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>
The AUM of the two ETFs that track the STI took 17 years to reach the S$1 billion milestone in June 2019, and just 17 months to further reach the S$2 billion threshold. The two STI ETFs have seen approximately S$900 million of net inflows/net unit creations in the 2020 year to 24 November.  
	 </li>
	<li>Within the STI - DBS, UOB, OCBC, SATS &amp; Ascendas REIT have seen the highest net institutional inflows in the MTD, with their average 23% gains driven by S$1.4 billion of net institutional inflows. Proportionate to market cap, the top inflow stocks are similar, but include ComfortDelGro which has rallied 25% in the MTD. </li>
	<li>
	Global rotation from Tech and Healthcare Sectors with momentum in the first 10 months of 2020, to Cyclical Sectors seen to be trading at value at the end of October, has seen measured moves in global indices, with the STI doubling the gains of the Tech &amp; Healthcare Sector heavy S&amp;P 500 Index in the MTD. 
	 
	</li>
</ul>
Surge in STI ETF Investing as Traders Rotated into Heavyweight STI Sectors 
Combined, the current 30 stocks that make up the Straits Times Index (“STI”) have recorded more than S$1 billion in average daily turnover in the 2020 year through to 25 November. The moves of November, currently place this month to be see the stongest STI gains since May 2009 (click <a href="https://ebm.cheetahmail.com/c/tag/hBfu3oZB86%24MfB93ai1AAApi2NR/doc.html?t_params=k5wKqGB8J44s3q6h5XgUCMwV166qId-sUmYg72Kli5rTl8-5AyJ21vtaqsVup8UBwde4bzG3DeX%245t8GHGjyeaU">here</a> for more). The big moves of the Index have also seen a surge in particpation by long-term passive investors through the two Exchange Traded Funds (“ETFs”) that track the STI. 
The SPDR® STI ETF was introduced in 2002 and is managed by State Street Global Advisors, while the Nikko AM STI ETF, launched in 2009, is managed by Nikko Asset Management. The Assets under Management (“AUM”) of the two STI ETFs took 17 years to reach the S$1 billion milestone in June 2019, and just 17 months to reach the S$2 billion threshold. The SPDR® STI ETF crossed the S$1 billion threshold for the first time in its history back in June 2020. The two STI ETFs have seen approximately S$900 million of net inflows or net unit creations in the 2020 year to 24 November. Secondary market trading turnover of the two ETFs has also surpassed S$1.6 billion this year, a level that is 268% higher than the full year trading turnover.
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-11/Capture_4.PNG' alt='Combined STI ETF AUM' />
 </figure>
 <div class='content-caption'>Combined STI ETF AUM</div>
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Recent STI Gains Attributed to Rotation to Banks &amp; Real Estate Developers 
The STI has rallied 18.4% in the November month-to-date, bringing its 2020 year to 25 November decline in total return to 7.4%. The gains were led by the Banking and Real Estate Sectors, which had been caught in staunch global sector trends for the first 10 months of 2020. The rally in the bank stocks has seen the average Price-to-Book ratio (P/B) of DBS Group Holdings (“DBS”), Oversea Chinese Banking Corp (“OCBC”) and United Overseas Bank (“UOB”) edge higher to 1.04x, up from 0.86x at the end of October. Similarly, the median P/B of the top quartile of global banks by market value has increased from 0.85x to 0.97x. As of the end of October, DBS, OCBC and UOB made up 38.7% of the STI weightage. 
Within the STI, the five stocks DBS, UOB, OCBC, SATS and Ascendas REIT have seen the highest net institutional inflows so far this month, with their average 23% gains driven by S$1.4 billion of net institutional inflows. Proportionate to market value, the top net institutional inflow stocks for the month-to-date are similar, but include ComfortDelGro in the top five. The perfomances of the STI stocks and comparative net institutional flows are tabled below. Combined, the 30 STI stocks have seen S$1.5 billion of net institional inflow in the month of November through to 24 November.

