While Singapore's exports have lagged behind Taiwan and Korea in Nov-Dec 2023, they have showed signs of recovery after a year of steep drops. Some of the most traded iEdge SG Advanced Manufacturing Index stocks, such as Yangzijiang Shipbuilding, Dyna-Mac and Food Empire, have high P/B ratios compared to their historical averages, indicating strong market valuation.
Among Singapore’s 10 most traded Transportation stocks in 2024-to-date, the 3 strongest performing stocks over the past fortnight included COSCO Shipping Singapore, Chasen and Samudera Shipping, averaging 16.6% gains, with all three notching up higher trading turnover levels compared to 2023 levels. Meanwhile Singapore Post, MarcoPolo Marine and Singapore Airlines were more in-line with broader benchmarks.
In 2023, the STI generated a 4.7% total return, in-line with the FTSE ASEAN Extended 60 Index’s 3.7% total return in SGD terms. Keppel and Sembcorp Industries led the STI in 2023, with both stocks generating just over 60% total returns for the year. Both stocks have continued to pursue renewable energy solutions.
Among the 100 most traded stocks this year, REITs were among the stronger performers last week. The iEdge S-REIT Index gained 5.1% on the week, with Prime US REIT, Manulife US REIT, Keppel Pacific Oak US REIT, Digital Core REIT and Lendlease REIT leading the price gains.
In 3Q23, the STI generated a 2.1% total return, marginally outpacing the FTSE ASEAN Extended 60 Index and FTSE APAC Index. The trio of Rex International, Geo Energy Resources and RH Petrogas averaged 29% in total returns in 3Q23, mostly on the back of the oil price rally in September. Sembcorp and Keppel, which are both pivoting to sustainable solutions, averaged 3.6% declines in total return over the quarter.
With global focus to a lower carbon and more climate resilient future, multiple Singapore-listed stocks have continued to press ahead with pivots to sustainable energy which include solar and wind assets, or more fuel-efficient transportation solutions. The 3 strongest constituents of the STI, Sembcorp Industries, Keppel Corporation and Yangzijiang Shipbuilding have averaged 46.5% total returns year-to-date. The trio have all pivoted to more sustainable infrastructure or more fuel efficient solutions.
The STI finished the month of August down 4.2%. August was a heavy month for Singapore dividends, with over 100 stocks going ex-dividend over the month, including STI stocks, which reduced the STI’s decline in total return for the month to 2.5%. Together, August’s net institutional inflow at S$408 million and net retail inflow of S$600 million reversed the combined ~S$950 million net outflow of both client segments in July and June.
Sembcorp Industries will rejoin the MSCI Singapore Index (SIMSCI) on the close of 31 August 2023 and Venture Corporation will be omitted from the Index. From its deletion from the SIMSCI on 29 May 2020, through to the 11 August 2023 close, market capitalisation of Sembcorp Industries has more than quadrupled from S$2.4 billion to S$10.6 billion.
The 5.2% gain in July was the STI's strongest performing month since a 6.4% gain in November 2022. Seatrium led the STI constituents in July, gaining 12.8% while booking the highest net institutional inflow for the month at S$75.4 million. Keppel Corp was the STI’s second strongest performer.
On the move in early July, the STI posted a 2.1% decline during the first week, and a 3.5% gain the following week. Global currency, bond and stock markets saw swings on the back of fluid outlooks for US interest rates going into 2024, with China-related developments also impacting the APAC arena. Catalist-listed Acesian Partners was the strongest performing actively traded stock for the first week of July. Seatrium was the strongest performer for the 2nd week of July.
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