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>Share buybacks by primary listed companies 24 - 30 March, 2023 DBS, OCBC, Suntec Reit, Yangzijiang Shipbuilding (Holdings) and CapitaLand Integrated Commercial Trust led the net institutional outflow for the five sessions.</li><li>On Mar 27, Acesian Partners executive director & group chief operating officer Wong Kok Chye disposed of 3,040,500 shares at S$0.065 per share.</li></ul>

Share buybacks by primary listed companies 24 - 30 March, 2023 DBS, OCBC, Suntec Reit, Yangzijiang Shipbuilding (Holdings) and CapitaLand Integrated Commercial Trust led the net institutional outflow for the five sessions.On Mar 27, Acesian Partners executive director & group chief operating officer Wong Kok Chye disposed of 3,040,500 shares at S$0.065 per share.






FOR the 5 trading sessions that spanned May 27 to Jun 2, the Straits Times Index (STI) gained 0.6 per cent, with the FTSE China A50 Index adding 3.6 per cent, the Hang Seng Index rising 4.6 per cent and the FTSE Bursa Malaysia KLCI up 0.5 per cent. 

Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$102 million of net outflow.

This followed the S$109 million of net outflow for the preceding 5 sessions.

DBS, Singtel, OCBC, SATS and Yangzijiang Financial Holding led the net institutional outflows for the 5 sessions through to Jun 2.

Share buybacks

There were 21 primary-listed stocks conducting share buybacks over the 5 sessions ended Jun 2, with a total consideration of S$63,996,671, a pace similar to the preceding 2 weeks’.

Keppel Corporation led the consideration tally with 2,904,000 shares bought at an average price of S$6.84 per share.

This brought the total number of shares purchased on its current mandate to 1.02 per cent of its issued shares (excluding treasury shares).

The consideration tally does not include the Silverlake Axis buyback with an off-market purchase on an equal access scheme, booked on May 27, with Silverlake Axis buying 170,230,988 shares off-market for a consideration of S$56,176,226 at S$0.33 per share.

Director and substantial shareholder transactions

The 5 trading sessions saw more than 90 changes to director interests and substantial shareholdings filed for 40 primary-listed stocks.

This included 14 company director acquisitions with 2 disposals filed, while substantial shareholders filed 7 acquisitions and 4 disposals.

Olam Group

Between May 27 and Jun 1, Olam Group executive director, co-founder and group CEO Sunny Verghese acquired 1.5 million shares of the company at an average price of S$1.51 per share.

With a consideration of S$2,269,300, this increased his direct interest in the group from 4.26 per cent to 4.29 per cent. 

Verghese noted in April that in 2021, the group had a banner year despite the continued impacts from Covid-19 and the adverse macro-economic and geopolitical environment, with its strongest reported and operational PATMI since it was founded.

For 2021, the group reported that its PATMI grew by 179 per cent to S$686 million while operational PATMI grew by 42 per cent to S$961 million.

Despite global geopolitical and economic challenges, Olam Group also reported its Q1 2022 Ebitda increased 54 per cent over last year.

In January 2020, Olam announced a transformational reorganisation plan by splitting the group’s diverse portfolio of businesses into 3 independent operating groups, to maximise the long-term value of the group.

Olam is in the process of executing the last step which includes the potential initial public offering and demerger of Olam Food Ingredients.

Far East Group

On May 30, Far East Group executive director and CEO Steven Loh Mun Yew acquired 619,000 shares of the company at 11.5 cents per share.

With a consideration of S$71,185, this increased his total interest in the company from 60.59 per cent to 61.15 per cent.

Loh was appointed to the board of Far East Group in 1990 and has more than 30 years of experience in the heating, ventilation, air-conditioning and refrigeration (HVAC&amp;R) industry.

He is responsible for the formulation and execution of the group’s business strategies, strategic directions and expansion plans, as well as managing its overall business development and financial performance.

In 2021, Far East Group’s revenue improved by S$28.5 million or 52.3 per cent to S$83.1 million, from S$54.6 million in 2020, due to the recovery of all business segments.

This saw the group report an attributable net loss of S$32,000 in 2021, compared to a loss of S$7.2 million in 2020.

