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

Singapore Telecommunications / Equity Bottom-Up

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<li>
The STI ETFs drew significant investor participation in the 10 months from March 2020 through to the end of December 2020, with more than S$900 million of net inflows and amounting to more than half of the combined inflows of the two STI ETFs over the past decade. 
	 </li>
	<li>
For the 10 month period, the volume-weighted average prices (VWAP) for the SPDR STI ETF and the Nikko AM STI ETF were S$2.64 and S$2.69. With the SPDR STI ETF and Nikko AM STI ETF ending the 30 August 2021 morning session at S$3.14 and S$3.16 respectively, the two ETFs have since generated ~20% total returns (incl. dividends) on the 10-month VWAP prices. 
	 </li>
	<li>Parallel to the STI ETF inflows from March 2020 through to the end of December 2020, the current 30 STI stocks saw S$6.6 billion of net retail inflow over the same 10 months. Excluding the three banks, the remaining 27 stocks saw S$3.9 billion of net retail inflow over the 10-month period, and have since received S$1.6 billion of net retail inflow in the 2021 YTD. </li>
</ul>
 

The STI comprises Singapore’s 30 most actively traded and largest stocks by market value. The STI is the headline index of the FTSE ST Index Series, a family of indices created by Singapore Press Holdings, Singapore Exchange (“SGX”) and FTSE Group. Note that following the market close on 2 September 2021, the results of the latest quarterly rebalance of the STI and the FTSE STI Index Series balance will be released <a href="https://www.ftserussell.com/products/indices/sgx-st?fireglass_rsn=true#fireglass_params&amp;tabid=a4379fe464c41e16&amp;start_with_session_counter=3&amp;application_server_address=isolation-sgx3.wss.prod.fire.glass">here</a>. In the YTD through to the 30 August morning session, the STI has generated a 9.2% gain with reinvested dividends boosting the total return to 12.3%. This followed an 8.1% decline in total return in 2020, with the YTD gains bringing the STI’s average annualised 10-year total return to 4.6%. Of the current 30 STI constituents, the six strongest performers over the past 10 years were Keppel DC REIT, Frasers Logistics &amp; Commercial Trust, Mapletree Industrial Trust, Venture Corporation, Mapletree Logisitics Trust and Mapletree Commercial Trust, all of which were not part of the STI 10 years ago. Two of these constituents also listed over the ten-year duration, with Keppel DC REIT in December 2014, and Frasers Logisitics &amp; Industrial Trust, now Frasers Logisitics &amp; Commercial Trust, in June 2016. 
SGX lists two Exchange Traded Funds (“ETFs”) for trading that invest in the 30 STI constituents, the SPDR® STI ETF and Nikko AM STI ETF. The <a href="https://www.spdrs.com.sg/etf/fund/spdr-straits-times-index-etf-ES3.html">SPDR® STI ETF</a> was launched in 2002, and is managed by State Street Global Advisors, while Nikko Asset Management manages the <a href="https://www.nikkoam.com.sg/etf/sti">Nikko AM STI ETF</a> that was launched in 2009. ETF inflows generally result from primary market creation of ETF units by the participating dealers to meet the excess demand from institutional and retail investors for the ETFs on the exchange. Outflows, on the other hand, are resulted from primary market redemption due to selling activities of institutional and retail investors in the markets. 
The chart below details the accumulated combined monthly inflows/outflows of both STI ETFs over the past 10 years, the majority of which were contributed by retail investors.
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 <img src='https://api2.sgx.com/sites/default/files/2021-08/Capture_24.PNG' alt='Accumulated STI ETF Flows' />
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 <div class='content-caption'>Accumulated STI ETF Flows</div>
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The combined Assets Under Management (“AUM”) of both STI ETFs advanced from S$404.3 million at the end of July 2011 to S$2,238 million at the end of July 2021. This was on the back of a total of S$1,587.9 million of inflows into the two ETFs over the 10 years. Of the S$1,587.9 million in inflows, the two STI ETFs drew 57% or S$907.4 million of the inflows from 1 March 2020 to 31 December 2020. For the first seven months of 2021, the two STI ETFs saw combined outflows of S$67.2 million, with the 10 years accumulated net inflows in the chart above declining from S$1,655.1 million in December 2020, to S$1,587.9 million in July 2021. 
For the 10-month period through to the end of 2020, the Volume Weighted Average Price (“VWAP”) for the SPDR® STI ETF was S$2.64, and S$2.69 for the Nikko AM STI ETF. The SPDR STI ETF ended the morning session on 30 August 2021 at S$3.14, while the Nikko AM STI ETF ended at S$3.16. Including the two STI ETF divided distributions in 2021, the 2021 year to date has seen the two ETFs generate approximate 20% returns on their respective 10-month VWAP prices. 
ETFs are investment funds listed and traded intraday on a stock exchange. The majority aim to track the performance of an index and provide access to a wide variety of markets and asset classes, including local stocks, international securities, bonds, commodities or money markets. To find out more about ETFs, click <a href="https://www.sgxacademy.com/home/infographics/what-you-need-to-know-about-investing-in-etfs/?utm_source=Research&amp;utm_medium=MU&amp;utm_campaign=ETFs&amp;utm_term=%2708062020&amp;utm_content=Market%20Update">here</a>.  Recent Retail Flows of STI Constituents 
Parallel to the STI ETF inflows from 1 March 2020 to 31 December 2020, the current 30 STI stocks saw S$6.6 billion of net retail inflow over the same 10 months. 
Excluding the three banks, the remaining 27 stocks saw S$3.9 billion of net retail inflow over the 10-month period, and have since received S$1.6 billion of net retail inflow in the 2021 year through to 28 August 2021. Among the 27 stocks, Singapore Telecommunications (“Singtel”) has seen the largest net retail inflow in the 2021 YTD to 28 August, at S$333 million, while Yangzijiang Shipbuilding had the largest net retail outflow, at S$336 million. 
 

<ul>
<li>Yangzijiang Shipbuilding was also the STI’s biggest mover last week, rallying 14.0% over the week to close at S$1.63, with the re-opening of the Ningbo-Zhoushan seeing a sharp rebound in global shipbuilders, taking its 2021 total return through to the morning session on 30 August 2021 to 78.0%. </li>
</ul>
 

<ul>
<li>On 12 August, Singtel reported a turnaround in its 1QFY22 (ended 30 June) to S$445 million net profit, from a net loss of S$20 million in 1QFY21 on the back of improved operating and business environments and a stronger Australian Dollar. Since 26 July, Singtel has outpaced the global telecommunications sector, with a 7.0% total return, compared to flat returns for the global US$4 trillion sector.</li>
</ul>
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The STI ETFs drew significant investor participation in the 10 months from March 2020 through to the end of December 2020, with more than S$900 million of net inflows and amounting to more than half of the combined inflows of the two STI ETFs over the past decade.  
	 
	
For the 10 month period, the volume-weighted average prices (VWAP) for the SPDR STI ETF and the Nikko AM STI ETF were S$2.64 and S$2.69. With the SPDR STI ETF and Nikko AM STI ETF ending the 30 August 2021 morning session at S$3.14 and S$3.16 respectively, the two ETFs have since generated ~20% total returns (incl. dividends) on the 10-month VWAP prices. 
	 
	Parallel to the STI ETF inflows from March 2020 through to the end of December 2020, the current 30 STI stocks saw S$6.6 billion of net retail inflow over the same 10 months. Excluding the three banks, the remaining 27 stocks saw S$3.9 billion of net retail inflow over the 10-month period, and have since received S$1.6 billion of net retail inflow in the 2021 YTD. 

 

The STI comprises Singapore’s 30 most actively traded and largest stocks by market value. The STI is the headline index of the FTSE ST Index Series, a family of indices created by Singapore Press Holdings, Singapore Exchange (“SGX”) and FTSE Group. Note that following the market close on 2 September 2021, the results of the latest quarterly rebalance of the STI and the FTSE STI Index Series balance will be released here.   In the YTD through to the 30 August morning session, the STI has generated a 9.2% gain with reinvested dividends boosting the total return to 12.3%. This followed an 8.1% decline in total return in 2020, with the YTD gains bringing the STI’s average annualised 10-year total return to 4.6%. Of the current 30 STI constituents, the six strongest performers over the past 10 years were Keppel DC REIT, Frasers Logistics &amp; Commercial Trust, Mapletree Industrial Trust, Venture Corporation, Mapletree Logisitics Trust and Mapletree Commercial Trust, all of which were not part of the STI 10 years ago. Two of these constituents also listed over the ten-year duration, with Keppel DC REIT in December 2014, and Frasers Logisitics &amp; Industrial Trust, now Frasers Logisitics &amp; Commercial Trust, in June 2016.  
SGX lists two Exchange Traded Funds (“ETFs”) for trading that invest in the 30 STI constituents, the SPDR® STI ETF and Nikko AM STI ETF. The SPDR® STI ETF was launched in 2002, and is managed by State Street Global Advisors, while Nikko Asset Management manages the Nikko AM STI ETF that was launched in 2009.  ETF inflows generally result from primary market creation of ETF units by the participating dealers to meet the excess demand from institutional and retail investors for the ETFs on the exchange. Outflows, on the other hand, are resulted from primary market redemption due to selling activities of institutional and retail investors in the markets.  
The chart below details the accumulated combined monthly inflows/outflows of both STI ETFs over the past 10 years, the majority of which were contributed by retail investors.



      
    
    Accumulated STI ETF Flows


The combined Assets Under Management (“AUM”) of both STI ETFs advanced from S$404.3 million at the end of July 2011 to S$2,238 million at the end of July 2021. This was on the back of a total of S$1,587.9 million of inflows into the two ETFs over the 10 years. Of the S$1,587.9 million in inflows, the two STI ETFs drew 57% or S$907.4 million of the inflows from 1 March 2020 to 31 December 2020. For the first seven months of 2021, the two STI ETFs saw combined outflows of S$67.2 million, with the 10 years accumulated net inflows in the chart above declining from S$1,655.1 million in December 2020, to S$1,587.9 million in July 2021.  
For the 10-month period through to the end of 2020, the Volume Weighted Average Price (“VWAP”) for the SPDR® STI ETF was S$2.64, and S$2.69 for the Nikko AM STI ETF. The SPDR STI ETF ended the morning session on 30 August 2021 at S$3.14, while the Nikko AM STI ETF ended at S$3.16. Including the two STI ETF divided distributions in 2021, the 2021 year to date has seen the two ETFs generate approximate 20% returns on their respective 10-month VWAP prices.  
ETFs are investment funds listed and traded intraday on a stock exchange. The majority aim to track the performance of an index and provide access to a wide variety of markets and asset classes, including local stocks, international securities, bonds, commodities or money markets. To find out more about ETFs, click here.   Recent Retail Flows of STI Constituents  
Parallel to the STI ETF inflows from 1 March 2020 to 31 December 2020, the current 30 STI stocks saw S$6.6 billion of net retail inflow over the same 10 months.  
Excluding the three banks, the remaining 27 stocks saw S$3.9 billion of net retail inflow over the 10-month period, and have since received S$1.6 billion of net retail inflow in the 2021 year through to 28 August 2021. Among the 27 stocks, Singapore Telecommunications (“Singtel”) has seen the largest net retail inflow in the 2021 YTD to 28 August, at S$333 million, while Yangzijiang Shipbuilding had the largest net retail outflow, at S$336 million. 
 


Yangzijiang Shipbuilding was also the STI’s biggest mover last week, rallying 14.0% over the week to close at S$1.63, with the re-opening of the Ningbo-Zhoushan seeing a sharp rebound in global shipbuilders, taking its 2021 total return through to the morning session on 30 August 2021 to 78.0%. 

 


On 12 August, Singtel reported a turnaround in its 1QFY22 (ended 30 June) to S$445 million net profit, from a net loss of S$20 million in 1QFY21 on the back of improved operating and business environments and a stronger Australian Dollar. Since 26 July, Singtel has outpaced the global telecommunications sector, with a 7.0% total return, compared to flat returns for the global US$4 trillion sector.




