Global focus on key economic indicators for a smooth US landing has led to 4 stable trading sessions of Singapore stock market with a 40-point range and 1.8% gain in the Straits Times Index (STI), as markets look to the US August unemployment report on 6 Sep and potential Fed Funds Rate cut on 18 Sep.
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Institutions have also been net buyers over the past 4 sessions, with S$171 million of net inflow, led by Financials, REITs, and SATS. The global air cargo champion reported a turnaround 1QFY25 net profit of S$65 million on 20 Aug, while also expecting positive momentum in the coming quarters.
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Beyond STI constituents, stocks that contributed to the net 4-session institutional inflow included Lendlease Global Commercial REIT, NetLink NBN Trust, iFAST, Keppel DC REIT, CapitaLand India Trust, Suntec REIT & Nam Cheong. On 13 Aug, Nam Cheong reported 1HFY24 NPAT of RM 635.8 million, up from RM 31.7 million in 1HFY23, primarily due to the waiver of debts.
The global focus on key economic indicators for a smooth landing in the US has resulted in four stable sessions for the STI, with a 40-point range and a 1.8% gain. Key events in September include the US August unemployment report, due on 6 Sep. If the unemployment rate remains near the 4.3% level seen in July, or is reported to be higher, it will likely lead to a 25bps Fed Funds Rate cut on 18 Sep. Currently, the CME FedWatch Tool shows two-thirds of the market expecting a 25bps rate cut, and one-third expecting a 50bps rate cut. These expectations have remained unchanged over the past four sessions from 16 to 21 Aug.
The 1.8% 4-session STI gain coincided with S$171 million of net institutional inflow. Some of this flow can be attributed to the local earnings reporting season which is drawing to close. As much as S$28 million of the 4-session S$171 million combined net inflow was generated by SATS (SGX:S58) on 21 August, with the stock also trading 10x its usual average daily turnover.
- Refer to SATS's announcement dated 20 Aug – The company reported a turnaround 1QFY25 PATMI of S$65.0 million compared to a loss of S$29.9 million in 1QFY24.
- SATS attributed the turnaround to higher business volumes and a one-off gain of S$7.2 million from a loan settlement with an outgoing local partner in Indonesia.
- SATS’s management noted with the continuing aviation recovery and increased air cargo volume handled, it expects positive momentum in the coming quarters.
SATS has now booked the sixth highest bet institutional net inflows in the local stock market in the year-to-date, after SingTel (SGX:Z74), UOB (SGX:U11), ST Engineering (SGX:S63), OCBC (SGX:O39) and Yangzijiang Shipbuilding (SGX:BS6).
By Sector, it was Financial Services and REITs that booked the most net institutional inflow over the four sessions.
