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

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AEM is the 20th most traded stock in Singapore in the 2021 YTD, averaging S$19 million in turnover a day. Since the beginning of 2016, when global technology stocks were re-rated, AEM Holdings has been the strongest performer of the global technology stocks with a current market value for more than US$500 million. 
	 </li>
	<li>
The HS TECH ETF has also topped the table among the top five traded ETFs over the past month. It was the most traded China Focused ETF listed for trading on SGX, and saw the highest daily amplitude in bps over the past one month, with an average amplitude of 2.9%, three times higher than average of top five traded ETFs. 
	 </li>
	<li>Over the past 12M, the share price of AEM has been 86% correlated with the moves of the ETF’s underlying HS TECH Index, with AEM’s 112% total return comparing to an 85% return for the HS Tech Index, with AEM generating a similar maximum drawdown over the 12M to the constituents of the HS TECH Index.</li>
</ul>
 

APAC Technology Sector Value Maintains 12% CAGR Since 2010 
The top quartile Asia Pacific’s technology stocks by market value have generated a median gain of 2% in the 2021 year to 27 January, following a median gain of 21% in 2020. The combined market value of the Asia Pacific listed Technology stocks has grown more than threefold over the past 10 years, from more than US$1.5 trillion at the end of 2010 to more than US$5.0 trillion at the end of 2020.  Much of this is growth is attributed to the surge in consumer applications of technology, in addition to automation and e-commerce.   
For the past 12 months, the day-to-day moves of Singapore’s most traded technology stock – AEM Holdings have been 86% correlated with the moves of the Hang Seng Tech Index. From 28 January 2020 through to 27 January 2021, the AEM Holdings share price rallied from S$2.01 to S$4.16, with S$0.081 distributed in dividends over the course of the 2020 calendar year. The 112% total return of AEM Holdings compared to an 85% return for the Hang Seng Tech Index. The maximum drawdown for AEM Holdings over the 12 month period was 40%, nestled between the market value-weighted average 34% drawdown and simple average 54% drawdown of the current constituents of the Hang Seng Tech Index. The largest constituents of the Hang Seng Tech Index by market value include Tencent Holdings, Alibaba Group Holding, Meituan, JD.COM Inc, Xiaomi Corp and NetEase Inc. Singapore Exchange current lists for trading Daily Leverage Certificates on these six stocks (click <a href="https://www.sgx.com/research-education/securities-products#Daily%20Leverage%20Certificates">here</a> for more), in addition an Exchange Traded Fund tracking the Hang Seng Tech Index. AEM Holdings - Singapore’s Most Popular Traded Tech Stock 
AEM Holdings has been the 20th most traded stock in Singapore in the 2021 year to 27 January averaging S$19 million of daily turnover a day, following average daily turnover of S$20 million in 2020. 
Since the beginning of 2016, when global technology stocks were re-rated, AEM Holdings was the strongest performer for the global technology stocks with a current market value for more than US$500 million. Other top performers included Hive Blockchain, Lasertec Corporation, Shopify Inc and Toga.  
AEM Holdings offers application-specific intelligent system test and handling solutions for semiconductor and electronics companies serving advanced computing, 5G and AI markets. The testing solutions involve a full suite of application specific test solutions across MEMS, wafer sort, packaged ICs, and RF interconnects for the 5G economy. As the company maintained the rollout of 5G enables increased complexity in mission-critical applications in areas such as communications, consumer electronics, automotive, and health care. Between 28 January 2020 and 27 January 2021, in SGD terms, the iEdge-Factset Global 5G In28dex gained 27%, the iEdge-Factset Global Internet Index gained 71% and the iEdge-Factset Global Video Gaming Index returned 90%.   
AEM Holdings is expected to report FY20 (ended 30 Dec) financial results in the last week of February, with revenue guidance at S$500 million to S$520 million, following record revenue of S$323 million in FY19. 
The next most popular technology stocks by turnover in Singapore this year include Venture Corporation (#23) ISDN Holdings (#31), UMS Holdings (#32) and Nanofilm Technologies International (#38). The most traded technology-adjacent stocks have been Mapletree Industrial Trust (#18), Keppel DC REIT (#28) and iFAST (#35). 

