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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<html><body>#whatstrending Ever wondered what is currently driving the local and regional markets? This new report series address some of the most trending questions/topics on the markets for investors. Designed to be educational, expect to get factual information on what is driving sectors and stocks listed on SGX Q: Singapore has announced further easing of border restrictions and stepped down DORSCON level from orange to yellow. How has this impacted the local equities market? 
Following the reopening of Singapore’s borders to all fully vaccinated travellers from 1 April 2022, Civil Aviation Authority of Singapore (CAAS) reported that air passenger traffic in Singapore reached 400,000 or 31% of pre-COVID levels in the week ending 17 April 2022, up from 18% a month ago. Transport Minister S Iswaran on 4 May stated Changi Airport passenger volumes has more than doubled to reach close to 40% of pre-COVID levels in end-April, up from 18% in March and on track to at least 50% of pre-COVID levels by this year. 
SIA also reported significant increase in passenger demand in its March operating results. The Group carried 893k passengers in March, a 792.1% YoY increase. Its group passenger capacity reached 51% of pre-COVID levels, and expects passenger capacity to reach 61% of pre-COVID levels by May 2022. 
We observed outperformance in the year-to-date for a number of reopening proxies including SATS, SIA, ComfortDelGro, Genting Singapore and SIA Engineering. These five stocks average total returns of 10.6%, outperforming STI’s +7.1% total returns YTD (as of 6 May ’22). On a funds flow perspective, these stocks saw a combined net institutional inflows of S$84.8 million in the YTD. 
The easing of measures also had an impact on the F&amp;B industry in Singapore. The top five actively traded SGX F&amp;B stocks with Singapore exposure are: Jumbo, Japan Foods, Pavillion, RE&amp;S and Kimly. Investors’ focus would be on Singapore’s F&amp;B service sales data for April. 
In the REITs Sector, SGX lists four stapled trusts and one REIT with significant exposure to Singapore hotels who may potentially benefit from reopening borders  - Ascott, CDL HT, Far East HT, Frasers HT, and OUE CREIT. These five trusts generated average total returns of 16.9% YTD (as of 6 May ’22). S-REITs with exposure to Singapore office assets as employees head back to office - Keppel REIT, CICT, Suntec REIT, MCT, and OUE CREIT.</body></html>

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Q: Rate hikes to combat inflation continues to be a focus on investors globally. How is this impacting the markets? Which are the sectors which may see direct impact? 
The 16 March FOMC rate hike was in-line with market’s expectations. At the recent May FOMC, the Fed raised rates by 50bps, with a 75bps hike at the next meeting ruled out for now. Quantitative tightening will begin, with the Fed allowing up to US$47.5 billion/month in combined US treasuries and mortgage-backed securities to run off the balance sheet, increasing to US$95 billion after 3 months 
Rates sensitive sectors such as Financials and REITs typically come into investors’ minds during rate hike/cut cycles.

<ul>
<li>Notably, Singapore Banks – DBS (D05), OCBC (O39), and UOB (U11) has seen an average 7.2% gains since the start of heightened volatility in the markets (8 March), outperforming global banks and the STI. In the same period, the FTSE ST All-Share Index also saw total returns of +5.7%. 
	 </li>
	<li>REITs depend on borrowings/debt to help finance their asset purchases. Higher rates may impact their borrowing costs and dividend distributions. As a reminder, most of the S-REITs have gearing ratios (i.e. total debt/percentage of total assets) of c. 37%, below the regulatory limit of 50%. Further, S-REITs have, on average, also pegged more than 70% of their debt at fixed rates. Notably in this current rate hike environment, the sector (FTSE ST REIT Index) saw total returns of +6.4% from the year-low seen in late January.</li>
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 <div class='content-caption'>SREIT historical </div>


