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>
In January, the iEdge SG All Healthcare Index generated a 4% return, following a 4% decline in fourth quarter of 2020 and 77% total return over the first three quarters of 2020. Following the last rebalance, the largest weights of the Index are Haw Par, Raffles Medical, Parkway Life REIT, IHH Healthcare Bhd and Top Glove Corp Bhd. 
	 </li>
	<li>
In 2020, Medtecs, Top Glove, Riverstone and UG Healthcare ranked among top 50 stocks by turnover, and continued to be so ranked in early 2021. In 2020, the four stocks contributed a combined S$42 million a day in daily turnover, with indications half of that turnover was generated by retail investors. 
	 </li>
	<li>Retail investors also appear to have contributed to just over half the combined daily trading activity of Medtecs, Top Glove, Riverstone and UG Healthcare in January 2021. These stocks averaged 18% returns for the month, with Riverstone and UG Healthcare the strongest performers of the iEdge SG All Healthcare Index in January.</li>
</ul>
 

The broking industry has seen a resurgence of retail trading activity amid the broad market volatility that has seen significant trading ranges over the past 12 months. Keeping in mind the old adage of when stocks move, traders react, when stocks don’t move, traders tend to stay on the sidelines, in 2020, the Straits Times Index (“STI”) established its biggest trading range for a year since 2009.

Moreover, the trading range of the iEdge SG All Healthcare Index in 2020 was a remarkable 150% between low to high, 15 times the Index range of the preceding five years. The social and economic impacts of the Coronavirus have been the overarching market driver for the broader stock market, with measured impacts on particular industries such as medical supplies. This means the market drivers of the big movers of the iEdge SG All Healthcare Index have made the headlines almost every day.

The constituents of the iEdge SG All Healthcare Index averaged S$63 million in daily turnover in 2020, with S$52 million in daily turnover in January 2021. The undermentioned medical suppliers comprised two-thirds of the combined Index turnover in both 2020 and January 2021. 

During 2020, Medtecs International Corp, Top Glove Corp Bhd, Riverstone Holdings and UG Healthcare Corporation were among the top 50 stocks by turnover, with this segment remaining so in early 2021. In 2020, these four stocks contributed a combined S$42 million a day in daily turnover, with anecdotal evidence suggesting that half of that turnover was contributed by retail investors. At the same time net retail inflows into the four stocks for the entire 2020 year was close to S$150 million, which was 0.9% of their combined end of year market value. Indications are that retail investors have also contributed just over 50% to the combined S$34 million average daily turnover of these stocks in January 2021. 

The recent performance of the 20 most traded constituents of the iEdge SG All Healthcare Index stocks in January 2021 are tabled below.

