• Singapore stocks have booked net retail inflow of S$1.01 billion in the 2024 year to 13 June, comprised of S$959 million in 1Q24 and S$50 million in 2Q24. While the 2Q24 net inflow looks to have slowed considerably, S$597 million of net retail outflow in the trio of Banks has offset S$646 million of net retail inflow to other Singapore stocks.  
   
• The 2Q24 (to 13 June) saw the STI Banks average 10% total returns. UOB experienced a substantial shift in retail flows, with net retail outflow reaching S$366 million, reversing the net buying in the previous two quarters. UOB's VWAP for 2Q24 (to 13 June) was S$30.25, up 6% from S$28.53 in 1Q24, and 9% from S$27.65 in 4Q23.
   
• The UOB Daily Leveraged Certificates (DLCs) long-short ratio also declined from 3.0 in 1Q24 to 0.5 in 2Q24 (to 13 June), indicating net selling by retail investors. UOB 5x Short DLCs daily trading turnover by retail was up 73%, while UOB Structured Put Warrants was up 211%, from 1Q24.
   
• Meanwhile, net retail inflow to SGX-listed ETFs paralleled Singapore stocks, with the bulk of the net retail inflow so far in 2024 booked in 1Q24. Singapore Depository Receipts on Thai companies have also seen retail investors net buyers, with Kasikornbank SDR booking the highest retail net inflows in 2Q24 (to 13 June), followed by Delta Electronics SDR. 

Singapore's stock market has seen net retail inflow of S$1.01 billion in the 2024 year through to June 13, with the first quarter accounting for the majority of this sum. The second quarter experienced a modest inflow, due to a substantial net retail outflow from the outperforming STI Banks. Nevertheless, the overall inflow to nine other sectors remained robust, indicating a dynamic and active investment landscape in Singapore's financial markets. 

The net retail inflow into Singapore stocks in the 2024 year through to June 13, follows consistent net inflow by retail investors for each of the four preceding years. Over the preceding four years, the most net retail inflow was generally observed during times of market or price weakness, with the least net inflow to net outflow in the sessions with stronger market or price performances.

Net Retail Flows in 2Q24

Retail Investors have increased their net outflow in the Singapore Banks from S$109 million in 1Q24 to S$597 million in 2Q24 through to 13 June. This has coincided with the trio of STI Banks averaging 10.0% total returns in 2Q24 (to 13 June). United Overseas Bank (UOB) has seen the most net selling by retail investors in the 2Q24 (to 13 June) at S$366 million, which followed S$10 million of net retail buying in 1Q24 and S$179 million of net retail buying in 4Q23. This coincided with the UOB Volume Weighted Average Price (VWAP) at a higher level of S$30.25 in the 2Q24 (to 12 June), compared to S$28.53 in 1Q24 and S$27.65 in 4Q23.

 On the other hand, Singapore Airlines and Keppel have seen the most net retail inflow in 2Q24 (to 13 June) at S$129 million. For Keppel, this followed S$145 million of net retail selling in 1Q24. This flow reversal coincided with the Keppel VWAP at a lower level of S$6.84 in the 2Q24 (to 13 June),  compared to a higher VWAP of S$7.14 in 1Q24. Singapore Airlines meanwhile maintained a similar pace in net retail inflow to 1Q24, with similar VWAPs of S$6.61 in 2Q24 (to 13 June) and S$6.65 in 1Q24. Despite the two Industrial stocks leading the net retail inflow in 2Q24 (to 13 June), Industrials booked S$70 million of net retail outflow for the 10 weeks. This was led by S$193 million of net retail outflow from Yangzijiang Shipbuilding, which saw its VWAP saw soar to S$1.94 in in 2Q24 (to 13 June) from S$1.71 in 1Q24 and S$1.49 in 4Q23. 

 Like 1Q24, the S-REIT Sector has booked the highest net retail inflow at S$404 million in 2Q24 (to 13 June). This follows S$486 million of net retail inflow into the S-REIT Sector in 1Q24. Other Sectors that have seen reasonably consistent flows across the two quarters in terms of direction and extent, have included Consumer Non-Cyclicals, and Materials and Resources. 

The 20 stocks that booked the highest net retail inflow and highest net retail outflow in 2Q24 (to 13 June) are tabled below. 