#whatstrending  Ever wondered what is currently driving the local and regional markets? This new report series address some of the most trending questions/topics on the markets for investors. Designed to be educational, expect to get factual information on what is driving sectors and stocks listed on SGX  Q: Singapore has announced further easing of border restrictions and stepped down DORSCON level from orange to yellow. How has this impacted the local equities market?  
Following the reopening of Singapore’s borders to all fully vaccinated travellers from 1 April 2022, Civil Aviation Authority of Singapore (CAAS) reported that air passenger traffic in Singapore reached 400,000 or 31% of pre-COVID levels in the week ending 17 April 2022, up from 18% a month ago. Transport Minister S Iswaran on 4 May stated Changi Airport passenger volumes has more than doubled to reach close to 40% of pre-COVID levels in end-April, up from 18% in March and on track to at least 50% of pre-COVID levels by this year.  
SIA also reported significant increase in passenger demand in its March operating results. The Group carried 893k passengers in March, a 792.1% YoY increase. Its group passenger capacity reached 51% of pre-COVID levels, and expects passenger capacity to reach 61% of pre-COVID levels by May 2022.  
We observed outperformance in the year-to-date for a number of reopening proxies including SATS, SIA, ComfortDelGro, Genting Singapore and SIA Engineering. These five stocks average total returns of 10.6%, outperforming STI’s +7.1% total returns YTD (as of 6 May ’22). On a funds flow perspective, these stocks saw a combined net institutional inflows of S$84.8 million in the YTD.  
The easing of measures also had an impact on the F&amp;B industry in Singapore. The top five actively traded SGX F&amp;B stocks with Singapore exposure are: Jumbo, Japan Foods, Pavillion, RE&amp;S and Kimly. Investors’ focus would be on Singapore’s F&amp;B service sales data for April.  
In the REITs Sector, SGX lists four stapled trusts and one REIT with significant exposure to Singapore hotels who may potentially benefit from reopening borders  - Ascott, CDL HT, Far East HT, Frasers HT, and OUE CREIT. These five trusts generated average total returns of 16.9% YTD (as of 6 May ’22). S-REITs with exposure to Singapore office assets as employees head back to office - Keppel REIT, CICT, Suntec REIT, MCT, and OUE CREIT.


      
    
    Mar 22 Changi Airport


Q: Rate hikes to combat inflation continues to be a focus on investors globally. How is this impacting the markets? Which are the sectors which may see direct impact?  
The 16 March FOMC rate hike was in-line with market’s expectations. At the recent May FOMC, the Fed raised rates by 50bps, with a 75bps hike at the next meeting ruled out for now. Quantitative tightening will begin, with the Fed allowing up to US$47.5 billion/month in combined US treasuries and mortgage-backed securities to run off the balance sheet, increasing to US$95 billion after 3 months  
Rates sensitive sectors such as Financials and REITs typically come into investors’ minds during rate hike/cut cycles.


Notably, Singapore Banks – DBS (D05), OCBC (O39), and UOB (U11) has seen an average 7.2% gains since the start of heightened volatility in the markets (8 March), outperforming global banks and the STI. In the same period, the FTSE ST All-Share Index also saw total returns of +5.7%. 
	 
	REITs depend on borrowings/debt to help finance their asset purchases. Higher rates may impact their borrowing costs and dividend distributions. As a reminder, most of the S-REITs have gearing ratios (i.e. total debt/percentage of total assets) of c. 37%, below the regulatory limit of 50%. Further, S-REITs have, on average, also pegged more than 70% of their debt at fixed rates. Notably in this current rate hike environment, the sector (FTSE ST REIT Index) saw total returns of +6.4% from the year-low seen in late January.




      
    
    SREIT historical 

Navigating global reopening and rate hikes

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>Since March we have consistently said we believe any bottoming process would likely take weeks or months and could come with more tests of the lows, or even an undercut.</li>
<li>We are testing the March lows now in several global indexes, including the MSCI ACWI (ACWI-US), ACWI ex-US (ACWX-US), and EM (EEM-US).</li>
<li>While this is a logical spot for a bounce, we see rallies as selling opportunities at the index level</li>
</ul>


Since March we have consistently said we believe any bottoming process would likely take weeks or months and could come with more tests of the lows, or even an undercut.
We are testing the March lows now in several global indexes, including the MSCI ACWI (ACWI-US), ACWI ex-US (ACWX-US), and EM (EEM-US).
While this is a logical spot for a bounce, we see rallies as selling opportunities at the index level


MSCI ACWI, ACWI Ex-US, EM Testing Logical Support; Actionable Themes: Defensives & Reopening Stocks