<table class="table table-striped"><tbody>
<tr>
<td>
			20 Most Traded Stocks of iEdge SG All Healthcare Index in Jan 2021
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Mkt Cap S$M (end of Jan)
			</td>
			<td>
			Average Daily Turnover in 2020 S$M
			</td>
			<td>
			Net Retail Inflow in 2020 S$M
			</td>
			<td>
			2020 Total Return %
			</td>
			<td>
			Average Daily Turnover in Jan 2021 S$M
			</td>
			<td>
			Net Retail Inflow in Jan 2021 S$M
			</td>
			<td>
			Jan 2021 Total Return %
			</td>
		</tr>
<tr>
<td>
			MEDTECS INTERNATIONAL CORP
			</td>
			<td>
			546
			</td>
			<td>
			571
			</td>
			<td>
			20.08
			</td>
			<td>
			-12.5
			</td>
			<td>
			2,628
			</td>
			<td>
			10.33
			</td>
			<td>
			7.13
			</td>
			<td>
			4
			</td>
		</tr>
<tr>
<td>
			TOP GLOVE CORP BHD
			</td>
			<td>
			BVA
			</td>
			<td>
			17,491
			</td>
			<td>
			6.08
			</td>
			<td>
			118.7
			</td>
			<td>
			300
			</td>
			<td>
			10.08
			</td>
			<td>
			14.32
			</td>
			<td>
			9
			</td>
		</tr>
<tr>
<td>
			RIVERSTONE HOLDINGS
			</td>
			<td>
			AP4
			</td>
			<td>
			2,223
			</td>
			<td>
			9.14
			</td>
			<td>
			42.8
			</td>
			<td>
			143
			</td>
			<td>
			8.62
			</td>
			<td>
			-10.06
			</td>
			<td>
			35
			</td>
		</tr>
<tr>
<td>
			UG HEALTHCARE CORP
			</td>
			<td>
			8K7
			</td>
			<td>
			447
			</td>
			<td>
			7.00
			</td>
			<td>
			18.8
			</td>
			<td>
			1,157
			</td>
			<td>
			5.27
			</td>
			<td>
			-0.30
			</td>
			<td>
			24
			</td>
		</tr>
<tr>
<td>
			SINGAPORE MEDICAL GROUP
			</td>
			<td>
			5OT
			</td>
			<td>
			181
			</td>
			<td>
			0.46
			</td>
			<td>
			9.0
			</td>
			<td>
			8
			</td>
			<td>
			2.92
			</td>
			<td>
			-1.72
			</td>
			<td>
			17
			</td>
		</tr>
<tr>
<td>
			FIRST REAL ESTATE INVT TRUST
			</td>
			<td>
			AW9U
			</td>
			<td>
			185
			</td>
			<td>
			1.72
			</td>
			<td>
			40.4
			</td>
			<td>
			-75
			</td>
			<td>
			2.44
			</td>
			<td>
			0.62
			</td>
			<td>
			3
			</td>
		</tr>
<tr>
<td>
			PARKWAYLIFE REAL ESTATE
			</td>
			<td>
			C2PU
			</td>
			<td>
			2,511
			</td>
			<td>
			3.24
			</td>
			<td>
			7.9
			</td>
			<td>
			21
			</td>
			<td>
			2.35
			</td>
			<td>
			-3.40
			</td>
			<td>
			7
			</td>
		</tr>
<tr>
<td>
			VICPLAS INTERNATIONAL
			</td>
			<td>
			569
			</td>
			<td>
			138
			</td>
			<td>
			2.38
			</td>
			<td>
			-0.7
			</td>
			<td>
			169
			</td>
			<td>
			2.22
			</td>
			<td>
			0.40
			</td>
			<td>
			10
			</td>
		</tr>
<tr>
<td>
			Q &amp; M DENTAL GROUP SINGAPORE
			</td>
			<td>
			QC7
			</td>
			<td>
			346
			</td>
			<td>
			0.40
			</td>
			<td>
			-4.9
			</td>
			<td>
			3
			</td>
			<td>
			1.64
			</td>
			<td>
			-8.18
			</td>
			<td>
			-6
			</td>
		</tr>
<tr>
<td>
			HAW PAR CORP
			</td>
			<td>
			H02
			</td>
			<td>
			2,477
			</td>
			<td>
			1.65
			</td>
			<td>
			43.8
			</td>
			<td>
