SGX Market Updates

Early Year Flows as STI Gains 5%

SGX
Publish date: Mon, 24 Jan 2022, 07:15 PM
  • Energy and Bank stocks led the global stock market over the past three weeks, as Technology, Healthcare and REIT stocks lagged global benchmarks. As of 31 Dec, DBS, OCBC & UOB made up 45% of the STI weightings, compared to the FTSE All-World Index that maintained a 7% weighting to Banks and a 25% weighting to Technology. This has seen the STI generate a 5.5% return, while conversely, the FTSE All-World Index declined 5.5% over the past three weeks.
     
  • DBS, OCBC and UOB have averaged 10% gains over the past three weeks, with S$678 million in combined net institutional inflows. This was a key part of the S$705 million in total net institutional inflows into Singapore-listed stocks over the past three weeks, while the Semi-related/Technology stocks recorded net institutional outflows.
     
  • After the banks, Singtel saw the next highest net institutional inflows over the three weeks with S$124 million of inflows and a 7% share price gain over the three weeks. Back in Nov, Singtel attributed its 1HFY21 (to 30 Sep) turnaround net profit to its ongoing strategic reset to develop new growth engines in ICT and digital services.
     
  • Brent Crude Oil has gained by 13% over the past three weeks, with RH Petrogas and Rex International gaining 11% and 5% over the three weeks. Geo Energy Resources has gained 6%, with the Energy trio also recipient to combined net institutional inflows over the three weeks.


Global inflation concerns have seen Energy stocks and Bank stocks lead the global stock market for the first three weeks of 2022. In the meantime, Technology and Healthcare stocks, in addition to REITs have lagged global benchmarks. Given the STI’s strong weighting to Banks, the Singapore benchmark has ranked the third strongest of major benchmarks over the past three weeks, closely following the Brazil and Hong Kong Indices.  As of the end of December, the three banks made up 45% of the STI weightings. By comparison the benchmark for global stocks, the FTSE All-World Index, maintains a 7% weight to Banks and a 25% weighting to Technology. Hence, for the first three weeks of the year, the STI generated a 5.5% return, while conversely, the FTSE All-World Index has declined 5.5%.

DBS Group Holdings , Oversea-Chinese Banking Corporation, and United Overseas Bank which make up 20% of the combined market value of all stocks listed on SGX, have each seen similar net institutional inflows in 2022 which have totaled a combined S$678 million. This has been on the back of a further 25bps upward shift in the 2/10 UST Yield Curve, following on from the 60 bps upward structural shift seen in 2021. Since the end of 2021, expectations of the US Fed Reserve lifting interest rates at the 16 March FOMC have increased from 50% to 88% (based on the CME FedWatch Tool). Rotation to the Banks has been a key driver of the total net institutional inflows into Singapore-listed stocks over the past three weeks totalling S$705 million. Of the 100 most traded stocks in Singapore over the past three weeks, the 10 stocks that saw the highest net institutional inflows over the three weeks are table below.

Stocks with Highest YTD Net Insti Inflow Among 100 Most Traded Stocks

Code

Mkt Cap S$M

2022 YTD Net Insti Flow S$M

2022 YTD Return %

2021 Total Return

%

Sector

OCBC Bank

O39

55,294

239.4

8

17

Banks

UOB

U11

50,778

221.7

13

24

Banks

DBS

D05

91,305

217.2

9

35

Banks

Singtel

Z74

40,944

124.1

7

3

Telecommunications

SPH

T39

3,768

42.3

0

112

Consumer Cyclicals

SGX

S68

10,217

36.8

3

4

Financial Services

Sembcorp Ind

U96

3,952

32.1

11

20

Utilities

SIA

C6L

15,164

30.7

2

17

Industrials

CapitaLand Invest

9CI

18,817

22.5

7

N/A

Real Estate (excl. REITs)

Wilmar Intl

F34

27,385

19.7

5

-7

Consumer Non-Cyclicals

Average

 

 

 

7

25

 

Source: SGX, Refinitiv, Bloomberg (Data as of 21 Jan 2022)

 

After the Banks, Singapore Telecommunications (Singtel) has seen the next highest net institutional inflows over the past three weeks with S$124 million of net institutional inflows and a 7% gain in its share price. Singtel reported back on 11 Nov that its 1HFY22 (ended 30 Sep) net profit more than doubled YoY to S$954 million, and attributed the result to its ongoing strategic reset to develop new growth engines in information and communications technology (ICT) and digital services. Singtel’s ICT arm, NCS, has changed its revenue mix significantly over those six months ending 30 Sep, growing its digital revenue by 37% YoY, which now contributes 48% to NCS’ total revenue. For the 25 APAC Telecommunication stocks with a market value of more than US$10 billion, Singtel ranked among the top five performers over the past three weeks, after ranking among the top 10 performers of the 25 in the last six months of 2021.