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For the 5 trading sessions that spanned Mar 25 to 31, the Straits Times Index (STI) gained 0.3 per cent, while the FTSE China A50 Index dipped 0.1 per cent, the Hang Seng Index slipped 0.1 per cent and the FTSE Bursa Malaysia KLCI fell 0.6 per cent. 
Overall, institutions were net sellers over the 5 sessions with S$143 million of net outflow. DBS Group Holdings, UOB, Mapletree Commercial Trust, Keppel Corporation and Wilmar International led the net institutional outflows for the 5 sessions through to Mar 31. 
Meanwhile, Singapore Airlines, City Developments, SATS, SIA Engineering Company and Mapletree North Asia Commercial Trust received the highest net institutional inflows for the 5 sessions.  
For Q1 2022, Singapore stocks received S$1.12 billion of net institutional inflows, with Singapore Telecommunications,  OCBC,  UOB, Mapletree North Asia Commercial Trust and Wilmar International drawing the most net institutional inflows. Share buybacks 
There were 18 primary-listed stocks conducting share buybacks over the 5 sessions with a total consideration of S$11.9 million, down from S$15.7 million for the preceding week. 
OCBC, Raffles Medical Group and Hong Fok Corporation led the buyback consideration tally. OCBC paid an average price of S$12.40 per share, while Raffles Medical Group paid S$1.17 per share. 
For Q1 2022, Keppel led the buyback consideration tally for primary-listed stocks buying back 27.3 million shares, with a consideration of S$164.2 million, at an average price of S$6.02 per share. 
On Jan 27, Keppel announced the establishment of a S$500 million share buyback programme, pursuant to the share purchase mandate granted by its shareholders at the company's previous AGM. The company noted that shares repurchased will be held as treasury shares which will be used in part for the annual vesting of employee share plans, but also as possible currency for future merger and acquisition (M&amp;A) activities. 
For the quarter, OCBC bought back 3.5 million shares at an average price of S$12.05, while Raffles Medical Group bought back 13.2 million shares at an average price of S$1.18 per share. Director and substantial shareholder transactions 
The 5 trading sessions saw almost 100 changes to director interests and substantial shareholdings filed for 40 primary-listed stocks. 
This included 14 company director acquisitions with 3 disposals filed, while substantial shareholders reported 11 acquisitions and 3 disposals. HRnetGroup 
On Mar 25, Simco acquired 4,204,300 shares of HRnetGroup HRnetGroup : CHZ 0% for a consideration of S$3,254,969, at 77.4 Singapore cents per share. This increased Simco's direct interest in HRnetGroup from 77.61 per cent to 78.03 per cent, while increasing the deemed interests of founding chairman Peter Sim, executive director and chief executive officer of Recruit Express JS Sim, and executive director and chief legal officer Adeline Sim. 
Peter Sim founded the company in 1992 and has more than 40 years of expertise in social work, human resource management, and talent acquisition. 
HRnetGroup has since grown its business to over 900 consultants spread across 13 Asian cities. 
On Feb 25, HRnetGroup reported that its FY21 (ended Dec 31) revenue increased 36.4 per cent from FY20, with net profit growing 41.1 per cent to S$70.3 million. This was another record-breaking year in revenue for the company with the S$590.5 million revenue in FY21, following S$433.0 million revenue in FY20 and S$423.1 million revenue in FY19. 
The company added that revenue continues to be generated from diverse sources across multiple sectors and specialisations and it is not dependent on any single sector, with its top 10 clients contributing 26.6 per cent to its FY21 revenue. 
In FY21, the company facilitated 7,794 permanent job placements while placing 54,448 unique contractor headcounts for the year. 
On Dec 30, 2021, the board of directors of HRnetGroup announced that Adeline Sim had been appointed by the Minister for Education to the boards of SkillsFuture Singapore and of the Lifelong Learning Institute. 
Effective Jan 1, Wallace Gao Yong was appointed as an independent director of HRnetGroup. He is based in Beijing and is the chairman at Beijing Career International, the first HR service enterprise that was listed on China's A-share market. Olam Group 
