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.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

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<ul>
<li>
For the 2Q22 to date, the STI has generated an 8% decline in total return, with the FTSE Developed Index declining 16%. For the quarter, the broader Singapore stock market has seen S$1.05 billion of net institutional outflow, reducing the 2022 YTD net institutional inflow to S$74 million, with the STI 2022 YTD total return at 1%. 
	 </li>
	<li>
As global inflation gauges have continued to press longer term record levels since 31 March, expectations for the end of 2022 US Fed Funds Rate have increased from 225-250 bps to 350-375 bps. The impact of higher rates has also weighed global growth outlooks, with the World Bank tapering its 2022 global growth estimate to 2.9% (from 4.1%).   
	 </li>
	<li>
The technology sector has continued to weigh global stocks since 31 March, with hospitality &amp; real estate also lagging, while the defensive outperformance of global banks seen in 1Q22 narrowed considerably. In Singapore, banks, technology and REITs have now booked the most net institutional outflows across the sectors in the 2022 YTD. 
	 </li>
	<li>
The 20 stocks among the most actively traded Singapore stocks that booked the highest net institutional inflows in the 2022 YTD proportionate to their current market capitalisation, included five REITs and five industrial stocks, with the remaining 10 stocks representing eight sectors. These 20 stocks averaged a 22% total return in the 2022 YTD.    
	 </li>
</ul>
For the 2Q22 through to 17 June, the STI has declined 9.1%, with the dividend distributions of May reducing the decline to 7.6% in total return terms. This is half the declines of the FTSE Developed Index, which has generated a 15.8% decline in total return over the same 11 weeks.
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 <img src='https://api2.sgx.com/sites/default/files/2022-06/Inflation%20%26%20Slower%20Growth%20Outlook%20Fuels%20Further%20Selling%20in%20Global%20Stocks.PNG' alt='Inflation & Slower Growth Outlook Fuels Further Selling in Global Stocks' />
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 <div class='content-caption'>Inflation & Slower Growth Outlook Fuels Further Selling in Global Stocks</div>
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The technology sector has continued to be the weakest of the global stock sectors in the 2Q22, as global inflation gauges have continued to revisit longer term record levels which has seen the majority of expectations for the end of 2022 US Fed Funds Rate (based on CME FedWatch) increase from 225-250 bps to 350-375 bps. The impact of the inflation and higher rates has also weighed global growth outlooks, with the World Bank this month reducing its 2022 global growth <a href="https://www.worldbank.org/en/news/press-release/2022/06/07/stagflation-risk-rises-amid-sharp-slowdown-in-growth-energy-markets?fireglass_rsn=true#:~:text=Global%20growth%20is%20expected%20to,that%20was%20anticipated%20in%20January.&amp;fireglass_params&amp;tabid=a1e8030c1334cb03&amp;start_with_session_counter=3&amp;application_server_address=isolation-sgx3.wss.prod.fire.glass">estimate</a> to 2.9%, superseding a more optimistic outlook or 4.1% made in January.  

 

Shifting of Fund Flows in 2022 YTD

 

<ul>
<li>Like 1Q22, the STI composition benefitted from the comparative performances of banks over technology, with global technology stocks declining some 8% more than global bank stocks since 31 March. For 1Q22, the broader Singapore stock market attracted S$1.12 billion of net institutional inflows, and since 1Q22, has seen S$1.05 billion of net institutional outflows, resulting in 2022 year-to-date net institutional inflows of S$74 million, with the STI posting a marginal year-to-date total return of 1.2%. 
	 </li>
	<li>Approximately half of the stocks traded on Singapore Exchange have booked net institutional inflows in the year-to-date, while half have booked net outflows. For passive investors however, there has been some rotation to the STI for the first 13 sessions of June with the two ETFs that track the STI on track to record their first monthly inflows for 2022, after five consecutive months of net outflows that exceeded S$100 million from January through to the end of May 2022.</li>
</ul>
Focusing on the 100 most traded stocks by turnover this year, the 20 stocks that have booked the highest net institutional inflows, not on absolute basis, but proportionate to their current market capitalisation, have averaged 22% total returns in the year-to-date.  As many as 19 of the stocks generated positive total returns, while one stock, Singapore Post, remained unchanged.