			-14
			</td>
			<td>
			1.39
			</td>
			<td>
			-2.87
			</td>
			<td>
			5
			</td>
		</tr>
<tr>
<td>
			RAFFLES MEDICAL GROUP
			</td>
			<td>
			BSL
			</td>
			<td>
			1,743
			</td>
			<td>
			1.43
			</td>
			<td>
			1.5
			</td>
			<td>
			3
			</td>
			<td>
			1.39
			</td>
			<td>
			5.01
			</td>
			<td>
			-6
			</td>
		</tr>
<tr>
<td>
			IX BIOPHARMA
			</td>
			<td>
			42C
			</td>
			<td>
			181
			</td>
			<td>
			1.34
			</td>
			<td>
			2.2
			</td>
			<td>
			13
			</td>
			<td>
			0.69
			</td>
			<td>
			-0.93
			</td>
			<td>
			2
			</td>
		</tr>
<tr>
<td>
			BIOLIDICS
			</td>
			<td>
			8YY
			</td>
			<td>
			81
			</td>
			<td>
			2.46
			</td>
			<td>
			4.6
			</td>
			<td>
			22
			</td>
			<td>
			0.65
			</td>
			<td>
			-0.10
			</td>
			<td>
			2
			</td>
		</tr>
<tr>
<td>
			CLEARBRIDGE HEALTH
			</td>
			<td>
			1H3
			</td>
			<td>
			94
			</td>
			<td>
			1.86
			</td>
			<td>
			1.4
			</td>
			<td>
			7
			</td>
			<td>
			0.47
			</td>
			<td>
			-0.35
			</td>
			<td>
			4
			</td>
		</tr>
<tr>
<td>
			TIANJIN ZHONG XIN PHARM CO-S
			</td>
			<td>
			T14
			</td>
			<td>
			2,270
			</td>
			<td>
			0.49
			</td>
			<td>
			10.5
			</td>
			<td>
			7
			</td>
			<td>
			0.35
			</td>
			<td>
			0.72
			</td>
			<td>
			-1
			</td>
		</tr>
<tr>
<td>
			NUTRYFARM INTERNATIONAL
			</td>
			<td>
			AZT
			</td>
			<td>
			49
			</td>
			<td>
			0.03
			</td>
			<td>
			0.8
			</td>
			<td>
			340
			</td>
			<td>
			0.35
			</td>
			<td>
			0.57
			</td>
			<td>
			15
			</td>
		</tr>
<tr>
<td>
			THOMSON MEDICAL GROUP
			</td>
			<td>
			A50
			</td>
			<td>
			1,296
			</td>
			<td>
			0.43
			</td>
			<td>
			-4.4
			</td>
			<td>
			-22
			</td>
			<td>
			0.30
			</td>
			<td>
			0.96
			</td>
			<td>
			-2
			</td>
		</tr>
<tr>
<td>
			HYPHENS PHARMA INTERNATIONAL
			</td>
			<td>
			1J5
			</td>
			<td>
			96
			</td>
			<td>
			1.51
			</td>
			<td>
			6.3
			</td>
			<td>
			56
			</td>
			<td>
			0.22
			</td>
			<td>
			0.18
			</td>
			<td>
			2
			</td>
		</tr>
<tr>
<td>
			SINGAPORE O&amp;G
			</td>
			<td>
			1D8
			</td>
			<td>
			119
			</td>
			<td>
			0.05
			</td>
			<td>
			1.1
			</td>
			<td>
			-20
			</td>
			<td>
			0.10
			</td>
			<td>
			-0.14
			</td>
			<td>
			6
			</td>
		</tr>
<tr>
<td>
			ASIAN HEALTHCARE SPECIALISTS
			</td>
			<td>
			1J3
			</td>
			<td>
			89
			</td>
			<td>
			0.28
			</td>
			<td>
			5.1
			</td>
			<td>
			-13
			</td>
			<td>
			0.09
			</td>
			<td>
			-0.04
			</td>
			<td>
			6
			</td>
		</tr>
<tr>
<td>
			Median 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			11
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			4
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			237
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			7
			</td>
		</tr>
</tbody></table>
Source: SGX StockFacts, Refinitiv and Bloomberg (Data as of 31 January 2021)

