Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>As designed, the JPX-Nikkei400 Index is something of a disaster. It aims to be slightly 'smart' vs other cap-weighted indices like TOPIX, but tracking error vs TOPIX is de minimus.</li>
<li>This year, in week 1, the ADD vs DELETE performance is positive. If we sector-hedge the ADDs vs DELETEs, it's doing even better.</li>
<li>This is probably due to relatively low pre-positioning, and cares. Momentum suggests one could be long ADDs vs DELETEs. And there is the perennial trade to watch out for.</li>
</ul>


As designed, the JPX-Nikkei400 Index is something of a disaster. It aims to be slightly 'smart' vs other cap-weighted indices like TOPIX, but tracking error vs TOPIX is de minimus.
This year, in week 1, the ADD vs DELETE performance is positive. If we sector-hedge the ADDs vs DELETEs, it's doing even better.
This is probably due to relatively low pre-positioning, and cares. Momentum suggests one could be long ADDs vs DELETEs. And there is the perennial trade to watch out for.


2022 JPX Nikkei 400 Rebal Update - Going the Right Way

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

ja research

ja research is an independent research platform focused exclusively on Japanese equities. Leveraging data and graphic analysis provided by Japan Analytics, we provide insights on small and medium-sized companies that have been ignored by the sell-side as well as challenging conventional wisdom on larger companies. We also offer analyst and corporate access, the latter with translation if required. 

Quantitative Analysis

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/073/556/original/Update.png?1545212207" class="editor-image img-responsive" data-smartkarma-image-id="73556"></figure>
<div class="content-caption">Source: Japan Analytics</div>
JAPAN CORPORATE CASH FLOW UPDATE - This insight updates our previous Insight <a href="https://www.smartkarma.com/insights/japan-quarterly-cash-flow-update-yen-weakens-normal-service-resumed" target="_blank" data-smartkarma-citation="insights:23357">Yen Weakens &gt; Normal Service Resumed</a> with data from all of the most quarterly reports filed last month. Our aggregate cash flow model reformulated cash flows into eight categories which sum to Change in Cash - Free Cash Flow (Operating Cash Flow less Investing Cash Flow), Financing Cash Flow, Shareholder Cash Flow (Equity Cash Flow and Dividend Cash Flow) and Minorities. In the last three months, Japan's non-financial companies generated ¥12.1t in Operating Cash Flow while investing ¥9.2t - the largest quarterly amount of capex since 2016-Q4.  Of the total ¥2.9t in Free Cash Flow, 65% was returned to shareholders of which half was in the form of reductions in equity - an improving and welcome trend which we covered in an earlier <a href="https://www.smartkarma.com/insights/japan-share-buybacks-less-than-meets-the-eye" target="_blank" data-smartkarma-citation="insights:22599">Insight</a>. After a ¥0.8t increase in debt and a ¥0.3t increase in Minorities Cash Flow, aggregate cash rose by ¥2.2t for the quarter. Since 2011-Q4, 58% of the ¥102.7t in cumulative FCF has been allocated to shareholders and 40% to cash, leaving considerable room for improvement in the relative size of these ratios.
SECTORS &amp; STOCKS - In the DETAIL below, we also look at sector cash flow trends and provide brief comments on some of the most significant changes in individual cash flows over the last three months including <a href="https://www.smartkarma.com/entities/315" target="_blank" data-smartkarma-citation="entities:315:1">Softbank Group (9984 JP)</a>, <a href="https://www.smartkarma.com/entities/3548" target="_blank" data-smartkarma-citation="entities:3548:1">Kawasaki Kisen Kaisha (9107 JP)</a>, <a href="https://www.smartkarma.com/entities/2818" target="_blank" data-smartkarma-citation="entities:2818:1">Hanwa (8078 JP)</a>, <a href="https://www.smartkarma.com/entities/19550" target="_blank" data-smartkarma-citation="entities:19550:1">Open House (3288 JP)</a>, <a href="https://www.smartkarma.com/entities/26074" target="_blank" data-smartkarma-citation="entities:26074:1">Macnica Fuji Electronics (3132 JP)</a>, and <a href="https://www.smartkarma.com/entities/13747" target="_blank" data-smartkarma-citation="entities:13747:1">Digital Garage (4819 JP)</a>.


Source: Japan Analytics
JAPAN CORPORATE CASH FLOW UPDATE - This insight updates our previous Insight Yen Weakens &gt; Normal Service Resumed with data from all of the most quarterly reports filed last month. Our aggregate cash flow model reformulated cash flows into eight categories which sum to Change in Cash - Free Cash Flow (Operating Cash Flow less Investing Cash Flow), Financing Cash Flow, Shareholder Cash Flow (Equity Cash Flow and Dividend Cash Flow) and Minorities. In the last three months, Japan's non-financial companies generated ¥12.1t in Operating Cash Flow while investing ¥9.2t - the largest quarterly amount of capex since 2016-Q4.  Of the total ¥2.9t in Free Cash Flow, 65% was returned to shareholders of which half was in the form of reductions in equity - an improving and welcome trend which we covered in an earlier Insight. After a ¥0.8t increase in debt and a ¥0.3t increase in Minorities Cash Flow, aggregate cash rose by ¥2.2t for the quarter. Since 2011-Q4, 58% of the ¥102.7t in cumulative FCF has been allocated to shareholders and 40% to cash, leaving considerable room for improvement in the relative size of these ratios.
SECTORS &amp; STOCKS - In the DETAIL below, we also look at sector cash flow trends and provide brief comments on some of the most significant changes in individual cash flows over the last three months including Softbank Group (9984 JP), Kawasaki Kisen Kaisha (9107 JP), Hanwa (8078 JP), Open House (3288 JP), Macnica Fuji Electronics (3132 JP), and Digital Garage (4819 JP).

Japan: The 2018-Q3 Cash Flow Stakes - Runners, Riders & Red Flags

Thematic (Sector/Industry)

CAPITAL RAISING - WHOS NEXT? - A number of large capital increases have been announced by large and mid capitalisation Japanese companies in the last few months, the most recent of which have been from <a href="https://www.smartkarma.com/entities/7431" target="_blank" data-smartkarma-citation="entities:7431:1">Outsourcing Inc (2427 JP)</a> and <a href="https://www.smartkarma.com/entities/11796" target="_blank" data-smartkarma-citation="entities:11796:1">Daido Metal (7245 JP)</a>. The response to the dilution has been a predictable decline in share price, although, at least in the case of <a href="https://www.smartkarma.com/entities/7431" target="_blank" data-smartkarma-citation="entities:7431:1">Outsourcing (2427 JP)</a>, a good part of the response occurred before the announcement of the offering, as mentioned in <a href="https://www.smartkarma.com/profiles/713" target="_blank" data-smartkarma-citation="accounts:713">Mio Kato</a>'s note of yesterday - <a href="https://www.smartkarma.com/insights/outsourcing-2427-high-fixed-cost-burden-but-stronger-balance-sheet-opens-up-growth-again" target="_blank" data-smartkarma-citation="insights:23864">High Fixed Cost Burden but Stronger Balance Sheet Opens Up Growth Again</a>. In an attempt to suggest which companies are at risk of similar 'surprises', we have compiled a list of companies with similar financial profiles. 17 larger capitalisation and 22 mid capitalisation companies make the 'cut'.

CAPITAL RAISING - WHOS NEXT? - A number of large capital increases have been announced by large and mid capitalisation Japanese companies in the last few months, the most recent of which have been from Outsourcing Inc (2427 JP) and Daido Metal (7245 JP). The response to the dilution has been a predictable decline in share price, although, at least in the case of Outsourcing (2427 JP), a good part of the response occurred before the announcement of the offering, as mentioned in Mio Kato's note of yesterday - High Fixed Cost Burden but Stronger Balance Sheet Opens Up Growth Again. In an attempt to suggest which companies are at risk of similar 'surprises', we have compiled a list of companies with similar financial profiles. 17 larger capitalisation and 22 mid capitalisation companies make the 'cut'.

Macro & Asian equity Technical Strategies, BBSP Asia

Federico D'Inca

Macro & Asian equity Technical Strategies

BBSP Asia

Technical Analysis

Japan Airport Terminal Co / Technical Analysis

Mid-Term Country Allocation (Tactical view) in terms of RV vs MXAPThis week:• No change in tactical allocation • The ASX drifted last week, testing our support, before bouncing back significantly. The ratio ASX/MXAP is also testing a key level above which we keep our rating unchanged for ASX (ie, “Increase exposure”). • Keep rating unchanged for the other countries (Nikkei, Nifty, HSI, HSCEI), i.e. maintain “Increase Exposure”. • Kospi remains “Hold” as ratio is still drifting sideways below first…

Mid-Term Country Allocation (Tactical view) in terms of RV vs MXAPThis week:• No change in tactical allocation • The ASX drifted last week, testing our support, before bouncing back significantly. The ratio ASX/MXAP is also testing a key level above which we keep our rating unchanged for ASX (ie, “Increase exposure”). • Keep rating unchanged for the other countries (Nikkei, Nifty, HSI, HSCEI), i.e. maintain “Increase Exposure”. • Kospi remains “Hold” as ratio is still drifting sideways below first…

BBSP Equity Asia Weekly Research 14 June 2017

Bullish reaction off key long-term channel support at 769. Daily RSI bullish reaction off ascendant support. Complete corrective fractal structure.Strategy: Buy at market (circa 800) stop/pivot: 769 (daily VWAP close) target 915 (standard) 1050 (maximum).Conviction: ** Two Star (2/3 maximum risk size for allocation) Key:    * One star (1/3 standard risk allocation size)            ** Two stars (2/3 standard risk allocation size)            *** Three stars Strong View SV (3/3 standard risk size)…

Bullish reaction off key long-term channel support at 769. Daily RSI bullish reaction off ascendant support. Complete corrective fractal structure.Strategy: Buy at market (circa 800) stop/pivot: 769 (daily VWAP close) target 915 (standard) 1050 (maximum).Conviction: ** Two Star (2/3 maximum risk size for allocation) Key:    * One star (1/3 standard risk allocation size)            ** Two stars (2/3 standard risk allocation size)            *** Three stars Strong View SV (3/3 standard risk size)…

HANWA Co Ltd (8078 JT)  +14% Upside at Least Potentially +30%

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
In January, the iEdge SG All Healthcare Index generated a 4% return, following a 4% decline in fourth quarter of 2020 and 77% total return over the first three quarters of 2020. Following the last rebalance, the largest weights of the Index are Haw Par, Raffles Medical, Parkway Life REIT, IHH Healthcare Bhd and Top Glove Corp Bhd. 
	 </li>
	<li>
In 2020, Medtecs, Top Glove, Riverstone and UG Healthcare ranked among top 50 stocks by turnover, and continued to be so ranked in early 2021. In 2020, the four stocks contributed a combined S$42 million a day in daily turnover, with indications half of that turnover was generated by retail investors. 
	 </li>
	<li>Retail investors also appear to have contributed to just over half the combined daily trading activity of Medtecs, Top Glove, Riverstone and UG Healthcare in January 2021. These stocks averaged 18% returns for the month, with Riverstone and UG Healthcare the strongest performers of the iEdge SG All Healthcare Index in January.</li>
</ul>
 

The broking industry has seen a resurgence of retail trading activity amid the broad market volatility that has seen significant trading ranges over the past 12 months. Keeping in mind the old adage of when stocks move, traders react, when stocks don’t move, traders tend to stay on the sidelines, in 2020, the Straits Times Index (“STI”) established its biggest trading range for a year since 2009.

Moreover, the trading range of the iEdge SG All Healthcare Index in 2020 was a remarkable 150% between low to high, 15 times the Index range of the preceding five years. The social and economic impacts of the Coronavirus have been the overarching market driver for the broader stock market, with measured impacts on particular industries such as medical supplies. This means the market drivers of the big movers of the iEdge SG All Healthcare Index have made the headlines almost every day.

The constituents of the iEdge SG All Healthcare Index averaged S$63 million in daily turnover in 2020, with S$52 million in daily turnover in January 2021. The undermentioned medical suppliers comprised two-thirds of the combined Index turnover in both 2020 and January 2021. 

During 2020, Medtecs International Corp, Top Glove Corp Bhd, Riverstone Holdings and UG Healthcare Corporation were among the top 50 stocks by turnover, with this segment remaining so in early 2021. In 2020, these four stocks contributed a combined S$42 million a day in daily turnover, with anecdotal evidence suggesting that half of that turnover was contributed by retail investors. At the same time net retail inflows into the four stocks for the entire 2020 year was close to S$150 million, which was 0.9% of their combined end of year market value. Indications are that retail investors have also contributed just over 50% to the combined S$34 million average daily turnover of these stocks in January 2021. 

The recent performance of the 20 most traded constituents of the iEdge SG All Healthcare Index stocks in January 2021 are tabled below.