Loh noted in March that the commercial and light industrial (refrigeration) segment remained the group’s largest revenue contributor, accounting for 64.7 per cent of its 2021 top line.

He added that the residential and commercial (air-conditioning) segment accounted for 34.0 per cent of total revenue.

The oil, marine and gas (refrigeration and air-conditioning) segment accounted for the remaining 1.3 per cent.

Uni-Asia Group

On Jun 1, Uni-Asia Group executive director and CEO Kenji Fukuyado acquired 70,000 shares of the company for a consideration of S$74,679.

At S$1.07 per share, this took his total interest in Uni-Asia Group from 1.78 per cent to 1.87 per cent.

His preceding acquisition was on Mar 16, with 50,000 shares acquired at S$1.12 per share, and prior to that, he acquired 50,000 shares at 63.3 cents per share back in December 2020.

Fukuyado was appointed Uni-Asia Group CEO in April 2020.

He joined the group in 2001 and has over 30 years of experience in the finance industry, including structured finance such as tax lease, asset finance, loan syndication, corporate finance, and asset management.

In 2021, Uni-Asia Group achieved a net profit of US$18.0 million, the highest profit level in the history of the group. 

Fukuyado also noted in April that in the longer term, the alternative investment company is committed to building up a stronger balance sheet.

As at the end of 2021, Uni-Asia Group had reduced its total borrowings to US$83.8 million.

This was down from US$114.0 million as at the end of 2020, bringing the debt-to-equity ratio to less than 1.

LHT Holdings

On May 26, LHT Holdings managing director, Yap Mui Kee, acquired 45,800 shares of the company for a consideration of S$32,518.

At an average price of 71.0 cents per share, this took her direct interest in the manufacturer of high-quality wooden pallets, boxes, and crates from 14.99 per cent to 15.07 per cent.

Yap has gradually increased her direct interest in LHT Holdings from 14.12 per cent in August 2021.

She has been an executive director of LHT Holdings since January 1988 and is in charge of the sales and marketing functions of the group.

Livingstone Health Holdings

On May 31, Livingstone Health Holdings executive director and CEO, Wilson Tay, acquired 160,100 shares of the company for a consideration of S$22,244.

At an average price of 13.9 cents per share, this increased his total interest in the multidisciplinary healthcare group from 58.43 per cent to 58.47 per cent.

Dr Tay specialises in anaesthesiology with 15 years of clinical experience, and he is responsible for the overall strategic direction and development of the group.

Hafary Holdings

On May 30, Hafary Holdings non-independent non-executive director Eric Low See Ching acquired 75,000 shares of the company at 19.2 cents per share.

With a consideration of S$14,424, this increased his direct interest in the firm from 25.43 per cent to 25.44 per cent.

His preceding acquisition was on Apr 13, with 49,500 shares acquired at 19.5 cents per share.

Low was appointed non-independent non-executive director of Hafary Holdings in January 2014.

Prior to this appointment, he served on the board as executive director and in the company as CEO.

Samudera Shipping Line

On May 27, Samudera Shipping Line executive director and CEO Bani Maulana Mulia acquired 6,700 shares of the company at 74.5 cents per share. He maintains a 0.61 per cent direct interest in Samudera Shipping Line, which is primarily engaged in container shipping transportation of cargo in the Asian region.

Bani took the helm as CEO in September 2020 bringing with him nearly 2 decades of industry experience, having started his career in 2001 as a finance officer in Samudera Indonesia.

In 2021, Samudera Shipping Line delivered a significant jump in net profit after tax to US$130.0 million, compared to US$7.3 million in 2020.

Bani said that the group closed the year with a stronger balance sheet with total assets as at the end of 2021 rising to US$571.5 million, from US$342.8 million at the end of 2020.

Inside Insights is a weekly column on The Business Times, read the original version.



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Singapore

Far East Group Ltd is a provider of refrigeration and air-conditioning systems and products in the HVAC&R industry. The Company is principally engaged in the sourcing and distribution of a wide range of agency products as well as the manufacturing and distribution of heat exchangers and condensing units.

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Singapore Exchange Ltd (SGX)

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