On Mar 28, Olam Group Olam Intl : O32 0% independent non-executive director Nihal Kaviratne acquired 133,100 shares of the company at an average price of S$1.79 per share. With a consideration of S$237,985, this increased his direct interest in Olam Group to 0.1 per cent. 
Kaviratne was previously the chairman and CEO for the Unilever Group across Asia, Europe and Latin America. His career with the Unilever Group spanned 40 years which also covered senior level management positions in sales, marketing, brand and strategic planning and development. 
Olam Group has now completed the first 3 of 4 steps of its transformational re-organisation plan to re-organise its diverse business portfolio into 3 distinct operating groups - Olam Food Ingredients, Olam Agri and Olam. Olam Food Ingredients intends to seek a primary listing in London, and a concurrent secondary listing in Singapore. 
On Mar 25, Olam Group announced that in the light of current market conditions, and as a result of the ongoing conflict in Ukraine, it did not expect the IPO of Olam Food Ingredients to take place during Q2 2022, as was previously planned. Amos Group 
Between Mar 28 and 29, Amos Group executive chairman Kyle Shaw acquired 465,000 shares of the company at an average price of 17.2 cents per share. With a consideration of S$80,081, this increased his deemed interest in the company from 80.51 per cent to 80.77 per cent. 
Shaw is the founder and managing partner of ShawKwei &amp; Partners, an international private equity fund manager investing in mid-market industrial and service businesses across Asia, the United States, and Europe. 
The Amos Group serves multinational customers in the marine and energy industries across a network of facilities spanning Asia, the Middle East, and Europe. The group supplies customers with technical services and supply solutions across 4 of the most vibrant oil and gas production zones on earth and through 4 of the world's busiest ports - Singapore, Shanghai, Hong Kong and Busan. The group is expected to report its FY22 (ended Mar 31) results at the end of May. Tai Sin Electric 
On Mar 23, Tai Sin Electric executive director and CEO Bernard Lim Boon Hock acquired 115,300 shares of the company at an average price of 39.0 cents per share. With a consideration of S$44,967, this took his total interest in Tai Sin Electric from 17.35 per cent to 17.38 per cent. 
Lim has gradually increased his total interest in Tai Sin Electric from 14.82 per cent at the end of 2019 and he has been an executive director of the company since September 1997. Challenger Technologies 
Between Mar 23 and 29, Digileap Capital acquired 50,400 shares of Challenger Technologies Challenger : 573 0% at 58.0 cents per share. This took the deemed interest of non-executive non-independent director Tan Keng Soon in the Singapore-focused multi-brand IT retailer from 15.03 per cent to 15.04 per cent. Tan is the co-founder and manager partner of Dymon Asia Capital and was recently appointed to the board of Challenger Technologies, on Nov 29, 2021. Tye Soon 
On Mar 29, Tye Soon managing director David Chong Tek Yew acquired 55,000 shares of the company for a consideration of S$21,900 at an average price of 39.8 cents per share. This followed on from Wong Huay Shien, the Chong's spouse, also acquiring 30,200 shares of Tye Soon on Mar 30 at 39.5 cents per share. 
The 3 transactions took Chong's total interest in the independent automotive parts distributor from 3.25 per cent to 3.35 per cent. 
Joining as group general manager/executive director in 1998, Chong was appointed deputy managing director in 2002, before being appointed managing director in February 2014. 
On Feb 23, Tye Soon reported that profit after tax totalled S$4.5 million for its FY21 (ended Dec 31), up from S$1.3 million in FY20. 
Partnering its principals mostly from Europe, Japan and Korea, the group has one of the largest portfolios of top-tier global brands of automotive parts. LHT Holdings 
On Mar 25, LHT Holdings managing director, Yap Mui Kee, acquired 52,100 shares of the company for a consideration of S$36,991. At 71.0 cents per share, this took her total interest in the manufacturer of high-quality wooden pallets, boxes, and crates from 14.79 per cent to 14.89 per cent. 
This followed her acquisitions of 17,700 shares at 70.0 cents per share on Mar 18 and 24,600 shares of at 69.1 cents per share on Mar 7.

