• The STI generated a 13.6% total return in 2021, outpacing broader APAC gains of 1.7%, as estimates based on the first 11 months of the year indicate the Singapore economy rebounded 7.2% in 2021, led by the manufacturing and construction sectors, with growth expected to moderate, yet remain above trend at 3% to 5% in 2022.
   
• DBS, OCBC and UOB collectively saw S$1.75 billion of net institutional inflow in 2021, with the trio averaging 25% total returns, much in-line with global banks that returned 24%, on the back of resilient investment activity across the globe, and a 60 bps upward structural shift of the 2/10 UST yield curve.
   
• Outlier performances in the energy Sector (RH Petrogas, Geo Energy & Rex) saw Singapore’s 100 most traded stocks in 2021 average 25% total returns, with a 9% median total return. As many as 19 of these 100 stocks generated total returns in excess of 50% in 2021, which included tech plays - iFAST, Totm Tech, ISDN, UMS, AEM and Frencken.

For the 2021 year, the STI saw a price gain of 9.8%, finishing the year at 3,123.68, with reinvested dividends boosting the total return of Singapore’s benchmark to 13.6%. For the year, the STI was led by Yangzijiang Shipbuilding, DBS Group Holdings and Hongkong Land, with respective total returns of 44.6%, 34.8% and 34.6%. Dairy Farm International, ComfortDelGro Corporation and City Developments, led the STI decliners in 2021 with respective declines in total return of 27.6%, 14.4% and 12.8%.

The region also saw mixed returns in 2021, with the semiconductor-led TAIEX generating a 31.9% total return, while the Hang Seng Index generated a 10.6% decline in total return in (SGD terms). This saw the FTSE Asia Pacific Index end the year with a 1.7% total return.

A key driver of Index performances in 2021 was sector composition, with global semiconductor stocks rallying by more than 40% in 2021, global bank stocks gaining 23%, and global hospitality stocks ending the year in the red as global airlines ended the 52 weeks more or less flat. As demonstrated by these comparative sector performances in 2021, while investment activity remained resilient, COVID-19 remained the overarching market driver. A remarkable feat of 9 billion vaccine doses were administered across the globe in 2021, however the comparatively more transmissible, but less severe omicron variant has seen a surge in the daily rate of confirmed global COVID-19 cases as 2022 begins.

DBS Group Holdings, Oversea-Chinese Banking Corporation and United Overseas Bank collectively saw S$1.75 billion of net institutional inflows in 2021, with the trio averaging 25% total returns. For much of the year the trio performed in-line with the median of performance of globally-listed banks which returned 24%. This was on the back of resilient investment activity across the globe and a 60 basis points upward structural shift of the 2/10 UST yield curve. Banks are the biggest sector of the STI and key drivers for 2022 include the potential for progressive normalisation of interest rates, continued momentum across wealth management and insurance services, the gradual re-opening of borders and the ability to keep allowances low.

The gradual re-opening of borders remains a key driver not just for banks, but most sectors. Advanced 4Q21 estimates, released on 3 Jan, indicate the Singapore economy rebounded 7.2% in 2021, led by the goods-producing, manufacturing industry (+12.8%) and construction industry (+18.7%), while the services-orientated industries expanded 5.2%. In 2022, Singapore’s economic growth rate is expected to moderate, but remain above trend at 3.0% to 5.0% in 2022, with growth dependent on the momentum of manufacturing industries, in addition to the continued recovery of services-orientated industries, and the construction industry. While the construction sector rebounded 18.7% in 2021, MTI noted that in absolute terms, the value-added of the sector remained 26.0% below its pre-COVID 4Q19 level, as activity at construction worksites continued to be weighed down by labour shortages due to border restrictions on the entry of migrant workers. Back in 2020, Singapore’s construction sector declined 36.0%, while the manufacturing sector expanded 7.3% and the services producing industries declined 6.9%. This means that Singapore’s 7.2% economic rebound in 2021 followed a 5.4% contraction in 2020, and likewise, the STI’s 13.6% rebound followed a 5.4% decline in total return in 2020. This saw the combined AUM of the SPDR® Straits Times Index ETF and the Nikko AM Singapore STI ETF end 2021 at S$2.23 billion with net outflows of S$60 million, compared to AUM of S$2.08 billion at the end of December 2020, which had been bolstered by S$947 million of inflows in 2020.

More broadly, the 100 most traded stocks of the Singapore stock market in 2021 (which includes the 30 STI constituents) averaged 25% total returns in 2021, with a 9% median total return. The dispersion between the average and median total return was on the back of outlier performances, including as many as 19 of the 100 stocks generating more than 50% total returns over the year.

With Brent Crude Oil futures rallying from US$48.50/bbl to US$75.20/bbl in 2021, RH Petrogas and Rex International generated respective returns of 552% and 109% over the year.  The SGX IHS McCloskey Indonesia 4200kc GAR FOB Thermal futures ended 2021 at US$55/tonne, after surging to US$155/tonne in October, from US$44/tonne at the end of 2020, which coincided with Geo Energy Resources generating a 118% total return over the year.  

The 19 stocks that generated more than 50% total returns over the year included RH Petrogas, IFAST Corporation, CFM Holdings, The Place Holdings, PropNex, Geo Energy Resources, Totm Technologies, Singapore Press Holdings, Rex International, ISDN Holdings, UMS Holdings, Q&M Dental Group (Singapore), Thomson Medical Group, Golden Agri-Resources, ARA LOGOS Logistics Trust, First REIT, AEM Holdings, Sarine Technologies and Frencken Group. Aside from resilient investment activity, the ability to grow revenues amid COVID-19 constrained growth, robust global trade and global demand for technology, the comparative supply to demand of commodities, as well as strategic corporate efforts to maximise operational efficiency were among the more prominent threads among the stronger of the 100 stocks in 2021.   

The 100 most traded stocks by average daily turnover in 2021, ranked by the highest to lowest, are tabled below. DBS Group Holdings ranked #1 by average trading turnover through the year, with the average trading turnover at S$124 million, while Avarga ranked #100, with its average trading turnover close to S$1 billion. Note that the daily trading activity of Digital Core REIT was averaged over the 20 sessions since its debut, which means the data centre REIT, which listed on 3 Dec, ranked as a top 20 stock by turnover. Together the 100 stocks most traded stocks maintained a combined market value of S$630.8 billion at the end of 2021, representing 70% of the total S$896.9 billion market value of all stocks listed on Singapore Exchange.

 Source: SGX, Refinitiv, Bloomberg (Data as of 31 December 2021)