• Global consumer non-cyclical stocks have ranked among the three most strongest performing sectors since the global spotlight on US regional banks began on 9 March through to 5 May. At the same time, the consumer cyclical sector has ranked among the three most strongest performing sectors since the beginning of 2023.

• Singapore’s 20 most traded consumer-focused stocks over the past 17 weeks span 12 non-cyclical stocks and eight cyclical stocks. Both the 12 non-cyclical stocks and 8 cyclical stocks booked combined net institutional inflow over the 17 weeks, led by Genting Singapore and Golden Agri-Resources.

• Over the past 17 weeks, Genting Singapore ranked as Singapore’s most traded consumer stock while booking the highest net institutional inflow across the local stock market and generating a 17% total return. In March, the Group relayed that its visitors returned in droves to RWS in 2022, as the integrated resort refreshed offerings & experiences.

• Golden Agri-Resources is scheduled to provide a 1QFY23 (ended 31 Mar) business update after the Friday 12 May close. In FY22, the leading Indonesian plantation group with integrated operations across 14 countries, reported net profit grew 64% to US$782 million.

Singapore consumer stocks span multiple and diverse businesses across non-cyclical/essential products and services, in addition to cyclical/non-essential products and services. The 20 most traded consumer-focused stocks over the past 17 weeks operate a wide field of consumer-focused businesses, with much relevance to the modern day familiar economic themes.

Among the 20 traded consumer-focused stocks, luxury timepiece retailers Cortina Holding and The Hour Glass have generated the highest 5-year total returns. The Hour Glass attributed the surge in interest in mechanical watches to COVID-19 containments which saw “people cooped up at home, leaving them plenty of time to pursue old hobbies and take up new ones, with social media and online resources functioning as a gateway into hobbies”.

Data as of 5 May 2023

Source: SGX, Refinitiv

After Cortina Holding and The Hour Glass, Sheng Siong Group has generated the third highest 5-year total return while also generating an 8% total return over the past 17 weeks. Sheng Siong Group reiterated just over a week ago that “the high inflationary environment continues to affect Singapore consumers, particularly those with lower household incomes, as they face elevated price pressures from utility, accommodation, and food costs”. The large supermarket operator added that “consequently, consumers may choose the relatively cheaper alternative of buying groceries and dining at home as compared to eating at restaurants” and that “this may drive house brand sales going forward and improve margins as consumer preferences lean towards more value offerings”.

Both the 12 non-cyclical and eight cyclical stocks of the 20 most traded consumer stocks have booked combined net institutional inflows over the past 17 weeks. This was in contrast to the broader Singapore stock market, which booked close to S$2.0 billion of net institutional outflow. Genting Singapore has led the net institutional inflow for the consumer cyclical stocks while Golden Agri-Resources led the net institutional inflow for the consumer non-cyclical stocks.

Over the past 17 weeks, Genting Singapore has ranked as Singapore’s most traded consumer stock while booking the highest net institutional inflow across the Singapore stock market. During the 17 weeks Genting Singapore generated a 17% total return. In March, the Group relayed that in visitors returned in droves to Resorts World Sentosa (“RWS”) in 2022 as the integrated resort refreshes its offerings and experiences. In April, Genting Singapore maintained that as part of its RWS 2.0 expansion plans, it will be launching several new attractions such as the Minion Land in Universal Studios Singapore, Super Nintendo World, the Singapore Oceanarium, and new food and beverage and lifestyle experiences. On Friday, the stock closed at S$1.10, which was 8% below the 52W high of S$1.19 formed on 4 April, while the stock is trading at a book value between its 5-year P/B average and the median P/B for the top quartile of global and regional consumer cyclical stocks.

Over the past 17 weeks, Golden Agri-Resources ranked as Singapore’s fifth most traded consumer stock while booking the tenth highest net institutional inflow across the Singapore stock market and generating a 6% total return. Last year, Golden Agri-Resources’ upstream business produced its record palm product output level of 3.06 million tonnes, with a yield well above the industry average at 5.4 tonnes per hectare. This was facilitated by its large-scale managed plantations of 538 thousand hectares in Indonesia. The stock is currently trading near its 5-year P/B average and on Friday closed at 26.5 cents, 17% below is 52W high formed 52 weeks ago, while last trading at the 24.0 cents 52W low in January. Golden Agri-Resources is scheduled to provide a 1QFY23 (ended 31 Mar) business update after the Friday 12 May close. For March, the STB reported  Singapore’s international visitor arrivals surpassed 1 million, for the first time since COVID-19 pandemic began, however still lags the 1.7 million visitors reported in January 2020.

The 20 most traded stocks of the consumer sectors are tabled below.

^Note on SGX Watchlist. *NIO Returns from Singapore listing date. Data as of 5 May 2023

Source: SGX, Refinitiv