<table class="table table-striped"><tbody>
<tr>
<td>
			20 Most Traded Stocks of iEdge SG All Healthcare Index in Jan 2021
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Mkt Cap S$M (end of Jan)
			</td>
			<td>
			Average Daily Turnover in 2020 S$M
			</td>
			<td>
			Net Retail Inflow in 2020 S$M
			</td>
			<td>
			2020 Total Return %
			</td>
			<td>
			Average Daily Turnover in Jan 2021 S$M
			</td>
			<td>
			Net Retail Inflow in Jan 2021 S$M
			</td>
			<td>
			Jan 2021 Total Return %
			</td>
		</tr>
<tr>
<td>
			MEDTECS INTERNATIONAL CORP
			</td>
			<td>
			546
			</td>
			<td>
			571
			</td>
			<td>
			20.08
			</td>
			<td>
			-12.5
			</td>
			<td>
			2,628
			</td>
			<td>
			10.33
			</td>
			<td>
			7.13
			</td>
			<td>
			4
			</td>
		</tr>
<tr>
<td>
			TOP GLOVE CORP BHD
			</td>
			<td>
			BVA
			</td>
			<td>
			17,491
			</td>
			<td>
			6.08
			</td>
			<td>
			118.7
			</td>
			<td>
			300
			</td>
			<td>
			10.08
			</td>
			<td>
			14.32
			</td>
			<td>
			9
			</td>
		</tr>
<tr>
<td>
			RIVERSTONE HOLDINGS
			</td>
			<td>
			AP4
			</td>
			<td>
			2,223
			</td>
			<td>
			9.14
			</td>
			<td>
			42.8
			</td>
			<td>
			143
			</td>
			<td>
			8.62
			</td>
			<td>
			-10.06
			</td>
			<td>
			35
			</td>
		</tr>
<tr>
<td>
			UG HEALTHCARE CORP
			</td>
			<td>
			8K7
			</td>
			<td>
			447
			</td>
			<td>
			7.00
			</td>
			<td>
			18.8
			</td>
			<td>
			1,157
			</td>
			<td>
			5.27
			</td>
			<td>
			-0.30
			</td>
			<td>
			24
			</td>
		</tr>
<tr>
<td>
			SINGAPORE MEDICAL GROUP
			</td>
			<td>
			5OT
			</td>
			<td>
			181
			</td>
			<td>
			0.46
			</td>
			<td>
			9.0
			</td>
			<td>
			8
			</td>
			<td>
			2.92
			</td>
			<td>
			-1.72
			</td>
			<td>
			17
			</td>
		</tr>
<tr>
<td>
			FIRST REAL ESTATE INVT TRUST
			</td>
			<td>
			AW9U
			</td>
			<td>
			185
			</td>
			<td>
			1.72
			</td>
			<td>
			40.4
			</td>
			<td>
			-75
			</td>
			<td>
			2.44
			</td>
			<td>
			0.62
			</td>
			<td>
			3
			</td>
		</tr>
<tr>
<td>
			PARKWAYLIFE REAL ESTATE
			</td>
			<td>
			C2PU
			</td>
			<td>
			2,511
			</td>
			<td>
			3.24
			</td>
			<td>
			7.9
			</td>
			<td>
			21
			</td>
			<td>
			2.35
			</td>
			<td>
			-3.40
			</td>
			<td>
			7
			</td>
		</tr>
<tr>
<td>
			VICPLAS INTERNATIONAL
			</td>
			<td>
			569
			</td>
			<td>
			138
			</td>
			<td>
			2.38
			</td>
			<td>
			-0.7
			</td>
			<td>
			169
			</td>
			<td>
			2.22
			</td>
			<td>
			0.40
			</td>
			<td>
			10
			</td>
		</tr>
<tr>
<td>
			Q &amp; M DENTAL GROUP SINGAPORE
			</td>
			<td>
			QC7
			</td>
			<td>
			346
			</td>
			<td>
			0.40
			</td>
			<td>
			-4.9
			</td>
			<td>
			3
			</td>
			<td>
			1.64
			</td>
			<td>
			-8.18
			</td>
			<td>
			-6
			</td>
		</tr>
<tr>
<td>
			HAW PAR CORP
			</td>
			<td>
			H02
			</td>
			<td>
			2,477
			</td>
			<td>
			1.65
			</td>
			<td>
			43.8
			</td>
			<td>
			-14
			</td>
			<td>
			1.39
			</td>
			<td>
			-2.87
			</td>
			<td>
			5
			</td>
		</tr>
<tr>
<td>
			RAFFLES MEDICAL GROUP
			</td>
			<td>
			BSL
			</td>
			<td>
			1,743
			</td>
			<td>
			1.43
			</td>
			<td>
			1.5
			</td>
			<td>
			3
			</td>
			<td>
			1.39
			</td>
			<td>
			5.01
			</td>
			<td>
			-6
			</td>
		</tr>
<tr>
<td>
			IX BIOPHARMA
			</td>
			<td>
			42C
			</td>
			<td>
			181
			</td>
			<td>
			1.34
			</td>
			<td>
			2.2
			</td>
			<td>
			13
			</td>
			<td>
			0.69
			</td>
			<td>
			-0.93
			</td>
			<td>
			2
			</td>
		</tr>
<tr>
<td>
			BIOLIDICS
			</td>
			<td>
			8YY
			</td>
			<td>
			81
			</td>
			<td>
			2.46
			</td>
			<td>
			4.6
			</td>
			<td>
			22
			</td>
			<td>
			0.65
			</td>
			<td>
			-0.10
			</td>
			<td>
			2
			</td>
		</tr>
<tr>
<td>
			CLEARBRIDGE HEALTH
			</td>
			<td>
			1H3
			</td>
			<td>
			94
			</td>
			<td>
			1.86
			</td>
			<td>
			1.4
			</td>
			<td>
			7
			</td>
			<td>
			0.47
			</td>
			<td>
			-0.35
			</td>
			<td>
			4
			</td>
		</tr>
<tr>
<td>
			TIANJIN ZHONG XIN PHARM CO-S
			</td>
			<td>
			T14
			</td>
			<td>
			2,270
			</td>
			<td>
			0.49
			</td>
			<td>
			10.5
			</td>
			<td>
			7
			</td>
			<td>
			0.35
			</td>
			<td>
			0.72
			</td>
			<td>
			-1
			</td>
		</tr>
<tr>
<td>
			NUTRYFARM INTERNATIONAL
			</td>
			<td>
			AZT
			</td>
			<td>
			49
			</td>
			<td>
			0.03
			</td>
			<td>
			0.8
			</td>
			<td>
			340
			</td>
			<td>
			0.35
			</td>
			<td>
			0.57
			</td>
			<td>
			15
			</td>
		</tr>
<tr>
<td>
			THOMSON MEDICAL GROUP
			</td>
			<td>
			A50
			</td>
			<td>
			1,296
			</td>
			<td>
			0.43
			</td>
			<td>
			-4.4
			</td>
			<td>
			-22
			</td>
			<td>
			0.30
			</td>
			<td>
			0.96
			</td>
			<td>
			-2
			</td>
		</tr>
<tr>
<td>
			HYPHENS PHARMA INTERNATIONAL
			</td>
			<td>
			1J5
			</td>
			<td>
			96
			</td>
			<td>
			1.51
			</td>
			<td>
			6.3
			</td>
			<td>
			56
			</td>
			<td>
			0.22
			</td>
			<td>
			0.18
			</td>
			<td>
			2
			</td>
		</tr>
<tr>
<td>
			SINGAPORE O&amp;G
			</td>
			<td>
			1D8
			</td>
			<td>
			119
			</td>
			<td>
			0.05
			</td>
			<td>
			1.1
			</td>
			<td>
			-20
			</td>
			<td>
			0.10
			</td>
			<td>
			-0.14
			</td>
			<td>
			6
			</td>
		</tr>
<tr>
<td>
			ASIAN HEALTHCARE SPECIALISTS
			</td>
			<td>
			1J3
			</td>
			<td>
			89
			</td>
			<td>
			0.28
			</td>
			<td>
			5.1
			</td>
			<td>
			-13
			</td>
			<td>
			0.09
			</td>
			<td>
			-0.04
			</td>
			<td>
			6
			</td>
		</tr>
<tr>
<td>
			Median 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			11
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			4
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			237
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			7
			</td>
		</tr>
</tbody></table>
Source: SGX StockFacts, Refinitiv and Bloomberg (Data as of 31 January 2021)

During the past year, retail investors were able to access company financial statements, outlooks, corporate presentations and broker research.

<ul>
<li>In September, Top Glove Corp Bhd reported a 418% increase in its FY20 (ended 31 August) net profit, which paralleled the stocks 447% price gain over the period (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/IJFOW473ZNCRCUT3/82933a0cd7c0192a1c0c7667c94a51a5b3deb2d030fed51eb5fb579307ad3fd3">here</a> for more). For its 1QFY21, Top Glove Corp Bhd reported its YoY net profit was up just over 20-fold (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/UTOJPNOBUBHSSJ2V/ffc775ba65ced3e5f209752d74e5d791730be795019854cf291b3473d1eaf022">here</a> for more). 
	 </li>
	<li>Similarly, in October, Medtecs International Corp updated that its 9MFY20 (ended 30 September) net profit had grown close to 200-fold YoY (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/6HKIL9XH2X72T595/5e7998475bd67a05828f9944f30128ad5f32b7fb13a39c3d6adb561f3445a149">here</a> for more), which coincided with its share price soaring close to 30-fold from 3.7 cents to S$1.08. 
	 </li>
	<li>Riverstone Holdings updated that its 9MFY20 (ended 30 Sep) net profit was up just over 220% YoY (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/8FTT9MNR567N7UTQ/55c7b684eb8c9084f5b62483df7627603a881a0a5524f5809b109a2a087b50b3">here</a> for more), while its stock price was up 277%. 
	 </li>
	<li>Meanwhile Catalist-list UG Healthcare reported its net profit for FY20 (ended June) was up more than five-fold (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/AVQBF0S5EVGA4X49/e1151bdaad5c8e86eba8e861085899e65b1bb46019dd8a0aa008356f2897e6bb">here</a> for more), and 1QFY21 (ended 30 Sep) attributable net profit was up more than 70-fold (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/XZINZSWIGSX79HW2/8c4c259f215a42ec0abb196fea5ba05a39ed7e2f490435af854fa5d3c37dad7f">here</a> for more).</li>
</ul>
 

Riverstone was the stongest perfomer of the iEdge SG All Healthcare Index constituents in January. On 1 December, the Employees Provident Fund Board of Malaysia (“EPF”) increased its substantial shareholder of Riverstone Holdings to above the 7.00 per cent threshold. This followed on from a filing on 26 October that reported the EPF increased its substantial shareholder above the 6.00 per cent threshold, after the EPF became a substantial shareholder of Riverstone Holdings on 17 September. The company noted back on 9 November that Phase 6 of the Group’s expansion plans is on track to raise total production capacity by 1.5 billion pieces to 10.5 billion pieces of gloves annually by the end of 2020. For phase 6, the Group noted it had commissioned five production lines that are currently in operation, with the remaining two production lines progressively commissioned over the next two months. Furthermore, due to the strong demand for both healthcare and cleanroom gloves, the Group’s current order book has been filled to the first half of 2021.

 

Recent Growth in Retail Trading 

While financials and outlooks can drive investor interest, investors are always encouraged to seek checks and balances. Incorporating fundamentals with prices, to generate valuations can help provide checks, while avoiding concentrating too much portfolio exposure to one stock or asset can provide the balances.

Recent years have also seen technology emerge as a key enabler for access to markets, in addition to data, information, research and education. For its 1HFY20 (ended 30 June), UOB-Kay Hian Holdings reported that commission income had increased 90% mainly due to active retail participation across regional and US markets as a result of market volatility, and in October, when iFAST reported its 9MFY20 (ended 30 September) results, the group highlighted that improvement in the business showed iFAST Corp continued to be a beneficiary of increased digital adoption in the wealth management industry.

Increased digitalisation of financial services bodes well for the organic growth of retail investing, supported by adequately capitalised brokers that manage their value at risk, publish research and provide advice in-line with their regulatory requirements. Another consequence of the growth in retail investing is new and fast flows that as seen in the United States last week can impact the market risk that short-sellers face.

The strong aforementioned retail trading interest in the medical suppliers compared to indications retail investors contributed less than a fifth to the daily turnover of the DBS, OCBC and UOB in 2020, with net retail inflows making up 2.2% of their combined market value. Note that while the three banks attracted significant institutional trading with their heavyweight representation in the local and regional indices, retail activity extended to regular share saving plans, which are dollar cost averaging methods followed by 60,000 retail investors, in addition to significant turnover and inflows into the STI ETFs.

Singapore Exchange also lists for trading a number of leveraged security and derivative products that are designed to cater to increased risk appetites by retail investors, which are firstly categorised as Specified Investor Products and secondly utilise margining that is in-line with the best industry standards.

The SGX Academy (click <a href="https://www.sgxacademy.com/?force_isolation=true">here</a>) provides a wide range of educational and professional courses to assist both traders and investors.
</body></html>





In January, the iEdge SG All Healthcare Index generated a 4% return, following a 4% decline in fourth quarter of 2020 and 77% total return over the first three quarters of 2020. Following the last rebalance, the largest weights of the Index are Haw Par, Raffles Medical, Parkway Life REIT, IHH Healthcare Bhd and Top Glove Corp Bhd. 
	 