The 20 stocks have also booked a total of S$1.94 billion of net institutional inflows in the year-to-date, led by Singapore Telecommunications. The 20 stocks are tabled below.  

 

<table class="table table-striped"><tbody>
<tr>
<td>
			Actively Traded Singapore Stocks with Highest YTD Net Insti Flows proportionate to Mkt Cap
			</td>
			<td>
			Code
			</td>
			<td>
			Mkt Cap S$M 
			</td>
			<td>
			Insti YTD Net Flow (S$M)
			</td>
			<td>
			Net Flow as % of Cap
			</td>
			<td>
			YTD Total Return %
			</td>
			<td>
			QTD Total Return %
			</td>
			<td>
			Sector
			</td>
		</tr>
<tr>
<td>
			Jiutian Chemical
			</td>
			<td>
			C8R
			</td>
			<td>
			195
			</td>
			<td>
			23
			</td>
			<td>
			12.0%
			</td>
			<td>
			40
			</td>
			<td>
			22
			</td>
			<td>
			Materials &amp; Resources
			</td>
		</tr>
<tr>
<td>
			Riverstone
			</td>
			<td>
			AP4
			</td>
			<td>
			971
			</td>
			<td>
			36
			</td>
			<td>
			3.7%
			</td>
			<td>
			7
			</td>
			<td>
			-27
			</td>
			<td>
			Healthcare
			</td>
		</tr>
<tr>
<td>
			CityDev
			</td>
			<td>
			C09
			</td>
			<td>
			7,382
			</td>
			<td>
			243
			</td>
			<td>
			3.3%
			</td>
			<td>
			24
			</td>
			<td>
			7
			</td>
			<td>
			Real Estate (excl. REITs)
			</td>
		</tr>
<tr>
<td>
			Sembcorp Ind
			</td>
			<td>
			U96
			</td>
			<td>
			4,892
			</td>
			<td>
			142
			</td>
			<td>
			2.9%
			</td>
			<td>
			38
			</td>
			<td>
			4
			</td>
			<td>
			Utilities
			</td>
		</tr>
<tr>
<td>
			Keppel Corp
			</td>
			<td>
			BN4
			</td>
			<td>
			11,662
			</td>
			<td>
			193
			</td>
			<td>
			1.7%
			</td>
			<td>
			32
			</td>
			<td>
			5
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Samudera Shipping
			</td>
			<td>
			S56
			</td>
			<td>
			407
			</td>
			<td>
			6
			</td>
			<td>
			1.5%
			</td>
			<td>
			55
			</td>
			<td>
			1
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Hong Fok
			</td>
			<td>
			H30
			</td>
			<td>
			775
			</td>
			<td>
			11
			</td>
			<td>
			1.4%
			</td>
			<td>
			24
			</td>
			<td>
			9
			</td>
			<td>
			Real Estate (excl. REITs)
			</td>
		</tr>
<tr>
<td>
			Singtel
			</td>
			<td>
			Z74
			</td>
			<td>
			40,791
			</td>
			<td>
			524
			</td>
			<td>
			1.3%
			</td>
			<td>
			6
			</td>
			<td>
			-6
			</td>
			<td>
			Telecommunications
			</td>
		</tr>
<tr>
<td>
			Sembcorp Marine
			</td>
			<td>
			S51
			</td>
			<td>
			3,421
			</td>
			<td>
			42
			</td>
			<td>
			1.2%
			</td>
			<td>
			33
			</td>
			<td>
			11
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Ascott Trust
			</td>
			<td>
			HMN
			</td>
			<td>
			3,780
			</td>
			<td>
			44
			</td>
			<td>
			1.2%
			</td>
			<td>
			14
			</td>
			<td>
			2
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			SGX
			</td>
			<td>
			S68
			</td>
			<td>
			10,327
			</td>
			<td>
			119
			</td>
			<td>
			1.1%
			</td>
			<td>
			4
			</td>
			<td>
			-4
			</td>
			<td>
			Financial Services
			</td>
		</tr>
<tr>
<td>
			Sheng Siong
			</td>
			<td>
			OV8
			</td>
			<td>
			2,300
			</td>
			<td>
			25
			</td>
			<td>
			1.1%
			</td>
			<td>
			7
			</td>
			<td>
			3
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			Bumitama Agri
			</td>
			<td>
			P8Z
			</td>
			<td>
			1,179
			</td>
			<td>
			13
			</td>
			<td>
			1.1%
			</td>
			<td>
			31
			</td>
			<td>
			-7
			</td>
			<td>
			Consumer Non-Cyclicals
			</td>
		</tr>
<tr>
<td>
			Suntec REIT
			</td>
			<td>
			T82U
			</td>
			<td>
			4,851
			</td>
			<td>
			53
			</td>
			<td>
			1.1%
			</td>
			<td>
			15
			</td>
			<td>
			-2
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			CapLand IntCom Trust
			</td>
			<td>
			C38U
			</td>
			<td>
			14,320
			</td>
			<td>
			154
			</td>
			<td>
			1.1%
			</td>
			<td>
			6
			</td>
			<td>
			-4
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			Jardine C&amp;C
			</td>
			<td>
			C07
			</td>
			<td>
			11,928
			</td>
			<td>
			123
			</td>
			<td>
			1.0%
			</td>
			<td>
			51
			</td>
			<td>
			24
			</td>
			<td>
			Consumer Cyclicals
			</td>
		</tr>
<tr>
<td>
			Frasers H Trust
			</td>
			<td>
			ACV
			</td>
			<td>
			1,339
			</td>
			<td>
			13
			</td>
			<td>
			1.0%
			</td>
			<td>
			51
			</td>
			<td>
			31
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			Keppel REIT
			</td>
			<td>
			K71U
			</td>
			<td>
			4,206
			</td>
			<td>
			41
			</td>
			<td>
			1.0%
			</td>
			<td>
			3
			</td>
			<td>
			-7
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			ST Engineering
			</td>
			<td>
			S63
			</td>
			<td>
			12,218
			</td>
			<td>
			118
			</td>
			<td>
			1.0%
			</td>
			<td>
			8
			</td>
			<td>
			-2
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			SingPost
			</td>
			<td>
			S08
			</td>
			<td>
			1,462
			</td>
			<td>
			12
			</td>
			<td>
			0.8%
			</td>
			<td>
			0
			</td>
			<td>
			0
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			22
			</td>
			<td>
			3
			</td>
			<td>
			 
