On Friday, the FTSE Developed Index pushed below its mid-June lows, forming a new intra-year low for 2022, which has brought its 2022 YTD decline in total return to 19%. This has coincided with the outlook for the US Fed Funds Target Rate (FFTR) at the most hawkish levels seen all year, with CME FedWatch expectations currently c.25%/75% for a 50bps/75bps hike on 2 Nov, aligning with last week’s FOMC dot plot seeing the FFTR at 4.4% by end of 2022. At the same time, smoothed global daily COVID-19 cases are currently at the lowest levels that have been reported all year. Apart from equities, bonds and currencies have naturally been impacted by the staunch Fed Reserve stance on inflation, providing a multiplex of market drivers across Asia, particularly as China and Japan are not tightening their respective monetary policies.
In Singapore, the STI has generated a 7% total return in the 2022 YTD, with the five biggest weights of the Index averaging 10% total returns. As tabled below, the combined weight of these five stocks amounted to 56% as of the end of August. The five stocks also represent more than 40% of the day-to-day turnover of the Singapore stock market, with four of the five stocks among the 10 SGX-listed stocks with the tightest Bid/Ask spreads in terms of basis points (bps) last week.
Five Largest Weights of STI |
Code |
STI Weight as of 31 Aug % |
Mkt Cap S$M |
QTD Net Insti Inflow S$M |
QTD Total Return % |
YTD Net Insti Inflow S$M |
YTD Total Return % |
Last Week Average Bid/Ask Spread (bps) |
DBS |
D05 |
19.5 |
85,959 |
602 |
14 |
-152 |
6 |
4.36 |
UOB |
U11 |
14.0 |
45,449 |
-51 |
6 |
-301 |
5 |
4.81 |
OCBC Bank |
O39 |
11.6 |
54,299 |
481 |
8 |
510 |
11 |
8.86 |
Singtel |
Z74 |
6.5 |
43,744 |
198 |
7 |
740 |
16 |
37.27 |
JMH USD |
J36 |
4.0 |
22,955 |
18 |
10 |
7 |
11 |
9.15 |
Total |
|
55.6 |
252,407 |
1,249 |
|
804 |
|
|
Average |
|
|
|
|
9 |
|
10 |
|
Source: SGX (Data as of 23 Sep 2022), FTSE Straits Times Index August 31 Factsheet.
During 3Q22, all five stocks provided financials or business updates.
The two Exchange Traded Funds (ETFs) that track the STI have a seen net inflows of S$9 million in the QTD, which currently marks the first quarter of combined inflows for the two ETFs since the S$33 million of inflows in 3Q21. The combined AUM of the two STI ETFs is currently S$2.2 billion, one-fifth of the total AUM of all SGX-listed ETFs. Since the end of 2019, both STI ETFs have generated 10% total returns and ranked among the top five most traded ETF by daily averaged traded value.
Chart | Stock Name | Last | Change | Volume |
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Created by SGX | Sep 12, 2024
Created by SGX | Sep 09, 2024
Created by SGX | Sep 03, 2024