• The SGX iEdge SG Advanced Manufacturing Index generated a 4.3% decline in the 2024 year through to 17 May, while booking S$64 million of net institutional inflow. The 105 Index constituent performances were mixed, with a near equal amount of gainers to decliners over the past 20 weeks.

• Five constituents that have ranked among the most traded within the Index over the 20 weeks, while also seeing more than 50% increases in their average daily turnover compared to the full 2023 year, included Dyna-Mac, Riverstone, Food Empire, Aztech Global and Beng Kuang Marine.

• With combined average daily trading turnover of S$10 million, these five stocks all booked gains for the period, ranging from 8% for Food Empire to 150% for Beng Kuang Marine. All five also booked net institutional inflow for the period, totalling S$32 million, while maintain an average P/E of 12x, and average ROE of 32%.

• The S&P Global ASEAN Manufacturing PMI for April 2024 indicated continued expansion in the sector, albeit at a slightly slower pace than in March. At 51.0, the PMI marks four consecutive months of expansion. This indicates ASEAN manufacturing is still on a positive trajectory, but the rate of improvement has moderated.

iEdge SG Advanced Manufacturing Index gauges the performance of the SGX-listed companies within the global manufacturing ecosystem. Parallelling Singapore's Industrial Production and Trade, these companies exemplify multiple growth avenues, representing at least six sectors while maintaining significant revenue reach across APAC.

The iEdge SG Advanced Manufacturing Index has generated a 4.3% decline in total return in the 2024 year to 17 May, with 50 gainers, 4 constituents unchanged and 51 decliners. With a 5.2% total return spanning the 17 April close through to 17 May, the past month has seen the Index retrace half its decline in total return in the 2024 year through to 17 April. (See Marginal NODX Contraction in 1Q24 Paralleled Decline in Manufacturing Index)

While the past 20 weeks have seen the 105 Index constituents book a similar level of combined trading turnover as 2023, there are more than 25 stocks that have seen their average daily turnover (ADT) surge by more than 50% as compared to the full 2023 year. This included 10 stocks that with more than S$100,000 of ADT over the past 20 weeks, and another eights stocks that traded more than S$10,000 ADT, in addition to less traded stocks which also maintained a low comparative ADT base in 2023.

The five stocks with the highest ADT for the first 20 weeks of 2024 that also saw their ADT surge by more than 50% as compared to the full 2023 year are tabled below.

^ denotes on SGX Watchlist.
Source: SGX, Refinitiv (Data as of 17 May 2024)

The next two stocks with the highest average daily turnover for the first 20 weeks of 2024 that also saw their average daily turnover surge by more than 50% as compared to the full 2023 year were Mermaid Maritime and Valuetronics.

Dyna-Mac Holdings (SGX:NO4)

Dyna-Mac specialises in fabricating topside modules for Floating Production Storage and Offloading Vessels (FPSOs). FPSOs are favored in the region for their versatility, dominating over 60% of the floating production systems market. Dyna-Mac maintain that the demand for floating production systems is also increasing due to higher energy needs and new exploration in deeper waters. Its FY23 (ended 31 Dec) gross profit increased 59% from FY22, to S$50.1 million, due to higher revenue recognised coupled with a higher profit margin. On 3 April, Dyna-Mac Holdings reported newly secured contracts/orders had increased its net order book to a record S$896 million, with project deliveries stretching to 2026.

Riverstone Holdings (SGX:AP4)

After the 9 May close, Riverstone reported 1QFY24 (ended 31 March) net profit came in 54.5% higher than 1QFY23 at RM72.2 million, marking the fifth consecutive quarter of sequential growth. Its share price has rallied from S$0.775 on 9 May, to S$0.89 on 10 May, and S$0.93 on the 17 May close. Over this period, the Refinitiv consensus estimates target price was revised significantly upward from S$0.83 to S$1.04. The Mid-Cap stock maintains ranks among Singapore's top traded 50 stocks and top 20 stocks by net institutional inflows over the past 20 weeks.

S&P Global ASEAN Manufacturing PMI at 51.0 in April

The mixed moves in the iEdge SG Advanced Manufacturing Index has coincided with regional manufacturing in expansion mode, albeit within a challenging operating environment. S&P Global's April PMI data showed an overall improvement in the ASEAN manufacturing sector.

The ASEAN Manufacturing PMI remained above the neutral 50.0 threshold for the fourth consecutive month. The PMI for April was 51.0, a slight decrease from 51.5 in March, indicating a slower pace of improvement. New orders and output expanded, although the growth rate of output decreased slightly. At the same time, purchasing activity increased, allowing firms to build up pre-production inventories. Employment declined, marking the first job losses in six months. The rise in new orders was the fastest since mid-2023, however again mainly driven by domestic demand as export sales continuing to decline, marking 23 months of downturn.

The S&P Global ASEAN Manufacturing PMI is compiled by S&P Global from responses to monthly questionnaires sent to purchasing managers in panels across ASEAN, totalling around 2,100 manufacturers.

The recovery in global trade and manufacturing on the back of a potential resurgence in the technology cycle has been an overarching driver for regional stocks in 2024, however like less tight financial conditions, is currently anticipated to start taking effect in 2H24.