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

CapitaLand Ascendas REIT / Equity Bottom-Up





Amongst the 50 most traded SGX-listed stocks of 2020 through to 7 Feb, four Real Estate stocks were amongst the five strongest performers - Keppel DC REIT, Mapletree Logistics Trust, Ascendas REIT and Manulife REIT. 
	 
	
These performances coincided with low interest rate expectations continuing into 2020- consensus expectations for a Federal Funds interest rate cut in 2020 have increased to 80% from 50% at the end of 2019, with expectations for a 25 bps cut moving from Dec 2020 to Sep 2020. 
	 
	
Singapore Government has announced publicly-listed developers with substantial Singapore connections can apply to be QC-exempted. In reaction, on Friday, City Dev opened +1.8%, UOL opened +1.0% &amp; Bukit Sembawang +1.3% before broad afternoon declines weighed the trio.   


 As many as 22 of the 50 most traded Singapore stocks in the 2020 year through to 7 February, have been either Real Estate Developers, Managers or Real Estate Investment Trusts (“REITs”). Together the 22 stocks have seen net institutional inflows of S$204 million, with Ascendas REIT, CapitaLand and Mapletree Logistics REIT leading the inflows. Together the 22 Real Estate stocks generated a higher median total return than the broader 50 stocks in both the 2020 year to 7 February (+2%) and the past three years (+46%).  REITs supported by Interest Rate Outlook in Early 2020 
 

REITs led the broader market in 2019 on outlooks for lower global interest rates. This theme continued somewhat over the first five weeks of 2020 with the US Dollar Index gaining 2%, yields on 10 year US Treasury Notes declining from 1.92% to 1.59%, and WTI Crude Oil declining 18% to near US$50.20/bbl. Moreover, at the end of 2019, consensus expectations for a Federal Funds Rate cut in 2020 have increased. At the end of 2010, expectations for a 2020 cut in the Federal Funds Rate were at 50%, with the most likely scenario a 25 bps cut in December. Last week, expectations for a 2020 cut in the Federal Funds Rate were near 80%, with the most likely scenario a 25 bps cut in September.

The strongest S-REITs in the 2020 year through to 7 February that have also ranked amongst the 50 most traded stocks were Keppel DC REIT, Mapletree Logistics Trust, Ascendas REIT and Manulife REIT.

Publicly-listed Developers with Substantial Singapore Connection Supported by Measures

Early Thursday evening the Singapore government announced with immediate effect, publicly listed developers with a substantial connection to Singapore can apply to be exempted from the Qualifying Certificate (“QC”) regime. Successful application means the relevant listed developers would be no longer subject to certain conditions when they buy residential land for development.

The application will be assessed according to criteria such as i) incorporation in Singapore, ii) primary listing is on the Singapore Exchange and principal place of business is Singapore, iii) the chairperson and the majority of the company’s board are Singapore citizens, iv) A significantly Singaporean shareholding interest in the company and v) track record in Singapore. Click here for more.

As noted by the SLA, under the Residential Property Act, any housing developer that is not considered a Singapore company has to apply for a QC when it purchases residential land for development, other than from the Government. Under the QC regime, it is required to complete the development within five years and dispose of all units within two years of completion.

Developer stocks opened higher than the broader market on the open of trading on 7 February. While the market open of the 7 February saw the Straits Times Index open down 0.5% from the Thursday 6 February close, City Developments opened 1.8% higher, UOL Group opened 1.0% higher, and Bukit Sembawang opened 1.3% higher. However, broader market weakness in the course of the trading session weighed those gains into the close.




			22 Real Estate Stocks Amongst 50 Most Traded Stocks in 2020 YTD
			
			
			Stock Code
			
			
			Turnover Rank in 2020 YTD
			
			
			Approx Turnover Rank in 2019
			
			
			Net Insti Flow in 2020 YTD (S$M)
			
			
			Net Insti Flow in 2019 (S$M)
			
			
			MKT Cap (S$)
			
			
			2020 YTD Total Return
			
			
			2019 Total Return
			
			
			3 Yr Total Return
			
		


			CapitaLand
			
			
			C31
			
			
			5
			
			
			7
			
			
			58
			
			
			224.4
			
			
			18.66B
			
			
			-1%
			
			
			25%
			
			
			18%
			
		


			Ascendas REIT
			
			
			A17U
			
			
			6
			
			
			5
			
			
			64
			
			
			-28.4
			
			
			11.61B
			
			
			9%
			
			
			24%
			
			
			58%
			
		


			CapitaMall Trust
			
			
			C38U
			
			
			8
			
			
			8
			
			
			-1
			
			
			-45.8
			
			
			9.04B
			
			
			1%
			
			
			13%
			
			
			46%
			
		


			CapitaCom Trust
			
			
			C61U
			
			
			10
			
			
			10
			
			
			7
			
			
			34.0
			
			
			7.87B
			
			
			4%
			
			
			19%
			
			
			56%
			
		


