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>Singapore stocks have booked net institutional fund inflow for three consecutive weeks ending 25 August.</li><li>With four trading sessions for the month remaining, August is poised to be the first month local stocks have booked net inflows since Nov 2022.</li><li>Back in November 2022, UOB posted a 12.4% return and booked the highest net institutional inflow in the Singapore stock market for that month with S$306 million of net inflow.</li></ul>

Singapore stocks have booked net institutional fund inflow for three consecutive weeks ending 25 August.With four trading sessions for the month remaining, August is poised to be the first month local stocks have booked net inflows since Nov 2022.Back in November 2022, UOB posted a 12.4% return and booked the highest net institutional inflow in the Singapore stock market for that month with S$306 million of net inflow.

Singapore Stocks Poised to Book Net Institutional Inflows in August

<ul><li>Share buybacks by primary listed companies 11 - 17 Aug 2023 Institutions were net buyers of Singapore stocks over the five trading sessions through to Aug 17, with S$256 million of net institutional inflow, while 21 primary-listed companies conducting buybacks with a total consideration of S$36 million.</li><li>On Aug 15, QAF joint group managing director and executive director Lin Kejian acquired 450,000 shares at an average price of S$0.79 per share.</li></ul>

Share buybacks by primary listed companies 11 - 17 Aug 2023 Institutions were net buyers of Singapore stocks over the five trading sessions through to Aug 17, with S$256 million of net institutional inflow, while 21 primary-listed companies conducting buybacks with a total consideration of S$36 million.On Aug 15, QAF joint group managing director and executive director Lin Kejian acquired 450,000 shares at an average price of S$0.79 per share.

Wilmar’s Kuok Khoon Hong acquires 9 million shares

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. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Singapore Technologies Engineering / Equity Bottom-Up

Singapore Technologies Engineering (STE SP)

<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

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>According to the Stockholm International Peace Research Institute (SIPRI), total global military expenditure increased by 3.7% in real terms in 2022, to reach a new high of $2,240bn.</li>
<li>A number of European states significantly increased their military spending following Russia’s invasion of Ukraine. Elsewhere, Japan’s 2022 military spending accounts for 1.1% of GDP, the highest level since 1960.</li>
<li>South Korea had four companies inside the world’s top 100 arms manufacturers in 2021. These conglomerates are expected to move up the ranking in 2022. </li>
</ul>


According to the Stockholm International Peace Research Institute (SIPRI), total global military expenditure increased by 3.7% in real terms in 2022, to reach a new high of $2,240bn.
A number of European states significantly increased their military spending following Russia’s invasion of Ukraine. Elsewhere, Japan’s 2022 military spending accounts for 1.1% of GDP, the highest level since 1960.
South Korea had four companies inside the world’s top 100 arms manufacturers in 2021. These conglomerates are expected to move up the ranking in 2022. 


Singapore

Singapore Technologies Engineering is a Singapore-based multinational technology, defense, and engineering group. It offers a diverse portfolio of solutions across commercial aerospace (maintenance, repair, and overhaul, freighter conversions), urban solutions & satcom (smart mobility, utilities, infrastructure, satellite communication), and defense & public security (public safety, security, critical information infrastructure, land systems, marine, digital systems, and cyber solutions). The company is headquartered in Singapore and was formed in 1997.

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Singapore Technologies Engineering (STE SP)

Singapore Stocks Poised to Book Net Institutional Inflows in August

Singapore stocks have booked net institutional fund inflow for three consecutive weeks ending 25 August. With four trading sessions for the month...

Singapore Exchange Ltd (SGX)

Wilmar’s Kuok Khoon Hong acquires 9 million shares

Share buybacks by primary listed companies 11 - 17 Aug 2023 Institutions were net buyers of Singapore stocks over the five trading sessions...

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

Asian Defence Contractors: Up In Arms

Defence spending beneficiaries include Hyundai Rotem (064350 KS) and Aerospace Industrial Development (2634 TT). For relval, short Poongsan Corp...

David Blennerhassett

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