Investors Doubled Down on STI Investing in 2020

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Equity Capital Markets

HD Korea Shipbuilding & Offshore Engineering / Equity Capital Markets

HD Korea Shipbuilding & Offshore Engineering (009540 KS)

HD Korea Shipbuilding & Offshore Engineering

<div><div><h2>Offering size</h2></div></div><div>Hyundai Heavy Industries (HHI) offers 18M shares, which account for 25.43% of the pre-IPO total shares, of which 55-75% are allocated to institutions. It will be listed on KOSPI.</div><table class="table table-striped">
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<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Offering size"}'>Offering size</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"329180"}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=R[1]C[-2]">329180</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Bourse"}'>Bourse</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KOSPI"}'>KOSPI</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Offering"}'>Offering</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":8654230}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>18,000,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"- % of SO"}'>- % of pre-IPO SO</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.25433386315786916}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Terms!R[5]C[-2]">25.43%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"- Institutional allotment"}'>- Institutional allotment</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"55.00~75.00%"}' data-sheets-formula="=Terms!R[5]C[-2]">55.00~75.00%</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><div class="content-highlight">
Who is HHI?
<ul>
<li>HHI is the world's largest shipbuilding company based in Korea. Since its establishment in 1973, it has maintained the No. 1 position in the global shipbuilding market since 1983.</li>
<li>Prior to the establishment of the holding company in 2017, Hyundai Heavy Industries was at the apex of a circular shareholding structure that led to Chung Mong-jun (owner) → Hyundai Heavy Industries → Hyundai Samho Heavy Industries → Hyundai Mipo Dockyard → Hyundai Heavy Industries.</li>
<li>In June 2019, Hyundai Heavy Industries conducted a physical division to take over Daewoo Shipbuilding &amp; Marine Engineering. It was divided into an intermediate holding company, Korea Shipbuilding &amp; Offshore Engineering (KSOE), and an operating company, Hyundai Heavy Industries. For this reason, KSOE currently owns 100% of HHI.</li>
</ul>
</div><div><div><h2>Split</h2></div></div><div>
This IPO is a 100% primary offering. As a result, this offering will see a capital increase rate of 25.43% with a shareholding dilution of 20.28%. This event is free of any additional options: cornerstone, clawback, or greenshoe.
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<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Split"}'>Split</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Primary %"}'>Primary %</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Terms!R[3]C[-2]">100.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Secondary %"}'>Secondary %</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Terms!R[4]C[-2]">0.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Capital increase rate"}'>Capital increase rate</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.25433386315786916}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Terms!R[4]C[-2]">25.43%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Dilution"}'>Dilution</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.20276408907399399}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Terms!R[4]C[-2]">20.28%</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>
</div><div><div></div></div><div>
<div><div><h2>Schedule</h2></div></div>
<div>
The book opens on August 26 (September 2 for local institutions) and runs until September 3. The allotment will be on September 6, finalizing an offering price. The subscription falls on September 7.
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<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Schedule"}'>Schedule</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Book open"}'>Book open</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44434}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 08. 26</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Book close"}'>Book close</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44442}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 09. 03</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Allotment"}'>Allotment</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44445}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 09. 06</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Subscription"}'>Subscription</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44446}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 09. 07</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Payment"}'>Payment</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44449}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 09. 10</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Listing"}'>Listing</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>
<div><div><h2>Pricing</h2></div></div>
<div>This IPO also uses PBR. The corporate value was determined after selecting the following five companies (one from Korea and four from China):</div>
<div><ol style="list-style-type: decimal;">
<li><a href="https://www.smartkarma.com/entities/daewoo-shipbuilding-marine-engineering" target="_blank" data-smartkarma-citation="entities:12531:1" rel="noopener">Daewoo Shipbuilding &amp; Marine Engineering (042660 KS)</a></li>
<li><a href="https://www.smartkarma.com/entities/china-shipbuilding-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:5789:1" rel="noopener">China Shipbuilding Industry (601989 CH)</a></li>
<li>
<a href="https://www.smartkarma.com/entities/china-cssc-holdings-ltd-a" target="_blank" data-smartkarma-citation="entities:2464:1" rel="noopener">China CSSC Holdings Ltd A (600150 CH)</a> </li>
<li>
<a href="https://www.smartkarma.com/entities/yangzijiang-shipbuilding-holdings-limited" target="_blank" data-smartkarma-citation="entities:660:1" rel="noopener">Yangzijiang Shipbuilding (YZJSGD SP)</a> </li>
<li>
<a href="https://www.smartkarma.com/entities/cssc-offshore-marine-engg-group-co-ltd" target="_blank" data-smartkarma-citation="entities:5089:1" rel="noopener">Cssc Offshore &amp; Marine Engg Group (317 HK)</a> </li>
</ol></div>
<div>
The average P/B multiple of these five valuation peers come at 1.12x based on their 1Q21 financials.
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<tr>
<td data-sheets-value='{"1":2,"2":"FY2021 1Q based annualized net earnings based P/E"}'>As of FY2021 1Q</td>
<td data-sheets-value='{"1":2,"2":"Note"}'>Note</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"DSME"}'>DSME</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"China Shipbuilding Industry Company Ltd"}'>China Shipbuilding Industry Company Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"China CSSC Holdings Ltd"}'>China CSSC Holdings Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Yangzijiang Shipbuilding Holdings Ltd"}'>Yangzijiang Shipbuilding Holdings Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"CSSC Offshore and Marine Engineering Group Co Ltd"}'>CSSC Offshore and Marine Engineering Group Co Ltd</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Equity"}'>Equity</td>
<td data-sheets-value='{"1":2,"2":"A"}'>A</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3635.589}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩3,635.6B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15324.249}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩15,324.2B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":9411.029}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩9,411.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6066.149}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩6,066.1B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3057.162}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩3,057.2B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Non controlling interest"}'>Non-controlling interest</td>
<td data-sheets-value='{"1":2,"2":"B"}'>B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩0.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":157.608}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩157.6B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1247.454}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩1,247.5B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":186.08}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩186.1B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":550.639}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩550.6B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Applied equity"}'>Applied equity</td>
<td data-sheets-value='{"1":2,"2":"C=A-B"}'>C=A-B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3635.589}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-2]C[0]-R[-1]C[0]">₩3,635.6B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15166.641}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-2]C[0]-R[-1]C[0]">₩15,166.6B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":8163.575000000001}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-2]C[0]-R[-1]C[0]">₩8,163.6B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5880.069}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-2]C[0]-R[-1]C[0]">₩5,880.1B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2506.5229999999997}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-2]C[0]-R[-1]C[0]">₩2,506.5B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Reference market cap"}'>Reference market cap</td>
<td data-sheets-value='{"1":2,"2":"D"}'>D</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3401.114}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩3,401.1B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15590.917}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩15,590.9B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11966.681}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩11,966.7B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4552.47}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩4,552.5B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3504.253}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩3,504.3B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"PBR"}'>PBR</td>
<td data-sheets-value='{"1":2,"2":"E=D÷C"}'>E=D÷C</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.94}' data-sheets-numberformat='[null,2,"0.00x"]'>0.94x</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.03}' data-sheets-numberformat='[null,2,"0.00x"]'>1.03x</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.47}' data-sheets-numberformat='[null,2,"0.00x"]'>1.47x</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.77}' data-sheets-numberformat='[null,2,"0.00x"]'>0.77x</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.4}' data-sheets-numberformat='[null,2,"0.00x"]'>1.40x</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Average PBR"}'>Average PBR</td>
<td data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td colspan="5" rowspan="1" style="text-align: center;" data-sheets-value='{"1":3,"3":1.12}' data-sheets-numberformat='[null,2,"0.00x"]'>1.12x</td>
</tr>
<tr><td colspan="7" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>
The averaged P/B multiple of 1.12x was applied to HHI's equity of ₩5,035.7B from the second quarter of this year. Then, an IPO flow of ₩936.0B (at the lower end of the indicative price band) was added. As a result, we have a reference market cap of ₩6.58T, giving a price per share of ₩74,094.
</div>
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="3" style="width: 719.119px;" data-sheets-value='{"1":2,"2":"P/E valuation"}'>HHI: P/B valuation</td></tr>
<tr>
<td style="width: 239.702px;" data-sheets-value='{"1":2,"2":"Average PBR"}'>Average PBR</td>
<td style="width: 161.804px;" data-sheets-value='{"1":2,"2":"A"}'>A</td>
<td style="text-align: right; width: 317.614px;" data-sheets-value='{"1":3,"3":1.12}' data-sheets-numberformat='[null,2,"0.00x"]' data-sheets-formula="=R[-4]C[0]">1.12x</td>
</tr>
<tr>
<td style="width: 239.702px;" data-sheets-value='{"1":2,"2":"Applied equity"}'>Applied equity</td>
<td style="width: 161.804px;" data-sheets-value='{"1":2,"2":"B"}'>B</td>
<td style="text-align: right; width: 317.614px;" data-sheets-value='{"1":3,"3":5035.677}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩5,035.7B</td>
</tr>
<tr>
<td style="width: 239.702px;" data-sheets-value='{"1":2,"2":"IPO inflow"}'>IPO inflow</td>
<td style="width: 161.804px;" data-sheets-value='{"1":2,"2":"C"}'>C</td>
<td style="text-align: right; width: 317.614px;" data-sheets-value='{"1":3,"3":936}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩936.0B</td>
</tr>
<tr>
<td style="width: 239.702px;" data-sheets-value='{"1":2,"2":"Reference market cap"}'>Reference market cap</td>
<td style="width: 161.804px;" data-sheets-value='{"1":2,"2":"D=(AxB)+C"}'>D=(AxB)+C</td>
<td style="text-align: right; width: 317.614px;" data-sheets-value='{"1":3,"3":6577.587}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>₩6,577.6B</td>
</tr>
<tr>
<td style="width: 239.702px;" data-sheets-value='{"1":2,"2":"Post-IPO SO"}'>Post-IPO SO</td>
<td style="width: 161.804px;" data-sheets-value='{"1":2,"2":"E"}'>E</td>
<td style="text-align: right; width: 317.614px;" data-sheets-value='{"1":3,"3":88773116}' data-sheets-numberformat='[null,2,"#,##0",1]'>88,773,116</td>
</tr>
<tr>
<td style="width: 239.702px;" data-sheets-value='{"1":2,"2":"Price per share"}'>Price per share</td>
<td style="width: 161.804px;" data-sheets-value='{"1":2,"2":"F=D÷E"}'>F=D÷E</td>
<td style="text-align: right; width: 317.614px;" data-sheets-value='{"1":3,"3":74094}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>₩74,094</td>
</tr>
<tr><td colspan="3" style="width: 719.119px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>
The indicative price band lies between ₩52,000 and ₩60,000. This is obtained by applying a discount rate of19.02% to 29.82% to the market cap of ₩6.58T calculated through PBR. This much discount gives a P/B multiple of 0.77x to 0.89x.
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Pricing"}'>Pricing</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Low"}'>Low</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"High"}'>High</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Price"}'>Price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":52000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩52,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":60000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩60,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Base deal size"}'>Base deal size</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":936}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-1]C[0]*Terms!R8C2/1000000000">₩936.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1080}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-1]C[0]*Terms!R8C2/1000000000">₩1,080.0B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Institutional allotment (55%)"}'>- Institutional allotment (55%)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":514.8000000000001}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-1]C[0]*55%">₩514.8B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":594}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-1]C[0]*55%">₩594.0B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Implied market cap"}'>Implied market cap</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4616.202032}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-3]C[0]*R23C3/1000000000">₩4,616.2B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5326.38696}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-3]C[0]*R23C3/1000000000">₩5,326.4B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Discount"}'>- Discount</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2981887872162388}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R24C3-R[-4]C[0])/R24C3">29.82%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1902178314033525}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R24C3-R[-4]C[0])/R24C3">19.02%</td>
</tr>
<tr>
<td>Implied PBR</td>
<td style="text-align: right;">0.77x</td>
<td style="text-align: right;">0.89x</td>
</tr>
<tr><td colspan="3" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>
</div>
</div>

Offering sizeHyundai Heavy Industries (HHI) offers 18M shares, which account for 25.43% of the pre-IPO total shares, of which 55-75% are allocated to institutions. It will be listed on KOSPI.





Offering size

Ticker
329180


Bourse
KOSPI


Offering
18,000,000


- % of pre-IPO SO
25.43%


- Institutional allotment
55.00~75.00%

Source: DART


Who is HHI?

HHI is the world's largest shipbuilding company based in Korea. Since its establishment in 1973, it has maintained the No. 1 position in the global shipbuilding market since 1983.
Prior to the establishment of the holding company in 2017, Hyundai Heavy Industries was at the apex of a circular shareholding structure that led to Chung Mong-jun (owner) → Hyundai Heavy Industries → Hyundai Samho Heavy Industries → Hyundai Mipo Dockyard → Hyundai Heavy Industries.
In June 2019, Hyundai Heavy Industries conducted a physical division to take over Daewoo Shipbuilding &amp; Marine Engineering. It was divided into an intermediate holding company, Korea Shipbuilding &amp; Offshore Engineering (KSOE), and an operating company, Hyundai Heavy Industries. For this reason, KSOE currently owns 100% of HHI.