| Stock | SGX Code |
Market Cap S$M |
4-Day Price Change % |
4-Day Net Institutional Inflow S$M |
YTD Price Change % |
YTD Net Institutional Inflow S$M |
Sector |
|---|---|---|---|---|---|---|---|
| DBS | D05 | 101,763 | 2.9 | 63.53 | 18 | -412.2 | Financial Services |
| SGX | S68 | 11,328 | 3.7 | 45.86 | 8 | 118.2 | Financial Services |
| SATS | S58 | 5,367 | 12.2 | 26.16 | 31 | 126.4 | Industrials |
| UOB | U11 | 51,332 | 2.2 | 21.22 | 8 | 407.8 | Financial Services |
| Jardine Cycle & Carriage | C07 | 10,909 | 4.5 | 15.53 | -7 | -73.6 | Consumer Cyclicals |
| OCBC | O39 | 64,463 | 2.3 | 13.77 | 10 | 150.0 | Financial Services |
| Mapletree Industrial Trust | ME8U | 6,748 | 3.9 | 13.47 | -5 | -85.8 | REITs |
| ST Engineering | S63 | 14,217 | 0.0 | 11.97 | 17 | 176.8 | Industrials |
| Frasers Centrepoint Trust | J69U | 4,235 | 2.2 | 7.42 | 4 | 0.4 | REITs |
| CapitaLand Ascendas REIT | A17U | 12,268 | 3.3 | 5.57 | -8 | -124.3 | REITs |
| CapitaLand Investment | 9CI | 12,887 | 2.8 | 4.50 | -18 | -125.1 | Financial Services |
| Keppel | BN4 | 11,089 | 3.9 | 3.57 | -13 | -95.1 | Industrials |
| Lendlease REIT | JYEU | 1,331 | 5.7 | 3.45 | -13 | -17.9 | REITs |
| Seatrium | 5E2 | 4,899 | 0.7 | 3.37 | -39 | -279.5 | Industrials |
| Mapletree Pan Asia Commercial Trust | N2IU | 6,834 | 4.8 | 3.16 | -17 | -150.3 | REITs |
| SingTel | Z74 | 48,384 | -3.0 | 2.96 | 19 | 616.7 | Telecommunications |
| NetLink Trust | CJLU | 3,410 | 2.3 | 2.74 | 4 | -22.6 | Telecommunications |
| iFAST | AIY | 2,169 | 1.5 | 2.71 | -11 | 13.8 | Technology (Hardware/ Software) |
| Keppel DC REIT | AJBU | 3,584 | 1.5 | 1.65 | 7 | -11.7 | REITs |
| CapitaLand India Trust | CY6U | 1,461 | 0.0 | 1.59 | -4 | -3.6 | REITs |
| Suntec REIT | T82U | 3,496 | 2.6 | 1.35 | -2 | 13.0 | REITs |
| DFI Retail | D01 | 3,389 | 0.9 | 1.18 | -21 | -14.5 | Consumer Non-Cyclicals |
| Thai Beverage | Y92 | 12,313 | 3.2 | 1.02 | -7 | 51.2 | Consumer Non-Cyclicals |
| Nam Cheong | 1MZ | 120 | 5.2 | 1.01 | -24 | -7.2 | Industrials |
| CapitaLand Ascott Trust | HMN | 3,351 | 2.9 | 1.00 | -11 | -75.0 | REITs |
| SIA Engineering | S59 | 2,593 | 1.8 | 0.82 | -3 | 4.4 | Industrials |
| Paragon REIT | SK6U | 2,543 | 2.9 | 0.77 | 1 | 7.2 | REITs |
| NanoFilm | MZH | 459 | 0.0 | 0.71 | -23 | -24 | Technology (Hardware/ Software) |
| Emperador | EMI | 6,845 | 0.0 | 0.70 | -18 | -2 | Consumer Non-Cyclicals |
| Japfa | UD2 | 703 | 1.5 | 0.69 | 57 | 2 | Consumer Non-Cyclicals |
All Data as of 21 August 2024.
Source: SGX
Beyond the STI constituents, stocks that contributed the most to the net institutional inflow over the four sessions included Lendlease Global Commercial REIT (SGX:JYEU), NetLink NBN Trust (SGX:CJLU), iFAST (SGX:AIY), Keppel DC REIT (SGX:AJBU), CapitaLand India Trust (SGX:CY6U), Suntec REIT (SGX:T82U) and Nam Cheong (SGX:1MZ).
