SGX Market Updates

Riverstone, The Hour Glass & Chip Eng Seng Led FTSE ST Small Cap Index Fund Flows in YTD


PUBLISHED ON |

29 August 2022

  • The FTSE ST Small Cap Index consists of more than 50 stocks, with the majority of the constituents maintaining a market cap of between S$2 billion and S$200 million. The Index, which is more than 50% weighed to the Real Estate Sector has generated an 8% decline in total return in the 2022 year-to-date, in-line with regional declines.

  • The FTSE ST Small Cap Index constituents saw S$250 million in aggregate net institutional outflows in the 2022 year-to-date. The 16 constituents that attracted net institutional inflows, were led by Riverstone, The Hour Glass and Chip Eng Seng with the trio averaging 35% total returns in the 2022 year-to-date.

  • In 2020-21 Riverstone launched its phase 6 expansion plan to add another 1.5 billion pieces to 10.5 billion pieces in total annual production capacity. The manufacturer of high-tech cleanroom gloves, premium healthcare gloves and cleanroom consumables is on track to increase capacity to 12.0 billion by the end of 2022.




Over the past 12 months, the outlook for decelerating global growth coupled with increased pace of inflation has seen the FTSE ST Small Cap Index decline 12%, in-line with the FTSE Asia Pacific Index which declined 15% in SGD terms.

Dividends reduced the 12-month decline in total return for the FTSE ST Small Cap Index to 7%, with the indicative yield of the Index at 5.7% as of the end of July. Of the current 52 constituents of the FTSE ST Small Cap Index, 19 constituents generated positive total returns over the past 12 months, with one stock unchanged and 32 stocks generating declines in total return.

FTSE ST Small Cap Index & FTSE APAC

With the FTSE ST Small Cap Index generating a decline of 8% in total return in the 2022 year to 26 August, the 52 constituents have drawn in aggregate S$250 million of net institutional outflow. The Index is mostly weighted to the Real Estate sector, which has been among the laggard global sectors in the 2022 year to 26 August, with double-digit percentage declines.

The 10 stocks that drew the most net institutional inflow over the 34 weeks, generated total return ranging from a decline of 0.9% to a gain of 68.4%, and are tabled below.

FTSE ST Small Cap Index –
10 Constituents Recipient To
Highest YTD Net Institutional Inflows
SGX
Code
Market
Cap
S$m
QTD
Total Return
%
YTD Net
Institutional Inflow
S$M
YTD
Total Return
%
12-Month
Total Return
%
Riverstone AP4 1,052 -4.1 37.7 16.2 -31.2
The Hour Glass AGS 1,568 4.8 33.9 19.2 74.2
Chip Eng Seng C29 518 21.1 16.0 68.4 53.4
Silverlake Axis 5CP 941 -5.1 14.2 36.4 43.9
Bumitama Agri P8Z 1,101 -4.5 13.1 22.5 40.6
Lendlease Global Commercial REIT JYEU 1,890 6.1 10.1 1.3 4.2
Sabana Industrial REIT M1GU 487 2.5 8.5 8.6 7.4
OUE LJ3 1,166 5.5 8.0 0.0 3.0
BRC Asia BEC 469 -1.1 2.1 20.9 24.2
Straits Trading Co. S20 1,385 11.9 2.0 -0.9 0.3

Source: SGX (Data as of 26 August 2022)




The three stocks tabled above that saw the highest net institutional inflows over the past 34 weeks included:

  • Riverstone (SGX:AP4) saw S$37.7 million of net institutional inflow for the 34 weeks, while generating a 16.2% total return and ranking as a top 60 traded stock by turnover. On 11 Aug, Riverstone reported its 1HFY22 (ended 30 June) net profit normalised to RM208.9 million and noted its planned expansion to increase capacity to 12.0 billion pieces of gloves for end 2022 is on track while it continues to fortify its cleanroom gloves segment. Once its 3-year expansion plan completes in 2024, its annual glove production capacity will reach 15.0 billion pieces.

