Just as manufacturing represents a significant component of Singapore’s GDP and exports, stocks with manufacturing-related activity continue to maintain a significant role within the Singapore stock market through combined market value and daily traded turnover.
Overall, the stocks of the iEdge SG Advanced Manufacturing Index have seen net institutional inflows of close to S$10 million in 3Q22 through to 7 Sep, while the Index generated a decline of 4% in total return. Over the past 10 weeks, market risks has grown with global and regional geopolitical risks, faster than expected monetary policy tightening, and ongoing COVID containment risks. This has reduced the overall total return of the Index since the end of 2019 to 25%. Nonetheless, this is considered a highly competitive return throughout the past two years and eight months, with the Dow Jones Industrial Average generating a 22% total return, with the FTSE ST All-Share Index up by 9% and FTSE Asia Pacific Index up by 1%, using the same measure.
Together the five Index heavyweights, NIO Inc, Venture Corporation, Wilmar International, Singapore Technologies Engineering and Thai Beverage PCL comprise approximately half the Index weights.
NIO Inc currently maintains the highest Index weight and is a designer and developer of high-performance electric vehicles, which commenced its secondary listing in Singapore on 20 May. From its 20 May close through to 7 Sep, the share price has gained 2.4% in SGD terms, while maintaining 90-day Annualised Volatility above 70%. The stock has averaged more than S$5 million in daily trading turnover, and liquidity has increased by 14% in the first 5 trading days of September compared to August levels. Best bid-ask spreads continued to narrow in August to 16 basis points (c.3 US cents) during Singapore and Hong Kong overlapping trading hours while top of book size averaged at US$28,000. On 7 Sep, NIO Inc reported 2Q22 vehicle sales were RMB 9,570.8 million (US$1,428.9 million), representing a 21% increase from 2Q21 and an increase of 3.5% from 1Q22. However, with higher cost of sales resulting from the expanded investment in power and service networks, 2Q22 gross profit decreased 15% from 2Q21. Looking forward, NIO’s Founder, Chairman and CEO noted that 2H22 is a critical period for NIO to scale up the production and delivery of multiple new products.
The 10 stocks of the Index that have seen the highest net institutional inflows for 3Q22 through to 7 Sep span multiple sectors including technology, industrials, consumer non-cyclicals and healthcare. Venture Corporation, UMS Holdings, AEM Holdings and Aztech Global span the Technology Sector. Sembcorp Marine, SATS, Marco Polo Marine and Dyna-Mac Holdings span the Industrials Sector. Also among the 10 are non-cyclical consumer play of Wilmar International and Healthcare play UG Healthcare Corporation.
10 Stocks of the iEdge SG Advanced Manufacturing Index with the Highest Net Institutional Inflows in 3Q22 to 7 Sep. |
Code |
Index Weight % |
Price Change % QTD |
Net Insti Flow QTD S$M |
Price Change % YTD |
Net Insti Flow YTD S$M |
Total Return YTD |
Venture Corp |
V03 |
11 |
3.8 |
53.8 |
-5.7 |
-46.0 |
-2 |
Wilmar International |
F34 |
10 |
-2.0 |
36.4 |
-4.3 |
84.8 |
-1 |
UMS Holdings |
558 |
2 |
18.0 |
24.8 |
-13.8 |
-31.3 |
-12 |
Sembcorp Marine |
S51 |
4 |
3.7 |
21.3 |
36.6 |
58.9 |
37 |
AEM Holdings |
AWX |
3 |
8.0 |
12.2 |
-15.0 |
-28.8 |
-14 |
SATS |
S58 |
7 |
3.1 |
7.4 |
3.3 |
17.9 |
3 |
Marco Polo Marine |
5LY |
0.2 |
44.8 |
5.8 |
55.6 |
3.1 |
56 |
Aztech Global |
8AZ |
0.5 |
8.6 |
2.3 |
1.1 |
-8.0 |
7 |
Dyna-Mac Holdings |
NO4 |
0.2 |
-11.2 |
1.7 |
109.9 |
2.4 |
110 |
UG Healthcare Corp |
8K7 |
0.1 |
-4.5 |
1.0 |
-34.4 |
0.9 |
-34 |
Source: SGX (Data as of 7 Sep 2022). Stocks of the Index that booked the most net institutional outflows in 3Q22 to 7 Sep included Singapore Tech Engineering, Yangzijiang Shipbuilding Holdings, NIO Inc, Food Empire Holdings, Frencken Group, Thai Beverage PCL, Haw Par Corp, Delfi, Top Glove Corp Bhd and Sarine Technologies. For more information on the Index, click here.
During 3Q22, all majority of the 10 stocks provided either financial reports or business updates:
Price performances of the 10 stocks have been more varied, with multiple sub-drivers at play, which is expected when it comes to a fleet of stocks that represent different sectors operating not across the region. On the macroeconomic side, on 29 July, business expectations of the manufacturing sector also found that within the local manufacturing sector, all clusters except the transport engineering and precision engineering clusters expect a less favourable operating environment in the next six months. EDB Singapore also reported last month reported that the transport engineering cluster expanded 18% YoY for the first seven months of 2022, ranking its YoY growth as the strongest of the key six clusters. On the other side of the manufacturing segments, EDB Singapore reported that the biomedical cluster decreased 5% YoY for the first seven months of 2022. The August report is due 26 Sep.
For investors and traders of the relevant stocks, how much these expectations are built into prices, the future course for regional growth and inflation, in addition to any fruition of downside risks are expected to provide cues for the Index.
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Created by SGX | Sep 12, 2024
Created by SGX | Sep 09, 2024
Created by SGX | Sep 03, 2024