Split
This IPO is a 100% primary offering. As a result, this offering will see a capital increase rate of 25.43% with a shareholding dilution of 20.28%. This event is free of any additional options: cornerstone, clawback, or greenshoe.






Split

Primary %
100.00%


Secondary %
0.00%


Capital increase rate
25.43%


Dilution
20.28%

Source: DART



Schedule

The book opens on August 26 (September 2 for local institutions) and runs until September 3. The allotment will be on September 6, finalizing an offering price. The subscription falls on September 7.






Schedule

Book open
2021. 08. 26


Book close
2021. 09. 03


Allotment
2021. 09. 06


Subscription
2021. 09. 07


Payment
2021. 09. 10


Listing
-

Source: DART


Pricing
This IPO also uses PBR. The corporate value was determined after selecting the following five companies (one from Korea and four from China):

Daewoo Shipbuilding &amp; Marine Engineering (042660 KS)
China Shipbuilding Industry (601989 CH)

China CSSC Holdings Ltd A (600150 CH) 

Yangzijiang Shipbuilding (YZJSGD SP) 

Cssc Offshore &amp; Marine Engg Group (317 HK) 


The average P/B multiple of these five valuation peers come at 1.12x based on their 1Q21 financials.












As of FY2021 1Q
Note
DSME
China Shipbuilding Industry Company Ltd
China CSSC Holdings Ltd
Yangzijiang Shipbuilding Holdings Ltd
CSSC Offshore and Marine Engineering Group Co Ltd


Equity
A
₩3,635.6B
₩15,324.2B
₩9,411.0B
₩6,066.1B
₩3,057.2B


Non-controlling interest
B
₩0.0B
₩157.6B
₩1,247.5B
₩186.1B
₩550.6B


Applied equity
C=A-B
₩3,635.6B
₩15,166.6B
₩8,163.6B
₩5,880.1B
₩2,506.5B


Reference market cap
D
₩3,401.1B
₩15,590.9B
₩11,966.7B
₩4,552.5B
₩3,504.3B


PBR
E=D÷C
0.94x
1.03x
1.47x
0.77x
1.40x


Average PBR
-
1.12x

Source: DART


The averaged P/B multiple of 1.12x was applied to HHI's equity of ₩5,035.7B from the second quarter of this year. Then, an IPO flow of ₩936.0B (at the lower end of the indicative price band) was added. As a result, we have a reference market cap of ₩6.58T, giving a price per share of ₩74,094.








HHI: P/B valuation

Average PBR
A
1.12x


Applied equity
B
₩5,035.7B


IPO inflow
C
₩936.0B


Reference market cap
D=(AxB)+C
₩6,577.6B


Post-IPO SO
E
88,773,116


Price per share
F=D÷E
₩74,094

Source: DART


The indicative price band lies between ₩52,000 and ₩60,000. This is obtained by applying a discount rate of19.02% to 29.82% to the market cap of ₩6.58T calculated through PBR. This much discount gives a P/B multiple of 0.77x to 0.89x.








Pricing
Low
High


Price
₩52,000
₩60,000


Base deal size
₩936.0B
₩1,080.0B


- Institutional allotment (55%)
₩514.8B
₩594.0B


Implied market cap
₩4,616.2B
₩5,326.4B


- Discount
29.82%
19.02%


Implied PBR
0.77x
0.89x

Source: DART





Hyundai Heavy Industries IPO: Offering Details & Valuation Issues

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
Singapore’s Manufacturing Sector expanded 14.5% YoY in 1H21 from 1H20, with June’s 3.0% MoM decline being the largest MoM decline since October. Similarly, Singapore’s 20 most traded manufacturing-related stocks averaged a 15.7% gain in 1H21, followed by averaging a 0.2% decline since 30 June. 
	 </li>
	<li>
While the 20 stocks represent 11% of the total market value of all stocks listed on Singapore Exchange, the 20 stocks almost double their impact in daily turnover, with the combined S$266 million in average daily turnover in the 2021 YTD representing 20% of the total average daily turnover of all stocks listed on SGX. 
	 </li>
	<li>As the Semiconductor cluster expanded 26.2% YoY in 1H21 from 1H20, AEM, UMS and Frencken, which rank as top 50 stocks by turnover, averaged 32.9% total returns over the same period. Since the end of June, the trio have generated highly symmetrical gains of 5.5%, which includes a dividend distribution by UMS Holdings. </li>
</ul>
 

Singapore’s 20 most traded manufacturing-related stocks span five key sectors - Technology, Consumer Non-Cyclicals, Industrials, Healthcare and Materials &amp; Resources. The wide span of industries, from semiconductors and consumer electronics to agricultural producers to shipbuilders to personal protection equipment to chemical manufacturing inputs, the 20 stocks have generated diversified returns in the 2021 year to 26 July. The 20 stocks have averaged a 15.8% total return over the period, spanning 27.9% average total returns for six Technology stocks to a 5.9% decline for four Healthcare stocks.
</body></html>

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2021-07/Capture_23.PNG' alt='Sectors of the 20 most traded manufacturing-related stocks' />
 </figure>
 <div class='content-caption'>Sectors of the 20 most traded manufacturing-related stocks</div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
Singapore’s 20 most traded manufacturing-related stocks currently maintain a combined market value of S$98.8 billion, which represents 10.9% of the S$903.6 billion in total market capitalisation of all stocks listed on SGX. The 20 stocks almost double their impact when it comes to trading participation, with the combined S$266 million in daily turnover representing 19.6% of the combined S$1.36 billion in average daily turnover of all stocks listed on the exchange in the 2021 year to 26 July. All 20 stocks have international revenue streams, with companies based in Singapore, China, Malaysia and Thailand.  Similarly, Singapore’s manufacturing sector makes up approximately 20% of its GDP, and as reported yesterday, Singapore’s Manufacturing Sector expanded 14.5% YoY in 1H21 from 1H20, with the month of June seeing a 3.0% MoM decline, the largest MoM decline since October (click <a href="https://www.edb.gov.sg/en/about-edb/media-releases-publications.html">here</a> for more). The 3.0% MoM decline in June from May, followed preceding MoM changes of 4.4%, -0.1%, -0.4%, 1.7% and 4.5%. Technology 
As the Semiconductor Cluster expanded 26.2% YoY in 1H21 from 1H20, AEM Holdings, UMS Holdings and Frencken Group averaged 32.9% total returns over the same period. Since the end of June, the trio have generated similar gains, averaging 5.5%, which includes a dividend distribution by UMS Holdings. 
The broader Electronics Cluster expanded 23.6% in 1H21 from 1H20. Nanofilm Technologies International generated a 24.8% total return in 1H21 and was the strongest performer of the 20 stocks in the 2H21 to 26 July, with an 18.9% gain. In mid-July, Credit Suisse increased their target price on the stock by 13%, highlighting that the nanotech provider is exploring opportunities to immerse itself into the clean tech supply chain. Jeffries also initiated coverage on the stock during the week. That same week saw the global appetite for consumer technology reiterated with Apple Inc reporting it would seek to boost iPhone output by 20% in 2021. Nanofilm Technologies International also owns more than 70 patents and trademarks, with over 20 pending applications. 
Aztech Global will report its 1HFY21 (ended 30 June) financial results after the 30 July close and Venture Corporation will be announcing its 1HFY21 (ended 30 June) financial results after the 6 August close. Venture Corporation has gained 4.9% since providing a general corporate update on 23 June, highlighting that despite recent challenges of the endemic, its entities in Malaysia have been able to continue operations as an essential economic sector, enabling Venture to deliver on its customers and partner commitments. The Group also added that a new series of next-generation devices in the Lifestyle Consumer Electronics have been developed, with plans afoot to launch these products in 2H21.  Industrials 
Engineering solution provider ISDN Holdings was the strongest of the 20 most traded manufacturing stocks in the 1H21. On June 18, ISDN Holdings announced a global strategic partnership with communications solution provider Whizpace Pte Ltd to deliver wide-area Industry 4.0 and IoT solutions globally. While ISDN Holdings represents the Industrials Sector, on the outlook for the regional supply and value chains, ISDN Holdings noted in its 30 April AGM <a href="https://links.sgx.com/1.0.0/corporate-announcements/HFZENHCNN3G5DFFW/bd165beec9f607bdf9fe719ee9dd52afbbabbcb8c84a456e040225e99567bae3">Q&amp;A</a> it had been seeing the benefit of China’s broad ramp in semiconductor capex in its business, with:

<ul>
<li>geopolitical industry competition and global trade tensions diverting trade, supply chains and capital to Southeast Asia</li>
	<li>trade tensions accelerating China’s industrial push towards Industry 4.0 automation as it seeks to avoid competing with Southeast Asia on cost, and instead pushing up the value chain into advanced industry</li>
	<li>China’s technology ecosystem looking to reduce its reliance on US and European technology in favour of Asia-centric suppliers.</li>
</ul>
 

The IMF Singapore Country Report released on 16 July showed that Singapore had made significant strides in the digitalisation of production through industrial robots. The report defined Industrial robots as higher-end digitalisation products predominantly used for automation in the manufacturing sector and maintained Singapore’s stock of operational robots in the manufacturing sector has rapidly increased during the past decade, from about 600 robots in 2008 to above 17,000 robots in 2018, translating into a rise in robot density to 45 operating robots per 1,000 employees in 2018, from about 1 operating robot per 1,000 employees in 2008 (click <a href="https://www.imf.org/en/Publications/CR/Issues/2021/07/16/Singapore-2021-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-462216">here</a> for more). This makes Singapore one of the top users of industrial robots in the world with most of the industrial robots in Singapore are used in the semiconductor sub-sector. While the 20 stocks were recipients to S$437 of combined net institutional outflow in the 2021 year to 26 July, China-based Yangzijiang Shipbuilding (Holdings) was recipient to S$217 million in net institutional inflow, also doubling as the most traded of the 20 stocks over the period. In the first half of its FY21 (ended 30 June) the Group secured new orders for 100 vessels worth US$5.59 billion, surpassing the previous record largest order wins (based on total contract value) for an FY in the Group’s history previously set at US$4.97 billion in FY07. On 21 July, Yangzijiang Shipbuilding (Holdings) announced that it had entered into a sale and purchase agreement (‘SPA’) with Sanfu Shipbuilding Holdings. The SPA will see Yangzijiang Shipbuilding (Holdings) purchase of the remaining 20 per cent equity stake in Jiangsu Yangzi Xinfu Shipbuilding Co Ltd, for an aggregate consideration of RMB 650 million, fully funded by 100 million treasury shares of Yangzijiang Shipbuilding (Holdings) and is expected to be earnings accretive for the Group. The recent performances of the 20 stocks, sorted by average daily turnover are tabled below.