	
In 2020, Medtecs, Top Glove, Riverstone and UG Healthcare ranked among top 50 stocks by turnover, and continued to be so ranked in early 2021. In 2020, the four stocks contributed a combined S$42 million a day in daily turnover, with indications half of that turnover was generated by retail investors. 
	 
	Retail investors also appear to have contributed to just over half the combined daily trading activity of Medtecs, Top Glove, Riverstone and UG Healthcare in January 2021. These stocks averaged 18% returns for the month, with Riverstone and UG Healthcare the strongest performers of the iEdge SG All Healthcare Index in January.

 

The broking industry has seen a resurgence of retail trading activity amid the broad market volatility that has seen significant trading ranges over the past 12 months. Keeping in mind the old adage of when stocks move, traders react, when stocks don’t move, traders tend to stay on the sidelines, in 2020, the Straits Times Index (“STI”) established its biggest trading range for a year since 2009.

Moreover, the trading range of the iEdge SG All Healthcare Index in 2020 was a remarkable 150% between low to high, 15 times the Index range of the preceding five years. The social and economic impacts of the Coronavirus have been the overarching market driver for the broader stock market, with measured impacts on particular industries such as medical supplies. This means the market drivers of the big movers of the iEdge SG All Healthcare Index have made the headlines almost every day.

The constituents of the iEdge SG All Healthcare Index averaged S$63 million in daily turnover in 2020, with S$52 million in daily turnover in January 2021. The undermentioned medical suppliers comprised two-thirds of the combined Index turnover in both 2020 and January 2021. 

During 2020, Medtecs International Corp, Top Glove Corp Bhd, Riverstone Holdings and UG Healthcare Corporation were among the top 50 stocks by turnover, with this segment remaining so in early 2021. In 2020, these four stocks contributed a combined S$42 million a day in daily turnover, with anecdotal evidence suggesting that half of that turnover was contributed by retail investors. At the same time net retail inflows into the four stocks for the entire 2020 year was close to S$150 million, which was 0.9% of their combined end of year market value. Indications are that retail investors have also contributed just over 50% to the combined S$34 million average daily turnover of these stocks in January 2021. 

The recent performance of the 20 most traded constituents of the iEdge SG All Healthcare Index stocks in January 2021 are tabled below.




			20 Most Traded Stocks of iEdge SG All Healthcare Index in Jan 2021
			
			
			SGX Code
			
			
			Mkt Cap S$M (end of Jan)
			
			
			Average Daily Turnover in 2020 S$M
			
			
			Net Retail Inflow in 2020 S$M
			
			
			2020 Total Return %
			
			
			Average Daily Turnover in Jan 2021 S$M
			
			
			Net Retail Inflow in Jan 2021 S$M
			
			
			Jan 2021 Total Return %
			
		


			MEDTECS INTERNATIONAL CORP
			
			
			546
			
			
			571
			
			
			20.08
			
			
			-12.5
			
			
			2,628
			
			
			10.33
			
			
			7.13
			
			
			4
			
		


			TOP GLOVE CORP BHD
			
			
			BVA
			
			
			17,491
			
			
			6.08
			
			
			118.7
			
			
			300
			
			
			10.08
			
			
			14.32
			
			
			9
			
		


			RIVERSTONE HOLDINGS
			
			
			AP4
			
			
			2,223
			
			
			9.14
			
			
			42.8
			
			
			143
			
			
			8.62
			
			
			-10.06
			
			
			35
			
		


			UG HEALTHCARE CORP
			
			
			8K7
			
			
			447
			
			
			7.00
			
			
			18.8
			
			
			1,157
			
			
			5.27
			
			
			-0.30
			
			
			24
			
		


			SINGAPORE MEDICAL GROUP
			
			
			5OT
			
			
			181
			
			
			0.46
			
			
			9.0
			
			
			8
			
			
			2.92
			
			
			-1.72
			
			
			17
			
		


			FIRST REAL ESTATE INVT TRUST
			
			
			AW9U
			
			
			185
			
			
			1.72
			
			
			40.4
			
			
			-75
			
			
			2.44
			
			
			0.62
			
			
			3
			
		


			PARKWAYLIFE REAL ESTATE
			
			
			C2PU
			
			
			2,511
			
			
			3.24
			
			
			7.9
			
			
			21
			
			
			2.35
			
			
			-3.40
			
			
			7
			
		


			VICPLAS INTERNATIONAL
			
			
			569
			
			
			138
			
			
			2.38
			
			
			-0.7
			
			
			169
			
			
			2.22
			
			
			0.40
			
			
			10
			
		


			Q &amp; M DENTAL GROUP SINGAPORE
			
			
			QC7
			
			
			346
			
			
			0.40
			
			
			-4.9
			
			
			3
			
			
			1.64
			
			
			-8.18
			
			
			-6
			
		


			HAW PAR CORP
			
			
			H02
			
			
			2,477
			
			
			1.65
			
			
			43.8
			
			
			-14
			
			
			1.39
			
			
			-2.87
			
			
			5
			
		


			RAFFLES MEDICAL GROUP
			
			
			BSL
			
			
			1,743
			
			
			1.43
			
			
			1.5
			
			
			3
			
			
			1.39
			
			
			5.01
			
			
			-6
			
		


			IX BIOPHARMA
			
			
			42C
			
			
			181
			
			
			1.34
			
			
			2.2
			
			
			13
			
			
			0.69
			
			
			-0.93
			
			
			2
			
		


			BIOLIDICS
			
			
			8YY
			
			
			81
			
			
			2.46
			
			
			4.6
			
			
			22
			
			
			0.65
			
			
			-0.10
			
			
			2
			
		


			CLEARBRIDGE HEALTH
			
			
			1H3
			
			
			94
			
			
			1.86
			
			
			1.4
			
			
			7
			
			
			0.47
			
			
			-0.35
			
			
			4
			
		


			TIANJIN ZHONG XIN PHARM CO-S
			
			
			T14
			
			
			2,270
			
			
			0.49
			
			
			10.5
			
			
			7
			
			
			0.35
			
			
			0.72
			
			
			-1
			
		


			NUTRYFARM INTERNATIONAL
			
			
			AZT
			
			
			49
			
			
			0.03
			
			
			0.8
			
			
			340
			
			
			0.35
			
			
			0.57
			
			
			15
			
		


			THOMSON MEDICAL GROUP
			
			
			A50
			
			
			1,296
			
			
			0.43
			
			
			-4.4
			
			
			-22
			
			
			0.30
			
			
			0.96
			
			
			-2
			
		


			HYPHENS PHARMA INTERNATIONAL
			
			
			1J5
			
			
			96
			
			
			1.51
			
			
			6.3
			
			
			56
			
			
			0.22
			
			
			0.18
			
			
			2
			
		


			SINGAPORE O&amp;G
			
			
			1D8
			
			
			119
			
			
			0.05
			
			
			1.1
			
			
			-20
			
			
			0.10
			
			
			-0.14
			
			
			6
			
		


			ASIAN HEALTHCARE SPECIALISTS
			
			
			1J3
			
			
			89
			
			
			0.28
			
			
			5.1
			
			
			-13
			
			
			0.09
			
			
			-0.04
			
			
			6
			
		


			Median 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			11
			
			
			 
			
			
			 
			
			
			4
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			237
			
			
			 
			
			
			 
			
			
			7
			
		

Source: SGX StockFacts, Refinitiv and Bloomberg (Data as of 31 January 2021)

During the past year, retail investors were able to access company financial statements, outlooks, corporate presentations and broker research.


In September, Top Glove Corp Bhd reported a 418% increase in its FY20 (ended 31 August) net profit, which paralleled the stocks 447% price gain over the period (click here for more). For its 1QFY21, Top Glove Corp Bhd reported its YoY net profit was up just over 20-fold (click here for more). 
	 
	Similarly, in October, Medtecs International Corp updated that its 9MFY20 (ended 30 September) net profit had grown close to 200-fold YoY (click here for more), which coincided with its share price soaring close to 30-fold from 3.7 cents to S$1.08. 
	 
	Riverstone Holdings updated that its 9MFY20 (ended 30 Sep) net profit was up just over 220% YoY (click here for more), while its stock price was up 277%. 
	 
	Meanwhile Catalist-list UG Healthcare reported its net profit for FY20 (ended June) was up more than five-fold (click here for more), and 1QFY21 (ended 30 Sep) attributable net profit was up more than 70-fold (click here for more).

 

Riverstone was the stongest perfomer of the iEdge SG All Healthcare Index constituents in January. On 1 December, the Employees Provident Fund Board of Malaysia (“EPF”) increased its substantial shareholder of Riverstone Holdings to above the 7.00 per cent threshold. This followed on from a filing on 26 October that reported the EPF increased its substantial shareholder above the 6.00 per cent threshold, after the EPF became a substantial shareholder of Riverstone Holdings on 17 September. The company noted back on 9 November that Phase 6 of the Group’s expansion plans is on track to raise total production capacity by 1.5 billion pieces to 10.5 billion pieces of gloves annually by the end of 2020. For phase 6, the Group noted it had commissioned five production lines that are currently in operation, with the remaining two production lines progressively commissioned over the next two months. Furthermore, due to the strong demand for both healthcare and cleanroom gloves, the Group’s current order book has been filled to the first half of 2021.

 

Recent Growth in Retail Trading 

While financials and outlooks can drive investor interest, investors are always encouraged to seek checks and balances. Incorporating fundamentals with prices, to generate valuations can help provide checks, while avoiding concentrating too much portfolio exposure to one stock or asset can provide the balances.

Recent years have also seen technology emerge as a key enabler for access to markets, in addition to data, information, research and education. For its 1HFY20 (ended 30 June), UOB-Kay Hian Holdings reported that commission income had increased 90% mainly due to active retail participation across regional and US markets as a result of market volatility, and in October, when iFAST reported its 9MFY20 (ended 30 September) results, the group highlighted that improvement in the business showed iFAST Corp continued to be a beneficiary of increased digital adoption in the wealth management industry.

Increased digitalisation of financial services bodes well for the organic growth of retail investing, supported by adequately capitalised brokers that manage their value at risk, publish research and provide advice in-line with their regulatory requirements. Another consequence of the growth in retail investing is new and fast flows that as seen in the United States last week can impact the market risk that short-sellers face.

The strong aforementioned retail trading interest in the medical suppliers compared to indications retail investors contributed less than a fifth to the daily turnover of the DBS, OCBC and UOB in 2020, with net retail inflows making up 2.2% of their combined market value. Note that while the three banks attracted significant institutional trading with their heavyweight representation in the local and regional indices, retail activity extended to regular share saving plans, which are dollar cost averaging methods followed by 60,000 retail investors, in addition to significant turnover and inflows into the STI ETFs.

Singapore Exchange also lists for trading a number of leveraged security and derivative products that are designed to cater to increased risk appetites by retail investors, which are firstly categorised as Specified Investor Products and secondly utilise margining that is in-line with the best industry standards.

The SGX Academy (click here) provides a wide range of educational and professional courses to assist both traders and investors.