Yap has over 35 years of experience in sales and marketing and plays a key role in exploring opportunities in new markets. Inside Insights is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/green-shoots-for-retail-and-hospitality-s-reits-amid-new-pandemic-phase"> </a><a href="https://www.businesstimes.com.sg/companies-markets/hrnetgroups-largest-shareholder-raises-stake-1">read </a>the original version.
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    Share buyback


For the 5 trading sessions that spanned Mar 25 to 31, the Straits Times Index (STI) gained 0.3 per cent, while the FTSE China A50 Index dipped 0.1 per cent, the Hang Seng Index slipped 0.1 per cent and the FTSE Bursa Malaysia KLCI fell 0.6 per cent.  
Overall, institutions were net sellers over the 5 sessions with S$143 million of net outflow. DBS Group Holdings, UOB, Mapletree Commercial Trust, Keppel Corporation and Wilmar International led the net institutional outflows for the 5 sessions through to Mar 31.  
Meanwhile, Singapore Airlines, City Developments, SATS, SIA Engineering Company and Mapletree North Asia Commercial Trust received the highest net institutional inflows for the 5 sessions.   
For Q1 2022, Singapore stocks received S$1.12 billion of net institutional inflows, with Singapore Telecommunications,  OCBC,  UOB, Mapletree North Asia Commercial Trust and Wilmar International drawing the most net institutional inflows.  Share buybacks  
There were 18 primary-listed stocks conducting share buybacks over the 5 sessions with a total consideration of S$11.9 million, down from S$15.7 million for the preceding week.  
OCBC, Raffles Medical Group and Hong Fok Corporation led the buyback consideration tally. OCBC paid an average price of S$12.40 per share, while Raffles Medical Group paid S$1.17 per share.  
For Q1 2022, Keppel led the buyback consideration tally for primary-listed stocks buying back 27.3 million shares, with a consideration of S$164.2 million, at an average price of S$6.02 per share.  
On Jan 27, Keppel announced the establishment of a S$500 million share buyback programme, pursuant to the share purchase mandate granted by its shareholders at the company's previous AGM. The company noted that shares repurchased will be held as treasury shares which will be used in part for the annual vesting of employee share plans, but also as possible currency for future merger and acquisition (M&amp;A) activities.  
For the quarter, OCBC bought back 3.5 million shares at an average price of S$12.05, while Raffles Medical Group bought back 13.2 million shares at an average price of S$1.18 per share.  Director and substantial shareholder transactions  
The 5 trading sessions saw almost 100 changes to director interests and substantial shareholdings filed for 40 primary-listed stocks.  
This included 14 company director acquisitions with 3 disposals filed, while substantial shareholders reported 11 acquisitions and 3 disposals.  HRnetGroup  
On Mar 25, Simco acquired 4,204,300 shares of HRnetGroup HRnetGroup : CHZ 0% for a consideration of S$3,254,969, at 77.4 Singapore cents per share. This increased Simco's direct interest in HRnetGroup from 77.61 per cent to 78.03 per cent, while increasing the deemed interests of founding chairman Peter Sim, executive director and chief executive officer of Recruit Express JS Sim, and executive director and chief legal officer Adeline Sim.  
Peter Sim founded the company in 1992 and has more than 40 years of expertise in social work, human resource management, and talent acquisition.  
HRnetGroup has since grown its business to over 900 consultants spread across 13 Asian cities.  
On Feb 25, HRnetGroup reported that its FY21 (ended Dec 31) revenue increased 36.4 per cent from FY20, with net profit growing 41.1 per cent to S$70.3 million. This was another record-breaking year in revenue for the company with the S$590.5 million revenue in FY21, following S$433.0 million revenue in FY20 and S$423.1 million revenue in FY19.  
The company added that revenue continues to be generated from diverse sources across multiple sectors and specialisations and it is not dependent on any single sector, with its top 10 clients contributing 26.6 per cent to its FY21 revenue.  
In FY21, the company facilitated 7,794 permanent job placements while placing 54,448 unique contractor headcounts for the year.  
On Dec 30, 2021, the board of directors of HRnetGroup announced that Adeline Sim had been appointed by the Minister for Education to the boards of SkillsFuture Singapore and of the Lifelong Learning Institute.  