During the past year, retail investors were able to access company financial statements, outlooks, corporate presentations and broker research.

<ul>
<li>In September, Top Glove Corp Bhd reported a 418% increase in its FY20 (ended 31 August) net profit, which paralleled the stocks 447% price gain over the period (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/IJFOW473ZNCRCUT3/82933a0cd7c0192a1c0c7667c94a51a5b3deb2d030fed51eb5fb579307ad3fd3">here</a> for more). For its 1QFY21, Top Glove Corp Bhd reported its YoY net profit was up just over 20-fold (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/UTOJPNOBUBHSSJ2V/ffc775ba65ced3e5f209752d74e5d791730be795019854cf291b3473d1eaf022">here</a> for more). 
	 </li>
	<li>Similarly, in October, Medtecs International Corp updated that its 9MFY20 (ended 30 September) net profit had grown close to 200-fold YoY (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/6HKIL9XH2X72T595/5e7998475bd67a05828f9944f30128ad5f32b7fb13a39c3d6adb561f3445a149">here</a> for more), which coincided with its share price soaring close to 30-fold from 3.7 cents to S$1.08. 
	 </li>
	<li>Riverstone Holdings updated that its 9MFY20 (ended 30 Sep) net profit was up just over 220% YoY (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/8FTT9MNR567N7UTQ/55c7b684eb8c9084f5b62483df7627603a881a0a5524f5809b109a2a087b50b3">here</a> for more), while its stock price was up 277%. 
	 </li>
	<li>Meanwhile Catalist-list UG Healthcare reported its net profit for FY20 (ended June) was up more than five-fold (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/AVQBF0S5EVGA4X49/e1151bdaad5c8e86eba8e861085899e65b1bb46019dd8a0aa008356f2897e6bb">here</a> for more), and 1QFY21 (ended 30 Sep) attributable net profit was up more than 70-fold (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/XZINZSWIGSX79HW2/8c4c259f215a42ec0abb196fea5ba05a39ed7e2f490435af854fa5d3c37dad7f">here</a> for more).</li>
</ul>
 

Riverstone was the stongest perfomer of the iEdge SG All Healthcare Index constituents in January. On 1 December, the Employees Provident Fund Board of Malaysia (“EPF”) increased its substantial shareholder of Riverstone Holdings to above the 7.00 per cent threshold. This followed on from a filing on 26 October that reported the EPF increased its substantial shareholder above the 6.00 per cent threshold, after the EPF became a substantial shareholder of Riverstone Holdings on 17 September. The company noted back on 9 November that Phase 6 of the Group’s expansion plans is on track to raise total production capacity by 1.5 billion pieces to 10.5 billion pieces of gloves annually by the end of 2020. For phase 6, the Group noted it had commissioned five production lines that are currently in operation, with the remaining two production lines progressively commissioned over the next two months. Furthermore, due to the strong demand for both healthcare and cleanroom gloves, the Group’s current order book has been filled to the first half of 2021.

 

Recent Growth in Retail Trading 

While financials and outlooks can drive investor interest, investors are always encouraged to seek checks and balances. Incorporating fundamentals with prices, to generate valuations can help provide checks, while avoiding concentrating too much portfolio exposure to one stock or asset can provide the balances.

Recent years have also seen technology emerge as a key enabler for access to markets, in addition to data, information, research and education. For its 1HFY20 (ended 30 June), UOB-Kay Hian Holdings reported that commission income had increased 90% mainly due to active retail participation across regional and US markets as a result of market volatility, and in October, when iFAST reported its 9MFY20 (ended 30 September) results, the group highlighted that improvement in the business showed iFAST Corp continued to be a beneficiary of increased digital adoption in the wealth management industry.

Increased digitalisation of financial services bodes well for the organic growth of retail investing, supported by adequately capitalised brokers that manage their value at risk, publish research and provide advice in-line with their regulatory requirements. Another consequence of the growth in retail investing is new and fast flows that as seen in the United States last week can impact the market risk that short-sellers face.

The strong aforementioned retail trading interest in the medical suppliers compared to indications retail investors contributed less than a fifth to the daily turnover of the DBS, OCBC and UOB in 2020, with net retail inflows making up 2.2% of their combined market value. Note that while the three banks attracted significant institutional trading with their heavyweight representation in the local and regional indices, retail activity extended to regular share saving plans, which are dollar cost averaging methods followed by 60,000 retail investors, in addition to significant turnover and inflows into the STI ETFs.

Singapore Exchange also lists for trading a number of leveraged security and derivative products that are designed to cater to increased risk appetites by retail investors, which are firstly categorised as Specified Investor Products and secondly utilise margining that is in-line with the best industry standards.