<table class="table table-striped"><tbody>
<tr>
<td>
			Most Traded Technology  &amp; Technology Adjacent Stocks
			</td>
			<td>
			Stock Code
			</td>
			<td>
			Average Daily Turnover in 2021 YTD S$M
			</td>
			<td>
			Total Return 28 Jan 20 - 27 Jan 21
			</td>
			<td>
			Total Return 2021 YTD 
			</td>
			<td>
			Net Insti Flow 2021 YTD S$M
			</td>
			<td>
			Annualised 5 Year Total Return
			</td>
		</tr>
<tr>
<td>
			AEM
			</td>
			<td>
			AWX
			</td>
			<td>
			19.1
			</td>
			<td>
			112%
			</td>
			<td>
			21%
			</td>
			<td>
			39
			</td>
			<td>
			154%
			</td>
		</tr>
<tr>
<td>
			Venture
			</td>
			<td>
			V03
			</td>
			<td>
			18.1
			</td>
			<td>
			34%
			</td>
			<td>
			5%
			</td>
			<td>
			4
			</td>
			<td>
			27%
			</td>
		</tr>
<tr>
<td>
			ISDN
			</td>
			<td>
			I07
			</td>
			<td>
			12.8
			</td>
			<td>
			245%
			</td>
			<td>
			72%
			</td>
			<td>
			-2
			</td>
			<td>
			32%
			</td>
		</tr>
<tr>
<td>
			UMS
			</td>
			<td>
			558
			</td>
			<td>
			12.7
			</td>
			<td>
			46%
			</td>
			<td>
			26%
			</td>
			<td>
			32
			</td>
			<td>
			37%
			</td>
		</tr>
<tr>
<td>
			Nanofilm
			</td>
			<td>
			MZH
			</td>
			<td>
			9.4
			</td>
			<td>
			97%
			</td>
			<td>
			16%
			</td>
			<td>
			-1
			</td>
			<td>
			97%
			</td>
		</tr>
<tr>
<td>
			Mapletree Ind Tr
			</td>
			<td>
			ME8U
			</td>
			<td>
			19.8
			</td>
			<td>
			5%
			</td>
			<td>
			-2%
			</td>
			<td>
			-28
			</td>
			<td>
			20%
			</td>
		</tr>
<tr>
<td>
			Keppel DC REIT
			</td>
			<td>
			AJBU
			</td>
			<td>
			17.0
			</td>
			<td>
			35%
			</td>
			<td>
			4%
			</td>
			<td>
			-4
			</td>
			<td>
			31%
			</td>
		</tr>
<tr>
<td>
			AEM
			</td>
			<td>
			AIY
			</td>
			<td>
			10.1
			</td>
			<td>
			412%
			</td>
			<td>
			70%
			</td>
			<td>
			18
			</td>
			<td>
			36%
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			123%
			</td>
			<td>
			26%
			</td>
			<td>
			 
			</td>
			<td>
			54%
			</td>
		</tr>
<tr>
<td>
			Median
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			72%
			</td>
			<td>
			18%
			</td>
			<td>
			 
			</td>
			<td>
			34%
			</td>
		</tr>
</tbody></table>
 Source: StockFacts, Refinitiv &amp; Bloomberg (Data as of 27 January 2021)

 Lion-OCBC Securities HS TECH ETF – Singapore’s Newest ETFs has attracted Investors and Traders 
Since listing on 10 December 2020, the Lion-OCBC Securities HS TECH ETF, based on the Hang Seng Tech Index, provides a new tradable market for investors seeking exposure to China technology focused companies. Its daily trading ranges have been significant in terms of basis points (bps) and ticks between daily highs and lows. This means the ETF has provided a useful market for investors, in addition to traders seeking short-term exposures to the risk and returns of a number of the biggest technology stocks of the region.  
The HS TECH ETF has also topped the table among the top five traded ETFs over the past month. It was  the most traded China Focused ETF listed for trading on SGX, and saw the highest daily amplitude in bps over the past one month. The HS TECH ETF recorded an average amplitude of 2.9% over the last month, three times higher than average of top five traded ETFs. This means on average, a S$10,000 investment in the ETF, would swing on average S$290 between the daily high and low. There was also an average of 43 ticks between the high and low of the ETF during the past month for trading sessions. 

