Last week, OCBC and DBS attracted a combined S$142mil of net institutional inflow, with UOB seeing S$35mil of net outflow. The REIT Sector also attracted S$25mil of net institutional inflow, led by CapitaLand Integrated Commercial Trust and Mapletree Pan Asia Commercial Trust. Combined, Singapore-listed stocks attracted S$182mil of net institutional inflows last week, curbing net outflow in the 2022 year-to-date to S$48mil.
Over the week, the STI gained 2.2%, returning to 9 May levels, with Jardine C&C, Wilmar International, Sembcorp Industries, OCBC and City Developments leading the Index. The STI has generated a 7.6% total return in the 2022 year-to-date compared to an 11.7% decline for the FTSE Developed Index. The SDPR STI ETF, which turned 20 years in April 2022, will go ex-dividend on 11 Aug.
City Developments will also report 1H22 results on 11 Aug. On 28 July, Jardine C&C reported a 51% y-o-y increase in underlying profit. Last week, Wilmar International reported 2Q22 core net profit more than doubled y-o-y to US$652mil, Sembcorp Industries reported 1H22 net profit before exceptional items was up 94% y-o-y & OCBC reported 2Q22 net profit grew 28% y-o-y.
Raffles Medical Group saw the 5th highest net institutional inflows last week, while rallying 17% last week and reporting 1H22 group revenue of S$382mil, representing 11.2% y-o-y growth. Attributed to the return of patients to its clinics, the 1H22 healthcare division revenue of S$256mil was up 24% y-o-y.
Last week, Singapore stocks attracted S$182mil of net institutional inflows, following the S$152mil of net outflow for the preceding week. This brought the combined net institutional outflow for the 2022 year to 5 Aug to S$48mil.
Banks, REITs led inflows.
Last week, the Bank, REIT and Industrial are sectors that saw the highest net institutional inflows, while other Financial Services, Telecommunications and Energy stocks saw the highest net institutional outflows.
The 30 stocks that booked the highest net institutional inflows for the week are tabled below. Both OCBC (SGX:O39) and DBS (SGX:D05) led the net institutional inflows over the week, with 9 trusts of the REIT Sector among the 30 stocks.
| 30 Stocks with The Highest Net Institutional Inflow on 1st Week of August |
Stock Code |
Market Cap S$M |
5-Day Price Change % |
5-Day Institutional Net Inflow S$M |
YTD Total Return % |
YTD institutional Net Inflow S$M |
QTD Total Return % |
Sector |
|---|---|---|---|---|---|---|---|---|
| OCBC Bank | O39 | 55,010 | 5 | 87.0 | 10 | 55.9 | 7 | Banks |
| DBS | D05 | 84,515 | 4 | 54.7 | 3 | -670.4 | 11 | Banks |
| Keppel Corporation | BN4 | 12,466 | 2 | 18.8 | 42 | 213.9 | 9 | Industrials |
| CapitaLand Integrated Commercial Trust | C38U | 14,121 | -2 | 16.5 | 7 | 133.8 | 0 | REITs |
| Raffles Medical | BSL | 2,501 | 17 | 12.2 | 1 | -24.0 | 21 | Healthcare |
| Genting Singapore | G13 | 9,959 | 2 | 10.8 | 8 | 22.4 | 15 | Consumer Cyclicals |
| Mapletree Pan Asia Commercial Trust | N2IU | 10,046 | 1 | 9.8 | 0 | -146.1 | 7 | REITs |
| City Developments | C09 | 7,346 | 5 | 9.4 | 23 | 233.8 | -1 | Real Estate (excl. REITs) |
| Sembcorp Marine | S51 | 3,610 | 6 | 8.7 | 40 | 50.6 | 6 | Industrials |
| SIA | C6L | 16,100 | -1 | 7.6 | 9 | 62.7 | 6 | Industrials |
| Jardine Matheson | J36 | 21,511 | 2 | 7.4 | 3 | 4.1 | 2 | Industrials |
| Jardine C&C | C07 | 12,173 | 10 | 7.3 | 54 | 117.1 | 9 | Consumer Cyclicals |
| SingTel | Z74 | 43,434 | 1 | 7.2 | 15 | 564.3 | 6 | Telecommunications |
| Ascendas REIT | A17U | 12,603 | 1 | 6.1 | 4 | -63.0 | 5 | REITs |
| CapitaLand Investment | 9CI | 20,331 | 1 | 5.8 | 21 | 128.8 | 4 | Financial Services |
| Frasers Hospitality Trust | ACV | 1,358 | 1 | 5.7 | 53 | 31.1 | 1 | REITs |
| Hongkong Land | H78 | 16,737 | 0 | 4.3 | 6 | 45.5 | 3 | Real Estate (excl. REITs) |
| Keppel REIT | K71U | 4,131 | 0 | 3.7 | 4 | 10.4 | 5 | REITs |
| Wilmar International | F34 | 26,964 | 7 | 2.9 | 6 | 34.2 | 6 | Consumer Non-Cyclicals |
