The STI gained 5.4% over the past fortnight, recovering half of the declines posted between 13 Sep and 21 Oct. This has brought the STI’s 2022-to-date total return to 4%, which compares to an 18% decline for the FTSE Developed Index and 21% decline for the FTSE Asia Pacific Index.
The STI’s 5 strongest stocks since 21 Oct included Wilmar International, Sembcorp Industries, Keppel DC REIT, UOB and Keppel Corp, with four of the five stocks providing financials or business updates over the period. UOB was among the most defensive STI stocks between 13 Sep and 21 Oct, in addition to Yangzijiang Shipbuilding, Genting Singapore, DBS, Emperador.
Underpinning the STI’s 5.4% partial recovery, the trio of DBS, OCBC & UOB averaged 6.7% gains over the past fortnight. As noted in financial updates, the combined 3Q22 Net Interest Income of the trio, climbed to S$7.4 billion, up S$1.3 billion from 2Q22, on net interest margin expansions and loan growth.
During the 2H22-to-date, the STI has closed as high as 3,301.96 on 11 Aug, and as low as 2,969.95 on 21 Oct, with a similar 10% variance between the outermost daily closes observed in 1H22. Current global outlooks for growth, trade and inflation, in addition to the Ukraine Crisis remain highly fluid, creating dynamic market conditions which has seen the Singapore stock market on the move for much of 2022.
During the 5-week decline through to 21 Oct, SATS and 6 of the 7 STI REITs led the STI lower, whilst the last 9 sessions have seen more diversified leaderboard in terms of the performances.
During the 5-week decline through to 21 Oct, the higher for longer US rate outlook saw the 7 REITs in the STI average 18.7% declines, while the trio of DBS (SGX:D05), OCBC (SGX:O39) and UOB (SGX:U11) were comparatively more defensive with 5.1% declines, as both segments generally moved in-line with global peers.
Since 21 Oct, the U.S. 10-Year Treasury Note yields have not pushed any higher, while locally the spotlight gravitated to earnings and business updates.
For the 9 trading sessions that followed the 21 Oct close of 2,969.95 through to 4 Nov, the STI gained 5.4% to 3,130.11, with the ~160 point partial rebound representing half of the ~320 point decline from 13 Sep to 21 Oct.
The STI’s 5 strongest stocks over the past two weeks included Wilmar International (SGX:F34), Sembcorp Industries (SGX:U96), Keppel DC REIT (SGX:AJBU), UOB (SGX:U11) and Keppel Corp (SGX:BN4).
The STI stocks, sorted by highest gains posted since 21 Oct, are tabled below.
| STI Stock | SGX Code |
13Sep-21Oct Price Change % |
21Oct-4Nov Price Change % |
Market Cap S$m |
YTD Net Institutional Fund Flow S$M |
YTD Total Return % |
Sector |
|---|---|---|---|---|---|---|---|
| Wilmar International | F34 | -13.3 | 12.5 | 24,654 | 73.7 | -1 | Consumer Non-Cyclicals |
| Sembcorp Industries | U96 | -15.7 | 10.0 | 5,485 | 193.1 | 58 | Utilities |
| Keppel DC REIT | AJBU | -18.8 | 10.0 | 3,025 | -139.9 | -26 | REITs |
| UOB | U11 | -5.7 | 9.3 | 47,559 | -265.8 | 10 | Financial Services |
| Keppel Corporation | BN4 | -13.0 | 8.7 | 12,456 | 369.6 | 46 | Industrials |
| DFI Retail Group * | D01 | -17.0 | 8.4 | 4,458 | -11.5 | -12 | Consumer Non-Cyclicals |
| CapitaLand Integrated Commercial Trust | C38U | -17.9 | 6.9 | 12,336 | 119.9 | -6 | REITs |
| City Developments | C09 | -14.6 | 6.8 | 7,092 | 303.3 | 21 | Real Estate (excl. REITs) |
| ST Engineering | S63 | -16.4 | 6.7 | 10,369 | -84.4 | -7 | Industrials |
| DBS | D05 | -3.7 | 6.4 | 88,713 | -13.4 | 9 | Financial Services |
| SIA | C6L | -7.0 | 6.0 | 15,863 | 54.4 | 7 | Industrials |