Medical Suppliers Continued to Trade Actively in January

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
The STI added 2.1% in January, taking its three price return to 19.8%, with dividend distributions boosting the total return to 20.2%. Similarly, the highly correlated FTSE ASEAN All Share Index was comparatively level for January, bringing its 3M total return to 16.8%. 
	 </li>
	<li>
The strongest of the 30 STI stocks in January included Wilmar Int, HongkongLand and Thai Beverage. Two of these three stocks, Thai Beverage and Wilmar Int were also the STI’s best performers over the past three months, with respective returns of 42% and 30%. 
	 </li>
	<li>DBS, OCBC and UOB continued to outpace the top quartile of global banks by market value. The trio averaged 2.2% gains in January, following 3.9% declines in 2020. Combined the three banks also led the net institutional inflows of Singapore-listed stocks in January, with S$214 million of inflows.</li>
</ul>
 The Straits Times Index (“STI”) ended January at 2902.52, 478.68 points or 19.8% higher, than the 2423.84 close at the end of October. The three months of gains, which saw the onset of retracements on 25 November and then again on 21 January, saw the STI close twice above the key 3000 level. The STI gains coincided with a 16.4% price gain in the regional FTSE ASEAN All-Share Index and a 15.5% price gain for the FTSE Asia Pacific Index. The less correlated, sector-driven S&amp;P 500 Index gained 10.5%.  
</body></html>

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2021-02/Capture.PNG' alt='3M price Return' />
 </figure>
 <div class='content-caption'>3M price Return</div>
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<html><body>
STI’s Biggest Driver in Early 2021 
The global campaign to overcome the Coronavirus continues to be the biggest driver for the STI. While the STI has declined 3.8% from the 21 January close, Singapore’s most traded medical supply stocks – Medtecs International Corp, Top Glove Corp Bhd, Riverstone Holdings and UG Healthcare averaged 0.2% gains, bringing their average three month decline to 18.1%. The recent to three-month consolidation of the medical supply stocks (note the quartet averaged 600%+ gains for the six months ended 31 October) reflects concern on the pace of the vaccine rollouts relative to the prevalence of the contagious strains of the coronavirus. 
Two of the global economic powerhouses, the United States and Eurozone currently account for 78% of the global infections recorded by the WHO. Together the United States and the Eurozone account for more than a third of global trade and two-fifths of the global GDP. While the Federal Reserve Balance Sheet has grown 80% since January 2020, with the European Central Bank Balance Sheet up more than 40%, the latter part of January saw global risk markets take on the aforementioned concerns, and price in less optimism in an imminent return to a new normal. 
While January saw the price of Gold decline 3.3% in SGD terms, the safe-haven gauge did rebound 5.5% during the final two sessions of the month. With Brent Crude Oil gaining 3.9% during the month, Sembcorp Marine was the Singapore’s most traded non-STI stock in January with 1.4% gains on the month on S$28 million of net institutional inflow. STI’s Biggest Sector Outpaced Global Peers 
The current top quartile of global banks by market value saw a median 0.6% gain in the month of January following median decline of 9.5% in total return over 2020. In Singapore, DBS Group Holdings (“DBS”), Oversea-Chinese Banking Corp (“OCBC”) and United Overseas Bank (“UOB”) generated an average gain of 2.2% in January, following average decline of 3.9% in total returns in 2020. Combined the three banks have also led the net institutional inflows of Singapore-listed stocks in January, with S$214 million of inflows recorded (inflows were as high at S$283 million on 21 January).   
DBS reports its full year results before the open on Wednesday 10 Feb, OCBC will report before the open on Wednesday 24 Feb and UOB will report before the open on Thursday 25 February. Key industry drivers going into this year include the ability to expand non-interest income, potential for lower provisions, degree of net interest margin stabilisation, with the broader focus on the potential for an earnings and economic recovery in Singapore. STI Highlights in January 2021 
The STI ended January with a market capitalisation of S$525 billion, representing close to 60% of the combined market capitalisation of all stocks listed on Singapore Exchange. The strongest of the 30 STI stocks in January included regional plays Wilmar International, HongkongLand and Thai Beverage PCL. Two of these three stocks, Thai Beverage PCL and Wilmar International were also the STI’s best performers over the past three months, with respective returns of 42% and 30%. 
The least performing STI stocks in January included City Developments, Keppel Corporation and ComfortDelGro Corp. This brought the average total returns of these three stocks over the past three months to 15%. 
Over the month, STI stocks saw combined net institutional inflows of S$18 million (compared to approximate inflows of S$300 million in January 2020) and combined net retail outflows of S$245 million (compared to approximate outflows of S$130 million in January 2020). Meanwhile, the combined AUM of the SPDR® Straits Times Index ETF and the Nikko AM Singapore STI ETF ended January at S$2.16 billion compared to S$2.07 billion at the end of 2020, with the unit creations and no redemptions generating S$47 million of net inflows into the two ETFs. 
The recent momentum of the 30 STI stocks is tabled below, with the STI stocks sort by the highest total returns for the past three months.

<table class="table table-striped"><tbody>
<tr>
<td>
			STI Stock
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap S$M
			</td>
			<td>
			January Net Insti Inflow S$M 
			</td>
			<td>
			January Total Return 

			%
			</td>
			<td>
			Three Month Total Return 

			%
			</td>
			<td>
			Sector
			</td>
		</tr>
<tr>
<td>
			ThaiBev
			</td>
			<td>
			Y92
			</td>
			<td>
			20,720
			</td>
			<td>
			7
			</td>
			<td>
			12.2
			</td>
			<td>
			42
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			Genting Sing
			</td>
			<td>
			G13
			</td>
			<td>
			10,315
			</td>
			<td>
			-6
			</td>
			<td>
			0.6
			</td>
			<td>
			33
			</td>
			<td>
			Consumer Cyclicals
			</td>
		</tr>
<tr>
<td>
			Wilmar Intl
			</td>
			<td>
			F34
			</td>
			<td>
			33,293
			</td>
			<td>
			51
			</td>
			<td>
			13.3
			</td>
			<td>
			30
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			SATS
			</td>
			<td>
			S58
			</td>
			<td>
			4,311
			</td>
			<td>
			-10
			</td>
			<td>
			-3.3
			</td>
			<td>
			29
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			JMH USD
			</td>
			<td>
			J36
			</td>
			<td>
			56,544
			</td>
			<td>
			5
			</td>
			<td>
			3.8
			</td>
			<td>
			27
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			CapitaLand
			</td>
			<td>
			C31
			</td>
			<td>
			16,669
			</td>
			<td>
			18
			</td>
			<td>
			-2.1
			</td>
			<td>
			25
			</td>
			<td>
			Real Estate (excl. REITs)
			</td>
		</tr>
<tr>
<td>
			CapLand Int Com T
			</td>
			<td>
			C38U
			</td>
			<td>
			13,847
			</td>
			<td>
			-15
			</td>
			<td>
			-0.1
			</td>
			<td>
			25
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			DBS
			</td>
			<td>
			D05
			</td>
			<td>
			64,236
			</td>
			<td>
			52
			</td>
			<td>
			0.6
			</td>
			<td>
			25
			</td>
			<td>
			Financial Services
			</td>
		</tr>
<tr>
<td>
			UOB
			</td>
			<td>
			U11
			</td>
			<td>
			39,110
			</td>
			<td>
			87
			</td>
			<td>
			3.5
			</td>
			<td>
			23
			</td>
			<td>
			Financial Services
			</td>
		</tr>
<tr>
<td>
			HongkongLand USD
			</td>
			<td>
			H78
			</td>
			<td>
			14,372
			</td>
			<td>
			6
			</td>
			<td>
			12.8
			</td>
			<td>
			23
			</td>
			<td>
			Real Estate (excl. REITs)
			</td>
		</tr>
<tr>
<td>
			OCBC Bank
			</td>
			<td>
			O39
			</td>
			<td>
			46,170
			</td>
			<td>
			75
			</td>
			<td>
			2.6
			</td>
			<td>
			23
			</td>
			<td>
			Financial Services
			</td>
		</tr>
<tr>
<td>
			Jardine C&amp;C
			</td>
			<td>
			C07
			</td>
			<td>
			8,521
			</td>
			<td>
			42
			</td>
			<td>
			10.3
			</td>
			<td>
			21
			</td>
			<td>
			Consumer Cyclicals
			</td>
		</tr>
<tr>
<td>
			SIA
			</td>
			<td>
			C6L
			</td>
			<td>
			12,186
			</td>
			<td>
			-18
			</td>
			<td>
			-4.0
			</td>
			<td>
			21
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Mapletree Com Tr
			</td>
			<td>
			N2IU
			</td>
			<td>
			6,862
			</td>
			<td>
			-12
			</td>
			<td>
			-2.8
			</td>
			<td>
			20
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			Singtel
			</td>
			<td>
			Z74
			</td>
			<td>
			38,975
			</td>
			<td>
			-102
			</td>
			<td>
			2.2
			</td>
			<td>
			19
			</td>
			<td>
			Telecommunications
			</td>
		</tr>
<tr>
<td>
			UOL
			</td>
			<td>
			U14
			</td>
			<td>
			6,178
			</td>
			<td>
			-12
			</td>
			<td>
			-5.1
			</td>
			<td>
			18
			</td>
			<td>
			Real Estate (excl. REITs)
			</td>
		</tr>
<tr>
<td>
			ComfortDelGro
			</td>
			<td>
			C52
			</td>
			<td>
			3,423
			</td>
			<td>
			-37
			</td>
			<td>
			-5.4
			</td>
			<td>
			17
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			JSH USD
			</td>
			<td>
			J37
			</td>
			<td>
			38,314
			</td>
			<td>
			2
			</td>
			<td>
			5.1
			</td>
			<td>
			17
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			SGX
			</td>
			<td>
			S68
			</td>
			<td>
			10,605
			</td>
			<td>
			33
			</td>
			<td>
			7.5
			</td>
			<td>
			15
			</td>
			<td>
			Financial Services
			</td>
		</tr>
<tr>
<td>
			Keppel Corp
			</td>
			<td>
			BN4
			</td>
			<td>
			9,106
			</td>
			<td>
			-9
			</td>
			<td>
			-6.9
			</td>
			<td>
			14
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			CityDev
			</td>
			<td>
			C09
			</td>
			<td>
			6,548
			</td>
			<td>
			-94
			</td>
			<td>
			-9.4
			</td>
			<td>
			14
			</td>
			<td>
			Real Estate (excl. REITs)
			</td>
		</tr>
<tr>
<td>
			DairyFarm USD
			</td>
			<td>
			D01
			</td>
			<td>
			7,755
			</td>
			<td>
			9
			</td>
			<td>
			4.0
			</td>
			<td>
			11
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			Ascendas REIT
			</td>
			<td>
			A17U
			</td>
			<td>
			12,797
			</td>
			<td>
			-4
			</td>
			<td>
			3.4
			</td>
			<td>
			9
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			YZJ Shipbldg SGD
			</td>
			<td>
			BS6
			</td>
			<td>
			3,791
			</td>
			<td>
			19
			</td>
			<td>
			3.1
			</td>
			<td>
			7
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			ST Engineering
			</td>
			<td>
			S63
			</td>
			<td>
			11,559
			</td>
			<td>
			-36
			</td>
			<td>
			-2.9
			</td>
			<td>
			6
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Sembcorp Ind
			</td>
			<td>
			U96
			</td>
			<td>
			2,939
			</td>
			<td>
			4
			</td>
			<td>
			-3.5
			</td>
			<td>
			4
			</td>
			<td>
			Utilities
			</td>
		</tr>
<tr>
<td>
			Venture
			</td>
			<td>
			V03
			</td>
			<td>
			5,756
			</td>
			<td>
			9
			</td>
			<td>
			2.2
			</td>
			<td>
			3
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			Keppel DC REIT
			</td>
			<td>
			AJBU
			</td>
			<td>
			4,867
			</td>
			<td>
			9
			</td>
			<td>
			6.0
			</td>
			<td>
			3
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			Mapletree Log Tr
			</td>
			<td>
			M44U
			</td>
			<td>
			8,182
			</td>
			<td>
			-25
			</td>
			<td>
			-1.5
			</td>
			<td>
			2
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			Mapletree Ind Tr
			</td>
			<td>
			ME8U
			</td>
			<td>
			6,747
			</td>
			<td>
			-29
			</td>
			<td>
			-0.7
			</td>
			<td>
			-5
			</td>
			<td>
			REITs
			</td>
		</tr>
</tbody></table>
Source: SGX StockFacts, Refinitiv and Bloomberg (Data as of 29 January 2021)
</body></html>





The STI added 2.1% in January, taking its three price return to 19.8%, with dividend distributions boosting the total return to 20.2%. Similarly, the highly correlated FTSE ASEAN All Share Index was comparatively level for January, bringing its 3M total return to 16.8%. 
	 
	
The strongest of the 30 STI stocks in January included Wilmar Int, HongkongLand and Thai Beverage. Two of these three stocks, Thai Beverage and Wilmar Int were also the STI’s best performers over the past three months, with respective returns of 42% and 30%.  
	 
	DBS, OCBC and UOB continued to outpace the top quartile of global banks by market value. The trio averaged 2.2% gains in January, following 3.9% declines in 2020. Combined the three banks also led the net institutional inflows of Singapore-listed stocks in January, with S$214 million of inflows.

 The Straits Times Index (“STI”) ended January at 2902.52, 478.68 points or 19.8% higher, than the 2423.84 close at the end of October. The three months of gains, which saw the onset of retracements on 25 November and then again on 21 January, saw the STI close twice above the key 3000 level. The STI gains coincided with a 16.4% price gain in the regional FTSE ASEAN All-Share Index and a 15.5% price gain for the FTSE Asia Pacific Index. The less correlated, sector-driven S&amp;P 500 Index gained 10.5%.  