  • The Hour Glass (SGX:AGS) has ranked among the 80 most traded stocks this year, while generating a 19.2% total return. In its FY22 AGM Q&A on 29 July, the Group Managing Director noted that despite the potential challenges, management was confident that the overall business remained sound and was of the view that there remained a significant consumer interest outweighing the present supply conditions. As of 23 Aug, The Hour Glass has bought back 1.62% of its issued shares (excluding treasury shares) on the current share buyback mandate. (See the latest share buyback transactions of SGX listed companies). The Hour Glass is expected to report its 1HFY23 (ended 30 Sep) results by mid-November after reporting an 86% gain in FY22 (ended 31 Mar) after-tax profit to S$157 million.
  • Chip Eng Seng (SGX:C29) reported its 1HFY22 (ended 30 June) after tax profit increased by 319% from $9.2 million to $38.5 million on 5 Aug. Chip Eng Seng noted its 1HFY22 gross revenue increased by 2.2% from $622.4 million to $636.3 million. The increase was mainly due to improved performance from Construction, Hospitality and Education segments, partially offset by lower revenue from Property Development segment. In tandem with higher revenue, gross profit increased by a greater magnitude by 48.7% from $78.4 million to $116.6 million with higher margins achieved by the development properties. The stock ranks among Singapore’s most 100 traded stocks by turnover in the 2022 year to 26 Aug, while generating a 68.4% total return.

In addition to The Hour Glass, BRC Asia (SGX:BEC) was added to the Index along with seven other stocks in the March semi-annual review. BRC Asia has generated a 20.9% total return over the past 34 weeks while ranking outside the most 100 traded stocks by turnover. On 2 Aug, the company provided a business update for its 3QFY22 (ended 30 June), reporting after tax profit doubled to S$20.4 million for the quarter, up from S$10.2 million in 3QFY21. BRC Asia noted that as of 30 June, its sales order book stood at approximately S$1.135 billion.

By comparison, the 10 stocks of the Index that saw the most net institutional outflow over the 34 weeks all saw declines in total return, ranging from a decline of 0.6% for AIMS APAC REIT (SGX:O5RU) to a decline of 39.4% for Frencken (SGX:E28).

The results of the September FTSE ST Index review are expected to be released after the Thu 1 Sep close.




This article is provided by SGX My Gateway.



SGX My Gateway

SGX's investor education portal with market, product and investment information and events. Sign up now at sgx.com/mygateway to receive our investment updates and economic calendar.

This document is not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Singapore Exchange Limited (“SGX”) to any registration or licensing requirement. This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document is for general circulation only. It does not address the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a financial adviser regarding the suitability of any investment product before investing or adopting any investment strategies. Use of and/or reliance on this document is entirely at the reader’s own risk. Further information on this investment product may be obtained from www.sgx.com. Investment products are subject to significant investment risks, including the possible loss of the principal amount invested. Past performance of investment products is not indicative of their future performance. Examples provided are for illustrative purposes only. While each of SGX and its affiliates (collectively, the SGX Group Companies) have taken reasonable care to ensure the accuracy and completeness of the information provided, each of the SGX Group Companies disclaims any and all guarantees, representations and warranties, expressed or implied, in relation to this document and shall not be responsible or liable (whether under contract, tort (including negligence) or otherwise) for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind, including without limitation loss of profit, loss of reputation and loss of opportunity) suffered or incurred by any person due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information, or arising from and/or in connection with this document. The information in this document may have been obtained via third party sources and which have not been independently verified by any SGX Group Company. No SGX Group Company endorses or shall be liable for the content of information provided by third parties. The SGX Group Companies may deal in investment products in the usual course of their business, and may be on the opposite side of any trades. SGX is an exempt financial adviser under the Financial Advisers Act (Cap. 110) of Singapore. The information in this document is subject to change without notice. This document shall not be reproduced, republished, uploaded, linked, posted, transmitted, adapted, copied, translated, modified, edited or otherwise displayed or distributed in any manner without SGX’s prior written consent.












SGX Stock / REIT Search

Advertisement

Trust Bank God Of Fortune Referral Code PGKPSWAE Trust Bank Referral Code 🎁

Advertisement