The Straits Times Index (STI) added 3.7% in July, bringing the 7-month total return to 9.6%. While the STI Banks (DBS, OCBC & UOB) averaged 2.8% gains for the month, both the iEdge S-REIT Index and iEdge SG Manufacturing Index generated 5.5% total returns. The FTSE APAC Index gained 1.2% for the month, in S$ terms.
The Straits Times Index (STI) formed its highest levels in 6 years at 3,509.20 on 15 Jul. Other key historical highs of the STI include the 3,640s reached in May 2018 and 3,906 attained in October 2007. In the first half of July, ARA US Hospitality Trust led the net institutional inflow into non-STI stocks with inflow of S$46.1 million. Among the STI constituents, DBS led with net institutional inflow of S$118 million.
In 1H24, nearly half the stocks that saw their average daily turnover (ADT) more than triple CY23 levels represented the Industrials and Consumer Cyclical Sectors. Industrial stocks included Cosco Shipping, Chasen, Beng Kuang Marine, Soilbuild Construction and Wee Hur, while Consumer Cyclical stocks included Isetan and ValueMax. Soilbuild Construction has seen its average daily turnover grow 10-fold in 1H24, from CY23 levels, while the stock generated a 210% price gain.
The STI generated a 2.9% gain to 3,332.8, with dividends boosting the total return to 5.7% in 1H24. The trio of STI Banks (DBS, OCBC, UOB), Yangzijiang Shipbuilding & SingTel led the STI gains in 1H24. By Sector, the Banks booked S$594 of net institutional inflow partially offsetting the net institutional outflow for the broader stock market, led by the S-REIT Sector.
As of 20 June, the FTSE ST All-Share Index generated a 3.9% total return in 2Q24, outpacing the FTSE Asia Pacific Index (+2.7%) and FTSE ASEAN All-Share Index (-1.9%). The 10 strongest performers of the index constituents averaged 37% total returns, and were led by Yoma Strategic, Samudera Shipping and Yangzijiang Shipbuilding. The 10 least performing constituents for the period averaged 12% declines, led by Food Empire, Prime US REIT and DFI Retail.
Singapore's stock market has seen net retail inflow of S$1.01 billion in the 2024-to-date. UOB (SGX:U11) has seen the most net selling by retail investors in the 2Q24 (to 13 June) at S$366 million. On the other hand, Singapore Airlines (SIA, SGX:C6L) and Keppel (SGX:BN4) have seen the most net retail inflow in 2Q24 (to 13 June) at S$129 million each.
The iEdge SG Advanced Manufacturing Index experienced a significant increase in trading turnover in May, surging one-third higher than activity in April, and marking the most active month for Index constituents since March 2023. Of the actively traded Index stocks, Yangzijiang Shipbuilding, Mermaid Maritime and Marco Polo Marine booked the highest net institutional inflow proportionate to market cap.
S-REITs have typically been sought for investability traits including yield and stability. However, tighter financial conditions and a fluid outlook for these conditions has provided more tradability to the Sector. The iEdge S-REIT Leaders Index has declined 12.3% in 2024-to-date. This has coincided with an outlook of tight financial conditions for longer, and expectations for the quantum of Fed Funds Rate cuts by end of 1H25 curtailed to ~50bps or 75bps, down from ~175bps.
On 27 May, the STI closed at 3,318.45, its highest close since August 2023. The overall Singapore stock market booked a moderate amount of S$300mil in net institutional inflow over the 6 weeks. Banks, Financial Services and the Real Estate Management and Development Sectors led net institutional inflow. Yoma Strategic booked the second highest net institutional inflow relative to market cap, after Samudera Shipping, while maritime-related stocks Yangzijiang Shipbuilding, Dyna-Mac, Marco Polo Marine made up the next three stocks in the ranking.
DBS, OCBC and UOB have booked S$500 million in combined net institutional inflow for the 2024 year through to 23 May. The trio also averaged 16% total returns for the period, bringing their average total returns since the end of 2019, to 67% and combined weight in the STI to 51%. OCBC also posted its highest ever close price on 23 May.
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