<table class="table table-striped"><tbody>
<tr>
<td>
			Most Traded ETFs listed for Trading on SGX in 2021 YTD
			</td>
			<td>
			Counter Name
			</td>
			<td>
			Stock Code
			</td>
			<td>
			Average of Amplitude in Bps
			</td>
			<td>
			Average of Amplitude in Ticks
			</td>
		</tr>
<tr>
<td>
			Lion-OCBC Securities Hang Seng TECH ETF
			</td>
			<td>
			Lion-OCBC Sec HSTECH S$
			</td>
			<td>
			ES3
			</td>
			<td>
			287
			</td>
			<td>
			     43
			</td>
		</tr>
<tr>
<td>
			Nikko AM- Straits Trading Asia ex Japan REIT ETF
			</td>
			<td>
			Nikko AM-STC Asia REIT
			</td>
			<td>
			O87
			</td>
			<td>
			103
			</td>
			<td>
			     12
			</td>
		</tr>
<tr>
<td>
			Nikko AM Singapore STI ETF
			</td>
			<td>
			Nikko AM STI ETF
			</td>
			<td>
			G3B
			</td>
			<td>
			   93
			</td>
			<td>
			     3
			</td>
		</tr>
<tr>
<td>
			SPDR®  GOLD SHARES
			</td>
			<td>
			GLD US$
			</td>
			<td>
			HST
			</td>
			<td>
			   90
			</td>
			<td>
			    159
			</td>
		</tr>
<tr>
<td>
			SPDR® Straits Times Index ETF
			</td>
			<td>
			STI ETF
			</td>
			<td>
			CFA
			</td>
			<td>
			       80
			</td>
			<td>
			   24 
			 
			</td>
		</tr>
</tbody></table>
<table class="table table-striped"><tbody>
<tr>
<td>
			China-Focus Equity ETFs listed for trading on SGX
			</td>
			<td>
			Counter Name
			</td>
			<td>
			Stock Code
			</td>
			<td>
			Average Amplitude in Bps
			</td>
			<td>
			Average of Amplitude in Ticks
			</td>
		</tr>
<tr>
<td>
			Lion-OCBC Securities Hang Seng TECH ETF
			</td>
			<td>
			Lion-OCBC Sec HSTECH S$
			</td>
			<td>
			HST
			</td>
			<td>
			             287
			</td>
			<td>
			             43
			</td>
		</tr>
<tr>
<td>
			United SSE 50 China ETF
			</td>
			<td>
			UETF SSE50China
			</td>
			<td>
			JK8
			</td>
			<td>
			       169
			</td>
			<td>
			              5
			</td>
		</tr>
<tr>
<td>
			Xtrackers MSCI China UCITS ETF
			</td>
			<td>
			XT MSCHINA S$
			</td>
			<td>
			TID
			</td>
			<td>
			       166
			</td>
			<td>
			          57
			</td>
		</tr>
<tr>
<td>
			Lyxor China Enterprise (HSCEI) UCITS ETF - USD
			</td>
			<td>
			Lyxor China H US$
			</td>
			<td>
			P58
			</td>
			<td>
			             37
			</td>
			<td>
			             7
			</td>
		</tr>
</tbody></table>
 This daily range of the HS TECH ETF was also more than 70% over the average of the four China focused ETFs listed on SGX. The performance of the ETF has been largely driven by recent rally of China Technology focused companies with the ETF clocking over 20% in total returns recent since its listing. Total asset under management of the ETF has also increased by 86% to S$120 million, with S$36 million of net inflows from investors looking to gain exposure into Chinese technology companies through low-cost index investing. For more on the risks and structures of ETFs click <a href="http://www.sgx.com/etf">here</a>.
</body></html>





AEM is the 20th most traded stock in Singapore in the 2021 YTD, averaging S$19 million in turnover a day. Since the beginning of 2016, when global technology stocks were re-rated, AEM Holdings has been the strongest performer of the global technology stocks with a current market value for more than US$500 million. 
	 
	
The HS TECH ETF has also topped the table among the top five traded ETFs over the past month. It was the most traded China Focused ETF listed for trading on SGX, and saw the highest daily amplitude in bps over the past one month, with an average amplitude of 2.9%, three times higher than average of top five traded ETFs. 
	 
	Over the past 12M, the share price of AEM has been 86% correlated with the moves of the ETF’s underlying HS TECH Index, with AEM’s 112% total return comparing to an 85% return for the HS Tech Index, with AEM generating a similar maximum drawdown over the 12M to the constituents of the HS TECH Index.

