19 that its gross revenue for Q3 FY22/23 (ended Dec 31) rose by 8 per cent year on year (yoy) to S$180.2 million, mainly due to accretive acquisitions completed in Q1FY22/23 and FY21/22.

In tandem with higher gross revenue, its net property income increased by 7.3 per cent yoy to S$157.2 million.

Share buybacks

There were eight primary-listed companies conducting share buybacks over the three trading sessions through to Jan 26, with a total consideration of S$1.9 million.

OCBC again led the consideration tally, buying back 100,000 shares at S$12.64 per share.

The bank has bought back 0.4 per cent of its issued shares (excluding treasury shares) on the current mandate.

SIA Engineering also bought back 71,500 shares at an average price of S$2.47 per share while Thakral Corporation bought back 282,400 shares at an average price of S$0.62 per share.

Director and substantial shareholder transactions

The three trading sessions saw close to 30 changes to director interests and substantial shareholdings filed for 19 primary-listed stocks. This included four company director acquisitions with no disposals filed, while substantial shareholders filed one acquisition and three disposals.

The preceding five sessions spanning Jan 13 to 19, had seen relatively more filings as discussed below.

A-Sonic Aerospace

Between Jan 12 and 26, A-Sonic Aerospace CEO Janet LC Tan acquired 63,000 shares for a consideration of S$45,941 at an average price of S$0.73 per share.

This took her direct interest in the company from 61.07 per cent to 61.14 per cent. Tan has gradually increased her total interest in A-Sonic Aerospace from 53.35 per cent at the end of 2018.

With more than 20 years of extensive experience in the aviation industry, she is also the promoter founder of the company.

Singapore Shipping Corporation

Between Jan 12 and 25, Singapore Shipping Corporation executive chairman Ow Chio Kiat acquired 75,800 shares at an average price of S$0.25 per share, and consideration of S$18,746.

He maintains a 42.65 per cent total interest in the company.

With a career spanning 60 years, Ow also serves as the executive chairman of Stamford Land Corporation. He has gradually increased his total interest from 36.90 per cent in June 2014.

Challenger Technologies

On Jan 17, Digileap Capital acquired 9,182,500 shares of Challenger Technologies at S$0.50 per share.

With a consideration of S$4,591,250, this increased the deemed interest of non-executive non-independent director Keith Tan Keng Soon from 15.15 per cent to 17.44 per cent.

His preceding acquisition was on Sep 28, 2022, with 3,100 shares acquired at S$0.53 per share. Tan was appointed a non-executive non-independent director of the company on Nov 29, 2021.

He is the chairman of the Dymon Asia Private Equity Investment Committee and a founding partner of Dymon Asia Capital.

Prior to Dymon, he was a director at Abax Global Capital, a special situations hedge fund based in Hong Kong, where he originated, structured, and executed investment transactions across Asia.

AnnAik

On Jan 17, Low Kheng, the spouse of AnnAik executive chairman cum CEO, Ow Chin Seng, purchased 1,435,000 shares of the company for a consideration of S$100,450.

At S$0.07 per share, the married deal increased Ow’s total interest in the manufacturer and distributor of stainless-steel products from 38.79 per cent to 39.78 per cent.

Ow is primarily responsible for the business and strategic development of the group.

With over 40 years of experience in the hardware and steel industry, he has been instrumental in the strategic direction and development of the group.

AnnAik executive director cum chief operating officer Ng Kim Keang also acquired 1,462,500 shares at S$0.07 per share on Jan 17.

With a consideration of S$102,375 this increased his direct interest in the company from 2.87 per cent to 3.38 per cent.

Ng joined the company in January 2003 as financial controller and was promoted to executive director in January 2005 and chief operating officer in March 2015.

He is currently responsible for managing the overall operations and the finance and accounting matters of the group.

These were the first director acquisitions filed for the company since it reported its H1FY22 (ended Jun 30) financials on Aug 10, when AnnAik reported attributable profit of S$2.86 million, compared to S$1.23 million in H1FY21.

This was attributed to the higher turnover and gross profit achieved in both the distribution and manufacturing of steel flanges divisions fuelled by a hike in steel prices and strong demand.

In addition, the contribution of profit from its environmental division also contributed positively to the overall performance.

This followed on from the group achieving an attributable profit in FY21 of S$3.09 million, compared to S$177,000 in FY20.

Plato Capital

Between Jan 12 and 17, Plato Capital chairman, non-Independent and non-executive director Lim Kian Onn acquired 123,200 shares at an average price of S$1.87 per share.

With a consideration of S$229,786 this increased his deemed interest in the investment group from 73.46 per cent to 74.47 per cent.

The shares were acquired by Cosima Investments, a company that is 100 per cent owned by Lim.

His preceding acquisition was on Nov 22, with 3,100 shares acquired at S$1.23 per share, with his deemed interest in Plato Capital gradually growing from 65.13 per cent at the end of 2019.

Lim founded the Libra Capital Group in 1994 and co-founded the ECM Libra Group in 2002.

The holding company of the ECM Libra Group, ECM Libra Group is listed on the Main Market of Bursa Malaysia Securities. For its H1FY22 (ended Jun 30)

Plato Capital reported a net attributable loss of S$0.25 million compared to a net loss of S$1.04 million in H1FY21.

