The STI generated a 2.9% gain to 3,332.8, with dividends boosting the total return to 5.7% in 1H24. The trio of STI Banks - DBS, OCBC & UOB, Yangzijiang Shipbuilding & SingTel led the STI gains in 1H24. By Sector, the Banks booked S$594 of net institutional inflow partially offsetting the net institutional outflow for the broader stock market, led by the S-REIT Sector.
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In June, SingTel led the STI stocks with an 11% gain to S$2.75. The stock also booked the highest net institutional inflow for the month. Interest in the stock this year has seen its average daily turnover surge by more than 40% in 1H24 vs CY23. The company recent rolled out its ST28 strategic growth plan.
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Proportionate to sector market cap, the Energy Sector saw the highest net institutional inflow in 1H24 at 1.0% with Dyna-Mac, Geo Energy Resources, Mermaid Maritime, Atlantic Navigation, MTQ Corporation and Zheneng Jinjiang Environment booking the most net institutional inflow in the Sector.
The STI gained 2.9% in 1H24, ending June at 3,332.8, with dividends boosting the STI total return to 5.7% in 1H24. This brought the STI total return from the end of 2019, to 30 June 2024, to 25.2% or 5.1% on an annualised basis.
Over the same 54 months, the indicative Compound Annual Growth Rate (CAGR) of month-end dollar cost averaging on an STI ETF amounted to 4.2%, excluding transaction costs.
The SPDR STI ETF and Nikko AM Singapore STI ETF experienced net redemptions in 2Q24 as the STI Total Return Index booked all-time highs. Combined STI ETF net redemptions were S$92M in 2Q24 versus net creations of S$97M in 1Q24.
Energy-adjacent stocks, SingTel & STI Banks Led 1H24 Net Institutional Inflows, S-REITs Led Outflows
In 1H24, the broader Singapore stock market booked S$1.175 billion of net institutional outflow, driven by S$1.071 billion of net institutional outflow from the S-REIT Sector. For context, as of 30 June, the total market capitalisation of the Singapore stock market stood at S$793 billion and for every 9 stocks that booked net institutional outflow in 1H24, 8 stocks booked net institutional inflow.
The net institutional flow (NIF) of the stock Sectors in 1H24 are illustrated below, with the Energy Sector seeing S$29 million of net institutional inflow, representing 1.0% of the combined S$2.9 billion Sector market capitalisation as of 30 June, to the S-REIT Sector net institutional outflow representing 1.2% of its Sector market capitalisation as of 30 June.
All Data as of 30 June 2024, Source: SGX, Refinitiv, Bloomberg.
UOB (SGX:U11) and OCBC (SGX:O39) in addition to SingTel (SGX:Z74) and Yangzijiang Shipbuilding (SGX:BS6) booked the highest net institutional inflow in 1H24. Likewise, three of the strongest growing sectors in the Singapore economy in 1Q24 included Transportation and Storage, Finance & Insurance and Information & Communications.
The 10 stocks that booked the highest net institutional inflow in 1H24 are tabled below.