The SGX Academy (click <a href="https://www.sgxacademy.com/?force_isolation=true">here</a>) provides a wide range of educational and professional courses to assist both traders and investors.
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In January, the iEdge SG All Healthcare Index generated a 4% return, following a 4% decline in fourth quarter of 2020 and 77% total return over the first three quarters of 2020. Following the last rebalance, the largest weights of the Index are Haw Par, Raffles Medical, Parkway Life REIT, IHH Healthcare Bhd and Top Glove Corp Bhd. 
	 
	
In 2020, Medtecs, Top Glove, Riverstone and UG Healthcare ranked among top 50 stocks by turnover, and continued to be so ranked in early 2021. In 2020, the four stocks contributed a combined S$42 million a day in daily turnover, with indications half of that turnover was generated by retail investors. 
	 
	Retail investors also appear to have contributed to just over half the combined daily trading activity of Medtecs, Top Glove, Riverstone and UG Healthcare in January 2021. These stocks averaged 18% returns for the month, with Riverstone and UG Healthcare the strongest performers of the iEdge SG All Healthcare Index in January.

 

The broking industry has seen a resurgence of retail trading activity amid the broad market volatility that has seen significant trading ranges over the past 12 months. Keeping in mind the old adage of when stocks move, traders react, when stocks don’t move, traders tend to stay on the sidelines, in 2020, the Straits Times Index (“STI”) established its biggest trading range for a year since 2009.

Moreover, the trading range of the iEdge SG All Healthcare Index in 2020 was a remarkable 150% between low to high, 15 times the Index range of the preceding five years. The social and economic impacts of the Coronavirus have been the overarching market driver for the broader stock market, with measured impacts on particular industries such as medical supplies. This means the market drivers of the big movers of the iEdge SG All Healthcare Index have made the headlines almost every day.

The constituents of the iEdge SG All Healthcare Index averaged S$63 million in daily turnover in 2020, with S$52 million in daily turnover in January 2021. The undermentioned medical suppliers comprised two-thirds of the combined Index turnover in both 2020 and January 2021. 

During 2020, Medtecs International Corp, Top Glove Corp Bhd, Riverstone Holdings and UG Healthcare Corporation were among the top 50 stocks by turnover, with this segment remaining so in early 2021. In 2020, these four stocks contributed a combined S$42 million a day in daily turnover, with anecdotal evidence suggesting that half of that turnover was contributed by retail investors. At the same time net retail inflows into the four stocks for the entire 2020 year was close to S$150 million, which was 0.9% of their combined end of year market value. Indications are that retail investors have also contributed just over 50% to the combined S$34 million average daily turnover of these stocks in January 2021. 

The recent performance of the 20 most traded constituents of the iEdge SG All Healthcare Index stocks in January 2021 are tabled below.




			20 Most Traded Stocks of iEdge SG All Healthcare Index in Jan 2021
			
			
			SGX Code
			
			
			Mkt Cap S$M (end of Jan)
			
			
			Average Daily Turnover in 2020 S$M
			
			
			Net Retail Inflow in 2020 S$M
			
			
			2020 Total Return %
			
			
			Average Daily Turnover in Jan 2021 S$M
			
			
			Net Retail Inflow in Jan 2021 S$M
			
			
			Jan 2021 Total Return %
			
		


			MEDTECS INTERNATIONAL CORP
			
			
			546
			
			
			571
			
			
			20.08
			
			
			-12.5
			
			
			2,628
			
			
			10.33
			
			
			7.13
			
			
			4
			
		


			TOP GLOVE CORP BHD
			
			
			BVA
			
			
			17,491
			
			
			6.08
			
			
			118.7
			
			
			300
			
			
			10.08
			
			
			14.32
			
			
			9
			
		


			RIVERSTONE HOLDINGS
			
			
			AP4
			
			
			2,223
			
			
			9.14
			
			
			42.8
			
			
			143
			
			
			8.62
			
			
			-10.06
			
			
			35
			
		


