SGX Market Updates

STI Clocks Up 6-Week High On S$97mil Of Net Fund Inflows


PUBLISHED ON |

25 July 2022

  • The STI posted a 2.7% gain last week, in-line with the FTSE APAC Index, returning the Singapore benchmark to levels last traded 6 weeks ago on 10 June. Global stocks were led by consumer cyclicals, industrial and technology sectors over the week, which also ranked as the worst performing global stock sectors over the 2022 year-to-date.

  • Singapore stocks attracted S$97 million of net institutional inflows last week, with the 20 stocks that attracted the most inflows drawing S$156 million $156 million in value, with remaining Singapore-listed stocks seeing S$59 million of net outflows.

  • The 20 stocks also included 8 stocks that attracted the most net institutional inflows for the 2022 year-to-date. These 8 stocks were SingTel, City Developments, Keppel Corporation, Sembcorp Industries, CapitaLand Integrated Commercial Trust, Ascott Residence Trust, Sembcorp Marine and Singapore Airlines.




STI’s Week Gains of 2.7% in-line with Region, as year-to-date Underperforming Sectors Led Global Stocks

Last week, the STI broke above its recent 5 week range-trading consolidation, ending the week up 2.7% at 3,181.34, bringing the STI back to levels last traded on 10 June. The regional FTSE Asia Pacific Index also generated an identical 2.7% return last week in SGD terms. The week’s gain saw S$97 million of net institutional inflows across the local stock market, with the 20 stocks that attracted the most inflows drawing S$156 million in value, with remaining Singapore-listed stocks seeing S$59 million of net outflows.

The 20 stocks that attracted the most net institutional inflows for the week also included eight stocks that have also attracted the most net institutional inflows for the 2022 year through to 22 July. These 8 stocks were


The 3 market themes of regional economic re-opening, global sector rotations on growth and inflation outlooks, and corporate transformative efforts to boost shareholder value have been in focus during the first half of the year. At the same time, Singapore’s economy has continued to report above trend, albeit still uneven growth.


The full 20 stocks, which also included 6 non-STI stocks are tabled below.

SGX Stocks with the Highest
Net Institutional Inflow
for Week ending 22 July
SGX
Code
Market
Cap
S$M
Last Week
Net Institutional Inflow
S$M
July MTD
Total Return
%
2022 YTD
Total Return
%
2022 YTD
Net Institutional Inflow
S$M
5-Year
Annualised
Total Return
%
Sector
UOB U11 45,985 26.1 4.6 4.1 -267.9 7.3 Financial Services
DBS D05 80,449 24.9 5.3 -2.2 -693.7 13.0 Financial Services
Singapore Airlines C6L 15,981 18.5 5.5 7.8 36.4 -4.0 Industrials
CapitaLand Integrated Commercial Trust C38U 13,856 9.1 -3.7 2.6 138.8 5.4 REITs
Jardine Matheson J36 22,229 9.0 5.0 6.4 -0.7 0.6 Industrials
Samudera Shipping S56 604 8.0 48.3 130.1 14.6 55.0 Industrials
Mapletree Industrial Trust ME8U 7,070 7.6 1.2 -0.2 -94.0 12.8 REITs
Ascendas REIT A17U 12,225 5.7 2.1 1.3 -66.9 7.3 REITs
Mapletree Commercial Trust N2IU 6,124 5.6 1.8 -4.3 -160.0 7.8 REITs
Venture Corp V03 5,043 5.4 4.2 -2.6 -94.3 10.0 Technology (Hardware/ Software)
ComfortDelGro C52 3,120 5.3 2.9 4.3 -39.3 -5.5 Industrials
Sembcorp Industries U96 5,339 4.3 4.9 51.1 164.1 14.7 Utilities
Lendlease REIT JYEU 1,867 3.9 3.1 -1.5 7.2 N/A REITs
SingTel Z74 43,764 3.7 4.7 14.2 597.2 -3.0 Telecommunications
Keppel Corp BN4 11,635 3.7 1.2 32.2 196.4 3.5 Industrials
CDL Hospitality Trusts J85 1,605 3.6 2.4 13.9 6.5 0.8 REITs
Ascott Residence Trust HMN 3,780 3.1 0.9 13.5 41.0 4.1 REITs
City Developments C09 7,028 2.9 -4.9 18.0 227.3 -4.7 Real Estate (excl. REITs)
Sembcorp Marine S51 3,296 2.8 -2.8 28.0 40.6 -36.1 Industrials
AEM AWX 1,295 2.7 1.2 -19.5 -48.3 49.2 Technology (Hardware/ Software)
Total 292,294 155.7 5.2
Median 2.6 5.3 5.4
Average 4.4 14.9 7.3

Source: SGX, Bloomberg, Refinitiv (Data as of 22 July 2022)




IMF Maintains 3.7% Real GDP Growth and 4.8% Headline Inflation Outlook for Singapore in 2022

The STI maintains its ranking as the strongest as the strongest developed stock benchmark in the 2022 year-to-date with a 4.0% total return, with the FTSE Developed Index declining 14.6% in SGD terms. Beyond the benchmark however, there have been diversified performances across the myriad of sectors and industries that make up the broader local stock market.

These diversified performances have paralleled local economic developments. As the IMF noted in the Annual Country Report released Friday, despite multiple COVID waves, Singapore’s economic recovery “has been impressive, but is uneven” and that “while corporate earnings, profitability and debt servicing capacity have recovered, significant disparities in performance persist, given the differentiated COVID-19 restrictions across sectors”, with the “profitability of firms in the property and multi-industry sectors still below pre-pandemic level”. Within the real estate sector, the report highlighted that the private residential housing market, driven by strong demand, runs the risk of diverging further from fundamentals, while commercial real estate is recovering following a few slow years due to the pandemic.

For the mega drivers, the IMF noted that Singapore’s real GDP is expected to grow 3.7% this year (as compared to 2021’s +7.6%) driven by ‘pent-up demand as the economy reopens and border restrictions are further eased on the back of the high vaccination while trade-related sectors may see some moderation amid a potential capacity constraint of the global electronics industry and consumer-facing sectors are expected to rebound as the economy reopens, and the construction sector is also expected to further recover as border restrictions on migrant workers ease.

Over the medium term, the IMF project Singapore’s real GDP growth to converge to 2.5%. Meanwhile the IMF project headline inflation to rise to 4.8% in 2022, before moderating to 2.5% in 2023, with MAS core inflation reaching 3.0% in 2022 and 2.0% in 2023. The MAS, in its July Monetary Policy Statement, forecast core inflation of between 3-4% this year (vs. earlier forecast of 2.5-3.5%) with CPI-all items inflation expected to come in at 5-6% (higher than earlier forecast range of 4.5-5.5%).







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