| Samudera Shipping | S56 | 625 | 4 | 2.9 | 138 | 22.8 | 54 | Industrials |
| NIO Inc. | NIO | 43,364 | 8 | 2.2 | N/A | -0.6 | -6 | Consumer Cyclicals |
| First Resources | EB5 | 2,303 | 6 | 2.0 | -1 | -6.3 | -10 | Consumer Non-Cyclicals |
| Aztech Global | 8AZ | 710 | 5 | 1.9 | 11 | -10.4 | 13 | Industrials |
| Frencken | E28 | 534 | 2 | 1.6 | -35 | -44.9 | 13 | Technology (Hardware/ Software) |
| Thai Beverage | Y92 | 16,454 | 2 | 1.5 | 2 | -62.8 | 2 | Consumer Non-Cyclicals |
| SPH REIT | SK6U | 2,668 | 1 | 1.4 | -1 | 1.7 | 3 | REITs |
| Digital Core REIT | DCRU | 1,355 | 0 | 1.3 | -21 | -8.6 | 15 | REITs |
| Far East Hospitality Trust | Q5T | 1,261 | -1 | 1.3 | 13 | 0.9 | 2 | REITs |
| Suntec REIT | T82U | 4,597 | -1 | 1.3 | 11 | 26.0 | 0 | REITs |
| Golden Agri-Resources | E5H | 3,551 | 8 | 1.0 | 18 | 5.1 | 12 | Consumer Non-Cyclicals |
| Average | 3 | 16 | 7 | |||||
| Total | 452,336 | 304 | 728 |
Source: SGX, Refinitiv, Bloomberg (Data as of 5 August 2022)
In contrast to the above 30 stocks, there were 25 stocks that attracted net institutional outflows of more than S$1.0mil last week, led by UOB (SGX:U11), ST Engineering (SGX:S63), NetLink Trust (SGX:CJLU), Yangzijiang Shipbuilding (SGX:BS6) and Yangzijiang Financial (SGX:YF8). Yesterday, Yangzijiang Shipbuilding reported a 70% y-o-y increase in 1H22 revenue to RMB 9.7 billion, backed by higher contribution from all segments.
Over the week, the STI gained 2.2%, returning to 9 May levels. For the first 30 weeks of 2022 the STI has generated a 7.6% total return, compared to an 11.7% decline for the FTSE Developed Index. Note the SDPR STI ETF will go ex-dividend on 11 August.
With banks making up more than 40% of the STI, last week’s reporting of 2Q22 and 1H22 results of DBS and OCBC provided much focus for Index investors. For the Banks, 2Q22 y-o-y net profit growth varied from DBS (SGX:D05) reporting 7%, UOB (SGX:U11) reporting 11% and OCBC (SGX:O39) reporting 28%. At S$6.0 billion for 2Q22, the combined quarterly net interest income (NII) of the trio has beat the recent combined NII high of S$5.75 billion in 3Q19. This was also the 7th consecutive quarter of q-o-q NII growth.
OCBC also ranked among the 5 strongest performing STI stocks for the week. A total of 4 of the 5 of the STI’s strongest gainers last week have recently reported financial results.
- On 28 July, Jardine Cycle & Carriage reported a 51% y-o-y increase in underlying profit to US$522mil.
- Last week, Wilmar International reported 2Q22 core net profit more than doubled y-o-y to US$652mil.
- Sembcorp Industries reported 1H22 net profit before exceptional items was up 94% y-o-y to S$490mil.
- OCBC reported 2Q22 net profit grew 28% y-o-y to S$1.48 billion.
- City Developments will report 1H22 results before the 11 August open.
A non-STI stock, Raffles Medical (SGX:BSL), saw the fifth highest net institutional inflows last week, while rallying 17% last week and reporting 1H22 group revenue of S$382mil, representing 11.2% y-o-y growth. Attributed to the return of patients to its clinics, the 1H22 healthcare division revenue of S$256mil was up 24% y-o-y. For more details, click here.
While global GDP releases are pointing to technical recessions or near technical recessions, both earnings and employment data are providing some key qualifications to the technical readouts. The above earnings reports have coincided with preliminary data from the Ministry of Manpower (MOM) showing Singapore’s employment (excluding migrant domestic workers) grew by 64,400 (or up 1.9% q-o-q) in 2Q22, a faster pace than seen in 1Q22 (click here for more). Similarly in the U.S., the upbeat earnings season has been accompanied by 3.3mil jobs created in the first seven months of 2022. However, looking ahead, recent corporate outlooks have flagged risks including potentially more food and energy shortages from Russia-Ukraine conflict, more aggressive interest rate hikes and a significant slowdown in regional growth as challenges going into 2023.