On Jan 10, Plato Capital announced that its 70 per cent owned subsidiary Positive Carry received a non-binding offer (subject to a due diligence by the potential third party purchaser) for all the shares owned by TYK Capital.

The indicative and tentative cash consideration for the offer is RM120 million (S$36.49 million).

The group noted that with the 70 per cent ownership, Plato Capital’s portion of the consideration for the potential disposal is an indicative and tentative amount of RM84 million.

Accrelist

On Jan 17, Accrelist executive chairman and managing director Terence Tea Yeok Kian acquired 1,082,000 shares at an average price of S$0.05 per share.

With a consideration of S$53,812, it increased his total interest in the Catalist-listed investment holding company from 22.51 per cent to 22.87 per cent.

This followed his acquisition of 846,600 shares between Nov 30 and Dec 12, also at an average price of S$0.05 per share.

Tea is responsible for the overall growth of the group, leading its strategic direction, including acquiring and nurturing new businesses.

On Jan 13, Accrelist reported H1FY23 (ended Sep 30) revenue of S$50.7 million, a decrease of S$60.9 million from S$120.6 million in 1HFY22.

This was mainly attributed to the decline in the electronic component distribution business unit (EBU) revenue on the sharp decline in the demand of smartphones in China, coupled with the global shortage in microcontroller units.

Accrelist noted that its H1FY23 group gross profit margin did improve to 14 per cent from 7.7 per cent in H1FY22 through the EBU’s greater cost containment efforts in view of rising logistics and transportation costs and the ability to capitalise margin on chip shortages as official distributors.

Serial System

On Jan 13, Serial System substantial shareholder Sam Goi Seng Hui acquired 300,000 shares at S$0.08 per share.

With a consideration of S$24,900, this increased his total interest in Serial System above the 17 per cent threshold, from 16.99 per cent to 17.03 per cent.

Serial System is a leading distributor of electronic components and consumer products in Asia. It has one of the largest distribution networks in Asia, with 21 offices and 13 warehouses throughout Asia-Pacific.

It also has a wide customer base of more than 5,000, spanning a diverse range of industries such as consumer electronics, household appliances, industrial, telecommunications, electronic manufacturing services, security and surveillance, automotive and medical.

Inside Insights is a weekly column on The Business Times, read the original version.

  Be the first to like this.
 

S-Reits’ Upcoming 2022 Report Cards

Author: SGX   |  Publish date: Mon, 30 Jan 2023, 10:02 AM


S-Reits’ upcoming 2022 report cards

Source: Company announcements extracted as of 27 Jan 2023 before market opens. List above is based on trusts that have announced. For more updated earnings schedule, visit www.sgxacademy.com/eco-cal.
 

Five S-Reits have released their financial results or business updates for the latest reporting period, of which Suntec Reit announced its full year results. Another 26 S-Reits and property trusts have also confirmed the dates of their releases in the coming weeks.

Sabana Industrial Reit, originally scheduled to announce its FY2022 financial results on 26 Jan, has postponed the release as the Reit manager is clarifying certain matters in relation to the voluntary conditional cash partial offer by Volare Group for 10 per cent of the issued units in the Reit.

Paragon Reit, previously named SPH Reit, has changed it financial year end from Aug 31 to Dec 31. In its upcoming financial release, for which it has yet to confirm the release date, the Reit is expected to report a 16-month period from Sep 1, 2021 to Dec 31, 2022.

As the sector continues to face headwinds such as dampening economic expectations, rising interest rates and inflationary pressures, the sector’s operational efficiency and growth prospects (for example occupancy rates, rental reversion and ability to acquire new yield-accretive assets) as well as balance sheet resilience (for example gearing ratio and debt profile) will be placed under scrutiny. 

Suntec Reit reported 24 per cent year-on-year growth in net property income (NPI), which in turn saw distributable income grow 3.4 per cent on a full year basis. Second half FY22 distribution per unit (DPU) dipped 9.7 per cent to 3.674 cents due to higher financing costs. However, full year DPU grew 2.5 per cent to 8.884 cents due to higher NPI contribution and a capital distribution of S$23.0 million. To manage rising rates and weaker currencies, the Reit has increased its fixed interest rate borrowings from 53 per cent at end-FY21 to 66 per cent at end-FY22 and foreign currency income hedge from 45 per cent at end-FY21 to 60 per cent at end-FY22. 

REIT Watch is a weekly column on The Business Times, read the original version

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
 
 

174  200  250  725 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 Sembcorp Marine 0.142-0.003 
 The Place Hldg 0.0160.00 
 HSI 23000MBeC.. 0.038-0.018 
 HSI 20000MBeP.. 0.065+0.012 
 HSI 23400MBeC.. 0.063-0.018 
 MarcoPolo Marine 0.043+0.001 
 YZJ Shipbldg SGD 1.300.00 
 Alibaba 5xLon.. 0.076-0.009 
 Mapletree Log Tr 1.75+0.03 
 Kuaisho 5xSho.. 0.053+0.005 
PARTNERS & BROKERS