 

APAC Technology Sector Value Maintains 12% CAGR Since 2010  
The top quartile Asia Pacific’s technology stocks by market value have generated a median gain of 2% in the 2021 year to 27 January, following a median gain of 21% in 2020. The combined market value of the Asia Pacific listed Technology stocks has grown more than threefold over the past 10 years, from more than US$1.5 trillion at the end of 2010 to more than US$5.0 trillion at the end of 2020.  Much of this is growth is attributed to the surge in consumer applications of technology, in addition to automation and e-commerce.     
For the past 12 months, the day-to-day moves of Singapore’s most traded technology stock – AEM Holdings have been 86% correlated with the moves of the Hang Seng Tech Index. From 28 January 2020 through to 27 January 2021, the AEM Holdings share price rallied from S$2.01 to S$4.16, with S$0.081 distributed in dividends over the course of the 2020 calendar year. The 112% total return of AEM Holdings compared to an 85% return for the Hang Seng Tech Index. The maximum drawdown for AEM Holdings over the 12 month period was 40%, nestled between the market value-weighted average 34% drawdown and simple average 54% drawdown of the current constituents of the Hang Seng Tech Index. The largest constituents of the Hang Seng Tech Index by market value include Tencent Holdings, Alibaba Group Holding, Meituan, JD.COM Inc, Xiaomi Corp and NetEase Inc. Singapore Exchange current lists for trading Daily Leverage Certificates on these six stocks (click here for more), in addition an Exchange Traded Fund tracking the Hang Seng Tech Index.  AEM Holdings - Singapore’s Most Popular Traded Tech Stock   
AEM Holdings has been the 20th most traded stock in Singapore in the 2021 year to 27 January averaging S$19 million of daily turnover a day, following average daily turnover of S$20 million in 2020.  
Since the beginning of 2016, when global technology stocks were re-rated, AEM Holdings was the strongest performer for the global technology stocks with a current market value for more than US$500 million. Other top performers included Hive Blockchain, Lasertec Corporation, Shopify Inc and Toga.   
AEM Holdings offers application-specific intelligent system test and handling solutions for semiconductor and electronics companies serving advanced computing, 5G and AI markets. The testing solutions involve a full suite of application specific test solutions across MEMS, wafer sort, packaged ICs, and RF interconnects for the 5G economy. As the company maintained the rollout of 5G enables increased complexity in mission-critical applications in areas such as communications, consumer electronics, automotive, and health care. Between 28 January 2020 and 27 January 2021, in SGD terms, the iEdge-Factset Global 5G In28dex gained 27%, the iEdge-Factset Global Internet Index gained 71% and the iEdge-Factset Global Video Gaming Index returned 90%.    
AEM Holdings is expected to report FY20 (ended 30 Dec) financial results in the last week of February, with revenue guidance at S$500 million to S$520 million, following record revenue of S$323 million in FY19.  
The next most popular technology stocks by turnover in Singapore this year include Venture Corporation (#23) ISDN Holdings (#31), UMS Holdings (#32) and Nanofilm Technologies International (#38). The most traded technology-adjacent stocks have been Mapletree Industrial Trust (#18), Keppel DC REIT (#28) and iFAST (#35). 




			Most Traded Technology  &amp; Technology Adjacent Stocks
			
			
			Stock Code
			
			
			Average Daily Turnover in 2021 YTD S$M
			
			
			Total Return 28 Jan 20 - 27 Jan 21
			
			
			Total Return 2021 YTD 
			
			
			Net Insti Flow 2021 YTD S$M
			
			
			Annualised 5 Year Total Return
			
		


			AEM
			
			
			AWX
			
			
			19.1
			
			
			112%
			
			
			21%
			
			
			39
			
			
			154%
			
		


			Venture
			
			
			V03
			
			
			18.1
			
			
			34%
			
			
			5%
			
			
			4
			
			
			27%
			
		


			ISDN
			
			
			I07
			
			
			12.8
			
			
			245%
			
			
			72%
			
			
			-2
			
			
			32%
			
		


			UMS
			
			
			558
			
			
			12.7
			
			
			46%
			
			
			26%
			
			
			32
			
			
			37%
			
		


			Nanofilm
			
			
			MZH
			
			
			9.4
			
			
			97%
			
			
			16%
			
			
			-1
			
			
			97%
			
		


			Mapletree Ind Tr
			
			
			ME8U
			
			
			19.8
			
			
			5%
			
			
			-2%
			
			
			-28
			
			
			20%
			
		


			Keppel DC REIT
			
			
			AJBU
			
			
			17.0
			
			
			35%
			
			
			4%
			
			
			-4
			
			
			31%
			
		


			AEM
			
			
			AIY
			
			
			10.1
			
			
			412%
			
			
			70%
			
			
			18
			
			
			36%
			
		


