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

<ul><li>The 30 most traded Non-STI stocks in the YTD span 10 Sectors, with just over half of the 30 stocks outpacing the STI total returns and 18 of the 30 stocks booking net institutional inflows over the past 15 weeks.</li><li>The stock has also posted the strongest 5 year total return of the 30 most traded Non-STI stocks.</li><li>In addition, 18 of the 30 most traded non-STI stocks booked net institutional inflows over the past 15 weeks.</li></ul>

The 30 most traded Non-STI stocks in the YTD span 10 Sectors, with just over half of the 30 stocks outpacing the STI total returns and 18 of the 30 stocks booking net institutional inflows over the past 15 weeks.The stock has also posted the strongest 5 year total return of the 30 most traded Non-STI stocks.In addition, 18 of the 30 most traded non-STI stocks booked net institutional inflows over the past 15 weeks.

Recent Highlights of a Tier of 30 Stocks Beyond the STI Benchmark 

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>One may presume that <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a> moved their <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> shares received from their non-CCASS holdings of <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>. It does not tell us much else. </li>
<li>Allocation in the <a href="https://www.smartkarma.com/entities/s-m-entertainment-co" target="_blank" data-smartkarma-citation="entities:3500:1" rel="noopener">S.M.Entertainment Co (041510 KS)</a> partial Offer was 44.14%. With shares trading ~₩95k, that was a pretty good outcome. </li>
<li>
<a href="https://www.smartkarma.com/entities/toyo-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:1176:1" rel="noopener">Toyo Construction (1890 JP)</a> has asked the Japanese government to investigate YFO's alleged breaches of FEFTA. Expect YFO to say they did no wrong. Expect Toyo to complain about it. </li>
</ul>


One may presume that Prosus (PRX NA) moved their Meituan (3690 HK) shares received from their non-CCASS holdings of Tencent (700 HK). It does not tell us much else. 
Allocation in the S.M.Entertainment Co (041510 KS) partial Offer was 44.14%. With shares trading ~₩95k, that was a pretty good outcome. 

Toyo Construction (1890 JP) has asked the Japanese government to investigate YFO's alleged breaches of FEFTA. Expect YFO to say they did no wrong. Expect Toyo to complain about it. 


Last Week in Event SPACE: Meituan, S.M.Entertainment, Toyo, Mincor, JD.com, AAG

Travis Lundy

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sembcorp-marine-ltd" target="_blank" data-smartkarma-citation="entities:11:1" rel="noopener">Sembcorp Marine (SMM SP)</a> is a month in to its new existence as a business more than twice as large as its old business after absorbing Keppel O&amp;M. </li>
<li>There have been some noises about cost-cutting, which could be key to an early return to profitability. </li>
<li>Today, mid-day, we get news of the <a href="https://links.sgx.com/FileOpen/Announcement%2030_Mar_2023.ashx?App=Announcement&amp;FileID=751707" target="_blank" rel="noopener">biggest ever offshore renewables contract win</a> in a JV with General Electric - a deal worth €6bn (SGD 8.64bn). It's big.</li>
</ul>



Sembcorp Marine (SMM SP) is a month in to its new existence as a business more than twice as large as its old business after absorbing Keppel O&amp;M. 
There have been some noises about cost-cutting, which could be key to an early return to profitability. 
Today, mid-day, we get news of the biggest ever offshore renewables contract win in a JV with General Electric - a deal worth €6bn (SGD 8.64bn). It's big.


Sembcorp Marine (SMM SP) JVs for S$8.6bn Multi-Year Offshore HVDC Converter Platforms Deal

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Index Rebalance

<ul>
<li>In this insight, we take a look at the potential index changes for Singapore's ST index ("STI") between now and the September 2023 index review.</li>
<li>In my previous insight (<a href="https://www.smartkarma.com/insights/quiddity-leaderboard-for-straits-times-index-mar-23-smm-could-miss-addition" target="_blank" rel="noopener">link</a>), I mentioned <a href="https://www.smartkarma.com/entities/sembcorp-marine-ltd" target="_blank" data-smartkarma-citation="entities:11:1" rel="noopener">Sembcorp Marine (SMM SP)</a> could miss out on being added to the STI in March 2023 and that happened to be true.</li>
<li>However, based on the current data, <a href="https://www.smartkarma.com/entities/sembcorp-marine-ltd" target="_blank" data-smartkarma-citation="entities:11:1" rel="noopener">Sembcorp Marine (SMM SP)</a> could finally be added to the STI in September 2023.</li>
</ul>


In this insight, we take a look at the potential index changes for Singapore's ST index ("STI") between now and the September 2023 index review.
In my previous insight (link), I mentioned Sembcorp Marine (SMM SP) could miss out on being added to the STI in March 2023 and that happened to be true.
However, based on the current data, Sembcorp Marine (SMM SP) could finally be added to the STI in September 2023.


Quiddity Leaderboard Singapore's STI Sep 23: Sembcorp Marine Addition Could Finally Happen

<ul>
<li>For the month of February, 14 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$23bn.</li>
<li>The average premium for the new deals announced (or first discussed) in February was 34%.</li>
<li>This compares to the average premium for all deals in 2022 (106 deals), 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 41%, 33%, 31%, and 31% respectively.</li>
</ul>


For the month of February, 14 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$23bn.
The average premium for the new deals announced (or first discussed) in February was 34%.
This compares to the average premium for all deals in 2022 (106 deals), 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 41%, 33%, 31%, and 31% respectively.


(Mostly) Asia M&A, Feb 2023: Newcrest Mining, S.M Entertainment, Kanematsu, Nissin Electric

Singapore

Seatrium is a Singapore-headquartered engineering firm providing innovative solutions to the global offshore, marine, and energy industries. It specializes in oil & gas newbuilds and conversions, offshore renewables, specialized shipbuilding, and repairs & upgrades. The company was formed in 2023 through the merger of Sembcorp Marine and Keppel Offshore & Marine.

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Seatrium (STM SP)

Recent Highlights of a Tier of 30 Stocks Beyond the STI Benchmark

The 30 most traded Non-STI stocks in the YTD span 10 Sectors, with just over half of the 30 stocks outpacing the STI total returns and 18 of the...

Singapore Exchange Ltd (SGX)

Last Week in Event SPACE: Meituan, S.M.Entertainment, Toyo, Mincor, JD.com, AAG

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Sembcorp Marine (SMM SP) JVs for S$8.6bn Multi-Year Offshore HVDC Converter Platforms Deal

Sembcorp Marine today announced it had won (with GE, who will provide the converter equipment) three offshore HVDC converter platforms for...

Travis Lundy

Quiddity Leaderboard Singapore's STI Sep 23: Sembcorp Marine Addition Could Finally Happen

If SMM gets added to the STI, there could be around 427mn shares to buy which around 1.4 days of volume and translates to a flow of US$33.6mn

Janaghan Jeyakumar, CFA

(Mostly) Asia M&A, Feb 2023: Newcrest Mining, S.M Entertainment, Kanematsu, Nissin Electric

For the month of February, 14 new deals were discussed on Smartkarma with an announced deal size of ~US$23bn. The average premium for the new deals...

David Blennerhassett

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