| SingTel | Z74 | -12.8 | 5.9 | 41,599 | 817.8 | 11 | Telecommunications |
| UOL | U14 | -17.0 | 5.2 | 5,287 | -3.5 | -10 | Real Estate (excl. REITs) |
| Yangzijiang Shipbuilding | BS6 | 23.9 | 4.9 | 5,057 | 60.7 | 95 | Industrials |
| OCBC Bank | O39 | -6.0 | 4.4 | 54,105 | 509.6 | 11 | Financial Services |
| Mapletree Logistics Trust | M44U | -18.3 | 4.2 | 7,156 | -60.5 | -18 | REITs |
| CapitaLand Ascendas REIT | A17U | -14.8 | 3.6 | 10,754 | -73.1 | -8 | REITs |
| Genting Singapore | G13 | -1.3 | 3.2 | 9,718 | 111.9 | 7 | Consumer Cyclicals |
| SGX | S68 | -15.7 | 2.9 | 9,026 | 3.4 | -6 | Financial Services |
| Thai Beverage | Y92 | -11.7 | 2.7 | 14,570 | -65.7 | -9 | Consumer Non-Cyclicals |
| Jardine C&C | C07 | -12.4 | 2.6 | 12,371 | 135.7 | 58 | Consumer Cyclicals |
| Venture Corporation | V03 | -12.0 | 2.5 | 4,696 | -73.5 | -8 | Technology (Hardware/ Software) |
| Mapletree Industrial Trust | ME8U | -18.1 | 1.9 | 5,868 | -169.4 | -15 | REITs |
| Frasers Logistics & Commercial Trust | BUOU | -23.6 | 1.9 | 4,029 | -74.1 | -26 | REITs |
| CapitaLand Investment | 9CI | -15.7 | 1.6 | 16,416 | 51.3 | -2 | Financial Services |
| SATS | S58 | -35.5 | 1.5 | 3,002 | -136.7 | -31 | Industrials |
| Mapletree Pan Asia Commercial Trust | N2IU | -19.7 | 0.6 | 8,164 | -127.1 | -18 | REITs |
| Jardine Matheson * | J36 | -11.3 | 0.0 | 19,711 | -42.0 | -5 | Industrials |
| Hongkong Land * | H78 | -13.5 | -2.0 | 13,702 | 20.1 | -13 | Real Estate (excl. REITs) |
| Emperador Inc. | EMI | -4.9 | -2.0 | 7,554 | -2.8 | N/A | Consumer Non-Cyclicals |
Source: SGX, Refinitiv, Bloomberg (Data as of 4 Nov 2022).
* Price Returns in USD.
On the earnings front of 5 strongest STI stocks over the past two weeks:
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On 28 Oct, Wilmar International reported 3Q22 core net profit surged 38.2% y-o-y, with its record results were driven by good performance across all core segments.
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Sembcorp Industries did not report over the period, however did announce a new milestone for its solar portfolio in Singapore, also announcing it had entered strategic partnerships with the Japanese government and various corporations, to progress hydrogen and other decarbonisation initiatives.
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On 26 Oct, Keppel DC REIT provided an operational update, noting 3 Q22 distributable income and DPU increased by 9.0% and 5.0% y-o-y respectively, mainly due to contributions from acquisitions and investment, as well as completed asset enhancement initiatives.
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On 28 Oct, UOB provided a performance update, highlighting its 3Q22 saw a record high of S$1.4 billion net profit, up 34% y-o-y, driven by strong net interest income, higher customer-related treasury income and lower credit allowance. Note Banks continue to command a 40% weight in the STI, with the trio of DBS, OCBC & UOB and underpinning the STI’s 5.4% partial recovery over the past fortnight. DBS, OCBC & UOB averaged 6.7% gains with combined 3Q22 Net Interest Income of the trio climbing to S$7.4 billion, up S$1.3 billion from 2Q22, on net interest margin expansions and loan growth.
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On 27 Oct, Keppel Corporation provided a business update, noting that while 3Q22 net profit was lower y-o-y, mainly due to the absence of the gain from the en-bloc sale of a project in China in 3Q21, 9M22 revenue from both continued and discontinued operations grew 24% y-o-y, while the urbansiation solution provider reported good progress towards Vision 2030.