			Mapletree Com Tr
			
			
			N2IU
			
			
			12
			
			
			11
			
			
			-2
			
			
			-2.8
			
			
			7.54B
			
			
			-4%
			
			
			53%
			
			
			75%
			
		


			CityDev
			
			
			C09
			
			
			13
			
			
			22
			
			
			9
			
			
			123.9
			
			
			10.01B
			
			
			1%
			
			
			38%
			
			
			22%
			
		


			Mapletree Log Tr
			
			
			M44U
			
			
			14
			
			
			18
			
			
			24
			
			
			36.8
			
			
			7.21B
			
			
			10%
			
			
			46%
			
			
			114%
			
		


			Suntec REIT
			
			
			T82U
			
			
			19
			
			
			21
			
			
			-7
			
			
			-63.3
			
			
			5.09B
			
			
			0%
			
			
			9%
			
			
			23%
			
		


			HongkongLand USD
			
			
			H78
			
			
			23
			
			
			17
			
			
			-1
			
			
			-96.9
			
			
			17.84B
			
			
			-2%
			
			
			-7%
			
			
			-14%
			
		


			Mapletree Ind Tr
			
			
			ME8U
			
			
			24
			
			
			26
			
			
			6
			
			
			17.9
			
			
			6.12B
			
			
			8%
			
			
			44%
			
			
			100%
			
		


			Mapletree NAC Tr
			
			
			RW0U
			
			
			25
			
			
			24
			
			
			7
			
			
			-38.7
			
			
			3.80B
			
			
			4%
			
			
			8%
			
			
			51%
			
		


			UOL
			
			
			U14
			
			
			29
			
			
			31
			
			
			14
			
			
			117.4
			
			
			6.91B
			
			
			-2%
			
			
			38%
			
			
			32%
			
		


			Keppel DC REIT
			
			
			AJBU
			
			
			32
			
			
			32
			
			
			10
			
			
			3.5
			
			
			3.79B
			
			
			13%
			
			
			66%
			
			
			131%
			
		


			Ascott Trust
			
			
			HMN
			
			
			34
			
			
			N/A
			
			
			-13
			
			
			N/A
			
			
			3.88B
			
			
			-2%
			
			
			31%
			
			
			38%
			
		


			Frasers L&amp;I Tr
			
			
			BUOU
			
			
			36
			
			
			34
			
			
			9
			
			
			27.3
			
			
			2.87B
			
			
			2%
			
			
			28%
			
			
			60%
			
		


			Keppel REIT
			
			
			K71U
			
			
			40
			
			
			35
			
			
			7
			
			
			42.0
			
			
			4.23B
			
			
			2%
			
			
			14%
			
			
			41%
			
		


			Manulife REIT USD
			
			
			BTOU
			
			
			41
			
			
			50
			
			
			9
			
			
			3.9
			
			
			2.29B
			
			
			9%
			
			
			40%
			
			
			64%
			
		


			CDL HTrust
			
			
			J85
			
			
			42
			
			
			48
			
			
			-11
			
			
			-12.5
			
			
			1.82B
			
			
			-4%
			
			
			17%
			
			
			33%
			
		


			CapitaR China Tr
			
			
			AU8U
			
			
			43
			
			
			51
			
			
			-2
			
			
			-3.2
			
			
			1.84B
			
			
			-6%
			
			
			28%
			
			
			25%
			
		


			Frasers Cpt Tr
			
			
			J69U
			
			
			45
			
			
			42
			
			
			6
			
			
			12.3
			
			
			3.20B
			
			
			3%
			
			
			36%
			
			
			65%
			
		


			Cromwell REIT EUR
			
			
			CNNU
			
			
			49
			
			
			57
			
			
			1
			
			
			-23.7
			
			
			2.14B
			
			
			3%
			
			
			28%
			
			
			N/A
			
		


			ESR-REIT
			
			
			J91U
			
			
			50
			
			
			49
			
			
			10
			
			
			13.0
			
			
			1.92B
			
			
			5%
			
			
			12%
			
			
			24%
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			2%
			
			
			28%
			
			
			51%
			
		


			Median
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			2%
			
			
			28%
			
			
			46%
			
		

Source: Thomson Reuters, Bloomberg (Data as of 7 February 2020)

The 20 strongest stocks of the 50 most traded stocks ranked by turnover in the 2020 year through to 7 February are tabled below. The five strongest performing stocks over the five weeks were Medtecs International Corporation, Keppel DC REIT, Mapletree Logistical Trust, Ascendas REIT and Manulife US REIT.

