• The STI has gained 9.8% in the 2022 YTD, with Sembcorp Ind leading the 22 YTD gainers of the benchmark. On Sector composition, the STI has been the strongest APAC benchmark in the 2022 YTD, with the SET Index the next strongest APAC benchmark with a 6.5% gain.
   
• Sembcorp Ind has pressed on with its strategic transformation of its portfolio from brown to green energy, and aims for its sustainable solutions portfolio to comprise 70% of the Group’s net profit in 2025, up from around 40% in 2020. The stock has rallied 27% in the 2022 YTD, adding to its 20% total return in 2021.
   
• DBS, OCBC and UOB have averaged 16% gains in the 2022 YTD after averaging 25% total returns in 2021. Recent FY21 financial reports for DBS and UOB met market expectations, with OCBC to report before the 23 Feb open. Last week, expectations for a 50 bps hike (rather than 25bps) at the 16 March FOMC declined from 87% to 11%, as of present.
   
• In the 2022 YTD, Singapore stocks have drawn in S$1.9 billion in net institutional inflow, with DBS, OCBC and UOB seeing a combined S$1.4 billion in net inflow, while Sembcorp Ind ranked among the top 10 recipients of net institutional inflow with S$60 million of net inflow.

The STI has gained 9.8% in the 2022 year to 18 Feb, while ranking as the most defensive index across Asia Pacific, with the FTSE Asia Pacific Index declining 2.0% in SGD terms. The two STI tracking ETFs have also recorded daily turnover of S$7.3 million in the February month-to-date, which represents a seven month high from July 2021, when S$7.7 million per day was traded. This has followed a trading enhancements that were introduced on 17 January, with ETF board lot sizes reduced to 1 unit and the forced order range standardised to +/- 10% from the last reference price. The next most defensive Index across the region has been the Stock Exchange of Thailand SET Index gain 6.5% in SGD terms. With Singapore and Thailand stocks making up 49% of the FTSE ASEAN All-Share Index, the South-East Asian benchmark has gained 4.5% in SGD terms in the 2022 year to 18 Feb.

On Friday, Singapore’s Finance Minister released the annual Budget Statement. An overall deficit of $5 billion or 0.9% of GDP is expected for FY21, and for FY22 (begins 1 Apr 22), the budget remains expansionary to support the economy, with an expected overall deficit of $3 billion or 0.5% of GDP. A composite set of automatic stabilisers were announced that build on the social compact that has continued to grow through COVID-19. Aside from the long string of social security enhancements, there were a number of initiatives relevant to listed businesses that included the strengthening of Digital capabilities, SME productivity, and support for the Green Transition. The changes to property taxes follow the Urban Redevelopment Authority Property Price Index by Residential Type gaining 11% in 2021, while the clear visibility on the road ahead for the GST provides business with ample time to prepare. Overall, the muted response to the Fiscal and Structural Initiatives in the Singapore stock market on Monday Morning trading also indicated that the Budget was appropriately focused on social and broader economic objectives.

In the 2022 year to 18 Feb, Singapore stocks have drawn in S$1.9 billion in net institutional inflow, with the 10 recipients of the highest net institutional inflow, all STI constituents, as tabled below.

 Source: SGX, Refinitiv, Bloomberg (Data as of 18 Feb 2021)