Note NRF refers to Net Retail Flow; TR refers to Total Return. All Data as of 13 June 2024; Source: SGX

Note NRF refers to Net Retail Flow; TR refers to Total Return. All Data as of 13 June 2024; Source: SGX

Security Product Net Retail Flows

The SGX-listed ETFs booked net retail inflows totaling S$6.4 million in 2Q24 (to 13 June). This was the net result of S$161 million in total retail buying and S$155 million in total retail selling. Like the stock market, this was has been a more comparatively muted 10 weeks for net retail inflows, given the SGX-listed ETF net retail inflows totalled closed to S$60 million in 1Q24. 

 Also REIT ETFs have dominated the net inflows in 2Q24 (to 13 June) with three of them accounting for S$38 million in net inflows This included the NikkoAM-STC Asia Ex Japan REIT ETF, Lion-Phillip S-REIT ETF and CSOP iEdge S-REIT Leaders Index ETF.

Singapore Depository Receipts on Thai companies have also seen retail investors net buyers, with Kasikornbank SDR booking the highest retail net inflows in 2Q24 (to 13 June), followed by Delta Electronics SDR.

As noted above, coinciding with price gains, UOB booked the most net selling by retail investors in the 2Q24 (to 13 June) at S$366 million, which followed S$10 million of net retail buying in 1Q24. This coincided with the UOB Daily Leveraged Certificates (DLCs) long-short ratio declining from 3.0 in 1Q24 to 0.5 in 2Q24 (to 13 June), indicating net selling by retail investors. UOB 5x Short DLCs daily trading turnover by retail was up 73%, and UOB Structured Put Warrants up 211%, from 1Q24. Designed to be traded over short periods of time, predominantly on an intra-day basis, DLCs offer the flexibility to trade both rising and falling markets. Structured Warrants offer investors an alternative instrument to participate in the price performance of an underlying asset at a fraction of the underlying asset price and can also be used as hedging tools to reduce or diversify investors’ portfolio risks. Note that both DLCs and Structured warrants have a limited lifespan and for the latter, if not exercised, become worthless at expiration.

Note that under MAS’ guidelines to enhance safeguards to retail investors, brokers must assess if investors have the relevant knowledge and experience before they can invest in Specified Investment Products (SIPs). These SIP products  have structures, features and risks that may be more complex and include DLCs, structured warrants, synthetic ETFs, futures and options.
 

Further Resources and Research 

• Weekly Fund Flow Report: Data Reports - Singapore Exchange (SGX) 

Recent Financial Results/Business Updates

• StarHub: StarHub 1QFY2024 Business Performance Update| StarHub Annual Report 2023 
• NetLink NBN Trust: NetLink NBN Trust FY2024 Results Presentation| NetLink NBN Trust 2HFY2024 Interim Financial Results
• First Resources: First Resources 1QFY2024 Production and Financial Highlights | First Resources Annual Report 2023 
• AIMS APAC REIT: AIMS APAC REIT FY2024 Financial Results Presentation | AIMS APAC REIT FY2024 Interim Financial Statements
• ParkwayLife REIT: ParkwayLife REIT 1QFY2024 Business Update | ParkwayLife REIT FY2023 Annual Report 
• Raffles Medical Group: Raffles Medical Group Annual Report 2023 

Related Analyst Reports

• StarHub: CGS-CIMB - Starhub update : Dare+ investments brought forward | DBS - Singapore Industry Focus : Telecom Sector Consolidation? - Scenario analysis of a StarHub-M1 merger
• NetLink NBN Trust: CGS-CIMB - NetLink NBN Trust Update : Finalised ICO pricing removes overhang  
• AIMS APAC REIT: DBS - AIMS APAC REIT update : Organic growth initiatives to commence 
• Parkway Life REIT: OCBC - Parkway Life REIT Update : A stellar start to the year | DBS - Parkway Life Real Estate Investment Trust update : Never going out of "Style” 
• Raffles Medical Group: DBS - Raffles Medical update : Normalised to pre-COVID levels 

Company interviews 

• StarHub: kopi-C with StarHub’s CEO: “There’s no other telco like ours”
• AIMS APAC REIT: Kopi-C with AIMS APAC REIT’s CEO: ‘Property is a people business’ 
   

Enjoying this read?

• Subscribe now to our SGX My Gateway newsletter for a compilation of latest market news, sector performances, new product release updates, and research reports on SGX-listed companies.
• Stay up-to-date with our SGX Invest Telegram channel.