• Over the first 8 months of 2024, the 10 stocks in Singapore's Technology Sector with the highest net institutional inflow have achieved an average price return of 10%. Including dividends, their average total return rises to 15%. These 10 stocks are evenly split between those trading below and above their 5-year average price-to-book ratio.
   
• Venture booked S$94M on net institutional inflow over the eight months and achieved its goal of sequential revenue growth from 1Q24 to 2Q24. The Group is actively pursuing initiatives like onboarding new customers, introducing new products, and supporting customers with geopolitical risk mitigation strategies to improve performance in 2H24.
   
• As of 30 Aug, Venture, iFAST and Frencken collectively account for 8.5% in unit holdings of CSOP iEdge Southeast Asia+ TECH Index ETF [code: SQQ]. The ETF has an asset under management of S$129M, up 6x since its inception a year ago. The Lion-OCBC Securities Hang Seng Tech ETF [code: HST] also recorded a 4-month high in daily turnover on 30 August.
   

The outlook for manufacturing and trade is improving, as evidenced by multiple signals including the Singapore Institute of Purchasing and Materials Management (SIPMM) Electronics PMI reaching a near 6-year high of 51.3 in August, a 16% YoY surge in Singapore’s non-oil domestic exports in July, and a projected recovery in Singapore’s manufacturing sector driven by strong demand for electronics and semiconductors.

As of 30 Aug, Venture Corporation, iFAST Corporation and Frencken collectively accounted for 8.5% in unit holdings of CSOP iEdge Southeast Asia+ TECH Index ETF (code: SQQ). The ETF has an asset under management of S$129 million, up 6 times since its inception a year ago. The ETF offers investors a diversified basket of tech related companies from India, Singapore, Indonesia, Thailand, Vietnam and Malaysia. Over the first 8 months of 2024, the ETF posted a total return of 13% in SGD terms. The five largest index constituents of the ETF include Delta Electronics (13%), Infosys (12%), Astra International (11%), Wipro Ltd (11%) and Sea (9.9%). Delta Electronics (code: TDED), the largest tech stock listed on Stock Exchange of Thailand is also tradable on SGX through the Singapore Depository Receipts.

Lion-OCBC Securities Hang Seng Tech ETF (code: HST) continues to rank as the most traded ETF on the Singapore Exchange on the fluid outlook for its index constituents and outlook for Technology and Technology-adjacent Sectors in China. On 30 Aug, the ETF’s  S$6 million trading turnover represented a 4-month high in daily trading turnover on the back of China’s State Administration for Market Regulation announcing Alibaba’s completion of a three-year rectification period, in addition to a rally in the EV Sector.  

Although regional technology indices, led by major index heavyweights, have posted gains over the first eight months of 2024, a greater number of technology stocks across APAC have seen declines rather than gains. This mixed performance is also reflected in the performance of stocks in Singapore. 

The 10 most actively traded stocks in Singapore's Technology Sector have averaged a 4% decline in total return this year. This is consistent with the nearly 50 stocks in the Sector, which have also averaged a 4% decline over the past eight months. The table below lists the 10 most traded stocks in the local Technology Sector.

Note ADT refers to Average Daily Trading Turnover; NIF refers to Net Institutional Inflow, All Data as of 30 August 2024, Source: SGX & Refinitiv
 

At the same time, the 10 stocks in Singapore’s Technology Sector with the highest net institutional inflow have averaged a 15% total return over the period, while the 10 stocks with the highest net institutional outflow have averaged a 6% total return. Note that the 10 stocks with the highest net institutional outflow were also the 10 stocks in the Sector with the highest net retail inflow over the eight months. 

The 10 stocks of Singapore’s Technology Sector that have booked the highest net institutional inflows over the past eight months are tabled below. The five that also ranked among the 10 most traded stocks are highlighted in bold in both tables. Note three stocks in the table below have averaged less than S$20,000 in average daily trading turnover (ADT) and Silverlake Axis has announced a voluntary unconditional offer for all the issued and paid-up ordinary shares in the capital of the company. 

Note ADT refers to Average Daily Trading Turnover; NIF refers to Net Institutional Inflow, All Data as of 30 August 2024, Source: SGX & Refinitiv
 

As noted in the two tables above, Venture Corporation has maintained its position as Singapore’s most traded Technology stock this year. However, this year the stock has recorded the highest net institutional inflow within the Sector and the eighth highest net institutional inflow across the broader Singapore stock market. In contrast, in 2023, the stock experienced the fourth largest net institutional outflows across the Singapore stock market.

In August, Venture Corporation reported its 2QFY24 revenue increased 7.6% quarter-on-quarter to S$717.5 million and net profit increases by 5.7% to S$63.5 million. For its 1HFY24, the Group's revenue was S$1,384.2 million, lower year-on-year due to softer demand in the first quarter, while net profit was S$123.7 million, resulting in an improved net margin of 8.9% compared to 8.8% in 1HFY23. The group noted for the 1HFY24, Venture achieved its goal of sequential revenue growth from 1QFY24 to 2QFY24. The Group also noted it is actively pursuing initiatives such as onboarding new customers, introducing new products, and supporting customers with geopolitical risk mitigation strategies to further improve performance in the 2HFY24.

Further Resources and Research 

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

Recent Financial Results/Business Updates

• Venture Corporation: Venture Corporation 1H2024 Financial Statements
• Frencken Group: Frencken Group 1H2024 Financial Statements
• UMS Holdings: UMS Holdings Q2FY2024 Financial Statements
• AEM Holdings: AEM Holdings 1H2024 Financial Statements
• iFAST Corporation: iFAST Corporation 2Q24 Financial Statements

Related Analyst Reports

• Venture Corporation: DBS - Venture Corporation update : Improving outlook
• Frencken Group: OCBC - Frencken Group Update : For the long haul
• UMS Holdings: DBS - UMS Holdings - Short-term bump, long-term gain
• AEM Holdings: DBS - AEM Holdings Ltd update : Not a “chip” bargain yet
• iFAST Corporation: CGS-CIMB - iFAST Corporation Ltd update : Volatility-fuelled trading momentum

Company interviews 

• UMS Holdings: 10 in 10 with UMS Holdings - Growing with Precision
• AEM Holdings: AEM Thrives on Technology’s Cutting Edge
• iFAST Corporation: Smartkarma Insights: iFAST Corp - A Profitable Fintech Player that Deserves More Investor Attention
• Nanofilm Technologies: Nanofilm Technologies: Driving New Frontiers of Innovation
• CSE Global: 10 in 10 with CSE Global – Engineering a Resilient Future
   

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