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			138,406
			</td>
			<td>
			1,935
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Source: SGX, Bloomberg, Refinitiv (Data as of 17 June 2022)

 

As shown in the table above, Jiutian Chemical Group has booked S$23 million of net institutional inflow in the year-to-date which represents 12.0% of the stock’s current market capitalisation of S$195 million. Representing the Materials &amp; Resources sector, Catalist-listed and Henan-based company manufactures and produces dimethylformamide (“DMF”), methylamine, sodium hydrosulfate and dimethylacetamide. For its 1Q22, Jiutian Chemical Group reported net profit of RMB 201 million, a 123% increase over the same period last year, notwithstanding 15 days of lower production volume in January 2022 due to Covid related restriction affecting logistics. This followed on from its 2021 net profit growing 87% from 2020, on increased demand for its products by downstream users as well as surge in average selling prices of DMF and Methylamine. Since the end of 2019, Jiutian Chemical Group’s market capitalisation has grown sixfold from just over S$30 million to over S$190 million. 
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For the 2Q22 to date, the STI has generated an 8% decline in total return, with the FTSE Developed Index declining 16%. For the quarter, the broader Singapore stock market has seen S$1.05 billion of net institutional outflow, reducing the 2022 YTD net institutional inflow to S$74 million, with the STI 2022 YTD total return at 1%.  
	 
	
As global inflation gauges have continued to press longer term record levels since 31 March, expectations for the end of 2022 US Fed Funds Rate have increased from 225-250 bps to 350-375 bps. The impact of higher rates has also weighed global growth outlooks, with the World Bank tapering its 2022 global growth estimate to 2.9% (from 4.1%).   
	 
