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>The STI’s 2.4% total return in 3Q22 was mainly driven by the trio of DBS, OCBC and UOB, which averaged a 7.3% total return over the quarter.</li><li>During the quarter, the trio saw S$969 million of combined net fund inflows with the net fund inflows to DBS and OCBC more than offsetting the net fund outflows booked by UOB.</li><li>Focusing on Singapore’s 200 most traded stocks for the first nine months of 2022, that are currently listed for trading, the Sectors that saw the next highest net fund inflows in 3Q22 were Telecommunications and Consumer Cyclicals.</li></ul>

The STI’s 2.4% total return in 3Q22 was mainly driven by the trio of DBS, OCBC and UOB, which averaged a 7.3% total return over the quarter.During the quarter, the trio saw S$969 million of combined net fund inflows with the net fund inflows to DBS and OCBC more than offsetting the net fund outflows booked by UOB.Focusing on Singapore’s 200 most traded stocks for the first nine months of 2022, that are currently listed for trading, the Sectors that saw the next highest net fund inflows in 3Q22 were Telecommunications and Consumer Cyclicals.

Singapore Net Fund Inflows in 3Q22 Led by Banks

<ul><li>With one week remaining for 3Q22, the STI has booked a 5.5% total return for the quarter, outpacing the FTSE Developed Index’s 1.3% decline.</li><li>The STI’s five largest weights – DBS, OCBC, UOB, Singtel and Jardine Matheson make up 56% of the STI weights, and have averaged 9% QTD total returns, bringing their average YTD total return to 10%.</li><li>In Singapore, the STI has generated a 7% total return in the 2022 YTD, with the five biggest weights of the Index averaging 10% total returns.</li></ul>

With one week remaining for 3Q22, the STI has booked a 5.5% total return for the quarter, outpacing the FTSE Developed Index’s 1.3% decline.The STI’s five largest weights – DBS, OCBC, UOB, Singtel and Jardine Matheson make up 56% of the STI weights, and have averaged 9% QTD total returns, bringing their average YTD total return to 10%.In Singapore, the STI has generated a 7% total return in the 2022 YTD, with the five biggest weights of the Index averaging 10% total returns.

Five STI Heavyweights Book 9% QTD Total Return

<ul><li>FOR the 5 trading sessions that spanned Sep 9 to Sep 15, the Straits Times Index (STI) gained 1 per cent, with the FTSE China A50 Index gaining 0.9 per cent, the Hang Seng Index gaining 0.4 per cent and the FTSE Bursa Malaysia KLCI declining 6 per cent.</li><li>Overall, institutions were net buyers of Singapore stocks for the 5 sessions ending Sep 15, with S$220 million of net inflows.</li><li>OCBC has bought back 0.32 per cent of its issued shares (excluding treasury shares) on the current mandate, as of Sep 15.</li></ul>

FOR the 5 trading sessions that spanned Sep 9 to Sep 15, the Straits Times Index (STI) gained 1 per cent, with the FTSE China A50 Index gaining 0.9 per cent, the Hang Seng Index gaining 0.4 per cent and the FTSE Bursa Malaysia KLCI declining 6 per cent.Overall, institutions were net buyers of Singapore stocks for the 5 sessions ending Sep 15, with S$220 million of net inflows.OCBC has bought back 0.32 per cent of its issued shares (excluding treasury shares) on the current mandate, as of Sep 15.

Ong Sek Chong & Sons adds to Lian Beng stake

<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.

<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

Oversea-Chinese Banking Corporation Limited offers a comprehensive range of financial services.  The Company's services include deposit-taking, corporate, enterprise and personal lending, international trade financing, investment banking, private banking, treasury, stockbroking, insurance, credit cards, cash management, asset management and other financial and related services.

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OCBC (OCBC SP)

Singapore Net Fund Inflows in 3Q22 Led by Banks

The STI’s 2.4% total return in 3Q22 was mainly driven by the trio of DBS, OCBC and UOB, which averaged a 7.3% total return over the...

Singapore Exchange Ltd (SGX)

Five STI Heavyweights Book 9% QTD Total Return

With one week remaining for 3Q22, the STI has booked a 5.5% total return for the quarter, outpacing the FTSE Developed Index’s 1.3% decline. The...

Singapore Exchange Ltd (SGX)

Ong Sek Chong & Sons adds to Lian Beng stake

FOR the 5 trading sessions that spanned Sep 9 to Sep 15, the Straits Times Index (STI) gained 1 per cent, with the FTSE China A50 Index gaining...

Singapore Exchange Ltd (SGX)

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)

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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