<table class="table table-striped"><tbody>
<tr>
<td>
			STI Stock
			</td>
			<td>
			Code
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			Average Daily Turnover S$M
			</td>
			<td>
			CYTD Total Return
			</td>
			<td>
			CYTD Net Insti. Flow (S$M)
			</td>
			<td>
			MTD Total Return
			</td>
			<td>
			MTD Net Insti. Flow (S$M)
			</td>
		</tr>
<tr>
<td>
			DBS
			</td>
			<td>
			D05
			</td>
			<td>
			65,261
			</td>
			<td>
			137
			</td>
			<td>
			4%
			</td>
			<td>
			-672
			</td>
			<td>
			27%
			</td>
			<td>
			695
			</td>
		</tr>
<tr>
<td>
			JMH USD
			</td>
			<td>
			J36
			</td>
			<td>
			53,647
			</td>
			<td>
			23
			</td>
			<td>
			1%
			</td>
			<td>
			-19
			</td>
			<td>
			20%
			</td>
			<td>
			13
			</td>
		</tr>
<tr>
<td>
			OCBC Bank
			</td>
			<td>
			O39
			</td>
			<td>
			45,313
			</td>
			<td>
			68
			</td>
			<td>
			-3%
			</td>
			<td>
			-685
			</td>
			<td>
			20%
			</td>
			<td>
			263
			</td>
		</tr>
<tr>
<td>
			Singtel
			</td>
			<td>
			Z74
			</td>
			<td>
			40,496
			</td>
			<td>
			83
			</td>
			<td>
			-25%
			</td>
			<td>
			-983
			</td>
			<td>
			22%
			</td>
			<td>
			-37
			</td>
		</tr>
<tr>
<td>
			UOB
			</td>
			<td>
			U11
			</td>
			<td>
			38,876
			</td>
			<td>
			76
			</td>
			<td>
			-7%
			</td>
			<td>
			-1227
			</td>
			<td>
			22%
			</td>
			<td>
			300
			</td>
		</tr>
<tr>
<td>
			JSH USD
			</td>
			<td>
			J37
			</td>
			<td>
			36,887
			</td>
			<td>
			12
			</td>
			<td>
			-18%
			</td>
			<td>
			-34
			</td>
			<td>
			12%
			</td>
			<td>
			2
			</td>
		</tr>
<tr>
<td>
			Wilmar Intl
			</td>
			<td>
			F34
			</td>
			<td>
			27,508
			</td>
			<td>
			41
			</td>
			<td>
			9%
			</td>
			<td>
			-66
			</td>
			<td>
			7%
			</td>
			<td>
			-20
			</td>
		</tr>
<tr>
<td>
			ThaiBev
			</td>
			<td>
			Y92
			</td>
			<td>
			18,083
			</td>
			<td>
			19
			</td>
			<td>
			-17%
			</td>
			<td>
			-143
			</td>
			<td>
			24%
			</td>
			<td>
			77
			</td>
		</tr>
<tr>
<td>
			CapitaLand
			</td>
			<td>
			C31
			</td>
			<td>
			16,254
			</td>
			<td>
			33
			</td>
			<td>
			-13%
			</td>
			<td>
			-166
			</td>
			<td>
			22%
			</td>
			<td>
			28
			</td>
		</tr>
<tr>
<td>
			SIA