      
    
    3M price Return


STI’s Biggest Driver in Early 2021  
The global campaign to overcome the Coronavirus continues to be the biggest driver for the STI. While the STI has declined 3.8% from the 21 January close, Singapore’s most traded medical supply stocks – Medtecs International Corp, Top Glove Corp Bhd, Riverstone Holdings and UG Healthcare averaged 0.2% gains, bringing their average three month decline to 18.1%. The recent to three-month consolidation of the medical supply stocks (note the quartet averaged 600%+ gains for the six months ended 31 October) reflects concern on the pace of the vaccine rollouts relative to the prevalence of the contagious strains of the coronavirus.  
Two of the global economic powerhouses, the United States and Eurozone currently account for 78% of the global infections recorded by the WHO. Together the United States and the Eurozone account for more than a third of global trade and two-fifths of the global GDP. While the Federal Reserve Balance Sheet has grown 80% since January 2020, with the European Central Bank Balance Sheet up more than 40%, the latter part of January saw global risk markets take on the aforementioned concerns, and price in less optimism in an imminent return to a new normal.  
While January saw the price of Gold decline 3.3% in SGD terms, the safe-haven gauge did rebound 5.5% during the final two sessions of the month. With Brent Crude Oil gaining 3.9% during the month, Sembcorp Marine was the Singapore’s most traded non-STI stock in January with 1.4% gains on the month on S$28 million of net institutional inflow.  STI’s Biggest Sector Outpaced Global Peers  
The current top quartile of global banks by market value saw a median 0.6% gain in the month of January following median decline of 9.5% in total return over 2020. In Singapore, DBS Group Holdings (“DBS”), Oversea-Chinese Banking Corp (“OCBC”) and United Overseas Bank (“UOB”) generated an average gain of 2.2% in January, following average decline of 3.9% in total returns in 2020. Combined the three banks have also led the net institutional inflows of Singapore-listed stocks in January, with S$214 million of inflows recorded (inflows were as high at S$283 million on 21 January).    
DBS reports its full year results before the open on Wednesday 10 Feb, OCBC will report before the open on Wednesday 24 Feb and UOB will report before the open on Thursday 25 February. Key industry drivers going into this year include the ability to expand non-interest income, potential for lower provisions, degree of net interest margin stabilisation, with the broader focus on the potential for an earnings and economic recovery in Singapore.  STI Highlights in January 2021  
The STI ended January with a market capitalisation of S$525 billion, representing close to 60% of the combined market capitalisation of all stocks listed on Singapore Exchange.  The strongest of the 30 STI stocks in January included regional plays Wilmar International, HongkongLand and Thai Beverage PCL. Two of these three stocks, Thai Beverage PCL and Wilmar International were also the STI’s best performers over the past three months, with respective returns of 42% and 30%.   
The least performing STI stocks in January included City Developments, Keppel Corporation and ComfortDelGro Corp. This brought the average total returns of these three stocks over the past three months to 15%.  
Over the month, STI stocks saw combined net institutional inflows of S$18 million (compared to approximate inflows of S$300 million in January 2020) and combined net retail outflows of S$245 million (compared to approximate outflows of S$130 million in January 2020). Meanwhile, the combined AUM of the SPDR® Straits Times Index ETF and the Nikko AM Singapore STI ETF ended January at S$2.16 billion compared to S$2.07 billion at the end of 2020, with the unit creations and no redemptions generating S$47 million of net inflows into the two ETFs.  
The recent momentum of the 30 STI stocks is tabled below, with the STI stocks sort by the highest total returns for the past three months.




			STI Stock
			
			
			SGX Code
			
			
			Market Cap S$M
			
			
			January Net Insti Inflow S$M 
			
			
			January Total Return 

			%
			
			
			Three Month Total Return 

			%
			
			
			Sector
			
		


			ThaiBev
			
			
			Y92
			
			
			20,720
			
			
			7
			
			
			12.2
			
			
			42
			
			
			Consumer Non-Cyclicals
			
		


			Genting Sing
			
			
			G13
			
			
			10,315
			
			
			-6
			
			
			0.6
			
			
			33
			
			
			Consumer Cyclicals
			
		


			Wilmar Intl
			
			
			F34
			
			
			33,293
			
			
			51
			
			
			13.3
			
			
			30
			
			
			Consumer Non-Cyclicals
			
		


			SATS
			
			
			S58
			
			
			4,311
			
			
			-10
			
			
			-3.3
			
			
			29
			
			
			Industrials
			
		


			JMH USD
			
			
			J36
			
			
			56,544
			
			
			5
			
			
			3.8
			
			
			27
			
			
			Industrials
			
		


			CapitaLand
			
			
			C31
			
			
			16,669
			
			
			18
			
			
			-2.1
			
			
			25
			
			
			Real Estate (excl. REITs)
			
		


			CapLand Int Com T
			
			
			C38U
			
			
			13,847
			
			
			-15
			
			
			-0.1
			
			
			25
			
			
			REITs
			
		


			DBS
			
			
			D05
			
			
			64,236
			
			
			52
			
			
			0.6
			
			
			25
			
			
			Financial Services
			
		


			UOB
			
			
			U11
			
			
			39,110
			
			
			87
			
			
			3.5
			
			
			23
			
			
			Financial Services
			
		


			HongkongLand USD
			
			
			H78
			
			
			14,372
			
			
			6
			
			
			12.8
			
			
			23
			
			
			Real Estate (excl. REITs)
			
		


			OCBC Bank
			
			
			O39
			
			
			46,170
			
			
			75
			
			
			2.6
			
			
			23
			
			
			Financial Services
			
		


			Jardine C&amp;C
			
			
			C07
			
			
			8,521
			
			
			42
			
			
			10.3
			
			
			21
			
			
			Consumer Cyclicals
			
		


			SIA
			
			
			C6L
			
			
			12,186
			
			
			-18
			
			
			-4.0
			
			
			21
			
			
			Industrials
			
		


			Mapletree Com Tr
			
			
			N2IU
			
			
			6,862
			
			
			-12
			
			
			-2.8
			
			
			20
			
			
			REITs
			
		


			Singtel
			
			
			Z74
			
			
			38,975
			
			
			-102
			
			
			2.2
			
			
			19
			
			
			Telecommunications
			
		


			UOL
			
			
			U14
			
			
			6,178
			
			
			-12
			
			
			-5.1
			
			
			18
			
			
			Real Estate (excl. REITs)
			
		


			ComfortDelGro
			
			
			C52
			
			
			3,423
			
			
			-37
			
			
			-5.4
			
			
			17
			
			
			Industrials
			
		


			JSH USD
			
			
			J37
			
			
			38,314
			
			
			2
			
			
			5.1
			
			
			17
			
			
			Industrials
			
		


			SGX
			
			
			S68
			
			
			10,605
			
			
			33
			
			
			7.5
			
			
			15
			
			
			Financial Services
			
		


			Keppel Corp
			
			
			BN4
			
			
			9,106
			
			
			-9
			
			
			-6.9
			
			
			14
			
			
			Industrials
			
		


			CityDev
			
			
			C09
			
			
			6,548
			
			
			-94
			
			
			-9.4
			
			
			14
			
			
			Real Estate (excl. REITs)
			
		


			DairyFarm USD
			
			
			D01
			
			
			7,755
			
			
			9
			
			
			4.0
			
			
			11
			
			
			Consumer Non-Cyclicals
			
		


			Ascendas REIT
			
			
			A17U
			
			
			12,797
			
			
			-4
			
			
			3.4
			
			
			9
			
			
			REITs
			
		


			YZJ Shipbldg SGD
			
			
			BS6
			
			
			3,791
			
			
			19
			
			
			3.1
			
			
			7
			
			
			Industrials
			
		


			ST Engineering
			
			
			S63
			
			
			11,559
			
			
			-36
			
			
			-2.9
			
			
			6
			
			
			Industrials
			
		


			Sembcorp Ind
			
			
			U96
			
			
			2,939
			
			
			4
			
			
			-3.5
			
			
			4
			
			
			Utilities
			
		


			Venture
			
			
			V03
			
			
			5,756
			
			
			9
			
			
			2.2
			
			
			3
			
			
			Technology (Hardware/ Software)
			
		


			Keppel DC REIT
			
			
			AJBU
			
			
			4,867
			
			
			9
			
			
			6.0
			
			
			3
			
			
			REITs
			
		


			Mapletree Log Tr
			
			
			M44U
			
			
			8,182
			
			
			-25
			
			
			-1.5
			
			
			2
			
			
			REITs
			
		


			Mapletree Ind Tr
			
			
			ME8U
			
			
			6,747
			
			
			-29
			
			
			-0.7
			
			
			-5
			
			
			REITs
			
		

Source: SGX StockFacts, Refinitiv and Bloomberg (Data as of 29 January 2021)



January STI Gains Take 3-month Return to 20%

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices. Companies mentioned this week:<a href="https://www.smartkarma.com/entities/huawei-technologies-co-ltd" target="_blank" data-smartkarma-citation="entities:8231:1" rel="noopener">Huawei Technology (40978Z CH)</a>, <a href="https://www.smartkarma.com/entities/top-glove-corp-bhd" target="_blank" data-smartkarma-citation="entities:20759:1" rel="noopener">Top Glove Corp (TOPG MK)</a>, <a href="https://www.smartkarma.com/entities/naver-corp" target="_blank" data-smartkarma-citation="entities:16029:1" rel="noopener">Naver Corp (035420 KS)</a>, <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/bytedance-technology" target="_blank" data-smartkarma-citation="entities:27936:1" rel="noopener">ByteDance (1460967D CH)</a>, <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>, <a href="https://www.smartkarma.com/entities/baidu-inc" target="_blank" data-smartkarma-citation="entities:179:1" rel="noopener">Baidu (BIDU US)</a>, <a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a>, <a href="https://www.smartkarma.com/entities/china-telecom-corp-ltd-h" target="_blank" data-smartkarma-citation="entities:1015:1" rel="noopener">China Telecom Corp Ltd (H) (728 HK)</a>, <a href="https://www.smartkarma.com/entities/china-unicom-hong-kong-ltd" target="_blank" data-smartkarma-citation="entities:1016:1" rel="noopener">China Unicom Hong Kong (762 HK)</a>

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices. Companies mentioned this week:Huawei Technology (40978Z CH), Top Glove Corp (TOPG MK), Naver Corp (035420 KS), Samsung Electronics (005930 KS), ByteDance (1460967D CH), Alibaba Group (9988 HK), Baidu (BIDU US), China Mobile (941 HK), China Telecom Corp Ltd (H) (728 HK), China Unicom Hong Kong (762 HK) 

Global Emerging Markets Weekly: 22 January 2021

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
Advance estimates indicate that Singapore’s Manufacturing Sector grew 7.1% in 2020, rebounding from a 1.4% decline in 2019. The SIPMM PMI ended the year with at 50.5 in December, with sixth straight months of expansions. Manufacturing sentiment has also been improving across the region. 
	 </li>
	<li>
Singapore’s 20 most traded manufacturing-related stocks generated a median gain of 41% in 2020, following median gains of 11% in 2019. The group of 20 stocks averaged S$230 million of daily trading turnover in 2020. 
	 </li>
	<li>The average 256% return of the 20 stocks reflected the “K-shaped” performances across the various goods producing industries. Seven stocks related to the production of medical supplies averaged 179% returns in 2020, whilst six technology manufacturing-related stocks averaged a 44% return in 2020.</li>
</ul>
 

Growth of Local Manufacturing &amp; Regional Supply Chains 
Advance estimates indicate that Singapore’s Manufacturing Sector grew 7.1% in 2020, rebounding from a 1.4% decline in 2019. As reported by monthly industrial production numbers throughout 2020 the manufacturing sector was supported by output expansions in biomedical manufacturing, electronics, precision engineering offsetting declines in transport engineering and general manufacturing. Similar “K-shaped” perfomances were recorded across manufacturing-related stocks that are connected to such industries. The SIPMM Purchasing Managing Index (“PMI”) ended 2020 with a 50.5 reading for December, with sixth straight months of expansions. Over the last two months of 2020, the two sub-indices of the SIPMM PMI which saw the most decline since January 2018, New Orders and Output had both inched higher, from 50.6 to 50.8, and from 51.3 to 51.4 respectively. Back in January 2018, the SIPMM PMI recorded its highest expansion since December 2009 and has not been back to the 53.1 level since. That month also coincided with the United States announcing tariffs on Solar Panels and Washing Machines, a key beachhead in the recent US-China trade tensions. The Electronics PMI at 51.2 is at a 27 month high on demand for technology products and services. Technology is a also a key part of Signapore’s most trading manufacturign-related stocks.   
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 <img src='https://api2.sgx.com/sites/default/files/2021-01/Capture_4.PNG' alt='Singapore Manufacturing Sector Growth' />
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 <div class='content-caption'>Singapore Manufacturing Sector Growth</div>
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Manufacturing sentiment has also been improving across the region. By the end of 2020, IHS Market PMIs for Asia ranged between 49.1 for Malaysia (the only country of the nine below the 50.0 threshold) to 59.4 for Taiwan, with Japan back at 50.0 after being in contraction since May 2019. While confidence across the regional supply chain quickly rebounded following the significant lows in April, the average PMI of the nine Asian countries had continued to inch up from 51.6 to 52.6 over the last two months of 2020. Bloomberg’s Chief Asia Economist Chang Shu noted with the PMI results that Asia’s manufacturing sector was persevering even as the coronavirus worsened, with challenges in the months ahead as infection surges in the region and beyond undermine demand. Regional supply chains have also been subject to much restructuring over recent years, influenced by the rise of the Asia purchasing power, in addition to technology, communication and e-commerce developments. This has all served as a means for upstream companies to move downstream and directly face the growing pool of consumers, a sub-trend that has extended to the various goods producing business listed in Singapore. For instance, Singapore’s most traded manufacturing-related stock in 2020, Wilmar has over the years established a comprehensive sales and distribution network reaching traditional retail outlets, supermarkets, convenience stores and hyper-marts, reaching about five billion consumers worldwide. 
 