<table class="table table-striped"><tbody>
<tr>
<td>
			Singapore’s 20 most traded manufacturing-related stocks in 2021 YTD
			</td>
			<td>
			Code
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			Average Daily Turnover YTD S$M
			</td>
			<td>
			Net Insti Inflow YTD S$M
			</td>
			<td>
			1H21 Total Return %
			</td>
			<td>
			2H21 Total Return %  
			</td>
			<td>
			Sector
			</td>
		</tr>
<tr>
<td>
			YZJ Shipbldg SGD
			</td>
			<td>
			BS6
			</td>
			<td>
			5,311
			</td>
			<td>
			42
			</td>
			<td>
			217
			</td>
			<td>
			52.1
			</td>
			<td>
			-2.1
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Wilmar Intl
			</td>
			<td>
			F34
			</td>
			<td>
			28,121
			</td>
			<td>
			41
			</td>
			<td>
			-131
			</td>
			<td>
			-0.4
			</td>
			<td>
			-0.9
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			ThaiBev
			</td>
			<td>
			Y92
			</td>
			<td>
			16,453
			</td>
			<td>
			23
			</td>
			<td>
			-344
			</td>
			<td>
			-5.5
			</td>
			<td>
			-3.0
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			Venture
			</td>
			<td>
			V03
			</td>
			<td>
			5,510
			</td>
			<td>
			21
			</td>
			<td>
			-153
			</td>
			<td>
			1.5
			</td>
			<td>
			-1.2
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			Sembcorp Marine
			</td>
			<td>
			S51
			</td>
			<td>
			1,306
			</td>
			<td>
			20
			</td>
			<td>
			39
			</td>
			<td>
			-16.1
			</td>
			<td>
			-13.3
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			AEM
			</td>
			<td>
			AWX
			</td>
			<td>
			1,142
			</td>
			<td>
			17
			</td>
			<td>
			-64
			</td>
			<td>
			12.3
			</td>
			<td>
			5.7
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			ST Engineering
			</td>
			<td>
			S63
			</td>
			<td>
			12,347
			</td>
			<td>
			15
			</td>
			<td>
			-51
			</td>
			<td>
			3.9
			</td>
			<td>
			2.3
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			UMS
			</td>
			<td>
			558
			</td>
			<td>
			848
			</td>
			<td>
			11
			</td>
			<td>
			57
			</td>
			<td>
			41.7
			</td>
			<td>
			5.3
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			SATS
			</td>
			<td>
			S58
			</td>
			<td>
			4,419
			</td>
			<td>
			10
			</td>
			<td>
			-13
			</td>
			<td>
			-1.3
			</td>
			<td>
			0.3
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Nanofilm
			</td>
			<td>
			MZH
			</td>
			<td>
			4,320
			</td>
			<td>
			9
			</td>
			<td>
			45
			</td>
			<td>
			24.8
			</td>
			<td>
			18.9
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			Jiutian Chemical
			</td>
			<td>
			C8R
			</td>
			<td>
			167
			</td>
			<td>
			9
			</td>
			<td>
			-4
			</td>
			<td>
			6.3
			</td>
			<td>
			0.0
			</td>
			<td>
			Materials &amp; Resources
			</td>
		</tr>
<tr>
<td>
			Medtecs Intl
			</td>
			<td>
			546
			</td>
			<td>
			443
			</td>
			<td>
			7
			</td>
			<td>
			8
			</td>
			<td>
			-9.5
			</td>
			<td>
			-5.3
			</td>
			<td>
			Healthcare
			</td>
		</tr>
<tr>
<td>
			Top Glove
			</td>
			<td>
			BVA
			</td>
			<td>
			10,486
			</td>
			<td>
			7
			</td>
			<td>
			-55
			</td>
			<td>
			-25.8
			</td>
			<td>
			-3.7
			</td>
			<td>
			Healthcare
			</td>
		</tr>
<tr>
<td>
			Oceanus^
			</td>
			<td>
			579
			</td>
			<td>
			875
			</td>
			<td>
			7
			</td>
			<td>
			-14
			</td>
			<td>
			40.7
			</td>
			<td>
			-5.3
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			ISDN
			</td>
			<td>
			I07
			</td>
			<td>
			316
			</td>
			<td>
			6
			</td>
			<td>
			8
			</td>
			<td>
			80.2
			</td>
			<td>
			0.4
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Riverstone
			</td>
			<td>
			AP4
			</td>
			<td>
			1,897
			</td>
			<td>
			5
			</td>
			<td>
			25
			</td>
			<td>
			15.8
			</td>
			<td>
			4.1
			</td>
			<td>
			Healthcare
			</td>
		</tr>
<tr>
<td>
			Golden Agri-Res
			</td>
			<td>
			E5H
			</td>
			<td>
			2,665
			</td>
			<td>
			5
			</td>
			<td>
			21
			</td>
			<td>
			47.5
			</td>
			<td>
			-8.7
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			Frencken
			</td>
			<td>
			E28
			</td>
			<td>
			841
			</td>
			<td>
			5
			</td>
			<td>
			29
			</td>
			<td>
			44.6
			</td>
			<td>
			5.3
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			Aztech Global
			</td>
			<td>
			8AZ
			</td>
			<td>
			960
			</td>
			<td>
			4
			</td>
			<td>
			-43
			</td>
			<td>
			1.5
			</td>
			<td>
			-3.1
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			UG Healthcare
			</td>
			<td>
			8K7
			</td>
			<td>
			354
			</td>
			<td>
			3
			</td>
			<td>
			-13
			</td>
			<td>
			-1.5
			</td>
			<td>
			0.0
			</td>
			<td>
			Healthcare
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			98,781
			</td>
			<td>
			266
			</td>
			<td>
			-437
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			15.7
			</td>
			<td>
			-0.2
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
 Source: SGX, Refinitiv, Bloomberg (Data as of 26 July 2021)

 

Materials &amp; Resources 
The June Industrial Production report also showed that Singapore’s Specialty Chemicals cluster expanded 19.3% in 1H21 from 1H20. A top 40 stock by turnover this year, China-based Jiutian Chemical has been Singapore’s most traded Catalist-listed stock in the 2021 year to date. The company is expected to report its 1HFY21 (ended 30 June) results in the week ending 13 August. Back on 14 May, Jiutian Chemical Group reported net profit of 90 million yuan (S$18 million) for its 1QFY21 (ended 31 March), which was 30 times its 3 million yuan net profit in 1QFY20 (click <a href="https://urldefense.com/v3/__https:/links.sgx.com/1.0.0/corporate-announcements/W6SZYNJ51UNLY977/dc6ea4af4de03eda476b63ae56f59abfd16244f6fd4be8787904a3752ca4e20a__;!!AqcgDpFm!PabP-jievRpynF8asywdJIAkiqI1ks3GF2oL77ou2IrSFbwfF8OGqnKpAmA2HIJyGb7nRQ%24">here</a> for more). Its main product, DMF, has a diversified range of applications which include being a feedstock for polyurethane and pharmaceutical goods as well as being an industrial solvent. Materials &amp; Resources was also the strongest Sector in the China stock market over the 2021 year to 26 July with the approximate 700 stocks generating a 17% median total return. PMIs &amp; Uneven Growth  
As reported earlier in the month, the SIPMM Purchasing Managers’ Index (“PMI”) registered the 12th consecutive month of expansion for the overall manufacturing sector with a 0.1 point increase to 50.8 in June 2021, with the July PMI scheduled to be released on 2 August. Beyond headline growth, a key objective of policymakers is to see less uneven growth across the various sub industries in 2H21. 
While the June Industrial Production report showed Electronics saw the greatest YoY growth in 1H21, Transport Engineering declined 0.9% YoY and the General Manufacturing Industries Cluster expanded 7.5% YoY. While Yangzijiang Shipbuilding (Holdings) gained 52.1% in 1H21 on global demand for container ships, with a 2.1% decline in the 2H21 to 26 July, Sembcorp Marine declined 16.1% in 1H21 and 13.3% in 2H21. General Manufacturing incorporates F&amp;B and on 22 July, SATS reported its PATMI was profitable for a second consecutive quarter at $6.4 million in 1QFY22 (ended 30 June), following 4QFY21 PATMI of S$0.8 million. As observed by SATS, new variants of the COVID-19 virus continue to create uncertainty about when travel restrictions will be lifted. ST Engineering which gained 3.9% in 1H21 and 2.3% in the 2H21 to 26 July, will release its 1HFY21 (ended 30 June) financial results before the market opens on 12 August. 
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Singapore’s Manufacturing Sector expanded 14.5% YoY in 1H21 from 1H20, with June’s 3.0% MoM decline being the largest MoM decline since October. Similarly, Singapore’s 20 most traded manufacturing-related stocks averaged a 15.7% gain in 1H21, followed by averaging a 0.2% decline since 30 June.  
	 
	
While the 20 stocks represent 11% of the total market value of all stocks listed on Singapore Exchange, the 20 stocks almost double their impact in daily turnover, with the combined S$266 million in average daily turnover in the 2021 YTD representing 20% of the total average daily turnover of all stocks listed on SGX.  
	 
	As the Semiconductor cluster expanded 26.2% YoY in 1H21 from 1H20, AEM, UMS and Frencken, which rank as top 50 stocks by turnover, averaged 32.9% total returns over the same period. Since the end of June, the trio have generated highly symmetrical gains of 5.5%, which includes a dividend distribution by UMS Holdings. 

 

Singapore’s 20 most traded manufacturing-related stocks span five key sectors - Technology, Consumer Non-Cyclicals, Industrials, Healthcare and Materials &amp; Resources. The wide span of industries, from semiconductors and consumer electronics to agricultural producers to shipbuilders to personal protection equipment to chemical manufacturing inputs, the 20 stocks have generated diversified returns in the 2021 year to 26 July. The 20 stocks have averaged a 15.8% total return over the period, spanning 27.9% average total returns for six Technology stocks to a 5.9% decline for four Healthcare stocks.



      
    
    Sectors of the 20 most traded manufacturing-related stocks


Singapore’s 20 most traded manufacturing-related stocks currently maintain a combined market value of S$98.8 billion, which represents 10.9% of the S$903.6 billion in total market capitalisation of all stocks listed on SGX. The 20 stocks almost double their impact when it comes to trading participation, with the combined S$266 million in daily turnover representing 19.6% of the combined S$1.36 billion in average daily turnover of all stocks listed on the exchange in the 2021 year to 26 July. All 20 stocks have international revenue streams, with companies based in Singapore, China, Malaysia and Thailand.   Similarly, Singapore’s manufacturing sector makes up approximately 20% of its GDP, and as reported yesterday, Singapore’s Manufacturing Sector expanded 14.5% YoY in 1H21 from 1H20, with the month of June seeing a 3.0% MoM decline, the largest MoM decline since October (click here for more). The 3.0% MoM decline in June from May, followed preceding MoM changes of 4.4%, -0.1%, -0.4%, 1.7% and 4.5%.  Technology  
As the Semiconductor Cluster expanded 26.2% YoY in 1H21 from 1H20, AEM Holdings, UMS Holdings and Frencken Group averaged 32.9% total returns over the same period. Since the end of June, the trio have generated similar gains, averaging 5.5%, which includes a dividend distribution by UMS Holdings.  
The broader Electronics Cluster expanded 23.6% in 1H21 from 1H20. Nanofilm Technologies International generated a 24.8% total return in 1H21 and was the strongest performer of the 20 stocks in the 2H21 to 26 July, with an 18.9% gain. In mid-July, Credit Suisse increased their target price on the stock by 13%, highlighting that the nanotech provider is exploring opportunities to immerse itself into the clean tech supply chain. Jeffries also initiated coverage on the stock during the week. That same week saw the global appetite for consumer technology reiterated with Apple Inc reporting it would seek to boost iPhone output by 20% in 2021. Nanofilm Technologies International also owns more than 70 patents and trademarks, with over 20 pending applications.  
Aztech Global will report its 1HFY21 (ended 30 June) financial results after the 30 July close and Venture Corporation will be announcing its 1HFY21 (ended 30 June) financial results after the 6 August close. Venture Corporation has gained 4.9% since providing a general corporate update on 23 June, highlighting that despite recent challenges of the endemic, its entities in Malaysia have been able to continue operations as an essential economic sector, enabling Venture to deliver on its customers and partner commitments. The Group also added that a new series of next-generation devices in the Lifestyle Consumer Electronics have been developed, with plans afoot to launch these products in 2H21.   Industrials  
Engineering solution provider ISDN Holdings was the strongest of the 20 most traded manufacturing stocks in the 1H21. On June 18, ISDN Holdings announced a global strategic partnership with communications solution provider Whizpace Pte Ltd to deliver wide-area Industry 4.0 and IoT solutions globally. While ISDN Holdings represents the Industrials Sector, on the outlook for the regional supply and value chains, ISDN Holdings noted in its 30 April AGM Q&amp;A it had been seeing the benefit of China’s broad ramp in semiconductor capex in its business, with:


geopolitical industry competition and global trade tensions diverting trade, supply chains and capital to Southeast Asia
	trade tensions accelerating China’s industrial push towards Industry 4.0 automation as it seeks to avoid competing with Southeast Asia on cost, and instead pushing up the value chain into advanced industry
	China’s technology ecosystem looking to reduce its reliance on US and European technology in favour of Asia-centric suppliers.

 

The IMF Singapore Country Report released on 16 July showed that Singapore had made significant strides in the digitalisation of production through industrial robots. The report defined Industrial robots as higher-end digitalisation products predominantly used for automation in the manufacturing sector and maintained Singapore’s stock of operational robots in the manufacturing sector has rapidly increased during the past decade, from about 600 robots in 2008 to above 17,000 robots in 2018, translating into a rise in robot density to 45 operating robots per 1,000 employees in 2018, from about 1 operating robot per 1,000 employees in 2008 (click here for more). This makes Singapore one of the top users of industrial robots in the world with most of the industrial robots in Singapore are used in the semiconductor sub-sector.  While the 20 stocks were recipients to S$437 of combined net institutional outflow in the 2021 year to 26 July, China-based Yangzijiang Shipbuilding (Holdings) was recipient to S$217 million in net institutional inflow, also doubling as the most traded of the 20 stocks over the period. In the first half of its FY21 (ended 30 June) the Group secured new orders for 100 vessels worth US$5.59 billion, surpassing the previous record largest order wins (based on total contract value) for an FY in the Group’s history previously set at US$4.97 billion in FY07. On 21 July, Yangzijiang Shipbuilding (Holdings) announced that it had entered into a sale and purchase agreement (‘SPA’) with Sanfu Shipbuilding Holdings. The SPA will see Yangzijiang Shipbuilding (Holdings) purchase of the remaining 20 per cent equity stake in Jiangsu Yangzi Xinfu Shipbuilding Co Ltd, for an aggregate consideration of RMB 650 million, fully funded by 100 million treasury shares of Yangzijiang Shipbuilding (Holdings) and is expected to be earnings accretive for the Group.   The recent performances of the 20 stocks, sorted by average daily turnover are tabled below.