			UG HEALTHCARE CORP
			
			
			8K7
			
			
			447
			
			
			7.00
			
			
			18.8
			
			
			1,157
			
			
			5.27
			
			
			-0.30
			
			
			24
			
		


			SINGAPORE MEDICAL GROUP
			
			
			5OT
			
			
			181
			
			
			0.46
			
			
			9.0
			
			
			8
			
			
			2.92
			
			
			-1.72
			
			
			17
			
		


			FIRST REAL ESTATE INVT TRUST
			
			
			AW9U
			
			
			185
			
			
			1.72
			
			
			40.4
			
			
			-75
			
			
			2.44
			
			
			0.62
			
			
			3
			
		


			PARKWAYLIFE REAL ESTATE
			
			
			C2PU
			
			
			2,511
			
			
			3.24
			
			
			7.9
			
			
			21
			
			
			2.35
			
			
			-3.40
			
			
			7
			
		


			VICPLAS INTERNATIONAL
			
			
			569
			
			
			138
			
			
			2.38
			
			
			-0.7
			
			
			169
			
			
			2.22
			
			
			0.40
			
			
			10
			
		


			Q &amp; M DENTAL GROUP SINGAPORE
			
			
			QC7
			
			
			346
			
			
			0.40
			
			
			-4.9
			
			
			3
			
			
			1.64
			
			
			-8.18
			
			
			-6
			
		


			HAW PAR CORP
			
			
			H02
			
			
			2,477
			
			
			1.65
			
			
			43.8
			
			
			-14
			
			
			1.39
			
			
			-2.87
			
			
			5
			
		


			RAFFLES MEDICAL GROUP
			
			
			BSL
			
			
			1,743
			
			
			1.43
			
			
			1.5
			
			
			3
			
			
			1.39
			
			
			5.01
			
			
			-6
			
		


			IX BIOPHARMA
			
			
			42C
			
			
			181
			
			
			1.34
			
			
			2.2
			
			
			13
			
			
			0.69
			
			
			-0.93
			
			
			2
			
		


			BIOLIDICS
			
			
			8YY
			
			
			81
			
			
			2.46
			
			
			4.6
			
			
			22
			
			
			0.65
			
			
			-0.10
			
			
			2
			
		


			CLEARBRIDGE HEALTH
			
			
			1H3
			
			
			94
			
			
			1.86
			
			
			1.4
			
			
			7
			
			
			0.47
			
			
			-0.35
			
			
			4
			
		


			TIANJIN ZHONG XIN PHARM CO-S
			
			
			T14
			
			
			2,270
			
			
			0.49
			
			
			10.5
			
			
			7
			
			
			0.35
			
			
			0.72
			
			
			-1
			
		


			NUTRYFARM INTERNATIONAL
			
			
			AZT
			
			
			49
			
			
			0.03
			
			
			0.8
			
			
			340
			
			
			0.35
			
			
			0.57
			
			
			15
			
		


			THOMSON MEDICAL GROUP
			
			
			A50
			
			
			1,296
			
			
			0.43
			
			
			-4.4
			
			
			-22
			
			
			0.30
			
			
			0.96
			
			
			-2
			
		


			HYPHENS PHARMA INTERNATIONAL
			
			
			1J5
			
			
			96
			
			
			1.51
			
			
			6.3
			
			
			56
			
			
			0.22
			
			
			0.18
			
			
			2
			
		


			SINGAPORE O&amp;G
			
			
			1D8
			
			
			119
			
			
			0.05
			
			
			1.1
			
			
			-20
			
			
			0.10
			
			
			-0.14
			
			
			6
			
		


			ASIAN HEALTHCARE SPECIALISTS
			
			
			1J3
			
			
			89
			
			
			0.28
			
			
			5.1
			
			
			-13
			
			
			0.09
			
			
			-0.04
			
			
			6
			
		


			Median 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			11
			
			
			 
			
			
			 
			
			
			4
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			237
			
			
			 
			
			
			 
			
			
			7
			
		

Source: SGX StockFacts, Refinitiv and Bloomberg (Data as of 31 January 2021)

During the past year, retail investors were able to access company financial statements, outlooks, corporate presentations and broker research.