			</td>
			<td>
			C6L
			</td>
			<td>
			13,580
			</td>
			<td>
			33
			</td>
			<td>
			-28%
			</td>
			<td>
			-594
			</td>
			<td>
			35%
			</td>
			<td>
			70
			</td>
		</tr>
<tr>
<td>
			HongkongLand USD
			</td>
			<td>
			H78
			</td>
			<td>
			13,514
			</td>
			<td>
			15
			</td>
			<td>
			-21%
			</td>
			<td>
			-123
			</td>
			<td>
			15%
			</td>
			<td>
			6
			</td>
		</tr>
<tr>
<td>
			CapitaLand Int Com Trust
			</td>
			<td>
			C38U
			</td>
			<td>
			12,812
			</td>
			<td>
			41
			</td>
			<td>
			-16%
			</td>
			<td>
			-221
			</td>
			<td>
			14%
			</td>
			<td>
			-19
			</td>
		</tr>
<tr>
<td>
			ST Engineering
			</td>
			<td>
			S63
			</td>
			<td>
			12,493
			</td>
			<td>
			21
			</td>
			<td>
			6%
			</td>
			<td>
			77
			</td>
			<td>
			15%
			</td>
			<td>
			-10
			</td>
		</tr>
<tr>
<td>
			Ascendas REIT
			</td>
			<td>
			A17U
			</td>
			<td>
			12,096
			</td>
			<td>
			49
			</td>
			<td>
			7%
			</td>
			<td>
			415
			</td>
			<td>
			7%
			</td>
			<td>
			79
			</td>
		</tr>
<tr>
<td>
			Genting Sing
			</td>
			<td>
			G13
			</td>
			<td>
			10,134
			</td>
			<td>
			24
			</td>
			<td>
			-6%
			</td>
			<td>
			91
			</td>
			<td>
			30%
			</td>
			<td>
			11
			</td>
		</tr>
<tr>
<td>
			SGX
			</td>
			<td>
			S68
			</td>
			<td>
			9,855
			</td>
			<td>
			37
			</td>
			<td>
			7%
			</td>
			<td>
			151
			</td>
			<td>
			6%
			</td>
			<td>
			-12
			</td>
		</tr>
<tr>
<td>
			Keppel Corp
			</td>
			<td>
			BN4
			</td>
			<td>
			9,524
			</td>
			<td>
			25
			</td>
			<td>
			-21%
			</td>
			<td>
			-99
			</td>
			<td>
			19%
			</td>
			<td>
			25
			</td>
		</tr>
<tr>
<td>
			Jardine C&amp;C
			</td>
			<td>
			C07
			</td>
			<td>
			8,470
			</td>
			<td>
			14
			</td>
			<td>
			-25%
			</td>
			<td>
			-124
			</td>
			<td>
			21%
			</td>
			<td>
			19
			</td>
		</tr>
<tr>
<td>
			Mapletree Log Tr
			</td>
			<td>
			M44U
			</td>
			<td>
			8,136
			</td>
			<td>
			35
			</td>
			<td>
			18%
			</td>
			<td>
			64
			</td>
			<td>
			1%
			</td>
			<td>
			-46
			</td>
		</tr>
<tr>
<td>
			DairyFarm USD
			</td>
			<td>
			D01
			</td>
			<td>
			7,760
			</td>
			<td>
			7
			</td>
			<td>
			-22%
			</td>
			<td>
			-61