| Stock | SGX Code |
Market Cap S$m |
1H24 Net Institutional Inflow S$M |
1H24 Total Return % |
2019-to-1H24 Total Return % |
ROE % |
P/B (x) |
5-Year Average P/B (x) |
Dividend Yield % |
Sector |
|---|---|---|---|---|---|---|---|---|---|---|
| UOB | U11 | 52,438 | 399 | 13 | 47 | 12.5 | 1.13 | 1.05 | 5.4 | Banks |
| OCBC | O39 | 64,855 | 223 | 14 | 64 | 13.2 | 1.20 | 1.03 | 5.7 | Banks |
| SingTel | Z74 | 45,411 | 217 | 11 | -3 | 3.1 | 1.82 | 1.53 | 3.8 | Telecommunications |
| Yangzijiang Shipbuilding | BS6 | 9,718 | 172 | 71 | 423 | 21.3 | 2.49 | 0.88 | 2.6 | Industrials |
| ST Engineering | S63 | 13,504 | 121 | 14 | 35 | 24.1 | 5.48 | 5.14 | 3.7 | Industrials |
| Venture Corp | V03 | 4,125 | 65 | 8 | 8 | 9.5 | 1.46 | 1.85 | 5.3 | Technology |
| ComfortDelGro | C52 | 2,903 | 53 | -2 | -32 | 7.0 | 1.12 | 1.27 | 5.0 | Industrials |
| Great Eastern | G07 | 12,145 | 38 | 49 | 39 | 10.3 | 1.54 | 1.11 | 2.9 | Financial Services |
| Thai Beverage | Y92 | 11,307 | 37 | -10 | -40 | 13.7 | 1.53 | 2.66 | 5.0 | Consumer Non-Cyclicals |
| SATS | S58 | 4,248 | 34 | 4 | -40 | 2.4 | 1.79 | 2.48 | 0.5 | Industrials |
Source: SGX, SGX Screener, Refinitiv (Data updated as of 30 June 2024)
SingTel launched ST28
As detailed in the table and chart above, with S$217 million of net institutional inflow, SingTel (SGX:Z74) drove the S$201 million Telecommunications Sector's net institutional inflow in 1H24. The stock was the strongest performer in both the STI and a popular global telecommunications stock index in June, with its 11% gain. The stock also saw a significant surge in its average daily turnover (ADT) in 1H24, which was up by more than 40% from CY23.
On 23 May, SingTel launched ST28 – new growth plan aimed at enhancing customer experiences and delivering sustained value to shareholders. The plan builds on the successful strategic reset initiated in 2021, focusing on technology and digitalisation. Key areas of focus include connectivity, digital services, and digital infrastructure, with significant investments in 5G.
The Group maintain that operational improvements and a capital recycling program have laid a strong foundation for future growth, which the CFO noted in June, has monetised S$8 billion from assets including stakes in Indara (formerly known as Australia Tower Network), Airtel and Nxera to fund growth initiatives since launching in 2021. He added that the Group has identified another S$6 billion in monetisable assets, and will continue to tap external capital partners to jointly fund capital-intensive growth engines.
Energy-adjacent Stocks with Most Net Institutional Inflow in 1H24
Stocks that led the net institutional inflow to the Energy/Oil & Gas sector included Dyna-Mac (SGX:NO4), Geo Energy Resources (SGX:RE4), Mermaid Maritime (SGX:DU4), Atlantic Navigation (SGX:5UL), MTQ Corporation (SGX:M05) and Zheneng Jinjiang Environment (SGX:BWM). These six stocks generated average and median total returns of 29% in 1H24.
A pioneer in China's Waste-to-Energy (WTE) industry, Zheneng Jinjiang Environment (SGX:BWM) also underwent a strategic transformation in 2021, leveraging technology and digitalisation. As of December 2023, the Group had invested in 27 WTE facilities, three kitchen waste treatment facilities and eight waste resource recycling facilities, managing a total waste treatment capacity of 44,405 tonnes per day and generated nearly 4.012 billion kWh of green electricity, enough to power 2.96 million households. The stock generated a 33% total return in 1H24, reducing its decline in total return since the end of 2019 to 36%.
2H24 Key Economic Drivers
The global economic outlook for 2H24 indicates a complex interplay of factors. Policy support in China and rate cuts in advanced economies are expected to stimulate growth, while persistent high rates from the Federal Reserve and geo-economic fragmentation may pose risks. The semiconductor industry's resurgence and the continued shift towards sustainability are likely to impact manufacturing and exports.
Despite potential challenges, such as commodity price volatility and geopolitical tensions, these developments could continue to drive competition and innovation, particularly digitalisation, in the global market.
Market sentiment is currently leaning towards a reduction in the Fed Funds Rate by end September with a significant portion of analysts anticipating a cut. Despite this, inflation expectations remain slightly above the Fed's target, as the PCE Core Deflator is projected to hover around 2.5% to 2.7, as seen in the recently reported May print.
Meanwhile, the Jackson Hole Symposium, set for late August, could be pivotal in shaping future monetary policy, as it historically influences central banking decisions and economic discourse. However, according to Nareit officials in 1H24, institutional investors and primary issuers in the US REIT market are very much focused the Federal Reserve actually announcing a rate cut, rather than signalling a cut.