In September, Top Glove Corp Bhd reported a 418% increase in its FY20 (ended 31 August) net profit, which paralleled the stocks 447% price gain over the period (click here for more). For its 1QFY21, Top Glove Corp Bhd reported its YoY net profit was up just over 20-fold (click here for more). 
	 
	Similarly, in October, Medtecs International Corp updated that its 9MFY20 (ended 30 September) net profit had grown close to 200-fold YoY (click here for more), which coincided with its share price soaring close to 30-fold from 3.7 cents to S$1.08. 
	 
	Riverstone Holdings updated that its 9MFY20 (ended 30 Sep) net profit was up just over 220% YoY (click here for more), while its stock price was up 277%. 
	 
	Meanwhile Catalist-list UG Healthcare reported its net profit for FY20 (ended June) was up more than five-fold (click here for more), and 1QFY21 (ended 30 Sep) attributable net profit was up more than 70-fold (click here for more).

 

Riverstone was the stongest perfomer of the iEdge SG All Healthcare Index constituents in January. On 1 December, the Employees Provident Fund Board of Malaysia (“EPF”) increased its substantial shareholder of Riverstone Holdings to above the 7.00 per cent threshold. This followed on from a filing on 26 October that reported the EPF increased its substantial shareholder above the 6.00 per cent threshold, after the EPF became a substantial shareholder of Riverstone Holdings on 17 September. The company noted back on 9 November that Phase 6 of the Group’s expansion plans is on track to raise total production capacity by 1.5 billion pieces to 10.5 billion pieces of gloves annually by the end of 2020. For phase 6, the Group noted it had commissioned five production lines that are currently in operation, with the remaining two production lines progressively commissioned over the next two months. Furthermore, due to the strong demand for both healthcare and cleanroom gloves, the Group’s current order book has been filled to the first half of 2021.

 

Recent Growth in Retail Trading 

While financials and outlooks can drive investor interest, investors are always encouraged to seek checks and balances. Incorporating fundamentals with prices, to generate valuations can help provide checks, while avoiding concentrating too much portfolio exposure to one stock or asset can provide the balances.

Recent years have also seen technology emerge as a key enabler for access to markets, in addition to data, information, research and education. For its 1HFY20 (ended 30 June), UOB-Kay Hian Holdings reported that commission income had increased 90% mainly due to active retail participation across regional and US markets as a result of market volatility, and in October, when iFAST reported its 9MFY20 (ended 30 September) results, the group highlighted that improvement in the business showed iFAST Corp continued to be a beneficiary of increased digital adoption in the wealth management industry.

Increased digitalisation of financial services bodes well for the organic growth of retail investing, supported by adequately capitalised brokers that manage their value at risk, publish research and provide advice in-line with their regulatory requirements. Another consequence of the growth in retail investing is new and fast flows that as seen in the United States last week can impact the market risk that short-sellers face.

The strong aforementioned retail trading interest in the medical suppliers compared to indications retail investors contributed less than a fifth to the daily turnover of the DBS, OCBC and UOB in 2020, with net retail inflows making up 2.2% of their combined market value. Note that while the three banks attracted significant institutional trading with their heavyweight representation in the local and regional indices, retail activity extended to regular share saving plans, which are dollar cost averaging methods followed by 60,000 retail investors, in addition to significant turnover and inflows into the STI ETFs.

Singapore Exchange also lists for trading a number of leveraged security and derivative products that are designed to cater to increased risk appetites by retail investors, which are firstly categorised as Specified Investor Products and secondly utilise margining that is in-line with the best industry standards.

The SGX Academy (click here) provides a wide range of educational and professional courses to assist both traders and investors.



Medical Suppliers Continued to Trade Actively in January

UOB Kay Hian Holdings

Medical Suppliers Continued to Trade Actively in January