			</td>
			<td>
			11%
			</td>
			<td>
			-1
			</td>
		</tr>
<tr>
<td>
			CityDev
			</td>
			<td>
			C09
			</td>
			<td>
			7,137
			</td>
			<td>
			22
			</td>
			<td>
			-27%
			</td>
			<td>
			-233
			</td>
			<td>
			24%
			</td>
			<td>
			12
			</td>
		</tr>
<tr>
<td>
			Mapletree Ind Tr
			</td>
			<td>
			ME8U
			</td>
			<td>
			6,958
			</td>
			<td>
			25
			</td>
			<td>
			19%
			</td>
			<td>
			24
			</td>
			<td>
			-2%
			</td>
			<td>
			-6
			</td>
		</tr>
<tr>
<td>
			Mapletree Com Tr
			</td>
			<td>
			N2IU
			</td>
			<td>
			6,862
			</td>
			<td>
			26
			</td>
			<td>
			-10%
			</td>
			<td>
			-40
			</td>
			<td>
			20%
			</td>
			<td>
			31
			</td>
		</tr>
<tr>
<td>
			UOL
			</td>
			<td>
			U14
			</td>
			<td>
			6,413
			</td>
			<td>
			11
			</td>
			<td>
			-6%
			</td>
			<td>
			29
			</td>
			<td>
			22%
			</td>
			<td>
			19
			</td>
		</tr>
<tr>
<td>
			Venture
			</td>
			<td>
			V03
			</td>
			<td>
			5,569
			</td>
			<td>
			24
			</td>
			<td>
			24%
			</td>
			<td>
			149
			</td>
			<td>
			0%
			</td>
			<td>
			-78
			</td>
		</tr>
<tr>
<td>
			SATS
			</td>
			<td>
			S58
			</td>
			<td>
			4,703
			</td>
			<td>
			21
			</td>
			<td>
			-17%
			</td>
			<td>
			-122
			</td>
			<td>
			41%
			</td>
			<td>
			101
			</td>
		</tr>
<tr>
<td>
			Keppel DC REIT
			</td>
			<td>
			AJBU
			</td>
			<td>
			4,638
			</td>
			<td>
			18
			</td>
			<td>
			40%
			</td>
			<td>
			16
			</td>
			<td>
			-2%
			</td>
			<td>
			-33
			</td>
		</tr>
<tr>
<td>
			ComfortDelGro
			</td>
			<td>
			C52
			</td>
			<td>
			3,662
			</td>
			<td>
			28
			</td>
			<td>
			-26%
			</td>
			<td>
			-317
			</td>
			<td>
			25%
			</td>
			<td>
			41
			</td>
		</tr>
<tr>
<td>
			YZJ Shipbldg SGD
			</td>
			<td>
			BS6
			</td>
			<td>
			3,625
			</td>
			<td>
			23
			</td>
			<td>
			-13%
			</td>
			<td>
			-89
			</td>
			<td>
			2%
			</td>
			<td>
			-33
			</td>
		</tr>
<tr>
<td>
			Sembcorp Ind
			</td>
			<td>
			U96
			</td>
			<td>
			3,209
			</td>
			<td>
			14
			</td>
			<td>
			59%
			</td>
			<td>
			-148
			</td>
			<td>
			14%
			</td>
			<td>
			2
			</td>
		</tr>
</tbody></table>
 Souce: SGX, Bloomberg, Refinitiv (Data as of 25 November 2020)