			Singapore’s 20 most traded manufacturing-related stocks in 2021 YTD
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			Average Daily Turnover YTD S$M
			
			
			Net Insti Inflow YTD S$M
			
			
			1H21 Total Return %
			
			
			2H21 Total Return %  
			
			
			Sector
			
		


			YZJ Shipbldg SGD
			
			
			BS6
			
			
			5,311
			
			
			42
			
			
			217
			
			
			52.1
			
			
			-2.1
			
			
			Industrials
			
		


			Wilmar Intl
			
			
			F34
			
			
			28,121
			
			
			41
			
			
			-131
			
			
			-0.4
			
			
			-0.9
			
			
			Consumer Non-Cyclicals
			
		


			ThaiBev
			
			
			Y92
			
			
			16,453
			
			
			23
			
			
			-344
			
			
			-5.5
			
			
			-3.0
			
			
			Consumer Non-Cyclicals
			
		


			Venture
			
			
			V03
			
			
			5,510
			
			
			21
			
			
			-153
			
			
			1.5
			
			
			-1.2
			
			
			Technology (Hardware/ Software)
			
		


			Sembcorp Marine
			
			
			S51
			
			
			1,306
			
			
			20
			
			
			39
			
			
			-16.1
			
			
			-13.3
			
			
			Industrials
			
		


			AEM
			
			
			AWX
			
			
			1,142
			
			
			17
			
			
			-64
			
			
			12.3
			
			
			5.7
			
			
			Technology (Hardware/ Software)
			
		


			ST Engineering
			
			
			S63
			
			
			12,347
			
			
			15
			
			
			-51
			
			
			3.9
			
			
			2.3
			
			
			Industrials
			
		


			UMS
			
			
			558
			
			
			848
			
			
			11
			
			
			57
			
			
			41.7
			
			
			5.3
			
			
			Technology (Hardware/ Software)
			
		


			SATS
			
			
			S58
			
			
			4,419
			
			
			10
			
			
			-13
			
			
			-1.3
			
			
			0.3
			
			
			Industrials
			
		


			Nanofilm
			
			
			MZH
			
			
			4,320
			
			
			9
			
			
			45
			
			
			24.8
			
			
			18.9
			
			
			Technology (Hardware/ Software)
			
		


			Jiutian Chemical
			
			
			C8R
			
			
			167
			
			
			9
			
			
			-4
			
			
			6.3
			
			
			0.0
			
			
			Materials &amp; Resources
			
		


			Medtecs Intl
			
			
			546
			
			
			443
			
			
			7
			
			
			8
			
			
			-9.5
			
			
			-5.3
			
			
			Healthcare
			
		


			Top Glove
			
			
			BVA
			
			
			10,486
			
			
			7
			
			
			-55
			
			
			-25.8
			
			
			-3.7
			
			
			Healthcare
			
		


			Oceanus^
			
			
			579
			
			
			875
			
			
			7
			
			
			-14
			
			
			40.7
			
			
			-5.3
			
			
			Consumer Non-Cyclicals
			
		


			ISDN
			
			
			I07
			
			
			316
			
			
			6
			
			
			8
			
			
			80.2
			
			
			0.4
			
			
			Industrials
			
		


			Riverstone
			
			
			AP4
			
			
			1,897
			
			
			5
			
			
			25
			
			
			15.8
			
			
			4.1
			
			
			Healthcare
			
		


			Golden Agri-Res
			
			
			E5H
			
			
			2,665
			
			
			5
			
			
			21
			
			
			47.5
			
			
			-8.7
			
			
			Consumer Non-Cyclicals
			
		


			Frencken
			
			
			E28
			
			
			841
			
			
			5
			
			
			29
			
			
			44.6
			
			
			5.3
			
			
			Technology (Hardware/ Software)
			
		


			Aztech Global
			
			
			8AZ
			
			
			960
			
			
			4
			
			
			-43
			
			
			1.5
			
			
			-3.1
			
			
			Technology (Hardware/ Software)
			
		


			UG Healthcare
			
			
			8K7
			
			
			354
			
			
			3
			
			
			-13
			
			
			-1.5
			
			
			0.0
			
			
			Healthcare
			
		


			Total
			
			
			 
			
			
			98,781
			
			
			266
			
			
			-437
			
			
			 
			
			
			 
			
			
			 
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			15.7
			
			
			-0.2
			
			
			 
			
		

 Source: SGX, Refinitiv, Bloomberg (Data as of 26 July 2021)

 

Materials &amp; Resources  
The June Industrial Production report also showed that Singapore’s Specialty Chemicals cluster expanded 19.3% in 1H21 from 1H20. A top 40 stock by turnover this year, China-based Jiutian Chemical has been Singapore’s most traded Catalist-listed stock in the 2021 year to date. The company is expected to report its 1HFY21 (ended 30 June) results in the week ending 13 August. Back on 14 May, Jiutian Chemical Group reported net profit of 90 million yuan (S$18 million) for its 1QFY21 (ended 31 March), which was 30 times its 3 million yuan net profit in 1QFY20 (click here for more). Its main product, DMF, has a diversified range of applications which include being a feedstock for polyurethane and pharmaceutical goods as well as being an industrial solvent. Materials &amp; Resources was also the strongest Sector in the China stock market over the 2021 year to 26 July with the approximate 700 stocks generating a 17% median total return.   PMIs &amp; Uneven Growth    
As reported earlier in the month, the SIPMM Purchasing Managers’ Index (“PMI”) registered the 12th consecutive month of expansion for the overall manufacturing sector with a 0.1 point increase to 50.8 in June 2021, with the July PMI scheduled to be released on 2 August. Beyond headline growth, a key objective of policymakers is to see less uneven growth across the various sub industries in 2H21.  
While the June Industrial Production report showed Electronics saw the greatest YoY growth in 1H21, Transport Engineering declined 0.9% YoY and the General Manufacturing Industries Cluster expanded 7.5% YoY. While Yangzijiang Shipbuilding (Holdings) gained 52.1% in 1H21 on global demand for container ships, with a 2.1% decline in the 2H21 to 26 July, Sembcorp Marine declined 16.1% in 1H21 and 13.3% in 2H21. General Manufacturing incorporates F&amp;B and on 22 July, SATS reported its PATMI was profitable for a second consecutive quarter at $6.4 million in 1QFY22 (ended 30 June), following 4QFY21 PATMI of S$0.8 million. As observed by SATS, new variants of the COVID-19 virus continue to create uncertainty about when travel restrictions will be lifted. ST Engineering which gained 3.9% in 1H21 and 2.3% in the 2H21 to 26 July, will release its 1HFY21 (ended 30 June) financial results before the market opens on 12 August. 



Singapore’s Recent Manufacturing Growth Extended to Stocks 

Hutchison Port Holdings / Equity Bottom-Up

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<ul>
<li>
In recent weeks the Lion-OCBC Securities Hang Seng TECH ETF (“HS TECH ETF”) has ranked as the second most traded ETF listed on SGX, averaging daily trading ranges of 200 bps. The ETF has also been recipient to S$208 million in inflow, since debuting in December 2020.   
	 </li>
	<li>
The five biggest stocks of the FTSE ST China Index, YZJ Shipbldg, Wilmar Intl, HPH Trust USD, CapLand China Trust and Nanofilm, have also averaged daily trading ranges of 223 bps, ranging from 160 bps for CapLand China Trust to 335 bps for HPH Trust USD. 
	 </li>
	<li>Nanofilm has averaged 14.3 tick trading ranges over the past month, equivalent to 14.3 cents as stock is trading above S$1.00. Since listing on 30 October, the stock has rallied from an issue price of S$2.59 to an all-time high of S$6.49 formed on 21 July. </li>
</ul>
 Over the past one month has seen the Lion-OCBC Securities Hang Seng TECH ETF (“HS TECH ETF”) average 1.5x trading ranges of the Hang Seng Index, with the HS TECH ETF averaging daily amplitudes of 200 basis points (“bps”). This means on average, HS TECH ETF units valued at S$10,000 have on average been swinging by S$200 between the daily high and low. The HS TECH ETF also saw an average of 26 ticks between the daily high and low during the past month. Amplitude represents the difference between daily high and daily low price divided by the volume weighted average price of the stock, and used to gauge the tradability of a stock, with the higher amplitude reflecting greater potential for risk to return for active and intra-day traders. The amplitude of the HS Tech Index was double the average amplitude of both the four remaining ETFs that ranked as the five most traded ETFs over the month, in addition to the three other China-focused ETFs listed on SGX. 
</body></html>

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2021-07/Capture_16.PNG' alt='2021 to 19 July Price Change in SGD' />
 </figure>
 <div class='content-caption'>2021 to 19 July Price Change in SGD</div>
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While the HS Tech ETF generated a 9.2% price decline in SGD terms from the end of 2020 through to 19 July, the ETF has also been recipient to S$208 million in inflow since debuting in December 2020 through to 19 July, with inflows recorded for every month through to the end of June. For the month of July through to 19 July, the HS Tech ETF was recipient to S$33 million in inflows. The HS TECH ETF, with heavyweight stocks such as Tencent Holdings, Alibaba Group Holding, Meituan, JD.com Inc and Xiaomi Corp provides investors with a new China-focused market distinct from the existing China-focused stocks that comprise the FTSE ST China Index. Both the HS TECH Index and FTSE ST China Index maintain a less than 0.4 simple correlation over the past 5 years. Moreover with the recent propensity for swings in the Technology Sector, the price-ratio spread of the HS TECH Index to the FTSE ST China Index has moved from one standard deviation below the 3-month mean on 11 May, to two standard deviations above the 3 month mean on 29 June, before moving back to one standard deviation below the 3 month mean on 6 July. The five largest stocks of the FTSE ST China Index by market value, Yangzijiang Shipbuilding, Wilmar International, Hutchison Port Holdings Trust USD, CapitaLand China Trust and Nanofilm Technologies International, have also averaged daily trading ranges that have paralleled the HS TECH ETF over the past month. The five stocks have averaged daily trading ranges of 223 bps over the period, ranging from 160 bps for CapitaLand China Trust to 335 bps for Hutchison Port Holdings Trust USD. The FTSE ST China Index tracks the constituents of the FTSE ST All-Share Index, which have a majority of their sales from, or operating assets located in China. 
The tradability metrics of the five most traded ETFs and the five largest stocks of the FTSE ST China Index by market value are tabled below.

