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>Over the first seven weeks of 2024, the 25 largest weights of the Manufacturing Index saw varied performances from a 31% decline for NIO to a 24% gain for Food Empire.</li><li>The largest Manufacturing Index weight is currently ST Engineering, which has consolidated on its 2023 gains over the past 7 weeks and scheduled to report its FY23 results on 29 Feb before the market open.</li><li>Venture has booked the most net institutional inflow over the past seven weeks within the Manufacturing Index with S$43 million of net inflow.</li></ul>

Over the first seven weeks of 2024, the 25 largest weights of the Manufacturing Index saw varied performances from a 31% decline for NIO to a 24% gain for Food Empire.The largest Manufacturing Index weight is currently ST Engineering, which has consolidated on its 2023 gains over the past 7 weeks and scheduled to report its FY23 results on 29 Feb before the market open.Venture has booked the most net institutional inflow over the past seven weeks within the Manufacturing Index with S$43 million of net inflow.

Singapore-listed Manufacturers Book Mixed Returns in Early 2024

External broker reports(aggregated public sources), RHB Invest

RHB Invest

External broker reports(aggregated public sources)

RHB Investment Bank is one of the leading capital market players in Malaysia. Supported by an award-winning research team of experienced product specialists, RHB Group Investment Banking offers a full range of investment banking products and services covering primary markets, such as advisory (corporate & debt restructuring, mergers and acquisitions, takeovers), fundraising via both equity and debt instruments, and secondary markets including securities trading for both institutional and retail clients. 

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<ul><li>ST Engineering's share price has seen a 9% rise in year-to-date and has outperformed the STI by 11% during the same period.</li><li>In current situation of an uncertain macroeconomic environment, we believe ST Engineering can deliver double-digit profit CAGR during 2023-2025, aided by revenue growth and margin improvement. Its ability to sustain a S$0.16 dividend payout despite the recent rise in debt should provide downside protection to ST Engineering's share price.</li><li>the urban solutions &amp; satcom (USS) segment experiencing strong growth amid contributions from the TransCore acquisition beyond 2023; and</li><li>the defence public security (DPS) segment benefiting from rising defence spending in Singapore and the US.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ST Engineering's share price has seen a 9% rise in year-to-date and has outperformed the STI by 11% during the same period.In current situation of an uncertain macroeconomic environment, we believe ST Engineering can deliver double-digit profit CAGR during 2023-2025, aided by revenue growth and margin improvement. Its ability to sustain a S$0.16 dividend payout despite the recent rise in debt should provide downside protection to ST Engineering's share price.the urban solutions &amp; satcom (USS) segment experiencing strong growth amid contributions from the TransCore acquisition beyond 2023; andthe defence public security (DPS) segment benefiting from rising defence spending in Singapore and the US.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ST Engineering - Outperformance In An Uncertain Environment

<ul><li>ST Engineering’s 1Q23 revenue of S$2.3bn was in line, accounting for 24% of our 2023F.</li><li>It reported strong order wins in 1Q23, with an outstanding orderbook of S$25.4bn at an all-time high.</li><li>We continue to like ST Engineering for its strong revenue visibility and defensive dividend outlook.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ST Engineering’s 1Q23 revenue of S$2.3bn was in line, accounting for 24% of our 2023F.It reported strong order wins in 1Q23, with an outstanding orderbook of S$25.4bn at an all-time high.We continue to like ST Engineering for its strong revenue visibility and defensive dividend outlook.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ST Engineering - In Line 1Q23 & Strong Order Wins; Keep BUY

<ul><li>Union Steel co-founder Ang Yew Chye ups stake Digital Core Reit Management also continued to buy back units of Digital Core Reit over three of the four sessions.</li><li>Between Mar 25 and 26, Union Steel Holdings executive director Ang Yew Chye bought 930,000 shares at S$0.47 per share.</li></ul>

Union Steel co-founder Ang Yew Chye ups stake Digital Core Reit Management also continued to buy back units of Digital Core Reit over three of the four sessions.Between Mar 25 and 26, Union Steel Holdings executive director Ang Yew Chye bought 930,000 shares at S$0.47 per share.

Union Steel co-founder Ang Yew Chye ups stake

<ul><li>Director filings and buybacks continue at stronger pace INSTITUTIONS were net sellers of Singapore stocks over the five trading sessions through to Mar 7, with S$224 million of net institutional outflow, as 26 primary-listed companies conducted buybacks with a total consideration of S$24.4 million, quadrupling the buyback consideration of the preceding five sessions.</li><li>This increased his total interest from 53.27 per cent to 53.61 per cent.</li><li>This followed his acquisition of 4.5 million shares between Feb 27 and 28.</li></ul>

Director filings and buybacks continue at stronger pace INSTITUTIONS were net sellers of Singapore stocks over the five trading sessions through to Mar 7, with S$224 million of net institutional outflow, as 26 primary-listed companies conducted buybacks with a total consideration of S$24.4 million, quadrupling the buyback consideration of the preceding five sessions.This increased his total interest from 53.27 per cent to 53.61 per cent.This followed his acquisition of 4.5 million shares between Feb 27 and 28.

Director Filings & Buybacks Continue Stronger Pace

Singapore

ST Engineering is a global technology, defence and engineering group with offices across Asia, Europe, the Middle East and the U.S., serving customers in more than 100 countries. The Group uses technology and innovation to solve real-world problems and improve lives through its diverse portfolio of businesses across the aerospace, smart city, defence and public security segments. Headquartered in Singapore, ST Engineering reported revenue of $7.9b in FY2019 and it ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, MSCI Singapore, iEdge SG ESG Transparency Index and iEdge SG ESG Leaders Index.

ST Engineering (STE SP)

Singapore-listed Manufacturers Book Mixed Returns in Early 2024

Over the first seven weeks of 2024, the 25 largest weights of the Manufacturing Index saw varied performances from a 31% decline for NIO to a 24%...

Singapore Exchange Ltd (SGX)

ST Engineering - Outperformance In An Uncertain Environment

ST Engineering's share price has seen a 9% rise in year-to-date and has outperformed the STI by 11% during the same period.

RHB Invest

ST Engineering - In Line 1Q23 & Strong Order Wins; Keep BUY

ST Engineering’s 1Q23 revenue of S$2.3bn was in line, accounting for 24% of our 2023F. It reported strong order wins in 1Q23, with an outstanding...

RHB Invest

Union Steel co-founder Ang Yew Chye ups stake

Union Steel co-founder Ang Yew Chye ups stake Digital Core Reit Management also continued to buy back units of Digital Core Reit over three of the...

Singapore Exchange Ltd (SGX)

Director Filings & Buybacks Continue Stronger Pace

Director filings and buybacks continue at stronger pace INSTITUTIONS were net sellers of Singapore stocks over the five trading sessions through...

Singapore Exchange Ltd (SGX)