Singapore’s 20 most traded manufacturing-related stocks generated a median gain of 41% in 2020, with the 256% average return reflected the “K-shaped” performances across the various industries. For instance, stocks related to the production of medical supplies, Medtecs International Corporation, Riverstone Holdings, Top Glove Corporation Berhad, UG Healthcare Corporation, Biolidics, Vicplas International and Sri Trang Agro-Industry PCL averaged 179% returns in 2020, whilst the five STI manufacturing-related stocks averaged a 3% total return. The six technology manufacturing-related stocks averaged a 44% return in 2020, backing up from 99% average total returns in 2020. Combined the 20 stocks accoutned for approximately 17% of the day-to-day turnover of all stocks listed in Singapore in 2020. As discussed in the recent SGX My Gateway Report (click <a href="https://ebm.cheetahmail.com/c/tag/hBf8vi8B86%24MfB932-PAAApi2DY/doc.html?t_params=W9KLujoE6S15OwCWclPQX9SgdFxRucpW0Igbjgxfs015-35EJ6qc0xL70mpwyyVWHaka5qJVUdbBHoYE838IrXC">here</a>), Wilmar International, Medtecs International Corporation, Riverstone Holdings, UMS Holdings, Top Glove Corporation Berhard and UG Healthcare Corporation were also among a number of stocks that saw significant increases in trading turnover in 2020. 
These 20 most traded Singapore-listed stocks that are goods producing or are focused on goods producing businesses are tabled below.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stock
			</td>
			<td>
			Code
			</td>
			<td>
			Sector
			</td>
			<td>
			Mkt Cap at end of 2020 S$M
			</td>
			<td>
			Net Insti Inflow in 2020 S$M
			</td>
			<td>
			4Q20 Total Return
			</td>
			<td>
			2020 Total Return
			</td>
			<td>
			2019 Total Return
			</td>
		</tr>
<tr>
<td>
			Wilmar Intl
			</td>
			<td>
			F34
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
			<td>
			29,370
			</td>
			<td>
			-42
			</td>
			<td>
			6%
			</td>
			<td>
			17%
			</td>
			<td>
			36%
			</td>
		</tr>
<tr>
<td>
			YZJ Shipbldg SGD
			</td>
			<td>
			BS6
			</td>
			<td>
			Industrials
			</td>
			<td>
			3,681
			</td>
			<td>
			-173
			</td>
			<td>
			-4%
			</td>
			<td>
			-11%
			</td>
			<td>
			-7%
			</td>
		</tr>
<tr>
<td>
			Venture
			</td>
			<td>
			V03
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
			<td>
			5,632
			</td>
			<td>
			169
			</td>
			<td>
			1%
			</td>
			<td>
			25%
			</td>
			<td>
			21%
			</td>
		</tr>
<tr>
<td>
			ST Engineering
			</td>
			<td>
			S63
			</td>
			<td>
			Industrials
			</td>
			<td>
			11,901
			</td>
			<td>
			55
			</td>
			<td>
			10%
			</td>
			<td>
			1%
			</td>
			<td>
			17%
			</td>
		</tr>
<tr>
<td>
			Medtecs Intl*
			</td>
			<td>
			546
			</td>
			<td>
			Healthcare
			</td>
			<td>
			549
			</td>
			<td>
			22
			</td>
			<td>
			-7%
			</td>
			<td>
			2628%
			</td>
			<td>
			37%
			</td>
		</tr>
<tr>
<td>
			AEM
			</td>
			<td>
			AWX
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
			<td>
			949
			</td>
			<td>
			16
			</td>
			<td>
			-10%
			</td>
			<td>
			75%
			</td>
			<td>
			154%
			</td>
		</tr>
<tr>
<td>
			ThaiBev
			</td>
			<td>
			Y92
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
			<td>
			18,460
			</td>
			<td>
			-137
			</td>
			<td>
			21%
			</td>
			<td>
			-15%
			</td>
			<td>
			49%
			</td>
		</tr>
<tr>
<td>
			Riverstone
			</td>
			<td>
			AP4
			</td>
			<td>
			Healthcare
			</td>
			<td>
			1,645
			</td>
			<td>
			-39
			</td>
			<td>
			-36%
			</td>
			<td>
			143%
			</td>
			<td>
			-17%
			</td>
		</tr>
<tr>
<td>
			Sembcorp Marine
			</td>
			<td>
			S51
			</td>
			<td>
			Industrials
			</td>
			<td>
			1,795
			</td>
			<td>
			-107
			</td>
			<td>
			-2%
			</td>
			<td>
			-83%
			</td>
			<td>
			-14%
			</td>
		</tr>
<tr>
<td>
			UMS
			</td>
			<td>
			558
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
			<td>
			576
			</td>
			<td>
			19
			</td>
			<td>
			11%
			</td>
			<td>
			10%
			</td>
			<td>
			90%
			</td>
		</tr>
<tr>
<td>
			Top Glove
			</td>
			<td>
			BVA
			</td>
			<td>
			Healthcare
			</td>
			<td>
			16,045
			</td>
			<td>
			-72
			</td>
			<td>
			-25%
			</td>
			<td>
			300%
			</td>
			<td>
			-14%
			</td>
		</tr>
<tr>
<td>
			UG Healthcare*
			</td>
			<td>
			8K7
			</td>
			<td>
			Healthcare
			</td>
			<td>
			361
			</td>
			<td>
			-15
			</td>
			<td>
			-30%
			</td>
			<td>
			1157%
			</td>
			<td>
			-34%
			</td>
		</tr>
<tr>
<td>
			Jiutian Chemical*
			</td>
			<td>
			C8R
			</td>
			<td>
			Materials &amp; Resources
			</td>
			<td>
			163
			</td>
			<td>
			3
			</td>
			<td>
			71%
			</td>
			<td>
			382%
			</td>
			<td>
			-11%
			</td>
		</tr>
<tr>
<td>
			Hi-P
			</td>
			<td>
			H17
			</td>
			<td>
			Industrials
			</td>
			<td>
			1,623
			</td>
			<td>
			35
			</td>
			<td>
			70%
			</td>
			<td>
			34%
			</td>
			<td>
			101%
			</td>
		</tr>
<tr>
<td>
			Golden Agri-Res
			</td>
			<td>
			E5H
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
			<td>
			2,018
			</td>
			<td>
			-9.1
			</td>
			<td>
			12%
			</td>
			<td>
			-30%
			</td>
			<td>
			-2%
			</td>
		</tr>
<tr>
<td>
			Frencken
			</td>
			<td>
			E28
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
			<td>
			563
			</td>
			<td>
			10
			</td>
			<td>
			34%
			</td>
			<td>
			47%
			</td>
			<td>
			128%
			</td>
		</tr>
<tr>
<td>
			Nanofilm
			</td>
			<td>
			MZH
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
			<td>
			2,897
			</td>
			<td>
			-30
			</td>
			<td>
			51%
			</td>
			<td>
			70%
			</td>
			<td>
			N/A
			</td>
		</tr>
<tr>
<td>
			Biolidics*
			</td>
			<td>
			8YY
			</td>
			<td>
			Healthcare
			</td>
			<td>
			79
			</td>
			<td>
			-5
			</td>
			<td>
			-5%
			</td>
			<td>
			22%
			</td>
			<td>
			11%
			</td>
		</tr>
<tr>
<td>
			Vicplas Intl
			</td>
			<td>
			569
			</td>
			<td>
			Healthcare
			</td>
			<td>
			127
			</td>
			<td>
			1
			</td>
			<td>
			-19%
			</td>
			<td>
			169%
			</td>
			<td>
			11%
			</td>
		</tr>
<tr>
<td>
			Sri Trang Agro
			</td>
			<td>
			NC2
			</td>
			<td>
			Consumer Cyclicals
			</td>
			<td>
			1,782
			</td>
			<td>
			-38
			</td>
			<td>
			2%
			</td>
			<td>
			179%
			</td>
			<td>
			-37%
			</td>
		</tr>
<tr>
<td>
			Median
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			1%
			</td>
			<td>
			41%
			</td>
			<td>
			11%
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			8%
			</td>
			<td>
			256%
			</td>
			<td>
			27%
			</td>
		</tr>
</tbody></table>
 *Listed on Catalist, Source: SGX StockFacts, Refinitiv and Bloomberg (Data as of 31 December 2020).
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Advance estimates indicate that Singapore’s Manufacturing Sector grew 7.1% in 2020, rebounding from a 1.4% decline in 2019. The SIPMM PMI ended the year with at 50.5 in December, with sixth straight months of expansions. Manufacturing sentiment has also been improving across the region. 
	 
	
Singapore’s 20 most traded manufacturing-related stocks generated a median gain of 41% in 2020, following median gains of 11% in 2019. The group of 20 stocks averaged S$230 million of daily trading turnover in 2020.  
	 
	The average 256% return of the 20 stocks reflected the “K-shaped” performances across the various goods producing industries. Seven stocks related to the production of medical supplies averaged 179% returns in 2020, whilst six technology manufacturing-related stocks averaged a 44% return in 2020.

 

Growth of Local Manufacturing &amp; Regional Supply Chains  
Advance estimates indicate that Singapore’s Manufacturing Sector grew 7.1% in 2020, rebounding from a 1.4% decline in 2019. As reported by monthly industrial production numbers throughout 2020 the manufacturing sector was supported by output expansions in biomedical manufacturing, electronics, precision engineering offsetting declines in transport engineering and general manufacturing. Similar “K-shaped” perfomances were recorded across manufacturing-related stocks that are connected to such industries.  The SIPMM Purchasing Managing Index (“PMI”) ended 2020 with a 50.5 reading for December, with sixth straight months of expansions. Over the last two months of 2020, the two sub-indices of the SIPMM PMI which saw the most decline since January 2018, New Orders and Output had both inched higher, from 50.6 to 50.8, and from 51.3 to 51.4 respectively. Back in January 2018, the SIPMM PMI recorded its highest expansion since December 2009 and has not been back to the 53.1 level since. That month also coincided with the United States announcing tariffs on Solar Panels and Washing Machines, a key beachhead in the recent US-China trade tensions. The Electronics PMI at 51.2 is at a 27 month high on demand for technology products and services. Technology is a also a key part of Signapore’s most trading manufacturign-related stocks.   



      
    
    Singapore Manufacturing Sector Growth


Manufacturing sentiment has also been improving across the region. By the end of 2020, IHS Market PMIs for Asia ranged between 49.1 for Malaysia (the only country of the nine below the 50.0 threshold) to 59.4 for Taiwan, with Japan back at 50.0 after being in contraction since May 2019. While confidence across the regional supply chain quickly rebounded following the significant lows in April, the average PMI of the nine Asian countries had continued to inch up from 51.6 to 52.6 over the last two months of 2020. Bloomberg’s Chief Asia Economist Chang Shu noted with the PMI results that Asia’s manufacturing sector was persevering even as the coronavirus worsened, with challenges in the months ahead as infection surges in the region and beyond undermine demand.  Regional supply chains have also been subject to much restructuring over recent years, influenced by the rise of the Asia purchasing power, in addition to technology, communication and e-commerce developments. This has all served as a means for upstream companies to move downstream and directly face the growing pool of consumers, a sub-trend that has extended to the various goods producing business listed in Singapore. For instance, Singapore’s most traded manufacturing-related stock in 2020, Wilmar has over the years established a comprehensive sales and distribution network reaching traditional retail outlets, supermarkets, convenience stores and hyper-marts, reaching about five billion consumers worldwide. 
 

Singapore’s 20 most traded manufacturing-related stocks generated a median gain of 41% in 2020, with the 256% average return reflected the “K-shaped” performances across the various industries. For instance, stocks related to the production of medical supplies, Medtecs International Corporation, Riverstone Holdings, Top Glove Corporation Berhad, UG Healthcare Corporation, Biolidics, Vicplas International and Sri Trang Agro-Industry PCL averaged 179% returns in 2020, whilst the five STI manufacturing-related stocks averaged a 3% total return. The six technology manufacturing-related stocks averaged a 44% return in 2020, backing up from 99% average total returns in 2020. Combined the 20 stocks accoutned for approximately 17% of the day-to-day turnover of all stocks listed in Singapore in 2020. As discussed in the recent SGX My Gateway Report (click here), Wilmar International, Medtecs International Corporation, Riverstone Holdings, UMS Holdings, Top Glove Corporation Berhard and UG Healthcare Corporation were also among a number of stocks that saw significant increases in trading turnover in 2020.  
These 20 most traded Singapore-listed stocks that are goods producing or are focused on goods producing businesses are tabled below.