Sembcorp Industries has also ranked among the 10 stocks that have seen the highest net institutional inflows over the past three weeks, while also ranking among the 10 stocks that saw the highest net institutional inflows in 2021. The stock gained 11% over the past three weeks and will be reporting its FY21 (ended 31 Dec) results before the Wed 23 Feb open. Since the Group reported its 1HFY21 (ended 30 June) turnaround net profit of S$46 million (compared to a net loss of S$42 million in 1HFY20) it has pressed on with the strategic transformation of its portfolio from brown to green energy, which includes the announcement on 14 Dec that its wholly-owned subsidiary Sembcorp Energy UK, was planning to build Europe’s largest battery energy storage system to help the UK achieve its Net Zero target. Wilmar International also ranked among the 10 stocks that have seen the highest net institutional inflows over the past three weeks, and on 20 Jan provided an update on the proposed IPO of the Adani Wilmar Limited.

Like Banks stocks, Energy stocks have led global stocks over the past three weeks, with Brent Crude Oil gaining 13% since 31 Dec. The two oil and gas explorer and producer stocks listed on SGX that are have ranked amongst the 50 most traded Singapore stocks this year, RH Petrogas and Rex International gained 11% and 5% over the three weeks. Geo Energy Resources has gained 6% over the past three weeks and on 21 Jan, the company reported that the Indonesian Ministry of Energy and Mineral Resources gave notification on 20 Jan for the lifting of the coal export sales ban for 139 coal mining companies, which includes which includes the Group’s operating coal mines, PT Sungai Danau Jaya, PT Tanah Bumbu Resources and PT Bumi Enggang Khatulistiwa. Close to 60% of Geo Energy Resources 1HFY21 (ended 30 June) revenue was associated with exports to China. Combined these three stocks have seen S$10 million a day in trading turnover so far this year, close to what City Developments sees in daily turnover, however the trio RH Petrogas and Rex International and Geo Energy Resources maintained a combined market value which is only one-sixth the size of City Developments. All three were Energy plays recipients to net institutional inflows over the three weeks. Moreover, Geo Energy Resources saw the highest net institutional inflows proportionate to market capitalisation, of the 100 most traded stocks by turnover. Of the 100 stocks, Rex International and RH Petrogas ranked sixth and seventh by highest net institutional inflows proportionate to market capitalisation over the three weeks.

For technology stocks, 2021 was a bumper year for the semiconductor industry in terms of global demand and share price performances, which has seen some retracement of those gains over the past three weeks, with the Philadelphia SOX declining 13%following the 44% gains of 2021. This has seen as many as four technology stocks draw the most net institutional outflows among the 100 most traded stocks of the past three weeks.

Stocks with Highest YTD Net Insti Outflow Among 100 Most Traded Stocks

Code

Mkt Cap S$M

2022 YTD Net Insti Flow S$M

2022 YTD Return %

2021 Total Return %

Sector

Mapletree Com Tr

N2IU

6,180

-93.8

-7

-2

REITs

ComfortDelGro

C52

2,990

-45.8

-1

-14

Industrials

Nanofilm

MZH

1,940

-32.4

-23

-13

Technology (Hardware/ Software)

Mapletree Log Tr

M44U

8,600

-29.6

-6

-1

REITs

Keppel DC REIT

AJBU

3,877

-28.9

-9

-8

REITs

IFAST

AIY

2,092

-23.7

-14

182

Technology (Hardware/ Software)

ThaiBev

Y92

16,578

-22.7

0

-8

Consumer Non-Cyclicals

ST Engineering

S63

11,641

-19.8

-1

2

Industrials

UMS

558

880

-17.4

-13

81

Technology (Hardware/ Software)

AEM SGD

AWX

1,529

-15.7

-6

55

Technology (Hardware/ Software)

Average

 

 

 

-8

27

 

 Source: SGX, Refinitiv, Bloomberg (Data as of 21 Jan 2022).