<table class="table table-striped"><tbody>
<tr>
<td>
			Most Traded ETFs &amp; Amplitude Over the Past Month
			</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>
			HST
			</td>
			<td>
			200
			</td>
			<td>
			26.3
			</td>
		</tr>
<tr>
<td>
			Nikko AM – Straits Trading Asia ex Japan REIT ETF
			</td>
			<td>
			CFA
			</td>
			<td>
			111
			</td>
			<td>
			12.7
			</td>
		</tr>
<tr>
<td>
			Nikko AM Singapore STI ETF
			</td>
			<td>
			G3B
			</td>
			<td>
			105
			</td>
			<td>
			3.3
			</td>
		</tr>
<tr>
<td>
			SPDR®  GOLD SHARES
			</td>
			<td>
			O87
			</td>
			<td>
			89
			</td>
			<td>
			148.4
			</td>
		</tr>
<tr>
<td>
			SPDR® Straits Times Index ETF
			</td>
			<td>
			ES3
			</td>
			<td>
			87
			</td>
			<td>
			27.7
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			118
			</td>
			<td>
			43.7
			</td>
		</tr>
</tbody></table>
 Source: SGX, Refinitiv, Bloomberg (Data as of 19 July 2021) 
 

<table class="table table-striped"><tbody>
<tr>
<td>
			Largest Stocks of the FTSE ST China Index &amp; Amplitude Over the Past Month
			</td>
			<td>
			Stock Code
			</td>
			<td>
			Average of Amplitude in Bps
			</td>
			<td>
			Average of Amplitude in Ticks
			</td>
		</tr>
<tr>
<td>
			YZJ Shipbldg SGD
			</td>
			<td>
			BS6
			</td>
			<td>
			204
			</td>
			<td>
			2.9
			</td>
		</tr>
<tr>
<td>
			Wilmar Intl
			</td>
			<td>
			F34
			</td>
			<td>
			162
			</td>
			<td>
			7.3
			</td>
		</tr>
<tr>
<td>
			HPH Trust USD
			</td>
			<td>
			NS8U
			</td>
			<td>
			335
			</td>
			<td>
			1.5
			</td>
		</tr>
<tr>
<td>
			CapLand China Trust
			</td>
			<td>
			AU8U
			</td>
			<td>
			160
			</td>
			<td>
			2.2
			</td>
		</tr>
<tr>
<td>
			Nanofilm
			</td>
			<td>
			MZH
			</td>
			<td>
			256
			</td>
			<td>
			14.3
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			223
			</td>
			<td>
			5.6
			</td>
		</tr>
</tbody></table>
 Source: SGX, Refinitiv, Bloomberg (Data as of 19 July 2021) 
As detailed in the table above, the past months has seen Nanofilm Technologies International has averaged 14.3 tick trading ranges, equivalent to 14.3 cents as stock is trading above S$1.00. Since listing on 30 October, the stock has rallied from an issue price of S$2.59 to an all-time high of S$6.49 formed on 21 July. For its FY20 (ended 31 Dec), Nanofilm Technologies International reported 77% of its external customer revenue to China, based on Group’s entities’ place of business.
</body></html>





In recent weeks the Lion-OCBC Securities Hang Seng TECH ETF (“HS TECH ETF”) has ranked as the second most traded ETF listed on SGX, averaging daily trading ranges of 200 bps. The ETF has also been recipient to S$208 million in inflow, since debuting in December 2020.    
	 
	
The five biggest stocks of the FTSE ST China Index, YZJ Shipbldg, Wilmar Intl, HPH Trust USD, CapLand China Trust and Nanofilm, have also averaged daily trading ranges of 223 bps, ranging from 160 bps for CapLand China Trust to 335 bps for HPH Trust USD.  
	 
	Nanofilm has averaged 14.3 tick trading ranges over the past month, equivalent to 14.3 cents as stock is trading above S$1.00. Since listing on 30 October, the stock has rallied from an issue price of S$2.59 to an all-time high of S$6.49 formed on 21 July. 

 Over the past one month has seen the Lion-OCBC Securities Hang Seng TECH ETF (“HS TECH ETF”) average 1.5x trading ranges of the Hang Seng Index, with the HS TECH ETF averaging daily amplitudes of 200 basis points (“bps”). This means on average, HS TECH ETF units valued at S$10,000 have on average been swinging by S$200 between the daily high and low. The HS TECH ETF also saw an average of 26 ticks between the daily high and low during the past month. Amplitude represents the difference between daily high and daily low price divided by the volume weighted average price of the stock, and used to gauge the tradability of a stock, with the higher amplitude reflecting greater potential for risk to return for active and intra-day traders. The amplitude of the HS Tech Index was double the average amplitude of both the four remaining ETFs that ranked as the five most traded ETFs over the month, in addition to the three other China-focused ETFs listed on SGX. 



      
    
    2021 to 19 July Price Change in SGD


While the HS Tech ETF generated a 9.2% price decline in SGD terms from the end of 2020 through to 19 July, the ETF has also been recipient to S$208 million in inflow since debuting in December 2020 through to 19 July, with inflows recorded for every month through to the end of June. For the month of July through to 19 July, the HS Tech ETF was recipient to S$33 million in inflows.  The HS TECH ETF, with heavyweight stocks such as Tencent Holdings, Alibaba Group Holding, Meituan, JD.com Inc and Xiaomi Corp provides investors with a new China-focused market distinct from the existing China-focused stocks that comprise the FTSE ST China Index. Both the HS TECH Index and FTSE ST China Index maintain a less than 0.4 simple correlation over the past 5 years. Moreover with the recent propensity for swings in the Technology Sector, the price-ratio spread of the HS TECH Index to the FTSE ST China Index has moved from one standard deviation below the 3-month mean on 11 May, to two standard deviations above the 3 month mean on 29 June, before moving back to one standard deviation below the 3 month mean on 6 July.  The five largest stocks of the FTSE ST China Index by market value, Yangzijiang Shipbuilding, Wilmar International, Hutchison Port Holdings Trust USD, CapitaLand China Trust and Nanofilm Technologies International, have also averaged daily trading ranges that have paralleled the HS TECH ETF over the past month. The five stocks have averaged daily trading ranges of 223 bps over the period, ranging from 160 bps for CapitaLand China Trust to 335 bps for Hutchison Port Holdings Trust USD. The FTSE ST China Index tracks the constituents of the FTSE ST All-Share Index, which have a majority of their sales from, or operating assets located in China.   
The tradability metrics of the five most traded ETFs and the five largest stocks of the FTSE ST China Index by market value are tabled below.




			Most Traded ETFs &amp; Amplitude Over the Past Month
			
			
			Stock Code
			
			
			Average of Amplitude in Bps
			
			
			Average of Amplitude in Ticks
			
		


			Lion-OCBC Securities Hang Seng TECH ETF
			
			
			HST
			
			
			200
			
			
			26.3
			
		


			Nikko AM – Straits Trading Asia ex Japan REIT ETF
			
			
			CFA
			
			
			111
			
			
			12.7
			
		


			Nikko AM Singapore STI ETF
			
			
			G3B
			
			
			105
			
			
			3.3
			
		


			SPDR®  GOLD SHARES
			
			
			O87
			
			
			89
			
			
			148.4
			
		


			SPDR® Straits Times Index ETF
			
			
			ES3
			
			
			87
			
			
			27.7
			
		


			Average
			
			
			 
			
			
			118
			
			
			43.7
			
		

 Source: SGX, Refinitiv, Bloomberg (Data as of 19 July 2021) 
 




			Largest Stocks of the FTSE ST China Index &amp; Amplitude Over the Past Month
			
			
			Stock Code
			
			
			Average of Amplitude in Bps
			
			
			Average of Amplitude in Ticks
			
		


			YZJ Shipbldg SGD
			
			
			BS6
			
			
			204
			
			
			2.9
			
		


			Wilmar Intl
			
			
			F34
			
			
			162
			
			
			7.3
			
		


			HPH Trust USD
			
			
			NS8U
			
			
			335
			
			
			1.5
			
		


			CapLand China Trust
			
			
			AU8U
			
			
			160
			
			
			2.2
			
		


			Nanofilm
			
			
			MZH
			
			
			256
			
			
			14.3
			
		


			Average
			
			
			 
			
			
			223
			
			
			5.6
			
		

 Source: SGX, Refinitiv, Bloomberg (Data as of 19 July 2021)   
As detailed in the table above, the past months has seen Nanofilm Technologies International has averaged 14.3 tick trading ranges, equivalent to 14.3 cents as stock is trading above S$1.00. Since listing on 30 October, the stock has rallied from an issue price of S$2.59 to an all-time high of S$6.49 formed on 21 July. For its FY20 (ended 31 Dec), Nanofilm Technologies International reported 77% of its external customer revenue to China, based on Group’s entities’ place of business.



Recent Intraday Moves of the HS TECH ETF and FTSE ST China Heavyweights 

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
While the STI declined 1.1% in 2Q21, this was the strongest first half of a year for the STI since 2017, with the STI generating an 11.9% total return in 1H21, compared to a 13.8% total return in 1H17. The STI was also among the strongest three APAC benchmarks in 1H21. 
	 </li>
	<li>
STI stocks that were recipient to combined net institutional and net proprietary inflows in both 1Q21 and 2Q21 included DBS, OCBC, UOB, Yangzijiang, SGX and Sembcorp Industries, with 13 of the 30 stocks recipient to combined net institutional and net proprietary outflows in both quarters.  
	 </li>
	<li>Bank stocks were among the strongest industries of the global stock market in 1H21 on resilient business investment and the 2/10 US Yield Curve averaging 130bps in 1H21, compared to 60 bps in 2H20. DBS, OCBC and UOB averaged a 19.0% total return in 1H21, in-line with the median return for the 200 largest listed global banks by market value.  </li>
</ul>
 

Ebb &amp; Flows in 1H21 
While the STI declined 1.1% in 2Q21, this was the strongest first half of a year for the STI since 2017, with the STI generating an 11.9% total return in 1H21, compared to a 13.8% total return in 1H17. The 30 constituents of the STI represent 58% of the S$902 billion combined full market capitalisation of all stocks listed in Singapore. The last trading session of 2Q21 saw the combined net institutional and net proprietary outflow from STI stocks for the quarter moderate from S$616 million to S$550 million. This was a broad indication that institutions and proprietary participants had taken the last trading session of the quarter to add to their Singapore exposure. Some moderation in flows was also observed at the end of 1Q21, with the last session of 1Q21 seeing the combined net institutional and net proprietary quarterly inflow to STI stocks moderate from S$936 million, to S$880 million. Bank stocks were among the strongest industries of the global stock market in 1H21 on resilient business investment and the 2/10 US Yield curve averaging 130bps in 1H21 compared to 60 bps in 2H20, supporting banks that generally borrow short and lend long. Together, DBS Group Holdings, Oversea-Chinese Banking Corp and United Overseas Bank recipient to net institutional and net proprietary inflows of S$1.39 billion in 1Q21 and S$468 million in 2Q21. The trio averaged a 19.0% total return in 1H21, in-line with the median 19.8% return for the 200 largest listed global banks by market value. Nevertheless a significant rotation was observed with the Singapore bank trio recipient to S$145 million in net institutional and net proprietary outflow between 3 June and 18 June, as the 2/10 US Yield curve flattening by 28 bps on hawkish Fed Reserve comments. Global progress in getting the better of the endemic, and on a more micro level, significant corporate restructuring, were also key factors for many of the rotations across the other STI constituents. 
On the former, in the month of February, together Singapore Airlines and SATS were recipients to S$254 of combined net institutional and net proprietary outflow with the majority of the US, China, Japan &amp; UK seen to overcome COVID-19 resurgences in January. At the time this boded well for the eventual resumption of international travel, and that month, Singapore Airlines share price gained 21%, in line with the 20% gain for world’s biggest airline stocks, while SATS gained 14%. 
On the latter driver of rotations, CapitaLand was receipt to S$23 million in combined net institutional and net proprietary inflows, with a 15% price gain in three sessions that followed its 22 March corporate restructure proposal. CapitaLand is restructuring its Group business by consolidating the investment management platforms as well as lodging business into CapitaLand Investment Management, which will create Asia’s largest and the globe’s third largest real estate investment manager. Meanwhile, resilient global trade and demand for container shipping, saw Yangzijiang Shipbuilding Holdings the strongest of the STI constituents in 1H21 and recipient to combined net institutional and net proprietary inflows in both 1Q21 and 2Q21, with total inflows amounting to 4% of the stock’s current market capitalisation. As <a href="https://links.sgx.com/1.0.0/corporate-announcements/I2S623OPMTZS2P2G/0387d7686e19ab448e7cca8ae8c6950c6e10240a737f581beb40280b4ba2f61d">reported</a> yesterday, Yangzijiang Shipbuilding Holdings has secured new orders for 100 vessels worth US$5.6 billion representing its largest order wins, based on total contract value, in the Group’s history. At the same time, the STI’s second strongest constituent in 2020, Keppel DC REIT was the STI’s least strongest constituent in 1H21 with combined net institutional and net proprietary outflows amounting to 4% of the stock’s current market capitalisation. The data centre REIT generated a negative total return of 10% in 1H21, which followed on from its 38% total return in 2020, and the 2019, 66% total return that helped propel the stock into the STI. While the digital economy continues to grow, progress towards social and economic normalisation has put less demands on cloud, digital services and online services. For the broader STI move, vaccine progress provided support, however COVID-19 infections also continued to grow. While 3 billion COVID-19 vaccine doses were administered globally in 1H21, the total number of cases also grew from 84 million to above 180 million, with the contagious delta variant seeing close to 10 million more cases in 2Q21 than 1Q21. The overarching endemic theme saw the STI consolidate on its 1Q21 total return of 11.8%, adding 0.1% in 2Q21. The relatively more cautious 2Q21 was also observed across the region with the FTSE Asia Pacific Index generating 4.5% total return in 1Q21 and a 2.8% total return in 2Q21. 
For the 2H21 ahead, continued vaccine progress and curtailing new cases will remain key drivers for service-orientated stocks that have been adversely impacted by local and global containment measures. At the same time, achieving herd immunities, vaccine equity and the gradual recommencement of international travel and tourism is expected to increasingly rank highly in global policy agendas. 
The 30 STI stocks sorted by total returns in 1H21 are tabled below, and details the comparative 1Q21 and 2Q21 net institutional and net proprietary flows.