			Stock
			
			
			Code
			
			
			Sector
			
			
			Mkt Cap at end of 2020 S$M
			
			
			Net Insti Inflow in 2020 S$M
			
			
			4Q20 Total Return
			
			
			2020 Total Return
			
			
			2019 Total Return
			
		


			Wilmar Intl
			
			
			F34
			
			
			Consumer Non-Cyclicals
			
			
			29,370
			
			
			-42
			
			
			6%
			
			
			17%
			
			
			36%
			
		


			YZJ Shipbldg SGD
			
			
			BS6
			
			
			Industrials
			
			
			3,681
			
			
			-173
			
			
			-4%
			
			
			-11%
			
			
			-7%
			
		


			Venture
			
			
			V03
			
			
			Technology (Hardware/ Software)
			
			
			5,632
			
			
			169
			
			
			1%
			
			
			25%
			
			
			21%
			
		


			ST Engineering
			
			
			S63
			
			
			Industrials
			
			
			11,901
			
			
			55
			
			
			10%
			
			
			1%
			
			
			17%
			
		


			Medtecs Intl*
			
			
			546
			
			
			Healthcare
			
			
			549
			
			
			22
			
			
			-7%
			
			
			2628%
			
			
			37%
			
		


			AEM
			
			
			AWX
			
			
			Technology (Hardware/ Software)
			
			
			949
			
			
			16
			
			
			-10%
			
			
			75%
			
			
			154%
			
		


			ThaiBev
			
			
			Y92
			
			
			Consumer Non-Cyclicals
			
			
			18,460
			
			
			-137
			
			
			21%
			
			
			-15%
			
			
			49%
			
		


			Riverstone
			
			
			AP4
			
			
			Healthcare
			
			
			1,645
			
			
			-39
			
			
			-36%
			
			
			143%
			
			
			-17%
			
		


			Sembcorp Marine
			
			
			S51
			
			
			Industrials
			
			
			1,795
			
			
			-107
			
			
			-2%
			
			
			-83%
			
			
			-14%
			
		


			UMS
			
			
			558
			
			
			Technology (Hardware/ Software)
			
			
			576
			
			
			19
			
			
			11%
			
			
			10%
			
			
			90%
			
		


			Top Glove
			
			
			BVA
			
			
			Healthcare
			
			
			16,045
			
			
			-72
			
			
			-25%
			
			
			300%
			
			
			-14%
			
		


			UG Healthcare*
			
			
			8K7
			
			
			Healthcare
			
			
			361
			
			
			-15
			
			
			-30%
			
			
			1157%
			
			
			-34%
			
		


			Jiutian Chemical*
			
			
			C8R
			
			
			Materials &amp; Resources
			
			
			163
			
			
			3
			
			
			71%
			
			
			382%
			
			
			-11%
			
		


			Hi-P
			
			
			H17
			
			
			Industrials
			
			
			1,623
			
			
			35
			
			
			70%
			
			
			34%
			
			
			101%
			
		


			Golden Agri-Res
			
			
			E5H
			
			
			Consumer Non-Cyclicals
			
			
			2,018
			
			
			-9.1
			
			
			12%
			
			
			-30%
			
			
			-2%
			
		


			Frencken
			
			
			E28
			
			
			Technology (Hardware/ Software)
			
			
			563
			
			
			10
			
			
			34%
			
			
			47%
			
			
			128%
			
		


			Nanofilm
			
			
			MZH
			
			
			Technology (Hardware/ Software)
			
			
			2,897
			
			
			-30
			
			
			51%
			
			
			70%
			
			
			N/A
			
		


			Biolidics*
			
			
			8YY
			
			
			Healthcare
			
			
			79
			
			
			-5
			
			
			-5%
			
			
			22%
			
			
			11%
			
		


			Vicplas Intl
			
			
			569
			
			
			Healthcare
			
			
			127
			
			
			1
			
			
			-19%
			
			
			169%
			
			
			11%
			
		


			Sri Trang Agro
			
			
			NC2
			
			
			Consumer Cyclicals
			
			
			1,782
			
			
			-38
			
			
			2%
			
			
			179%
			
			
			-37%
			
		


			Median
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			1%
			
			
			41%
			
			
			11%
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			8%
			
			
			256%
			
			
			27%
			
		

 *Listed on Catalist, Source: SGX StockFacts, Refinitiv and Bloomberg (Data as of 31 December 2020).



Manufacturing Growth Extended to Stocks in 2020 

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
In November, 25 primary-listed Singapore stocks bought back shares for a total consideration of S$174 million, more than the S$22 million in consideration for October 2020, and higher than the S$52 million buyback consideration reported in November 2019. 
	 </li>
	<li>
Wilmar bought back 33,440,100 of its shares for a consideration of S$142,133,128 between 2 November and 30 November at an average price of S$4.25 per share. This represented 0.53% of Wilmar’s issued shares (excluding treasury shares) as of the date of its current share buyback resolution. 
	 </li>
	<li>On 30 October, Wilmar posted its highest third quarter core profit since its listing, and the stock currently maintains a valuation gap with Yihai Kerry Arawana Holdings Co, an 89.99% subsidiary of Wilmar that officially listed on the Shenzhen Stock Exchange ChiNext Board that commenced trading on 15 October.</li>
</ul>
 

Total share buyback consideration for the month of November totaled S$174.2 million up from $22.2 million in October (click <a href="https://www.sgx.com/research-education/market-updates/20201103-28-companies-bought-back-shares-october">here</a> for more). This has brought the total consideration of share buybacks for SGX primary-listed stocks to S$920 million for the first 11 months of 2020, up from S$590 million in consideration for the entire calendar year of 2019. The S$920 million represents 0.11% of the combined S$855.7 billion in market capitalisation of all stocks listed on SGX at the end of November.

Note this does not take into account buybacks of secondary listings, for instance Top Glove Corporation Bhd bought back 110 million shares on the Bursa Malaysia Exchange in November with a consideration of more than MYR 800 million.

With a 15.8% price gain and 16.2% total return in the month of November, this was the strongest month of gains for the STI since May 2009 (click <a href="With%20a%2015.8%25%20price%20gain%20and%2016.2%25%20total%20return%20in%20the%20month%20of%20November,%20this%20was%20the%20strongest%20month%20of%20gains%20for%20the%20Straits%20Times%20Index%20(%E2%80%9CSTI%E2%80%9D)%20since%20May%202009.%20DBS%20Group%20Holdings%20(%E2%80%9CDBS%E2%80%9D),%20Oversea%20Chinese%20Banking%20Corp%20(%E2%80%9COCBC%E2%80%9D)%20and%20United%20Overseas%20Bank%20(%E2%80%9CUOB%E2%80%9D)%20which%20make%20up%20approximately%2040%25%20of%20the%20STI%20avergaed%2021%25%20total%20returns%20wth%20net%20insitutional%20inflows%20of%20S%241.5%20billion.">here</a> for more). This was driven by rotation from defensive and digital industries with momentum, to cyclical mega-sectors more aligned with the broader economy. In turn the rotation was largely attributed to vaccine developments that have recently met the optimistic end of the timelines maintained by the WHO throughout 2020.
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-12/Buyback%20consideration%20Nov2020_0.png' alt='Buyback consideration Nov2020' />
 </figure>
 <div class='content-caption'>Buyback consideration Nov2020</div>
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Wilmar International (“Wilmar”) bought back 33,440,100 of its shares for a consideration of S$142,133,128 between 2 November and 30 November at an average price of S$4.25 per share. This represented 0.53% of Wilmar’s issued shares (excluding treasury shares) as of the date of the current share buyback resolution. Prior to this, Wilmar had not bought back its shares since 12 August 2016. Wilmar has since increased the number of shares bought back to 37,101,400 or 0.58% of its issued shares, as of 4 December. This also ranks Wilmar’s buyback consideration as the second highest amount for a primary-listed Singapore stock for the 2020 calendar year to date, after DBS Group Holdings.  

Yihai Kerry Arawana Holdings Co (“YKA”) is now an 89.99% subsidiary of Wilmar and officially listed on the Shenzhen Stock Exchange ChiNext Board and commenced trading on 15 October 2020. The current valuation gap sees YKA maintaining a Price-to-Earnings ratio of 64x, compared to Wilmar’s Price-to-Earnings ratio of 14x. Following the 30 October close, Wilmar International (“Wilmar”) reported the Group achieved another strong set of results in its 3QFY20 (ended 30 Sep), recording core net profit of US$501.4 million for the quarter (up from US$419.2 million in 3QFY19). This was the highest third quarter core results since its listing. The three consecutive quarters of sustained good performance resulted in a strong core net profit for its 9MFY20 of US$1.14 billion, an increase of 34.4% from US$846.4 million in 9MFY19.

Aside from Wilmar International, and four companies - Silverlake Axis, SUTL Enterprise, Miyoshi and Mun Siong Engineering commenced new buyback mandates in November. This followed on from seven companies that commenced new buyback mandates in October, which included shopper360 and OUE, HC Surgical Specialists, Cheung Woh Technologies, Trek 2000 International, Anchun International Holdings and Singapore Reinsurance Corporation. 

The table below summarises the buyback considerations in November 2020. The table is sorted by the value of the total consideration amount for the month, which combines the amount of shares or units purchased and the purchasing price of the transactions.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stocks
			</td>
			<td>
			Number of Shares/units Authorised for Purchase in Current Mandate
			</td>
			<td>
			Total Number of Shares/units Purchased in Nov 2020
			</td>
			<td>
			Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares in Nov 2020
			</td>
			<td>
			Average Price Paid S$
			</td>
			<td>
			Cumulative Number of Shares/units purchased in Mandate to date
			</td>
		</tr>
<tr>
<td>
			WILMAR INTERNATIONAL
			</td>
			<td>
			635,459,880
			</td>
			<td>
			33,440,100
			</td>
			<td>
			$142,133,128
			</td>
			<td>
			4.250
			</td>
			<td>
			33,440,100
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING (HOLDINGS)
			</td>
			<td>
			391,876,520
			</td>
			<td>
			18,000,000
			</td>
			<td>
			$16,904,075
			</td>
			<td>
			0.939
			</td>
			<td>
			45,249,200
			</td>
		</tr>
<tr>
<td>
			OUE
			</td>
			<td>
			90,061,166
			</td>
			<td>
			3,979,700
			</td>
			<td>
			$4,641,189
			</td>
			<td>
			1.166
			</td>
			<td>
			5,253,200
			</td>
		</tr>
<tr>
<td>
			SEMBCORP INDUSTRIES
			</td>
			<td>
			35,711,498
			</td>
			<td>
			2,625,000
			</td>
			<td>
			$4,319,639
			</td>
			<td>
			1.646
			</td>
			<td>
			3,584,100
			</td>
		</tr>
<tr>
<td>
			STRACO CORPORATION
			</td>
			<td>
			86,213,958
			</td>
			<td>
			3,600,000
			</td>
			<td>
			$1,804,623
			</td>
			<td>
			0.501
			</td>
			<td>
			7,043,900
			</td>
		</tr>
<tr>
<td>
			GLOBAL INVESTMENTS
			</td>
			<td>
			161,476,125
			</td>
			<td>
			10,399,300
			</td>
			<td>
			$1,439,504
			</td>
			<td>
			0.138
			</td>
			<td>
			41,444,000
			</td>
		</tr>
<tr>
<td>
			SILVERLAKE AXIS
			</td>
			<td>
			257,790,683
			</td>
			<td>
			3,469,200
			</td>
			<td>
			$912,914
			</td>
			<td>
			0.263
			</td>
			<td>
			3,469,200
			</td>
		</tr>
<tr>
<td>
			HONG FOK CORPORATION
			</td>
			<td>
			84,800,184
			</td>
			<td>
			991,200
			</td>
			<td>
			$680,990
			</td>
			<td>
			0.687
			</td>
			<td>
			2,337,100
			</td>
		</tr>
<tr>
<td>
			EUROSPORTS GLOBAL
			</td>
			<td>
			26,086,770
			</td>
			<td>
			1,339,000
			</td>
			<td>
			$234,877
			</td>
			<td>
			0.175
			</td>
			<td>
			2,047,900
			</td>
		</tr>
<tr>
<td>
			SUTL ENTERPRISE
			</td>
			<td>
			8,646,060
			</td>
			<td>
			477,300
			</td>
			<td>
			$223,242
			</td>
			<td>
			0.468
			</td>
			<td>
			477,300
			</td>
		</tr>
<tr>
<td>
			FOOD EMPIRE HOLDINGS
			</td>
			<td>
			53,597,249
			</td>
			<td>
			350,000
			</td>
			<td>
			$207,996
			</td>
			<td>
			0.594
			</td>
			<td>
			1,250,000
			</td>
		</tr>
<tr>
<td>
			MIYOSHI
			</td>
			<td>
			60,760,359
			</td>
			<td>
			6,289,500
			</td>
			<td>
			$203,882
			</td>
			<td>
			0.032
			</td>
			<td>
			6,289,500
			</td>
		</tr>
<tr>
<td>
			CHEUNG WOH TECHNOLOGIES
			</td>
			<td>
			29,770,450
			</td>
			<td>
			805,000
			</td>
			<td>
			$94,363
			</td>
			<td>
			0.117
			</td>
			<td>
			1,809,000
			</td>
		</tr>
<tr>
<td>
			MDR
			</td>
			<td>
			89,039,757
			</td>
			<td>
			1,019,100
			</td>
			<td>
			$76,873
			</td>
			<td>
			0.075
			</td>
			<td>
			2,208,400
			</td>
		</tr>
<tr>
<td>
			ANCHUN INTERNATIONAL HOLDINGS
			</td>
			<td>
			4,869,090
			</td>
			<td>
			236,300
			</td>
			<td>
			$64,688
			</td>
			<td>
			0.274
			</td>
			<td>
			500,000
			</td>
		</tr>
<tr>
<td>
			TUAN SING HOLDINGS
			</td>
			<td>
			118,414,021
			</td>
			<td>
			200,000
			</td>
			<td>
			$61,150
			</td>
			<td>
			0.306
			</td>
			<td>
			826,700
			</td>
		</tr>
<tr>
<td>
			NORDIC GROUP
			</td>
			<td>
			39,019,100
			</td>
			<td>
			242,100
			</td>
			<td>
			$52,800
			</td>
			<td>
			0.218
			</td>
			<td>
			1,197,400
			</td>
		</tr>
<tr>
<td>
			HC SURGICAL SPECIALISTS
			</td>
			<td>
			15,104,573
			</td>
			<td>
			106,800
			</td>
			<td>
			$36,773
			</td>
			<td>
			0.344
			</td>
			<td>
			1,368,400
			</td>
		</tr>
<tr>
<td>
			TREK 2000 INTERNATIONAL
			</td>
			<td>
			31,945,342
			</td>
			<td>
			409,100
			</td>
			<td>
			$29,721
			</td>
			<td>
			0.073
			</td>
			<td>
			1,226,700
			</td>
		</tr>
<tr>
<td>
			CHOO CHIANG HOLDINGS
			</td>
			<td>
			20,800,000
			</td>
			<td>
			55,800
			</td>
			<td>
			$12,463
			</td>
			<td>
			0.223
			</td>
			<td>
			127,100
			</td>
		</tr>
<tr>
<td>
			TIONG SENG HOLDINGS
			</td>
			<td>
			45,962,384
			</td>
			<td>
			70,300
			</td>
			<td>
			$9,459
			</td>
			<td>
			0.135
			</td>
			<td>
			1,132,700
			</td>
		</tr>
<tr>
<td>
			MUN SIONG ENGINEERING
			</td>
			<td>
			57,952,440
			</td>
			<td>
			200,000
			</td>
			<td>
			$8,757
			</td>
			<td>
			0.044
			</td>
			<td>
			200,000
			</td>
		</tr>
<tr>
<td>
			GKE CORPORATION
			</td>
			<td>
			77,617,409
			</td>
			<td>
			50,000
			</td>
			<td>
			$3,995
			</td>
			<td>
			0.080
			</td>
			<td>
			1,050,000
			</td>
		</tr>
<tr>
<td>
			INTRACO
			</td>
			<td>
			10,292,587
			</td>
			<td>
			10,000
			</td>
			<td>
			$2,028
			</td>
			<td>
			0.203
			</td>
			<td>
			109,000
			</td>
		</tr>
<tr>
<td>
			SHOPPER360
			</td>
			<td>
			11,166,880
			</td>
			<td>
			12,000
			</td>
			<td>
			$1,184
			</td>
			<td>
			0.099
			</td>
			<td>
			2,776,200
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			88,376,800
			</td>
			<td>
			$174,160,312
			</td>
			<td>
			 