	
The technology sector has continued to weigh global stocks since 31 March, with hospitality &amp; real estate also lagging, while the defensive outperformance of global banks seen in 1Q22 narrowed considerably. In Singapore, banks, technology and REITs have now booked the most net institutional outflows across the sectors in the 2022 YTD. 
	 
	
The 20 stocks among the most actively traded Singapore stocks that booked the highest net institutional inflows in the 2022 YTD proportionate to their current market capitalisation, included five REITs and five industrial stocks, with the remaining 10 stocks representing eight sectors. These 20 stocks averaged a 22% total return in the 2022 YTD.     
	 

For the 2Q22 through to 17 June, the STI has declined 9.1%, with the dividend distributions of May reducing the decline to 7.6% in total return terms. This is half the declines of the FTSE Developed Index, which has generated a 15.8% decline in total return over the same 11 weeks.



      
    
    Inflation & Slower Growth Outlook Fuels Further Selling in Global Stocks


The technology sector has continued to be the weakest of the global stock sectors in the 2Q22, as global inflation gauges have continued to revisit longer term record levels which has seen the majority of expectations for the end of 2022 US Fed Funds Rate (based on CME FedWatch) increase from 225-250 bps to 350-375 bps. The impact of the inflation and higher rates has also weighed global growth outlooks, with the World Bank this month reducing its 2022 global growth estimate to 2.9%, superseding a more optimistic outlook or 4.1% made in January.  

 

Shifting of Fund Flows in 2022 YTD

 


Like 1Q22, the STI composition benefitted from the comparative performances of banks over technology, with global technology stocks declining some 8% more than global bank stocks since 31 March. For 1Q22, the broader Singapore stock market attracted S$1.12 billion of net institutional inflows, and since 1Q22, has seen S$1.05 billion of net institutional outflows, resulting in 2022 year-to-date net institutional inflows of S$74 million, with the STI posting a marginal year-to-date total return of 1.2%. 
	 
	Approximately half of the stocks traded on Singapore Exchange have booked net institutional inflows in the year-to-date, while half have booked net outflows. For passive investors however, there has been some rotation to the STI for the first 13 sessions of June with the two ETFs that track the STI on track to record their first monthly inflows for 2022, after five consecutive months of net outflows that exceeded S$100 million from January through to the end of May 2022.

Focusing on the 100 most traded stocks by turnover this year, the 20 stocks that have booked the highest net institutional inflows, not on absolute basis, but proportionate to their current market capitalisation, have averaged 22% total returns in the year-to-date.  As many as 19 of the stocks generated positive total returns, while one stock, Singapore Post, remained unchanged.

The 20 stocks have also booked a total of S$1.94 billion of net institutional inflows in the year-to-date, led by Singapore Telecommunications. The 20 stocks are tabled below.  

 




			Actively Traded Singapore Stocks with Highest YTD Net Insti Flows proportionate to Mkt Cap
			
			
			Code
			
			
			Mkt Cap S$M 
			
			
			Insti YTD Net Flow (S$M)
			
			
			Net Flow as % of Cap
			
			
			YTD Total Return %
			
			
			QTD Total Return %
			
			
			Sector
			
		


			Jiutian Chemical
			
			
			C8R
			
			
			195
			
			
			23
			
			
			12.0%
			
			
			40
			
			
			22
			
			
			Materials &amp; Resources
			
		


			Riverstone
			
			
			AP4
			
			
			971
			
			
			36
			
			
			3.7%
			
			
			7
			
			
			-27
			
			
			Healthcare
			
		


			CityDev
			
			
			C09
			
			
			7,382
			
			
			243
			
			
			3.3%
			
			
			24
			
			
			7
			
			
			Real Estate (excl. REITs)
			
		


			Sembcorp Ind
			
			
			U96
			
			
			4,892
			
			
			142
			
			
			2.9%
			
			
			38
			
			
			4
			
			
			Utilities
			
		


			Keppel Corp
			
			
			BN4
			
			
			11,662
			
			
			193
			
			
			1.7%
			
			
			32
			
			
			5
			
			
			Industrials
			
		