Effective Jan 1, Wallace Gao Yong was appointed as an independent director of HRnetGroup. He is based in Beijing and is the chairman at Beijing Career International, the first HR service enterprise that was listed on China's A-share market.  Olam Group  
On Mar 28, Olam Group Olam Intl : O32 0% independent non-executive director Nihal Kaviratne acquired 133,100 shares of the company at an average price of S$1.79 per share. With a consideration of S$237,985, this increased his direct interest in Olam Group to 0.1 per cent.  
Kaviratne was previously the chairman and CEO for the Unilever Group across Asia, Europe and Latin America. His career with the Unilever Group spanned 40 years which also covered senior level management positions in sales, marketing, brand and strategic planning and development.  
Olam Group has now completed the first 3 of 4 steps of its transformational re-organisation plan to re-organise its diverse business portfolio into 3 distinct operating groups - Olam Food Ingredients, Olam Agri and Olam. Olam Food Ingredients intends to seek a primary listing in London, and a concurrent secondary listing in Singapore.  
On Mar 25, Olam Group announced that in the light of current market conditions, and as a result of the ongoing conflict in Ukraine, it did not expect the IPO of Olam Food Ingredients to take place during Q2 2022, as was previously planned.  Amos Group  
Between Mar 28 and 29, Amos Group executive chairman Kyle Shaw acquired 465,000 shares of the company at an average price of 17.2 cents per share. With a consideration of S$80,081, this increased his deemed interest in the company from 80.51 per cent to 80.77 per cent.  
Shaw is the founder and managing partner of ShawKwei &amp; Partners, an international private equity fund manager investing in mid-market industrial and service businesses across Asia, the United States, and Europe.  
The Amos Group serves multinational customers in the marine and energy industries across a network of facilities spanning Asia, the Middle East, and Europe. The group supplies customers with technical services and supply solutions across 4 of the most vibrant oil and gas production zones on earth and through 4 of the world's busiest ports - Singapore, Shanghai, Hong Kong and Busan. The group is expected to report its FY22 (ended Mar 31) results at the end of May.  Tai Sin Electric  
On Mar 23, Tai Sin Electric executive director and CEO Bernard Lim Boon Hock acquired 115,300 shares of the company at an average price of 39.0 cents per share. With a consideration of S$44,967, this took his total interest in Tai Sin Electric from 17.35 per cent to 17.38 per cent.  
Lim has gradually increased his total interest in Tai Sin Electric from 14.82 per cent at the end of 2019 and he has been an executive director of the company since September 1997.  Challenger Technologies  
Between Mar 23 and 29, Digileap Capital acquired 50,400 shares of Challenger Technologies Challenger : 573 0% at 58.0 cents per share. This took the deemed interest of non-executive non-independent director Tan Keng Soon in the Singapore-focused multi-brand IT retailer from 15.03 per cent to 15.04 per cent. Tan is the co-founder and manager partner of Dymon Asia Capital and was recently appointed to the board of Challenger Technologies, on Nov 29, 2021.  Tye Soon  
On Mar 29, Tye Soon managing director David Chong Tek Yew acquired 55,000 shares of the company for a consideration of S$21,900 at an average price of 39.8 cents per share. This followed on from Wong Huay Shien, the Chong's spouse, also acquiring 30,200 shares of Tye Soon on Mar 30 at 39.5 cents per share.  
The 3 transactions took Chong's total interest in the independent automotive parts distributor from 3.25 per cent to 3.35 per cent.  
Joining as group general manager/executive director in 1998, Chong was appointed deputy managing director in 2002, before being appointed managing director in February 2014.  
On Feb 23, Tye Soon reported that profit after tax totalled S$4.5 million for its FY21 (ended Dec 31), up from S$1.3 million in FY20.  
Partnering its principals mostly from Europe, Japan and Korea, the group has one of the largest portfolios of top-tier global brands of automotive parts.  LHT Holdings  
On Mar 25, LHT Holdings managing director, Yap Mui Kee, acquired 52,100 shares of the company for a consideration of S$36,991. At 71.0 cents per share, this took her total interest in the manufacturer of high-quality wooden pallets, boxes, and crates from 14.79 per cent to 14.89 per cent.  
This followed her acquisitions of 17,700 shares at 70.0 cents per share on Mar 18 and 24,600 shares of at 69.1 cents per share on Mar 7.