			</td>
			<td>
			45,249,200
			</td>
		</tr>
</tbody></table>
Source: SGX (Data as of 30 November 2020)

Share buyback transactions involve share issuers repurchasing some of their outstanding shares from shareholders through the open market. Once the shares are bought back, they can be converted into treasury shares, which means they are no longer categorised as shares outstanding. Motivations for share buybacks can include employee compensation plans (such as share option schemes or employee share purchase plans) or long term capital management. Buybacks can pick up amidst market declines that are driven by broader moves on international macroeconomic developments.

Share buyback information can be found on the company disclosure page on the SGX website, using the Announcement category and sub-category of Share Buy Back-On Market (click <a href="http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/company_announcements">here</a>). As best practice, companies should refrain from buying back their shares during the two weeks immediately before its quarterly financial statements and one month immediately before the full-year financial statements.
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In November, 25 primary-listed Singapore stocks bought back shares for a total consideration of S$174 million, more than the S$22 million in consideration for October 2020, and higher than the S$52 million buyback consideration reported in November 2019.  
	 
	
Wilmar bought back 33,440,100 of its shares for a consideration of S$142,133,128 between 2 November and 30 November at an average price of S$4.25 per share. This represented 0.53% of Wilmar’s issued shares (excluding treasury shares) as of the date of its current share buyback resolution. 
	 
	On 30 October, Wilmar posted its highest third quarter core profit since its listing, and the stock currently maintains a valuation gap with Yihai Kerry Arawana Holdings Co, an 89.99% subsidiary of Wilmar that officially listed on the Shenzhen Stock Exchange ChiNext Board that commenced trading on 15 October.

 

Total share buyback consideration for the month of November totaled S$174.2 million up from $22.2 million in October (click here for more). This has brought the total consideration of share buybacks for SGX primary-listed stocks to S$920 million for the first 11 months of 2020, up from S$590 million in consideration for the entire calendar year of 2019. The S$920 million represents 0.11% of the combined S$855.7 billion in market capitalisation of all stocks listed on SGX at the end of November.

Note this does not take into account buybacks of secondary listings, for instance Top Glove Corporation Bhd bought back 110 million shares on the Bursa Malaysia Exchange in November with a consideration of more than MYR 800 million.

With a 15.8% price gain and 16.2% total return in the month of November, this was the strongest month of gains for the STI since May 2009 (click here for more). This was driven by rotation from defensive and digital industries with momentum, to cyclical mega-sectors more aligned with the broader economy. In turn the rotation was largely attributed to vaccine developments that have recently met the optimistic end of the timelines maintained by the WHO throughout 2020.



      
    
    Buyback consideration Nov2020


Wilmar International (“Wilmar”) bought back 33,440,100 of its shares for a consideration of S$142,133,128 between 2 November and 30 November at an average price of S$4.25 per share. This represented 0.53% of Wilmar’s issued shares (excluding treasury shares) as of the date of the current share buyback resolution. Prior to this, Wilmar had not bought back its shares since 12 August 2016. Wilmar has since increased the number of shares bought back to 37,101,400 or 0.58% of its issued shares, as of 4 December. This also ranks Wilmar’s buyback consideration as the second highest amount for a primary-listed Singapore stock for the 2020 calendar year to date, after DBS Group Holdings.  

Yihai Kerry Arawana Holdings Co (“YKA”) is now an 89.99% subsidiary of Wilmar and officially listed on the Shenzhen Stock Exchange ChiNext Board and commenced trading on 15 October 2020. The current valuation gap sees YKA maintaining a Price-to-Earnings ratio of 64x, compared to Wilmar’s Price-to-Earnings ratio of 14x. Following the 30 October close, Wilmar International (“Wilmar”) reported the Group achieved another strong set of results in its 3QFY20 (ended 30 Sep), recording core net profit of US$501.4 million for the quarter (up from US$419.2 million in 3QFY19). This was the highest third quarter core results since its listing. The three consecutive quarters of sustained good performance resulted in a strong core net profit for its 9MFY20 of US$1.14 billion, an increase of 34.4% from US$846.4 million in 9MFY19.

Aside from Wilmar International, and four companies - Silverlake Axis, SUTL Enterprise, Miyoshi and Mun Siong Engineering commenced new buyback mandates in November. This followed on from seven companies that commenced new buyback mandates in October, which included shopper360 and OUE, HC Surgical Specialists, Cheung Woh Technologies, Trek 2000 International, Anchun International Holdings and Singapore Reinsurance Corporation. 

The table below summarises the buyback considerations in November 2020. The table is sorted by the value of the total consideration amount for the month, which combines the amount of shares or units purchased and the purchasing price of the transactions.




			Stocks
			
			
			Number of Shares/units Authorised for Purchase in Current Mandate
			
			
			Total Number of Shares/units Purchased in Nov 2020
			
			
			Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares in Nov 2020
			
			
			Average Price Paid S$
			
			
			Cumulative Number of Shares/units purchased in Mandate to date
			
		


			WILMAR INTERNATIONAL
			
			
			635,459,880
			
			
			33,440,100
			
			
			$142,133,128
			
			
			4.250
			
			
			33,440,100
			
		


			YANGZIJIANG SHIPBUILDING (HOLDINGS)
			
			
			391,876,520
			
			
			18,000,000
			
			
			$16,904,075
			
			
			0.939
			
			
			45,249,200
			
		


			OUE
			
			
			90,061,166
			
			
			3,979,700
			
			
			$4,641,189
			
			
			1.166
			
			
			5,253,200
			
		


			SEMBCORP INDUSTRIES
			
			
			35,711,498
			
			
			2,625,000
			
			
			$4,319,639
			
			
			1.646
			
			
			3,584,100
			
		


			STRACO CORPORATION
			
			
			86,213,958
			
			
			3,600,000
			
			
			$1,804,623
			
			
			0.501
			
			
			7,043,900
			
		


			GLOBAL INVESTMENTS
			
			
			161,476,125
			
			
			10,399,300
			
			
			$1,439,504
			
			
			0.138
			
			
			41,444,000
			
		


			SILVERLAKE AXIS
			
			
			257,790,683
			
			
			3,469,200
			
			
			$912,914
			
			
			0.263
			
			
			3,469,200
			
		


			HONG FOK CORPORATION
			
			
			84,800,184
			
			
			991,200
			
			
			$680,990
			
			
			0.687
			
			
			2,337,100
			
		


			EUROSPORTS GLOBAL
			
			
			26,086,770
			
			
			1,339,000
			
			
			$234,877
			
			
			0.175
			
			
			2,047,900
			
		


			SUTL ENTERPRISE
			
			
			8,646,060
			
			
			477,300
			
			
			$223,242
			
			
			0.468
			
			
			477,300
			
		


			FOOD EMPIRE HOLDINGS
			
			
			53,597,249
			
			
			350,000
			
			
			$207,996
			
			
			0.594
			
			
			1,250,000
			
		


			MIYOSHI
			
			
			60,760,359
			
			
			6,289,500
			
			
			$203,882
			
			
			0.032
			
			
			6,289,500
			
		


			CHEUNG WOH TECHNOLOGIES
			
			
			29,770,450
			
			
			805,000
			
			
			$94,363
			
			
			0.117
			
			
			1,809,000
			
		


			MDR
			
			
			89,039,757
			
			
			1,019,100
			
			
			$76,873
			
			
			0.075
			
			
			2,208,400
			
		


			ANCHUN INTERNATIONAL HOLDINGS
			
			
			4,869,090
			
			
			236,300
			
			
			$64,688
			
			
			0.274
			
			
			500,000
			
		


			TUAN SING HOLDINGS
			
			
			118,414,021
			
			
			200,000
			
			
			$61,150
			
			
			0.306
			
			
			826,700
			
		


			NORDIC GROUP
			
			
			39,019,100
			
			
			242,100
			
			
			$52,800
			
			
			0.218
			
			
			1,197,400
			
		


			HC SURGICAL SPECIALISTS
			
			
			15,104,573
			
			
			106,800
			
			
			$36,773
			
			
			0.344
			
			
			1,368,400
			
		


			TREK 2000 INTERNATIONAL
			
			
			31,945,342
			
			
			409,100
			
			
			$29,721
			
			
			0.073
			
			
			1,226,700
			
		


			CHOO CHIANG HOLDINGS
			
			
			20,800,000
			
			
			55,800
			
			
			$12,463
			
			
			0.223
			
			
			127,100
			
		


			TIONG SENG HOLDINGS
			
			
			45,962,384
			
			
			70,300
			
			
			$9,459
			
			
			0.135
			
			
			1,132,700
			
		


			MUN SIONG ENGINEERING
			
			
			57,952,440
			
			
			200,000
			
			
			$8,757
			
			
			0.044
			
			
			200,000
			
		


			GKE CORPORATION
			
			
			77,617,409
			
			
			50,000
			
			
			$3,995
			
			
			0.080
			
			
			1,050,000
			
		


			INTRACO
			
			
			10,292,587
			
			
			10,000
			
			
			$2,028
			
			
			0.203
			
			
			109,000
			
		


			SHOPPER360
			
			
			11,166,880
			
			
			12,000
			
			
			$1,184
			
			
			0.099
			
			
			2,776,200
			
		


			Total
			
			
			 
			
			
			88,376,800
			
			
			$174,160,312
			
			
			 
			
			
			45,249,200
			
		

Source: SGX (Data as of 30 November 2020)

Share buyback transactions involve share issuers repurchasing some of their outstanding shares from shareholders through the open market. Once the shares are bought back, they can be converted into treasury shares, which means they are no longer categorised as shares outstanding. Motivations for share buybacks can include employee compensation plans (such as share option schemes or employee share purchase plans) or long term capital management. Buybacks can pick up amidst market declines that are driven by broader moves on international macroeconomic developments.

Share buyback information can be found on the company disclosure page on the SGX website, using the Announcement category and sub-category of Share Buy Back-On Market (click here). As best practice, companies should refrain from buying back their shares during the two weeks immediately before its quarterly financial statements and one month immediately before the full-year financial statements.



Wilmar Bought Back S$142M in Shares in November

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