 

The most 100 traded stocks by turnover over the past three weeks are tabled below. Note the table does not include the two debutants from last week - Vertex Technology Acquisition Corporation and Pegasus Asia, both special purpose acquisition companies.

Stock

Code

Mkt Cap S$M

2022 YTD Net Insti Flow S$M

2022 YTD Return %

2021 Total Return %

Sector

DBS

D05

91,305

217.2

9

35

Banks

UOB

U11

50,778

221.7

13

24

Banks

OCBC Bank

O39

55,294

239.4

8

17

Banks

Singtel

Z74

40,944

124.1

7

3

Telecommunications

Mapletree Com Tr

N2IU

6,180

-93.8

-7

-2

REITs

CapLand IntCom T

C38U

13,283

-4.3

-1

0

REITs

CapitaLand Invest

9CI

18,817

22.5

7

N/A

Real Estate (excl. REITs)

Ascendas REIT

A17U

12,132

-11.4

-2

2

REITs

SGX

S68

10,217

36.8

3

4

Financial Services

Mapletree Log Tr

M44U

8,600

-29.6

-6

-1

REITs

Wilmar Intl

F34

27,385

19.7

5

-7

Consumer Non-Cyclicals

Mapletree NAC Tr

RW0U

3,881

17.0

-1

22

REITs

SIA

C6L

15,164

30.7

2

17

Industrials

Mapletree Ind Tr

ME8U

7,050

-12.4

-2

-1

REITs

ComfortDelGro

C52

2,990

-45.8

-1

-14

Industrials

YZJ Shipbldg SGD

BS6

5,179

-9.4

-1

45

Industrials

Venture

V03

5,298

-10.0

0

-2

Technology (Hardware/ Software)

ST Engineering

S63

11,641

-19.8

-1

2

Industrials

AEM SGD

AWX

1,529

-15.7

-6

55

Technology (Hardware/ Software)

ThaiBev

Y92

16,578

-22.7

0

-8

Consumer Non-Cyclicals

JMH USD

J36

57,927

19.2

8

3

Consumer Non-Cyclicals

Keppel DC REIT

AJBU

3,877

-28.9

-9

-8

REITs

Keppel Corp

BN4

9,790

11.9

5

-1

Consumer Non-Cyclicals

Genting Sing

G13

9,350

13.8

0

-8

Consumer Cyclicals

CityDev

C09

6,484

19.4

5

-13

Real Estate (excl. REITs)

Frasers L&C Tr

BUOU

5,345

1.1

-5

14

REITs

Nanofilm

MZH

1,940

-32.4

-23

-13

Technology (Hardware/ Software)

Hongkong Land USD

H78

17,175

18.6

5

35

Real Estate (excl. REITs)

Sembcorp Ind

U96

3,952

32.1

11

20

Utilities

UMS

558

880

-17.4

-13

81

Technology (Hardware/ Software)

Suntec REIT

T82U

4,451

5.3

3

7

REITs

IFAST

AIY

2,092

-23.7

-14

182

Technology (Hardware/ Software)

UOL

U14

6,138

4.0

3

-6

Real Estate (excl. REITs)

Frasers Cpt Tr

J69U

3,912

-5.6

0

-1

REITs

Digi Core REIT USD

DCRU

1,771

-2.8

1

N/A

REITs

Keppel REIT

K71U

4,287

3.6

3

6

REITs

Ascott Trust

HMN

3,440

7.6

2

0

REITs

SPH

T39

3,768

42.3

0

112

Consumer Cyclicals

Frencken

E28

734

-8.5

-13

52

Technology (Hardware/ Software)

SATS

S58

4,477

4.0

3

-2

Industrials

NetLink NBN Tr

CJLU

3,819

-5.8

-2

9

Telecommunications

Rex Intl

5WH

417

4.1

5

109

Energy/ Oil & Gas

Jardine C&C

C07

8,142

-2.8

0

9

Consumer Cyclicals

CapLand China T

AU8U

1,958

-3.8

-1

-9

REITs

Top Glove

BVA

5,525

-4.2

-10

-57

Healthcare

Olam Intl

O32

6,386

3.0

-1

24

Consumer Non-Cyclicals

RH Petrogas

T13

150

1.4

11

552

Energy/ Oil & Gas

ISDN

I07

296

-0.4

-7

81

Technology (Hardware/ Software)