 

Global rotation from the Technology and Healthcare Sectors which had momentum in the first 10 months of 2020, to Cyclical Sectors seen to be trading at value at the end of October, has seen measured moves in global indices.  Hence the STI has doubled the gains of the Technology &amp; Healthcare Sector heavy S&amp;P 500 Index since the end of October. 
</body></html>





The AUM of the two ETFs that track the STI took 17 years to reach the S$1 billion milestone in June 2019, and just 17 months to further reach the S$2 billion threshold. The two STI ETFs have seen approximately S$900 million of net inflows/net unit creations in the 2020 year to 24 November.   
	 
	Within the STI - DBS, UOB, OCBC, SATS &amp; Ascendas REIT have seen the highest net institutional inflows in the MTD, with their average 23% gains driven by S$1.4 billion of net institutional inflows. Proportionate to market cap, the top inflow stocks are similar, but include ComfortDelGro which has rallied 25% in the MTD. 
	
	Global rotation from Tech and Healthcare Sectors with momentum in the first 10 months of 2020, to Cyclical Sectors seen to be trading at value at the end of October, has seen measured moves in global indices, with the STI doubling the gains of the Tech &amp; Healthcare Sector heavy S&amp;P 500 Index in the MTD. 
	 
	

Surge in STI ETF Investing as Traders Rotated into Heavyweight STI Sectors  
Combined, the current 30 stocks that make up the Straits Times Index (“STI”) have recorded more than S$1 billion in average daily turnover in the 2020 year through to 25 November. The moves of November, currently place this month to be see the stongest STI gains since May 2009 (click here for more).  The big moves of the Index have also seen a surge in particpation by long-term passive investors through the two Exchange Traded Funds (“ETFs”) that track the STI.  
The SPDR® STI ETF was introduced in 2002 and is managed by State Street Global Advisors, while the Nikko AM STI ETF, launched in 2009, is managed by Nikko Asset Management. The Assets under Management (“AUM”) of the two STI ETFs took 17 years to reach the S$1 billion milestone in June 2019, and just 17 months to reach the S$2 billion threshold. The SPDR® STI ETF crossed the S$1 billion threshold for the first time in its history back in June 2020. The two STI ETFs have seen approximately S$900 million of net inflows or net unit creations in the 2020 year to 24 November. Secondary market trading turnover of the two ETFs has also surpassed S$1.6 billion this year, a level that is 268% higher than the full year trading turnover.



      
    
    Combined STI ETF AUM


Recent STI Gains Attributed to Rotation to Banks &amp; Real Estate Developers  
The STI has rallied 18.4% in the November month-to-date, bringing its 2020 year to 25 November decline in total return to 7.4%. The gains were led by the Banking and Real Estate Sectors, which had been caught in staunch global sector trends for the first 10 months of 2020. The rally in the bank stocks has seen the average Price-to-Book ratio (P/B) of DBS Group Holdings (“DBS”), Oversea Chinese Banking Corp (“OCBC”) and United Overseas Bank (“UOB”) edge higher to 1.04x, up from 0.86x at the end of October. Similarly, the median P/B of the top quartile of global banks by market value has increased from 0.85x to 0.97x. As of the end of October, DBS, OCBC and UOB made up 38.7% of the STI weightage.  
Within the STI, the five stocks DBS, UOB, OCBC, SATS and Ascendas REIT have seen the highest net institutional inflows so far this month, with their average 23% gains driven by S$1.4 billion of net institutional inflows. Proportionate to market value, the top net institutional inflow stocks for the month-to-date are similar, but include ComfortDelGro in the top five. The perfomances of the STI stocks and comparative net institutional flows are tabled below. Combined, the 30 STI stocks have seen S$1.5 billion of net institional inflow in the month of November through to 24 November.




			STI Stock
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			Average Daily Turnover S$M
			
			
			CYTD Total Return
			
			
			CYTD Net Insti. Flow (S$M)
			
			
			MTD Total Return
			
			
			MTD Net Insti. Flow (S$M)
			
		


			DBS
			
			
			D05
			
			
			65,261
			
			
			137
			
			
			4%
			
			
			-672
			
			
			27%
			
			
			695
			
		


			JMH USD
			
			
			J36
			
			
			53,647
			
			
			23
			
			
			1%
			
			
			-19
			
			
			20%
			
			
			13
			
		


			OCBC Bank
			
			
			O39
			
			
			45,313
			
			
			68
			
			
			-3%
			
			
			-685
			
			
			20%
			
			
			263
			
		


			Singtel
			
			
			Z74
			
			
			40,496
			
			
			83
			
			
			-25%
			
			
			-983
			
			
			22%
			
			
			-37
			
		


			UOB
			
			
			U11
			
			
			38,876
			
			
			76
			
			
			-7%
			
			
			-1227
			
			
			22%
			
			
			300
			
		


			JSH USD
			
			
			J37
			
			
			36,887
			
			
			12
			
			
			-18%
			
			
			-34
			
			
			12%
			
			
			2
			
		


			Wilmar Intl
			
			
			F34
			
			
			27,508
			
			
			41
			
			
			9%
			
			
			-66
			
			
			7%
			
			
			-20
			
		


			ThaiBev
			
			
			Y92
			
			
			18,083
			
			
			19
			
			
			-17%
			
			
			-143
			
			
			24%
			
			
			77
			
		


			CapitaLand
			
			
			C31
			
			
			16,254
			
			
			33
			
			
			-13%
			
			
			-166
			
			
			22%
			
			
			28
			
		


			SIA
			
			
			C6L
			
			
			13,580
			
			
			33
			
			
			-28%
			
			
			-594
			
			
			35%
			
			
			70
			
		