Yap has over 35 years of experience in sales and marketing and plays a key role in exploring opportunities in new markets.  Inside Insights is a weekly column on The Business Times, read the original version.



HRnetGroup's largest shareholder raises stake

CDL Hospitality Trusts / Equity Bottom-Up

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<li>
With Singapore in the stabilisation phase of its transition to COVID-19 resilience, eight more countries will be added to Vaccinated Travel Lanes (VTLs). Similarly, Malaysia announced earlier in the month it is looking to reopen its borders to international travel once 90% of its adult population is fully vaccinated. 
	 </li>
	<li>
This has seen Singapore’s 10 most traded Travel and Hospitality related stocks advance 3.3% during the morning session of 11 Oct. International travel-related plays, SIA, SATS and SIA Engg gained 6.6%, 3.6% and 3.3% respectively, while ComfortDelGro, one of the largest global land transport companies, gained 2.0%. 
	 </li>
	<li>Genting Singapore gained 5.5%, while three stapled trusts - Ascott Residence Trust, CDL Hospitality Trust and Far East Hospitality Trust gained 4.3%, 2.3% and 1.6% respectively. Mandarin Oriental which has been a comparatively more defensive play since the end of 2019, added 0.5%. </li>
</ul>
 

With one of the highest vaccination rates in the world, Singapore is presently pursuing a 'Living with COVID-19' strategy as it seeks to build a COVID-resilient nation. Given the disease has become more manageable with a higher vaccination rate, the government said over the weekend that it should now "drastically simplify" health protocols, including procedures on what should be done if people tested positive or came in contact with infected persons. While Singapore's Prime Minister reiterated the need to protect the vulnerable, he said we must also "connect ourselves back to the world", in particular continuing to re-open the country's borders safely. 
Singapore has also announced that eight more countries will be added to Vaccinated Travel Lanes (VTLs), and with more such arrangements expected this will keep us connected to global supply chains and help to preserve the country's hub status. Similarly, Malaysia has announced earlier in the month it is looking to reopen its borders to international travel once 90% of its adult population is fully vaccinated. 
This has seen Singapore’s 10 most traded stocks that represent the travel and hospitality industries, average 3.3% gains in the 11 Oct Morning Session. Together the 10 stocks have contributed 8% of the day-to-day turnover of all stocks listed on SGX, with the Morning Session gains taking their average 2021 to date total return to 6.3%. The 10 stocks include Singapore Airlines which was the strongest performer of the 10 in the Morning Session with a 6.6% price gain, in addition to STI constituents, Genting Singapore, ComfortDelGro Corporation and SATS.