Dairy Farm USD

D01

5,243

-3.3

0

-28

Consumer Non-Cyclicals

Riverstone

AP4

1,015

4.8

-2

-32

Healthcare

Ascendas-iTrust

CY6U

1,581

-4.8

-4

9

REITs

Raffles Medical

BSL

2,466

-5.7

-4

40

Healthcare

ARA LOGOS Log Tr

K2LU

1,300

2.7

-1

59

REITs

Sheng Siong

OV8

2,225

1.4

1

-2

Consumer Non-Cyclicals

Jiutian Chemical

C8R

171

1.9

13

-4

Materials & Resources

Geo Energy Res

RE4

500

8.0

6

118

Energy/ Oil & Gas

Sembcorp Marine

S51

2,605

3.2

1

-34

Industrials

ESR-REIT

J91U

1,894

-2.8

-2

31

REITs

Metech Intl

V3M

28

0.1

-47

250

Industrials

SPHREIT

SK6U

2,730

-5.2

-2

26

REITs

Kep Infra Tr

A7RU

2,770

2.1

2

7

Materials & Resources

First Resources

EB5

2,681

2.1

13

21

Consumer Non-Cyclicals

Lendlease REIT

JYEU

1,025

-1.7

-4

30

REITs

AIMS APAC REIT

O5RU

1,032

2.2

0

24

REITs

ParkwayLife REIT

C2PU

3,001

-3.4

-3

37

REITs

Medtecs Intl

546

172

-0.3

-10

-63

Healthcare

Prime US REITUSD

OXMU

1,297

-1.8

-1

17

REITs

Golden Agri-Res

E5H

3,110

3.0

0

60

Consumer Non-Cyclicals

CDL HTrust

J85

1,451

1.7

1

-4

REITs

Cromwell REIT EUR

CWBU

2,140

-3.0

-2

8

REITs

Daiwa Hse Log Tr

DHLU

550

-0.9

2

N/A

REITs

Aztech Gbl

8AZ

691

0.8

2

N/A

Industrials

SingPost

S08

1,451

1.8

-1

-6

Industrials

Haw Par

H02

2,672

0.2

6

8

Healthcare

HPH Trust USD

NS8U

2,754

1.9

4

25

Industrials

Manulife REIT USD

BTOU

1,593

-1.2

1

2

REITs

Grand Venture

JLB

331

3.4

-16

262

Industrials

Japfa

UD2

1,265

1.9

2

-26

Consumer Non-Cyclicals

StarHub

CC3

2,284

-0.9

-3

8

Telecommunications

DISA

532

91

0.0

29

600

Technology (Hardware/ Software)

Q&M Dental

QC7

568

-0.5

0

70

Healthcare

UG Healthcare

8K7

178

-0.6

-11

-44

Healthcare

Yanlord Land

Z25

2,202

1.5

3

4

Real Estate (excl. REITs)

Kep Pac Oak REIT USD

CMOU

1,091

-1.3

-3

30

REITs

Sasseur REIT

CRPU

992

-3.7

-4

12

REITs

Straits Trading

S20

1,306

-0.2

-3

65

Materials & Resources

Hatten Land

PH0

79

0.0

-10

-31

Real Estate (excl. REITs)

Koufu

VL6

421

-1.1

1

13

Consumer Cyclicals

GS Hldg

43A

50

-0.2

-28

-26

Consumer Cyclicals

Far East HTrust

Q5T

1,136

-3.0

-3

-1

REITs

StarhillGbl REIT

P40U

1,427

-0.7

-2

39

REITs

Vividthree

OMK

21

0.0

-17

17

Consumer Cyclicals

Thomson Medical

A50

2,195

-0.1

-1

68

Healthcare

SIA Engineering

S59

2,481

-2.0

1

11

Industrials

EC World REIT

BWCU

599

0.8

-4

16

REITs

Sinjia Land

5HH

19

-0.1

-12

464

Consumer Cyclicals

Silverlake Axis

5CP

681

0.0

-4

4

Technology (Hardware/ Software)

UtdHampsh REIT USD

ODBU

469

-2.8

-6

15

REITs

NutryFarm

AZT

13

0.2

-69

-16

Consumer Non-Cyclicals

Totm Tech

42F

197

0.1

-8

114

Telecommunications

Average

 

 

 

-2

38

 

Median

 

 

 

-1

9

 

 Source: SGX, Refinitiv, Bloomberg (Data as of 21 Jan 2022). Note the above table does not include the two SPACs - Vertex Technology Acquisition Corporation and Pegasus Asia that listed last week.

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