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

<ul><li>Effective the 19 Sep market open, Emperador will join the STI with an indicative weight of 0.4%, taking the number of stocks representing the Consumer Non-cyclical Sector to four, with a combined indicative Sector weightage of 6%, based on Index weights as of 30 June.</li><li>The five stocks of the STI reserve list will comprise Olam Group, Suntec REIT, Keppel REIT, Frasers Centrepoint Trust, and Ascott Residence Trust.</li><li>Following the recent semi-annual rebalance https://research.ftserussell.com/Analytics/FactSheets/Home/DownloadSingleIssue?openfile=open&issueName=STIRCO&isManual=True, Emperador Inc. will join the STI effective the Monday 19 Sep, replacing ComfortDelGro Corporation.</li></ul>

Effective the 19 Sep market open, Emperador will join the STI with an indicative weight of 0.4%, taking the number of stocks representing the Consumer Non-cyclical Sector to four, with a combined indicative Sector weightage of 6%, based on Index weights as of 30 June.The five stocks of the STI reserve list will comprise Olam Group, Suntec REIT, Keppel REIT, Frasers Centrepoint Trust, and Ascott Residence Trust.Following the recent semi-annual rebalance https://research.ftserussell.com/Analytics/FactSheets/Home/DownloadSingleIssue?openfile=open&issueName=STIRCO&isManual=True, Emperador Inc. will join the STI effective the Monday 19 Sep, replacing ComfortDelGro Corporation.

Alpha-Centric ESG Research

Kyle Rudden

<ul>
<li>Singapore recently announced the pricing of its inaugural sovereign green bond issue marking Singapore's momentous entrée into the growing global sovereign green bond market.</li>
<li>Big deal, and big <em>impact</em>. Singapore's S$2.4 billion 50-year green bond ranks among the largest inaugural sovereign issuances and the proceeds are funding impactful "green projects."</li>
<li>Proceeds will fund two Clean Transportation projects (electric rail mass transit) and contribute to an 80% reduction in land transportation-related greenhouse gas emissions by 2050.</li>
</ul>


Singapore recently announced the pricing of its inaugural sovereign green bond issue marking Singapore's momentous entrée into the growing global sovereign green bond market.
Big deal, and big impact. Singapore's S$2.4 billion 50-year green bond ranks among the largest inaugural sovereign issuances and the proceeds are funding impactful "green projects."
Proceeds will fund two Clean Transportation projects (electric rail mass transit) and contribute to an 80% reduction in land transportation-related greenhouse gas emissions by 2050.


Singapore's Inaugural Green Bond: Big Deal, Big Impact

United Hampshire US REIT / Equity Bottom-Up

<ul><li>Inside Insights - Wee Ee Cheong boosts UOB stake For the 5 trading sessions that spanned Aug 19 to Aug 25, the Straits Times Index (STI) declined 0.8 per cent, with the FTSE China A50 Index declining 0.9 per cent, the Hang Seng Index gaining 1.3 per cent and the FTSE Bursa Malaysia KLCI declining 1.1 per cent.</li><li>Between Aug 16 and 22, United Overseas Bank (UOB) deputy chairman and CEO Wee Ee Cheong acquired 100,000 shares at an average price of S$26.86 per share.</li></ul>

Inside Insights - Wee Ee Cheong boosts UOB stake For the 5 trading sessions that spanned Aug 19 to Aug 25, the Straits Times Index (STI) declined 0.8 per cent, with the FTSE China A50 Index declining 0.9 per cent, the Hang Seng Index gaining 1.3 per cent and the FTSE Bursa Malaysia KLCI declining 1.1 per cent.Between Aug 16 and 22, United Overseas Bank (UOB) deputy chairman and CEO Wee Ee Cheong acquired 100,000 shares at an average price of S$26.86 per share.

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<ul>
<li>Allocations in Singapore Financials continue their turnaround. From a low of 0.67% in early 2021, average weights have soared to 1.81%, closing in on the highs of 2%+ in 2018</li>
<li>Clear active rotation, with the percentage of managers exposed to the sector increasing from 45.2% in 2021 to 63.4% today.</li>
<li>Strong ownership growth seen in DBS and UOB, with +10.75% and +6.45% of managers opening positions over the last 6-months.  SGX also saw ownership rise.</li>
</ul>


Allocations in Singapore Financials continue their turnaround. From a low of 0.67% in early 2021, average weights have soared to 1.81%, closing in on the highs of 2%+ in 2018
Clear active rotation, with the percentage of managers exposed to the sector increasing from 45.2% in 2021 to 63.4% today.
Strong ownership growth seen in DBS and UOB, with +10.75% and +6.45% of managers opening positions over the last 6-months.  SGX also saw ownership rise.


<ul><li>Following the broad downtrend that gripped global stocks in 1H22, most benchmarks have posted partial recoveries over the first seven weeks of 2H22.</li><li>However, the uneven global growth outlook has seen China stocks (as gauged by the FTSE China A50 Index) further decline by 10%, following the 6% decline in 1H22.</li><li>Growth, inflation, and the inflationary impact on growth has carried an uneven impact on global economic sectors and by extension sectors and industries in 1H22.</li></ul>

Following the broad downtrend that gripped global stocks in 1H22, most benchmarks have posted partial recoveries over the first seven weeks of 2H22.However, the uneven global growth outlook has seen China stocks (as gauged by the FTSE China A50 Index) further decline by 10%, following the 6% decline in 1H22.Growth, inflation, and the inflationary impact on growth has carried an uneven impact on global economic sectors and by extension sectors and industries in 1H22.

Recent Stockmarket Moves and Challenges Ahead

Singapore

DBS Group Holdings Limited and its subsidiaries provide a variety of financial services.  The Company offers services including mortgage financing, lease and hire purchase financing, nominee and trustee, funds management, corporate advisory and brokerage .  DBS Group also acts as the primary dealer in Singapore government securities.

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DBS (DBS SP)

Emperador to Join STI on 19 Sep

Effective the 19 Sep market open, Emperador will join the STI with an indicative weight of 0.4%, taking the number of stocks representing the...

Singapore Exchange Ltd (SGX)

Singapore's Inaugural Green Bond: Big Deal, Big Impact

Singapore’s inaugural green bond is a big deal, in size and impact. It is one of the world’s largest debut issues and funds Clean Transportation...

Kyle Rudden

Wee Ee Cheong boosts UOB stake

Inside Insights - Wee Ee Cheong boosts UOB stake For the 5 trading sessions that spanned Aug 19 to Aug 25, the Straits Times Index (STI) declined...

Singapore Exchange Ltd (SGX)

Singapore Financials: Surging Higher

Asia Ex-Japan funds ramp up Singapore Financial allocations . A key beneficiary in this year’s sector rotations, new positions have been added...

Steven Holden

Recent Stockmarket Moves and Challenges Ahead

Following the broad downtrend that gripped global stocks in 1H22, most benchmarks have posted partial recoveries over the first seven weeks of...

Singapore Exchange Ltd (SGX)

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