			Samudera Shipping
			
			
			S56
			
			
			407
			
			
			6
			
			
			1.5%
			
			
			55
			
			
			1
			
			
			Industrials
			
		


			Hong Fok
			
			
			H30
			
			
			775
			
			
			11
			
			
			1.4%
			
			
			24
			
			
			9
			
			
			Real Estate (excl. REITs)
			
		


			Singtel
			
			
			Z74
			
			
			40,791
			
			
			524
			
			
			1.3%
			
			
			6
			
			
			-6
			
			
			Telecommunications
			
		


			Sembcorp Marine
			
			
			S51
			
			
			3,421
			
			
			42
			
			
			1.2%
			
			
			33
			
			
			11
			
			
			Industrials
			
		


			Ascott Trust
			
			
			HMN
			
			
			3,780
			
			
			44
			
			
			1.2%
			
			
			14
			
			
			2
			
			
			REITs
			
		


			SGX
			
			
			S68
			
			
			10,327
			
			
			119
			
			
			1.1%
			
			
			4
			
			
			-4
			
			
			Financial Services
			
		


			Sheng Siong
			
			
			OV8
			
			
			2,300
			
			
			25
			
			
			1.1%
			
			
			7
			
			
			3
			
			
			Consumer Non-Cyclicals
			
		


			Bumitama Agri
			
			
			P8Z
			
			
			1,179
			
			
			13
			
			
			1.1%
			
			
			31
			
			
			-7
			
			
			Consumer Non-Cyclicals
			
		


			Suntec REIT
			
			
			T82U
			
			
			4,851
			
			
			53
			
			
			1.1%
			
			
			15
			
			
			-2
			
			
			REITs
			
		


			CapLand IntCom Trust
			
			
			C38U
			
			
			14,320
			
			
			154
			
			
			1.1%
			
			
			6
			
			
			-4
			
			
			REITs
			
		


			Jardine C&amp;C
			
			
			C07
			
			
			11,928
			
			
			123
			
			
			1.0%
			
			
			51
			
			
			24
			
			
			Consumer Cyclicals
			
		


			Frasers H Trust
			
			
			ACV
			
			
			1,339
			
			
			13
			
			
			1.0%
			
			
			51
			
			
			31
			
			
			REITs
			
		


			Keppel REIT
			
			
			K71U
			
			
			4,206
			
			
			41
			
			
			1.0%
			
			
			3
			
			
			-7
			
			
			REITs
			
		


			ST Engineering
			
			
			S63
			
			
			12,218
			
			
			118
			
			
			1.0%
			
			
			8
			
			
			-2
			
			
			Industrials
			
		


			SingPost
			
			
			S08
			
			
			1,462
			
			
			12
			
			
			0.8%
			
			
			0
			
			
			0
			
			
			Industrials
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			22
			
			
			3
			
			
			 
			
		


			Total
			
			
			 
			
			
			138,406
			
			
			1,935
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
		

Source: SGX, Bloomberg, Refinitiv (Data as of 17 June 2022)

 

As shown in the table above, Jiutian Chemical Group has booked S$23 million of net institutional inflow in the year-to-date which represents 12.0% of the stock’s current market capitalisation of S$195 million. Representing the Materials &amp; Resources sector, Catalist-listed and Henan-based company manufactures and produces dimethylformamide (“DMF”), methylamine, sodium hydrosulfate and dimethylacetamide. For its 1Q22, Jiutian Chemical Group reported net profit of RMB 201 million, a 123% increase over the same period last year, notwithstanding 15 days of lower production volume in January 2022 due to Covid related restriction affecting logistics. This followed on from its 2021 net profit growing 87% from 2020, on increased demand for its products by downstream users as well as surge in average selling prices of DMF and Methylamine. Since the end of 2019, Jiutian Chemical Group’s market capitalisation has grown sixfold from just over S$30 million to over S$190 million. 



Inflation & Slower Growth Outlook Fuels Further Selling in Global Stocks

Seatrium

Inflation & Slower Growth Outlook Fuels Further Selling in Global Stocks