<table class="table table-striped"><tbody>
<tr>
<td>
			STI Stock
			</td>
			<td>
			Code
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			1H21 Price Change YTD % (S$)
			</td>
			<td>
			1H21 Total Return YTD % (S$)
			</td>
			<td>
			1Q21 Total Return % (S$)
			</td>
			<td>
			1Q Net Insti &amp; Net Prop Flow S$M
			</td>
			<td>
			2Q21 Total Return % (S$)
			</td>
			<td>
			2Q Net Insti &amp; Net Prop Flow S$M
			</td>
			<td>
			Price $
			</td>
			<td>
			CCY
			</td>
		</tr>
<tr>
<td>
			YZJ Shipbldg SGD
			</td>
			<td>
			BS6
			</td>
			<td>
			5,426
			</td>
			<td>
			48
			</td>
			<td>
			52
			</td>
			<td>
			34
			</td>
			<td>
			141
			</td>
			<td>
			14
			</td>
			<td>
			77
			</td>
			<td>
			1.410
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			Sembcorp Ind
			</td>
			<td>
			U96
			</td>
			<td>
			3,823
			</td>
			<td>
			25
			</td>
			<td>
			27
			</td>
			<td>
			8
			</td>
			<td>
			22
			</td>
			<td>
			18
			</td>
			<td>
			64
			</td>
			<td>
			2.140
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			SGX
			</td>
			<td>
			S68
			</td>
			<td>
			11,950
			</td>
			<td>
			20
			</td>
			<td>
			22
			</td>
			<td>
			8
			</td>
			<td>
			3
			</td>
			<td>
			13
			</td>
			<td>
			108
			</td>
			<td>
			11.180
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			DBS
			</td>
			<td>
			D05
			</td>
			<td>
			76,557
			</td>
			<td>
			19
			</td>
			<td>
			21
			</td>
			<td>
			15
			</td>
			<td>
			654
			</td>
			<td>
			5
			</td>
			<td>
			353
			</td>
			<td>
			29.810
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			OCBC Bank
			</td>
			<td>
			O39
			</td>
			<td>
			53,830
			</td>
			<td>
			19
			</td>
			<td>
			20
			</td>
			<td>
			17
			</td>
			<td>
			428
			</td>
			<td>
			3
			</td>
			<td>
			114
			</td>
			<td>
			11.950
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			HongkongLand USD
			</td>
			<td>
			H78
			</td>
			<td>
			14,939
			</td>
			<td>
			17
			</td>
			<td>
			21
			</td>
			<td>
			25
			</td>
			<td>
			6
			</td>
			<td>
			-3
			</td>
			<td>
			-6
			</td>
			<td>
			4.760
			</td>
			<td>
			USD
			</td>
		</tr>
<tr>
<td>
			JMH USD
			</td>
			<td>
			J36
			</td>
			<td>
			63,379
			</td>
			<td>
			16
			</td>
			<td>
			18
			</td>
			<td>
			21
			</td>
			<td>
			-4
			</td>
			<td>
			-2
			</td>
			<td>
			3
			</td>
			<td>
			63.920
			</td>
			<td>
			USD
			</td>
		</tr>
<tr>
<td>
			UOB
			</td>
			<td>
			U11
			</td>
			<td>
			43,297
			</td>
			<td>
			14
			</td>
			<td>
			16
			</td>
			<td>
			14
			</td>
			<td>
			304
			</td>
			<td>
			1
			</td>
			<td>
			1
			</td>
			<td>
			25.820
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			SIA
			</td>
			<td>
			C6L
			</td>
			<td>
			14,386
			</td>
			<td>
			13
			</td>
			<td>
			13
			</td>
			<td>
			30
			</td>
			<td>
			-9
			</td>
			<td>
			-13
			</td>
			<td>
			-185
			</td>
			<td>
			4.850
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			CapitaLand
			</td>
			<td>
			C31
			</td>
			<td>
			19,304
			</td>
			<td>
			13
			</td>
			<td>
			16
			</td>
			<td>
			15
			</td>
			<td>
			35
			</td>
			<td>
			1
			</td>
			<td>
			-45
			</td>
			<td>
			3.710
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			Jardine C&amp;C
			</td>
			<td>
			C07
			</td>
			<td>
			8,442
			</td>
			<td>
			9
			</td>
			<td>
			11
			</td>
			<td>
			15
			</td>
			<td>
			28
			</td>
			<td>
			-3
			</td>
			<td>
			-16
			</td>
			<td>
			21.360
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			Frasers L&amp;C Tr
			</td>
			<td>
			BUOU
			</td>
			<td>
			5,283
			</td>
			<td>
			2
			</td>
			<td>
			6
			</td>
			<td>
			3
			</td>
			<td>
			-15
			</td>
			<td>
			3
			</td>
			<td>
			-19
			</td>
			<td>
			1.440
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			Mapletree Log Tr
			</td>
			<td>
			M44U
			</td>
			<td>
			8,793
			</td>
			<td>
			2
			</td>
			<td>
			4
			</td>
			<td>
			-3
			</td>
			<td>
			-74
			</td>
			<td>
			7
			</td>
			<td>
			47
			</td>
			<td>
			2.050
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			DairyFarm USD
			</td>
			<td>
			D01
			</td>
			<td>
			7,714
			</td>
			<td>
			2
			</td>
			<td>
			6
			</td>
			<td>
			8
			</td>
			<td>
			-9
			</td>
			<td>
			-2
			</td>
			<td>
			-11
			</td>
			<td>
			4.240
			</td>
			<td>
			USD
			</td>
		</tr>
<tr>
<td>
			Keppel Corp
			</td>
			<td>
			BN4
			</td>
			<td>
			9,953
			</td>
			<td>
			2
			</td>
			<td>
			3
			</td>
			<td>
			-1
			</td>
			<td>
			-31
			</td>
			<td>
			4
			</td>
			<td>
			1
			</td>
			<td>
			5.470
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			Mapletree Com Tr
			</td>
			<td>
			N2IU
			</td>
			<td>
			7,172
			</td>
			<td>
			1
			</td>
			<td>
			4
			</td>
			<td>
			0
			</td>
			<td>
			-16
			</td>
			<td>
			4
			</td>
			<td>
			1
			</td>
			<td>
			2.160
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			ST Engineering
			</td>
			<td>
			S63
			</td>
			<td>
			12,068
			</td>
			<td>
			1
			</td>
			<td>
			4
			</td>
			<td>
			2
			</td>
			<td>
			-64
			</td>
			<td>
			2
			</td>
			<td>
			-2
			</td>
			<td>
			3.870
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			Singtel
			</td>
			<td>
			Z74
			</td>
			<td>
			37,816
			</td>
			<td>
			-1
			</td>
			<td>
			-1
			</td>
			<td>
			6
			</td>
			<td>
			-110
			</td>
			<td>
			-6
			</td>
			<td>
			-216
			</td>
			<td>
			2.290
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			Ascendas REIT
			</td>
			<td>
			A17U
			</td>
			<td>
			11,869
			</td>
			<td>
			-1
			</td>
			<td>
			1
			</td>
			<td>
			3
			</td>
			<td>
			-123
			</td>
			<td>
			-1
			</td>
			<td>
			-125
			</td>
			<td>
			2.950
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			Venture
			</td>
			<td>
			V03
			</td>
			<td>
			5,580
			</td>
			<td>
			-1
			</td>
			<td>
			2
			</td>
			<td>
			3
			</td>
			<td>
			-27
			</td>
			<td>
			-2
			</td>
			<td>
			-95
			</td>
			<td>
			19.210
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			SATS
			</td>
			<td>
			S58
			</td>
			<td>
			4,400
			</td>
			<td>
			-1
			</td>
			<td>
			-1
			</td>
			<td>
			9
			</td>
			<td>
			50
			</td>
			<td>
			-10
			</td>
			<td>
			-18
			</td>
			<td>
			3.930
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			Genting Sing
			</td>
			<td>
			G13
			</td>
			<td>
			10,074
			</td>
			<td>
			-2
			</td>
			<td>
			-1
			</td>
			<td>
			8
			</td>
			<td>
			31
			</td>
			<td>
			-8
			</td>
			<td>
			-36
			</td>
			<td>
			0.835
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			Mapletree Ind Tr
			</td>
			<td>
			ME8U
			</td>
			<td>
			7,526
			</td>
			<td>
			-2
			</td>
			<td>
			1
			</td>
			<td>
			-4
			</td>
			<td>
			-119
			</td>
			<td>
			6
			</td>
			<td>
			-15
			</td>
			<td>
			2.830
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			ComfortDelGro
			</td>
			<td>
			C52
			</td>
			<td>
			3,555
			</td>
			<td>
			-2
			</td>
			<td>
			-1
			</td>
			<td>
			2
			</td>
			<td>
			-19
			</td>
			<td>
			-3
			</td>
			<td>
			-30
			</td>
			<td>
			1.640
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			Wilmar Intl
			</td>
			<td>
			F34
			</td>
			<td>
			28,374
			</td>
			<td>
			-2
			</td>
			<td>
			0
			</td>
			<td>
			17
			</td>
			<td>
			88
			</td>
			<td>
			-15
			</td>
			<td>
			-140
			</td>
			<td>
			4.500
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			CapLand Int Com T
			</td>
			<td>
			C38U
			</td>
			<td>
			13,535
			</td>
			<td>
			-3
			</td>
			<td>
			-2
			</td>
			<td>
			1
			</td>
			<td>
			-21
			</td>
			<td>
			-4
			</td>
			<td>
			-11
			</td>
			<td>
			2.090
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			UOL
			</td>
			<td>
			U14
			</td>
			<td>
			6,163
			</td>
			<td>
			-5
			</td>
			<td>
			-3
			</td>
			<td>
			2
			</td>
			<td>
			1
			</td>
			<td>
			-6
			</td>
			<td>
			-22
			</td>
			<td>
			7.300
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			CityDev
			</td>
			<td>
			C09
			</td>
			<td>
			6,611
			</td>
			<td>
			-8
			</td>
			<td>
			-7
			</td>
			<td>
			0
			</td>
			<td>
			-58
			</td>
			<td>
			-7
			</td>
			<td>
			-103
			</td>
			<td>
			7.290
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			ThaiBev
			</td>
			<td>
			Y92
			</td>
			<td>
			16,955
			</td>
			<td>
			-8
			</td>
			<td>
			-5
			</td>
			<td>
			3
			</td>
			<td>
			-103
			</td>
			<td>
			-8
			</td>
			<td>
			-105
			</td>
			<td>
			0.675
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td>
			Keppel DC REIT
			</td>
			<td>
			AJBU
			</td>
			<td>
			4,068
			</td>
			<td>
			-11
			</td>
			<td>
			-10
			</td>
			<td>
			-2
			</td>
			<td>
			-54
			</td>
			<td>
			-8
			</td>
			<td>
			-122
			</td>
			<td>
			2.490
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td> </td>
			<td> </td>
			<td>
			522,842
			</td>
			<td> </td>
			<td> </td>
			<td> </td>
			<td>
			936
			</td>
			<td> </td>
			<td>
			-550
			</td>
			<td> </td>
			<td> </td>
		</tr>
</tbody></table>
 Source: SGX, Refinitiv, Bloomberg (Data as of 30 June 2021) 
</body></html>





While the STI declined 1.1% in 2Q21, this was the strongest first half of a year for the STI since 2017, with the STI generating an 11.9% total return in 1H21, compared to a 13.8% total return in 1H17. The STI was also among the strongest three APAC benchmarks in 1H21. 
	 
	
STI stocks that were recipient to combined net institutional and net proprietary inflows in both 1Q21 and 2Q21 included DBS, OCBC, UOB, Yangzijiang, SGX and Sembcorp Industries, with 13 of the 30 stocks recipient to combined net institutional and net proprietary outflows in both quarters.   
	 
	Bank stocks were among the strongest industries of the global stock market in 1H21 on resilient business investment and the 2/10 US Yield Curve averaging 130bps in 1H21, compared to 60 bps in 2H20. DBS, OCBC and UOB averaged a 19.0% total return in 1H21, in-line with the median return for the 200 largest listed global banks by market value.  