 




			20 Strongest Stocks Amongst 50 Most Traded Stocks in 2020 YTD
			
			
			Stock Code
			
			
			Turnover Rank in 2020 YTD
			
			
			Approx Turnover Rank in 2019
			
			
			Net Insti Flow in 2020 YTD (S$M)
			
			
			Net Insti Flow in 2019 (S$M)
			
			
			MKT Cap (S$)
			
			
			2020 YTD Total Return
			
			
			2019 Total Return
			
			
			3 Yr Total Return
			
		


			Medtecs Intl
			
			
			546
			
			
			31
			
			
			268
			
			
			-12
			
			
			0.1
			
			
			56.59M
			
			
			178%
			
			
			37%
			
			
			119%
			
		


			Keppel DC REIT
			
			
			AJBU
			
			
			32
			
			
			32
			
			
			10
			
			
			3.5
			
			
			3.79B
			
			
			13%
			
			
			66%
			
			
			131%
			
		


			Mapletree Log Tr
			
			
			M44U
			
			
			14
			
			
			18
			
			
			24
			
			
			36.8
			
			
			7.21B
			
			
			10%
			
			
			46%
			
			
			114%
			
		


			Ascendas REIT
			
			
			A17U
			
			
			6
			
			
			5
			
			
			64
			
			
			-28.4
			
			
			11.61B
			
			
			9%
			
			
			24%
			
			
			58%
			
		


			Manulife REIT USD
			
			
			BTOU
			
			
			41
			
			
			50
			
			
			9
			
			
			3.9
			
			
			2.29B
			
			
			9%
			
			
			40%
			
			
			64%
			
		


			Mapletree Ind Tr
			
			
			ME8U
			
			
			24
			
			
			26
			
			
			6
			
			
			17.9
			
			
			6.12B
			
			
			8%
			
			
			44%
			
			
			100%
			
		


			JMH USD
			
			
			J36
			
			
			20
			
			
			14
			
			
			6
			
			
			-13.3
			
			
			59.57B
			
			
			8%
			
			
			-19%
			
			
			-2%
			
		


			NetLink NBN Tr
			
			
			CJLU
			
			
			37
			
			
			38
			
			
			9
			
			
			-24.1
			
			
			3.94B
			
			
			7%
			
			
			31%
			
			
			N/A
			
		


			JSH USD
			
			
			J37
			
			
			28
			
			
			25
			
			
			4
			
			
			0.8
			
			
			48.20B
			
			
			5%
			
			
			-17%
			
			
			-17%
			
		


			ESR-REIT
			
			
			J91U
			
			
			50
			
			
			49
			
			
			10
			
			
			13.0
			
			
			1.92B
			
			
			5%
			
			
			12%
			
			
			24%
			
		


			CapitaCom Trust
			
			
			C61U
			
			
			10
			
			
			10
			
			
			7
			
			
			34.0
			
			
			7.87B
			
			
			4%
			
			
			19%
			
			
			56%
			
		


			ST Engineering
			
			
			S63
			
			
			17
			
			
			20
			
			
			40
			
			
			146.0
			
			
			12.80B
			
			
			4%
			
			
			17%
			
			
			38%
			
		


			Mapletree NAC Tr
			
			
			RW0U
			
			
			25
			
			
			24
			
			
			7
			
			
			-38.7
			
			
			3.80B
			
			
			4%
			
			
			8%
			
			
			51%
			
		


			Frasers Cpt Tr
			
			
			J69U
			
			
			45
			
			
			42
			
			
			6
			
			
			12.3
			
			
			3.20B
			
			
			3%
			
			
			36%
			
			
			65%
			
		


			Cromwell REIT EUR
			
			
			CNNU
			
			
			49
			
			
			57
			
			
			1
			
			
			-23.7
			
			
			2.14B
			
			
			3%
			
			
			28%
			
			
			N/A
			
		


			Frasers L&amp;I Tr
			
			
			BUOU
			
			
			36
			
			
			34
			
			
			9
			
			
			27.3
			
			
			2.87B
			
			
			2%
			
			
			28%
			
			
			60%
			
		


			Keppel REIT
			
			
			K71U
			
			
			40
			
			
			35
			
			
			7
			
			
			42.0
			
			
			4.23B
			
			
			2%
			
			
			14%
			
			
			41%
			
		


			Venture
			
			
			V03
			
			
			22
			
			
			16
			
			
			33
			
			
			-4.8
			
			
			4.74B
			
			
			1%
			
			
			21%
			
			
			81%
			
		


			CapitaMall Trust
			
			
			C38U
			
			
			8
			
			
			8
			
			
			-1
			
			
			-45.8
			
			
			9.04B
			
			
			1%
			
			
			13%
			
			
			46%
			
		


			CityDev
			
			
			C09
			
			
			13
			
			
			22
			
			
			9
			
			
			123.9
			
			
			10.01B
			
			
			1%
			
			
			38%
			
			
			22%
			
		

 Source: Thomson Reuters, Bloomberg (Data as of 7 February 2020)



Capitaland Integrated Commercial Trust (CICT SP)

Real Estate Stocks Led Most Traded Stocks Over Past 5 Weeks