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

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Recent easing of COVID-19 measures may potentially be an inflection point for the domestic F&amp;B sector. According to Singstat, F&amp;B sales (seasonally-adjusted) in January ’22 declined 3.5% m-o-m but +9.5% y-o-y 
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Local F&amp;B sector represents 1.1% of Singapore’s GDP and employs 5.5% of total workforce. Pandemic has led to a pivot in their businesses with supportive government policies.  
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	<li>The five most actively F&amp;B plays with domestic exposure are Kimly, Jumbo Group, Japan Foods, Pavillon and RE&amp;S Holdings</li>
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Easing of COVID-19 Measures a Potential Inflection Point? 
Recent announcement of easing of COVID-19 measures in Singapore is potentially a positive inflection point for the local food &amp; beverage (F&amp;B) sector. With effect from 29 March 2022, some of the more notable easing measures include: doubling of group sizes for social gatherings/dinings from five to 10 people, resumption of larger social gatherings, full reopening of borders to fully vaccinated travelers (w.e.f. 1 Apr) lifting of restriction on sale and consumption of alcohol after 10.30pm, resumption of live performances at all venues. 
According to SingStat, total F&amp;B services sales in January ’22 declined 3.5% m-o-m (higher base in December) on a seasonally-adjusted basis, largely contributed by Restaurants (-5.4%) and Café/Food Courts/Others (-3.2%). On a y-o-y basis however, January y-o-y sales was at +9.5% improving from the +7.3% seen in December 2021.
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 <div class='content-caption'>Singapore F&B Services index</div>
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Source: Singstat

Note: Food &amp; beverage services refers to the sales of prepared food and drinks for in-premises consumption or on a take-away basis. All eating places are included except hawker stalls Local Food Services Industry Pivots in a Post Pandemic World 
Singapore’s food services industry represents around 1.1% of Singapore’s GDP and employs about 5.5% of its workforce (according to a Straits Times article). Since the start of the pandemic, many eateries and restaurants have pivoted, accelerating digital adoption to cater to online and delivery sales. 
To help businesses transform and overcome challenges, the Ministry of Trade and Industry (MTI) has also launched a number of supportive initiatives. In March 2022, a S$70 million Food Services and Retail Business Revitalisation Package was launched to support such businesses. Top Five Active Traded SGX F&amp;B Stocks with Singapore Exposure 
The top 5 active traded SGX F&amp;B stocks with Singapore exposure are:

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Kimly (1D0): One of the leading traditional coffee shop operators in Singapore</li>
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Jumbo Group (42R): One of Singapore’s leading multi-dining concept F&amp;B establishments</li>
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Japan Foods (5OI): Amongst the leading F&amp;B groups in Singapore specialising in quality and authentic Japanese cuisine</li>
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Pavillon (596): Operator of Thai Village chain of restaurants</li>
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RE&amp;S Holdings (1G1): Leading concept owner and operator of F&amp;B outlets serving authentic Japanese cuisine</li>
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Recent easing of COVID-19 measures may potentially be an inflection point for the domestic F&amp;B sector. According to Singstat, F&amp;B sales (seasonally-adjusted) in January ’22 declined 3.5% m-o-m but +9.5% y-o-y 
	 
	
Local F&amp;B sector represents 1.1% of Singapore’s GDP and employs 5.5% of total workforce. Pandemic has led to a pivot in their businesses with supportive government policies.  

	The five most actively F&amp;B plays with domestic exposure are Kimly, Jumbo Group, Japan Foods, Pavillon and RE&amp;S Holdings

 

Easing of COVID-19 Measures a Potential Inflection Point?  
Recent announcement of easing of COVID-19 measures in Singapore is potentially a positive inflection point for the local food &amp; beverage (F&amp;B) sector. With effect from 29 March 2022, some of the more notable easing measures include: doubling of group sizes for social gatherings/dinings from five to 10 people, resumption of larger social gatherings, full reopening of borders to fully vaccinated travelers (w.e.f. 1 Apr) lifting of restriction on sale and consumption of alcohol after 10.30pm, resumption of live performances at all venues.  
According to SingStat, total F&amp;B services sales in January ’22 declined 3.5% m-o-m (higher base in December) on a seasonally-adjusted basis, largely contributed by Restaurants (-5.4%) and Café/Food Courts/Others (-3.2%). On a y-o-y basis however, January y-o-y sales was at +9.5% improving from the +7.3% seen in December 2021.



      
    
    Singapore F&B Services index


Source: Singstat

Note: Food &amp; beverage services refers to the sales of prepared food and drinks for in-premises consumption or on a take-away basis. All eating places are included except hawker stalls   Local Food Services Industry Pivots in a Post Pandemic World  
Singapore’s food services industry represents around 1.1% of Singapore’s GDP and employs about 5.5% of its workforce (according to a Straits Times article). Since the start of the pandemic, many eateries and restaurants have pivoted, accelerating digital adoption to cater to online and delivery sales.  
To help businesses transform and overcome challenges, the Ministry of Trade and Industry (MTI) has also launched a number of supportive initiatives. In March 2022, a S$70 million Food Services and Retail Business Revitalisation Package was launched to support such businesses.  Top Five Active Traded SGX F&amp;B Stocks with Singapore Exposure  
The top 5 active traded SGX F&amp;B stocks with Singapore exposure are:



Kimly (1D0): One of the leading traditional coffee shop operators in Singapore
	
Jumbo Group (42R): One of Singapore’s leading multi-dining concept F&amp;B establishments
	
Japan Foods (5OI): Amongst the leading F&amp;B groups in Singapore specialising in quality and authentic Japanese cuisine
	
Pavillon (596): Operator of Thai Village chain of restaurants
	
RE&amp;S Holdings (1G1): Leading concept owner and operator of F&amp;B outlets serving authentic Japanese cuisine




An Inflection Point for Singapore F&B Sector?

Singapore

Pavillon Holdings Ltd. operates a chain of seafood restaurants specializing in Asian delicacies. The Company has restaurants located in Singapore, China, and Indonesia.

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Pavillon Holdings (PAV SP)

An Inflection Point for Singapore F&B Sector?

Recent easing of COVID-19 measures may potentially be an inflection point for the domestic F&B sector. According to Singstat, F&B sales...

Singapore Exchange Ltd (SGX)

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