• For 1H23, the STI booked a 1.2% total return, in-line with the FTSE ASEAN Extended 60 Index’s 1.0% total return with combined STI ETF AUM declining 4% to S$2.145 billion. While 1Q23 STI volatility was in-line with historical averages, some volatility compression in 2Q23 produced the narrowest quarterly trading range for the STI in 2Q23 since 3Q17.

• STI stocks that bucked the consolidation and led the STI in 1H23 included Sembcorp, Keppel Corporation and Singapore Airlines. Outside of the STI, actively traded stocks that booked the highest total returns in 1H23 included Dyna-Mac, Tianjin Pharmaceutical Da Ren Tang, Delfi, Food Empire, PropNex, Marco Polo Marine & Samudera Shipping Line. Dyna-Mac, Marco Polo Marine, Food Empire, in addition to Sembcorp were also among the 10 actively traded stocks that booked the highest net institutional inflows in 1H23 proportionate to their current market value.

• Singapore listed companies’ earnings season is scheduled to begin in late July, beyond which STI constituents are expected to continue to take global cues, which include the scaling up of green infrastructure, the outlook for decelerating growth in 2H23, changes in regional growth dynamics (in particular China’s services-led recovery), persistent services inflation and higher interest rates in the west, geopolitical tensions and ensuing risks to financial stability.

For the first 6 months of 2023 (1H23), the STI declined 1.4% in price to 3,205.91, with reinvested dividends boosting the total return of Singapore’s benchmark to 1.2%. By comparison the FTSE ASEAN Extended 60 Index booked a similar 1.0% total return, while the FTSE Asia Pacific Ex-Japan Index booked a 4.2% total return over the six months. Since the end of 2019, the STI’s total return at 14.5% has doubled the total returns of both the FTSE Asia Pacific Ex-Japan Index and FTSE Asia Pacific Index.

For 2Q23, the STI generated a 5.58% trading range from high-to-low, which was marginally lower than the 5.60% trading range from high-to-low in 3Q21, making it the lowest percentage trading range since the STI’s 5.05% high-to-low range in 3Q17. However, outlier performances within the Singapore stock market, saw the average total return of the 100 most traded stocks in 1H23 at 3.2% versus the median total return of 0.5%.

Combined these 100 stocks represent approximately three quarters of the total market capitalisation of the Singapore stock market, in addition to 98% of the day-to-day turnover of the stock market in 1H23. Stocks that joined that joined the 100 most traded stocks in 1H23, from ranking outside the 100 most traded in 2022, included Medtecs International, Tianjin Pharmaceutical Da Ren Tang, Delfi, Food Empire, Thomson Medical, PropNex, China Aviation Oil, Great Eastern, Sabana Industrial REIT and Cosco Shipping.

Among the 100 most traded stocks in 1H23, the 15 stocks that booked the highest total returns in 1H23 are tabled below.

^* Note Market Cap and Returns in US$, while Turnover and Net Institutional Inflow in S$.
Source: SGX, Refinitiv (Data as of 30 June 2023)

Dyna-Mac reported its 1QFY23 net profit increased 107.7% y-o-y to S$3.9 million and as of May, the Group maintained a net order book of S$608.1 million stretching into 2025.

Tianjin Pharmaceutical Da Ren Tang reported its 1QFY23 total comprehensive income (net of tax) was approximately RMB 398 million, an increase by RMB 196 million or 97% from 1QFY22, mainly due to changes in sales structure, with a higher proportion of sales revenue from major products with higher gross margins, which increased the overall gross margin.

Meanwhile, the 100 most actively traded stocks in 1H23 saw Prime US REIT, Manulife US REIT, Japfa, Medtecs International, Keppel Pacific Oak US REIT, Rex International, Yanlord Land, Thomson Medical, iFAST and Geo Energy Resources rank as laggard performers for the past 6 months.

1H23 Singapore Stock Market Institutional Fund Flow

The entire Singapore stock market booked net institutional outflows of S$2.66 billion in 1H23, led by net institutional outflows in Financial Services and REITs. However, for every 8 stocks that booked net institutional outflows in 1H23, 7 booked institutional inflows. At the same time, the entire Singapore stock market booked net retail inflows of S$1.48 billion in 1H23, with market makers and active traders making up the difference.

SGX listed stocks that booked the highest net institutional inflows and outflows in 1H23 are tabled below.

Next week in Singapore, advanced 2Q23 GDP is scheduled for release. In 1Q23, Singapore’s GDP declined 0.4% q-o-q and expanded 0.4% y-o-y following 3.6% y-o-y growth in 2022. In June, the MAS Survey of Professional Forecasters private sector economists forecast Singapore’s GDP will grow 1.4% in 2023, and 2.5% in 2024. Within the survey, spillovers “from an external growth slowdown emerged as the most cited downside risk to the domestic outlook“ while “more robust growth in China, underpinned by economic re-opening and macroeconomic policy easing, was the most frequently cited upside risk to Singapore’s growth outlook, identified by 71% of respondents”.

The Bank of International Settlements noted in late June that “Central Banks have been tightening to bring inflation back under control as prices are rising far too fast” and the persistence of inflation in the United States has seen end of 2023 majority expectations for the Fed Funds Rate band to rise by 75bps, from 4.50% to 4.75%, to 5.25% to 5.50%. For regional growth, the BIS also projected Asia growth spillovers from a China services-driven recovery should be limited with no significant impact, because services are less tradable and more oriented towards domestic demand.

Late July through to August will be an important time for 2H23 corporate outlooks with close to 400 stocks due to report their 1HFY23 earnings. See earnings calendar.

In the recent MAS Survey of Professional Forecasters, 67% of the respondents who provide inputs expected corporate profits to decline y-o-y in 2Q23 while 22% of the respondents expect profits to remain stable. For the whole of 2023, 78% of the respondents expect corporate profitability to decline and for 2024 and 38% of respondents expect corporate profitability to improve while an equal number of respondents expect profits to decline.

The Top 100 Most Traded Stocks on Singapore Exchange In 1H23

Source: SGX, Refinitiv (Data as of 30 June 2023)

See also summary on SGX Market Fund Flow and SGX Top Active Stocks by week.