| Stock | SGX Code |
Market Cap S$M |
4-Day Price Change % |
4-Day Net Institutional Inflow S$M |
YTD Price Change % |
YTD Net Institutional Inflow S$M |
YTD Average Daily Turnover S$M |
Sector |
|---|---|---|---|---|---|---|---|---|
| Lendlease REIT | JYEU | 1,331 | 5.7 | 3.45 | -13 | -17.9 | 2.6 | REITs |
| NetLink Trust | CJLU | 3,410 | 2.3 | 2.74 | 4 | -22.6 | 3.3 | Telecommunications |
| iFAST | AIY | 2,169 | 1.5 | 2.71 | -11 | 13.8 | 4.0 | Technology (Hardware/ Software) |
| Keppel DC REIT | AJBU | 3,584 | 1.5 | 1.65 | 7 | -11.7 | 11.0 | REITs |
| CapitaLand India Trust | CY6U | 1,461 | 0.0 | 1.59 | -4 | -3.6 | 2.5 | REITs |
| Suntec REIT | T82U | 3,496 | 2.6 | 1.35 | -2 | 13.0 | 8.8 | REITs |
| Nam Cheong | 1MZ | 120 | 5.2 | 1.01 | -24 | -7.2 | 0.6 | Industrials |
| CapitaLand Ascott Trust | HMN | 3,351 | 2.9 | 1.00 | -11 | -75.0 | 5.1 | REITs |
| SIA Engineering | S59 | 2,593 | 1.8 | 0.82 | -3 | 4.4 | 0.6 | Industrials |
| Paragon REIT | SK6U | 2,543 | 2.9 | 0.77 | 1 | 7.2 | 0.7 | REITs |
| NanoFilm | MZH | 459 | 0.0 | 0.71 | -23 | -24 | 3.8 | Technology (Hardware/ Software) |
| Emperador | EMI | 6,845 | 0.0 | 0.70 | -18 | -2 | 0.6 | Consumer Non-Cyclicals |
| Japfa | UD2 | 703 | 1.5 | 0.69 | 57 | 2 | 0.5 | Consumer Non-Cyclicals |
| First Resources | EB5 | 2,215 | 2.1 | 0.54 | 0 | 3 | 1.7 | Consumer Non-Cyclicals |
| Far East Hospitality Trust | Q5T | 1,267 | 2.4 | 0.49 | -5 | -10 | 0.9 | REITs |
| Mandarin Oriental | M04 | 2,673 | -1.2 | 0.41 | 3 | 2 | 0.1 | Consumer Cyclicals |
| First REIT | AW9U | 532 | 0.0 | 0.40 | -4 | -2 | 0.3 | REITs |
| Prime US REIT | OXMU | 301 | -4.5 | 0.39 | -20 | -4 | 1.2 | REITs |
| Yangzijiang Financial | YF8 | 1,212 | 1.5 | 0.38 | 6 | 19 | 1.9 | Financial Services |
| OUE REIT | TS0U | 1,565 | 5.6 | 0.38 | 0 | -1 | 0.6 | REITs |
| Keppel Pacific Oak US REIT | CMOU | 327 | 0.9 | 0.37 | -37 | -15 | 1.2 | REITs |
| Best World | CGN | 1,070 | -0.4 | 0.37 | 45 | 11 | 1.2 | Consumer Cyclicals |
| Hutchison Port Holdings Trust | NS8U | 1,444 | 0.3 | 0.35 | -15 | -6 | 0.9 | Industrials |
| Keppel REIT | K71U | 3,265 | 1.8 | 0.31 | -8 | -24 | 6.2 | REITs |
| Bumitama Agri | P8Z | 1,223 | 0.0 | 0.28 | 17 | 8 | 0.4 | Consumer Non-Cyclicals |
| CSE Global | 544 | 315 | -2.2 | 0.27 | 6 | 2 | 1.0 | Technology (Hardware/ Software) |
| ValueMax | T6I | 404 | 5.8 | 0.26 | 42 | 1 | 0.0 | Consumer Cyclicals |
| Digital Core REIT | DCRU | 1,027 | 2.1 | 0.24 | -7 | 6 | 2.3 | REITs |
| Revez | RCU | 11 | 0.0 | 0.24 | -71 | 0 | 0.0 | Technology (Hardware/ Software) |
| The Hour Glass | AGS | 992 | 1.3 | 0.23 | -8 | -6 | 0.4 | Consumer Cyclicals |
All Data as of 21 August 2024.
Source: SGX.
Refer to Nam Cheong's announcement dated 13 Aug – The Group reported 1HFY24 NPAT of RM 635.8 million, up from RM 31.7 million in 1HFY23, primarily due to the waiver of debts. At the same time, the global offshore marine group noted its business recovery is gathering pace with revenue growing 56% from 1HFY23 to RM 312.0 million for 1HFY24.
Since its humble beginnings in 1968 building only fishing vessels, Nam Cheong (SGX:1MZ) is now Malaysia’s largest Offshore Support Vessels (OSV) builder, owning and operating one of the largest shipbuilding yards for OSVs in Malaysia. Nam Cheong's CEO noted with the results that the Group's performance continues to improve, driven by higher daily charter rates and increased utilisation of larger vessels, adding that with one of the youngest and largest fleets in the region, the Group is well-positioned to capitalise on the sustained demand in the O&G market.
