• 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.

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.

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.

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’.