			Average
			
			
			 
			
			
			 
			
			
			123%
			
			
			26%
			
			
			 
			
			
			54%
			
		


			Median
			
			
			 
			
			
			 
			
			
			72%
			
			
			18%
			
			
			 
			
			
			34%
			
		

 Source: StockFacts, Refinitiv &amp; Bloomberg (Data as of 27 January 2021)

 Lion-OCBC Securities HS TECH ETF – Singapore’s Newest ETFs has attracted Investors and Traders  
Since listing on 10 December 2020, the Lion-OCBC Securities HS TECH ETF, based on the Hang Seng Tech Index, provides a new tradable market for investors seeking exposure to China technology focused companies. Its daily trading ranges have been significant in terms of basis points (bps) and ticks between daily highs and lows. This means the ETF has provided a useful market for investors, in addition to traders seeking short-term exposures to the risk and returns of a number of the biggest technology stocks of the region.   
The HS TECH ETF has also topped the table among the top five traded ETFs over the past month. It was  the most traded China Focused ETF listed for trading on SGX, and saw the highest daily amplitude in bps over the past one month. The HS TECH ETF recorded an average amplitude of 2.9% over the last month, three times higher than average of top five traded ETFs. This means on average, a S$10,000 investment in the ETF, would swing on average S$290 between the daily high and low. There was also an average of 43 ticks between the high and low of the ETF during the past month for trading sessions. 




			Most Traded ETFs listed for Trading on SGX in 2021 YTD
			
			
			Counter Name
			
			
			Stock Code
			
			
			Average of Amplitude in Bps
			
			
			Average of Amplitude in Ticks
			
		


			Lion-OCBC Securities Hang Seng TECH ETF
			
			
			Lion-OCBC Sec HSTECH S$
			
			
			ES3
			
			
			287
			
			
			     43
			
		


			Nikko AM- Straits Trading Asia ex Japan REIT ETF
			
			
			Nikko AM-STC Asia REIT
			
			
			O87
			
			
			103
			
			
			     12
			
		


			Nikko AM Singapore STI ETF
			
			
			Nikko AM STI ETF
			
			
			G3B
			
			
			   93
			
			
			     3
			
		


			SPDR®  GOLD SHARES
			
			
			GLD US$
			
			
			HST
			
			
			   90
			
			
			    159
			
		


			SPDR® Straits Times Index ETF
			
			
			STI ETF
			
			
			CFA
			
			
			       80
			
			
			   24 
			 
			
		




			China-Focus Equity ETFs listed for trading on SGX
			
			
			Counter Name
			
			
			Stock Code
			
			
			Average Amplitude in Bps
			
			
			Average of Amplitude in Ticks
			
		


			Lion-OCBC Securities Hang Seng TECH ETF
			
			
			Lion-OCBC Sec HSTECH S$
			
			
			HST
			
			
			             287
			
			
			             43
			
		


			United SSE 50 China ETF
			
			
			UETF SSE50China
			
			
			JK8
			
			
			       169
			
			
			              5
			
		


			Xtrackers MSCI China UCITS ETF
			
			
			XT MSCHINA S$
			
			
			TID
			
			
			       166
			
			
			          57
			
		


			Lyxor China Enterprise (HSCEI) UCITS ETF - USD
			
			
			Lyxor China H US$
			
			
			P58
			
			
			             37
			
			
			             7
			
		

 This daily range of the HS TECH ETF was also more than 70% over the average of the four China focused ETFs listed on SGX. The performance of the ETF has been largely driven by recent rally of China Technology focused companies with the ETF clocking over 20% in total returns recent since its listing. Total asset under management of the ETF has also increased by 86% to S$120 million, with S$36 million of net inflows from investors looking to gain exposure into Chinese technology companies through low-cost index investing. For more on the risks and structures of ETFs click here.



AEM a Top 20 Traded Stock, HS TECH ETF Among Top 5 Traded ETFs

Japan

Lasertec Corporation develops, designs, manufactures and markets photomask inspection systems to make semiconductor devices, confocal scanning laser microscopes and liquid crystal display (LCD) inspection systems.

Lasertec Corp (6920 JP)

AEM a Top 20 Traded Stock, HS TECH ETF Among Top 5 Traded ETFs

AEM is the 20th most traded stock in Singapore in the 2021 YTD, averaging S$19 million in turnover a day. Since the beginning of 2016, when...

Singapore Exchange Ltd (SGX)