			HongkongLand USD
			
			
			H78
			
			
			13,514
			
			
			15
			
			
			-21%
			
			
			-123
			
			
			15%
			
			
			6
			
		


			CapitaLand Int Com Trust
			
			
			C38U
			
			
			12,812
			
			
			41
			
			
			-16%
			
			
			-221
			
			
			14%
			
			
			-19
			
		


			ST Engineering
			
			
			S63
			
			
			12,493
			
			
			21
			
			
			6%
			
			
			77
			
			
			15%
			
			
			-10
			
		


			Ascendas REIT
			
			
			A17U
			
			
			12,096
			
			
			49
			
			
			7%
			
			
			415
			
			
			7%
			
			
			79
			
		


			Genting Sing
			
			
			G13
			
			
			10,134
			
			
			24
			
			
			-6%
			
			
			91
			
			
			30%
			
			
			11
			
		


			SGX
			
			
			S68
			
			
			9,855
			
			
			37
			
			
			7%
			
			
			151
			
			
			6%
			
			
			-12
			
		


			Keppel Corp
			
			
			BN4
			
			
			9,524
			
			
			25
			
			
			-21%
			
			
			-99
			
			
			19%
			
			
			25
			
		


			Jardine C&amp;C
			
			
			C07
			
			
			8,470
			
			
			14
			
			
			-25%
			
			
			-124
			
			
			21%
			
			
			19
			
		


			Mapletree Log Tr
			
			
			M44U
			
			
			8,136
			
			
			35
			
			
			18%
			
			
			64
			
			
			1%
			
			
			-46
			
		


			DairyFarm USD
			
			
			D01
			
			
			7,760
			
			
			7
			
			
			-22%
			
			
			-61
			
			
			11%
			
			
			-1
			
		


			CityDev
			
			
			C09
			
			
			7,137
			
			
			22
			
			
			-27%
			
			
			-233
			
			
			24%
			
			
			12
			
		


			Mapletree Ind Tr
			
			
			ME8U
			
			
			6,958
			
			
			25
			
			
			19%
			
			
			24
			
			
			-2%
			
			
			-6
			
		


			Mapletree Com Tr
			
			
			N2IU
			
			
			6,862
			
			
			26
			
			
			-10%
			
			
			-40
			
			
			20%
			
			
			31
			
		


			UOL
			
			
			U14
			
			
			6,413
			
			
			11
			
			
			-6%
			
			
			29
			
			
			22%
			
			
			19
			
		


			Venture
			
			
			V03
			
			
			5,569
			
			
			24
			
			
			24%
			
			
			149
			
			
			0%
			
			
			-78
			
		


			SATS
			
			
			S58
			
			
			4,703
			
			
			21
			
			
			-17%
			
			
			-122
			
			
			41%
			
			
			101
			
		


			Keppel DC REIT
			
			
			AJBU
			
			
			4,638
			
			
			18
			
			
			40%
			
			
			16
			
			
			-2%
			
			
			-33
			
		


			ComfortDelGro
			
			
			C52
			
			
			3,662
			
			
			28
			
			
			-26%
			
			
			-317
			
			
			25%
			
			
			41
			
		


			YZJ Shipbldg SGD
			
			
			BS6
			
			
			3,625
			
			
			23
			
			
			-13%
			
			
			-89
			
			
			2%
			
			
			-33
			
		


			Sembcorp Ind
			
			
			U96
			
			
			3,209
			
			
			14
			
			
			59%
			
			
			-148
			
			
			14%
			
			
			2
			
		

 Souce: SGX, Bloomberg, Refinitiv (Data as of 25 November 2020)

 

Global rotation from the Technology and Healthcare Sectors which had momentum in the first 10 months of 2020, to Cyclical Sectors seen to be trading at value at the end of October, has seen measured moves in global indices.  Hence the STI has doubled the gains of the Technology &amp; Healthcare Sector heavy S&amp;P 500 Index since the end of October. 



STI Investing Reaches S$2 Billion Milestone