 

Ebb &amp; Flows in 1H21  
While the STI declined 1.1% in 2Q21, this was the strongest first half of a year for the STI since 2017, with the STI generating an 11.9% total return in 1H21, compared to a 13.8% total return in 1H17. The 30 constituents of the STI represent 58% of the S$902 billion combined full market capitalisation of all stocks listed in Singapore.  The last trading session of 2Q21 saw the combined net institutional and net proprietary outflow from STI stocks for the quarter moderate from S$616 million to S$550 million. This was a broad indication that institutions and proprietary participants had taken the last trading session of the quarter to add to their Singapore exposure. Some moderation in flows was also observed at the end of 1Q21, with the last session of 1Q21 seeing the combined net institutional and net proprietary quarterly inflow to STI stocks moderate from S$936 million, to S$880 million.  Bank stocks were among the strongest industries of the global stock market in 1H21 on resilient business investment and the 2/10 US Yield curve averaging 130bps in 1H21 compared to 60 bps in 2H20, supporting banks that generally borrow short and lend long. Together, DBS Group Holdings, Oversea-Chinese Banking Corp and United Overseas Bank recipient to net institutional and net proprietary inflows of S$1.39 billion in 1Q21 and S$468 million in 2Q21. The trio averaged a 19.0% total return in 1H21, in-line with the median 19.8% return for the 200 largest listed global banks by market value. Nevertheless a significant rotation was observed with the Singapore bank trio recipient to S$145 million in net institutional and net proprietary outflow between 3 June and 18 June, as the 2/10 US Yield curve flattening by 28 bps on hawkish Fed Reserve comments.   Global progress in getting the better of the endemic, and on a more micro level, significant corporate restructuring, were also key factors for many of the rotations across the other STI constituents.   
On the former, in the month of February, together Singapore Airlines and SATS were recipients to S$254 of combined net institutional and net proprietary outflow with the majority of the US, China, Japan &amp; UK seen to overcome COVID-19 resurgences in January. At the time this boded well for the eventual resumption of international travel, and that month, Singapore Airlines share price gained 21%, in line with the 20% gain for world’s biggest airline stocks, while SATS gained 14%.  
On the latter driver of rotations, CapitaLand was receipt to S$23 million in combined net institutional and net proprietary inflows, with a 15% price gain in three sessions that followed its 22 March corporate restructure proposal. CapitaLand is restructuring its Group business by consolidating the investment management platforms as well as lodging business into CapitaLand Investment Management, which will create Asia’s largest and the globe’s third largest real estate investment manager.  Meanwhile, resilient global trade and demand for container shipping, saw Yangzijiang Shipbuilding Holdings the strongest of the STI constituents in 1H21 and recipient to combined net institutional and net proprietary inflows in both 1Q21 and 2Q21, with total inflows amounting to 4% of the stock’s current market capitalisation. As reported yesterday, Yangzijiang Shipbuilding Holdings has secured new orders for 100 vessels worth US$5.6 billion representing its largest order wins, based on total contract value, in the Group’s history.  At the same time, the STI’s second strongest constituent in 2020, Keppel DC REIT was the STI’s least strongest constituent in 1H21 with combined net institutional and net proprietary outflows amounting to 4% of the stock’s current market capitalisation. The data centre REIT generated a negative total return of 10% in 1H21, which followed on from its 38% total return in 2020, and the 2019, 66% total return that helped propel the stock into the STI. While the digital economy continues to grow, progress towards social and economic normalisation has put less demands on cloud, digital services and online services.  For the broader STI move, vaccine progress provided support, however COVID-19 infections also continued to grow. While 3 billion COVID-19 vaccine doses were administered globally in 1H21, the total number of cases also grew from 84 million to above 180 million, with the contagious delta variant seeing close to 10 million more cases in 2Q21 than 1Q21. The overarching endemic theme saw the STI consolidate on its 1Q21 total return of 11.8%, adding 0.1% in 2Q21. The relatively more cautious 2Q21 was also observed across the region with the FTSE Asia Pacific Index generating 4.5% total return in 1Q21 and a 2.8% total return in 2Q21.  
For the 2H21 ahead, continued vaccine progress and curtailing new cases will remain key drivers for service-orientated stocks that have been adversely impacted by local and global containment measures. At the same time, achieving herd immunities, vaccine equity and the gradual recommencement of international travel and tourism is expected to increasingly rank highly in global policy agendas.  
The 30 STI stocks sorted by total returns in 1H21 are tabled below, and details the comparative 1Q21 and 2Q21 net institutional and net proprietary flows.




			STI Stock
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			1H21 Price Change YTD % (S$)
			
			
			1H21 Total Return YTD % (S$)
			
			
			1Q21 Total Return % (S$)
			
			
			1Q Net Insti &amp; Net Prop Flow S$M
			
			
			2Q21 Total Return % (S$)
			
			
			2Q Net Insti &amp; Net Prop Flow S$M
			
			
			Price $
			
			
			CCY
			
		


			YZJ Shipbldg SGD
			
			
			BS6
			
			
			5,426
			
			
			48
			
			
			52
			
			
			34
			
			
			141
			
			
			14
			
			
			77
			
			
			1.410
			
			
			SGD
			
		


			Sembcorp Ind
			
			
			U96
			
			
			3,823
			
			
			25
			
			
			27
			
			
			8
			
			
			22
			
			
			18
			
			
			64
			
			
			2.140
			
			
			SGD
			
		


			SGX
			
			
			S68
			
			
			11,950
			
			
			20
			
			
			22
			
			
			8
			
			
			3
			
			
			13
			
			
			108
			
			
			11.180
			
			
			SGD
			
		


			DBS
			
			
			D05
			
			
			76,557
			
			
			19
			
			
			21
			
			
			15
			
			
			654
			
			
			5
			
			
			353
			
			
			29.810
			
			
			SGD
			
		


			OCBC Bank
			
			
			O39
			
			
			53,830
			
			
			19
			
			
			20
			
			
			17
			
			
			428
			
			
			3
			
			
			114
			
			
			11.950
			
			
			SGD
			
		


			HongkongLand USD
			
			
			H78
			
			
			14,939
			
			
			17
			
			
			21
			
			
			25
			
			
			6
			
			
			-3
			
			
			-6
			
			
			4.760
			
			
			USD
			
		


			JMH USD
			
			
			J36
			
			
			63,379
			
			
			16
			
			
			18
			
			
			21
			
			
			-4
			
			
			-2
			
			
			3
			
			
			63.920
			
			
			USD
			
		


			UOB
			
			
			U11
			
			
			43,297
			
			
			14
			
			
			16
			
			
			14
			
			
			304
			
			
			1
			
			
			1
			
			
			25.820
			
			
			SGD
			
		


			SIA
			
			
			C6L
			
			
			14,386
			
			
			13
			
			
			13
			
			
			30
			
			
			-9
			
			
			-13
			
			
			-185
			
			
			4.850
			
			
			SGD
			
		


			CapitaLand
			
			
			C31
			
			
			19,304
			
			
			13
			
			
			16
			
			
			15
			
			
			35
			
			
			1
			
			
			-45
			
			
			3.710
			
			
			SGD
			
		


			Jardine C&amp;C
			
			
			C07
			
			
			8,442
			
			
			9
			
			
			11
			
			
			15
			
			
			28
			
			
			-3
			
			
			-16
			
			
			21.360
			
			
			SGD
			
		


			Frasers L&amp;C Tr
			
			
			BUOU
			
			
			5,283
			
			
			2
			
			
			6
			
			
			3
			
			
			-15
			
			
			3
			
			
			-19
			
			
			1.440
			
			
			SGD
			
		


			Mapletree Log Tr
			
			
			M44U
			
			
			8,793
			
			
			2
			
			
			4
			
			
			-3
			
			
			-74
			
			
			7
			
			
			47
			
			
			2.050
			
			
			SGD
			
		


			DairyFarm USD
			
			
			D01
			
			
			7,714
			
			
			2
			
			
			6
			
			
			8
			
			
			-9
			
			
			-2
			
			
			-11
			
			
			4.240
			
			
			USD
			
		


			Keppel Corp
			
			
			BN4
			
			
			9,953
			
			
			2
			
			
			3
			
			
			-1
			
			
			-31
			
			
			4
			
			
			1
			
			
			5.470
			
			
			SGD
			
		


			Mapletree Com Tr
			
			
			N2IU
			
			
			7,172
			
			
			1
			
			
			4
			
			
			0
			
			
			-16
			
			
			4
			
			
			1
			
			
			2.160
			
			
			SGD
			
		


			ST Engineering
			
			
			S63
			
			
			12,068
			
			
			1
			
			
			4
			
			
			2
			
			
			-64
			
			
			2
			
			
			-2
			
			
			3.870
			
			
			SGD
			
		


			Singtel
			
			
			Z74
			
			
			37,816
			
			
			-1
			
			
			-1
			
			
			6
			
			
			-110
			
			
			-6
			
			
			-216
			
			
			2.290
			
			
			SGD
			
		


			Ascendas REIT
			
			
			A17U
			
			
			11,869
			
			
			-1
			
			
			1
			
			
			3
			
			
			-123
			
			
			-1
			
			
			-125
			
			
			2.950
			
			
			SGD
			
		


			Venture
			
			
			V03
			
			
			5,580
			
			
			-1
			
			
			2
			
			
			3
			
			
			-27
			
			
			-2
			
			
			-95
			
			
			19.210
			
			
			SGD
			
		


			SATS
			
			
			S58
			
			
			4,400
			
			
			-1
			
			
			-1
			
			
			9
			
			
			50
			
			
			-10
			
			
			-18
			
			
			3.930
			
			
			SGD
			
		


			Genting Sing
			
			
			G13
			
			
			10,074
			
			
			-2
			
			
			-1
			
			
			8
			
			
			31
			
			
			-8
			
			
			-36
			
			
			0.835
			
			
			SGD
			
		


			Mapletree Ind Tr
			
			
			ME8U
			
			
			7,526
			
			
			-2
			
			
			1
			
			
			-4
			
			
			-119
			
			
			6
			
			
			-15
			
			
			2.830
			
			
			SGD
			
		


			ComfortDelGro
			
			
			C52
			
			
			3,555
			
			
			-2
			
			
			-1
			
			
			2
			
			
			-19
			
			
			-3
			
			
			-30
			
			
			1.640
			
			
			SGD
			
		


			Wilmar Intl
			
			
			F34
			
			
			28,374
			
			
			-2
			
			
			0
			
			
			17
			
			
			88
			
			
			-15
			
			
			-140
			
			
			4.500
			
			
			SGD
			
		


			CapLand Int Com T
			
			
			C38U
			
			
			13,535
			
			
			-3
			
			
			-2
			
			
			1
			
			
			-21
			
			
			-4
			
			
			-11
			
			
			2.090
			
			
			SGD
			
		


			UOL
			
			
			U14
			
			
			6,163
			
			
			-5
			
			
			-3
			
			
			2
			
			
			1
			
			
			-6
			
			
			-22
			
			
			7.300
			
			
			SGD
			
		


			CityDev
			
			
			C09
			
			
			6,611
			
			
			-8
			
			
			-7
			
			
			0
			
			
			-58
			
			
			-7
			
			
			-103
			
			
			7.290
			
			
			SGD
			
		


			ThaiBev
			
			
			Y92
			
			
			16,955
			
			
			-8
			
			
			-5
			
			
			3
			
			
			-103
			
			
			-8
			
			
			-105
			
			
			0.675
			
			
			SGD
			
		


			Keppel DC REIT
			
			
			AJBU
			
			
			4,068
			
			
			-11
			
			
			-10
			
			
			-2
			
			
			-54
			
			
			-8
			
			
			-122
			
			
			2.490
			
			
			SGD
			
		

 
			 
			
			522,842
			
			 
			 
			 
			
			936
			
			 
			
			-550
			
			 
			 
		

 Source: SGX, Refinitiv, Bloomberg (Data as of 30 June 2021) 



STI Chalks Up 12% Return in 1H21 on Multiple Rotations

China

Yangzijiang Shipbuilding is a large conglomerate primarily engaged in shipbuilding and offshore engineering, producing a broad range of commercial vessels including containerships, bulk carriers, oil tankers, and LNG/gas carriers. The company also provides ship repairing services, manufactures large-scale steel structures, and offers ship design services. It was founded in 1956 and is headquartered in Jingjiang, China.

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Yangzijiang Shipbuilding (YZJSGD SP)

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