<table class="table table-striped"><tbody>
<tr>
<td>
			Most Traded Transport &amp; Hospitality Related Stocks in 2021
			</td>
			<td>
			Code
			</td>
			<td>
			2021 YTD Avg. Daily T/O S$M
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			11 Oct Morning Session *
			</td>
			<td>
			2020 Total Return %
			</td>
			<td>
			2020 Net Insti Flow S$M
			</td>
			<td>
			2021 YTD Total Return % *
			</td>
			<td>
			2021 YTD Net Insti Flow S$M
			</td>
		</tr>
<tr>
<td>
			SIA
			</td>
			<td>
			C6L
			</td>
			<td>
			41.2
			</td>
			<td>
			15,223
			</td>
			<td>
			6.6
			</td>
			<td>
			-33
			</td>
			<td>
			-643
			</td>
			<td>
			28
			</td>
			<td>
			-275
			</td>
		</tr>
<tr>
<td>
			Genting Sing
			</td>
			<td>
			G13
			</td>
			<td>
			23.9
			</td>
			<td>
			8,747
			</td>
			<td>
			5.5
			</td>
			<td>
			-5
			</td>
			<td>
			112
			</td>
			<td>
			-9
			</td>
			<td>
			-132
			</td>
		</tr>
<tr>
<td>
			ComfortDelGro
			</td>
			<td>
			C52
			</td>
			<td>
			20.3
			</td>
			<td>
			3,316
			</td>
			<td>
			2.0
			</td>
			<td>
			-27
			</td>
			<td>
			-336
			</td>
			<td>
			-5
			</td>
			<td>
			-146
			</td>
		</tr>
<tr>
<td>
			SATS
			</td>
			<td>
			S58
			</td>
			<td>
			9.5
			</td>
			<td>
			4,679
			</td>
			<td>
			3.6
			</td>
			<td>
			-21
			</td>
			<td>
			-131
			</td>
			<td>
			9
			</td>
			<td>
			26
			</td>
		</tr>
<tr>
<td>
			Ascott Trust
			</td>
			<td>
			HMN
			</td>
			<td>
			5.3
			</td>
			<td>
			3,077
			</td>
			<td>
			4.3
			</td>
			<td>
			-18
			</td>
			<td>
			-3
			</td>
			<td>
			-5
			</td>
			<td>
			-44
			</td>
		</tr>
<tr>
<td>
			CDL Hosp Trust
			</td>
			<td>
			J85
			</td>
			<td>
			1.9
			</td>
			<td>
			1,376
			</td>
			<td>
			2.7
			</td>
			<td>
			-18
			</td>
			<td>
			-57
			</td>
			<td>
			-6
			</td>
			<td>
			-14
			</td>
		</tr>
<tr>
<td>
			SIA Engineering
			</td>
			<td>
			S59
			</td>
			<td>
			1.5
			</td>
			<td>
			2,357
			</td>
			<td>
			3.3
			</td>
			<td>
			-28
			</td>
			<td>
			-19
			</td>
			<td>
			10
			</td>
			<td>
			-3
			</td>
		</tr>
<tr>
<td>
			Far East Hosp Trust
			</td>
			<td>
			Q5T
			</td>
			<td>
			1.2
			</td>
			<td>
			1,223
			</td>
			<td>
			1.6
			</td>
			<td>
			-13
			</td>
			<td>
			-9
			</td>
			<td>
			6
			</td>
			<td>
			8
			</td>
		</tr>
<tr>
<td>
			Man Oriental USD
			</td>
			<td>
			M04
			</td>
			<td>
			0.5
			</td>
			<td>
			3,623
			</td>
			<td>
			0.5
			</td>
			<td>
			-8
			</td>
			<td>
			5
			</td>
			<td>
			28
			</td>
			<td>
			2
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			105.1
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			-1,081
			</td>
			<td>
			 
			</td>
			<td>
			-577
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			3.3
			</td>
			<td>
			-19
			</td>
			<td>
			 
			</td>
			<td>
			6
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
 Source: SGX, Refinitiv, Bloomberg. *Data as of 12am 11 October 2021, all other data as of 8 October.

 
Globally, recent global border re-openings to facilitate international travel for business and leisure purposes have impacted stocks. For the week ending 24 Sep, when the United States announced it would re-open borders for vaccinated travelers in November, United Airlines ended the week up 10.0%, while Singapore Airlines, SIA Engineering and SATS averaged 4.3% gains for the week. Pre-pandemic, the Unites States was home to 80 million visitors a year, with 100 million outbound travelers, with the reduction in global travel also significantly impacting airlines and adjacent industries. 
In Singapore, international travel and tourism has impacted shopping, accommodation, food and beverage, sightseeing and entertainment activity. Overall, Singapore’s annual tourism receipts took a significant decline in 2020, after growing gradually from S$13 billion in 2009 to S$28 billion in 2019, the receipts came to S$5 billion in 2020. As Mandarin Oriental International noted in July, a return to profitability will be dependent on the removal of barriers to international travel, particularly in Asia. This was echoed by the CEO of SPH REIT who noted last week that ‘notwithstanding the rollout of vaccinations, both in Singapore and globally, which will lead to the relaxation for international travel restrictions, full recovery for leisure travel will still take some time’. As tabled above, the 10 stocks averaged 19.1% declines in total return in 2020, with S$1,081 million in net institutional outflow, with 6.3% average total returns in 2021 year to date, on S$577 million in net institutional outflow. 
</body></html>





With Singapore in the stabilisation phase of its transition to COVID-19 resilience, eight more countries will be added to Vaccinated Travel Lanes (VTLs). Similarly, Malaysia announced earlier in the month it is looking to reopen its borders to international travel once 90% of its adult population is fully vaccinated. 
	 
	
This has seen Singapore’s 10 most traded Travel and Hospitality related stocks advance 3.3% during the morning session of 11 Oct. International travel-related plays, SIA, SATS and SIA Engg gained 6.6%, 3.6% and 3.3% respectively, while ComfortDelGro, one of the largest global land transport companies, gained 2.0%.  
	 
	Genting Singapore gained 5.5%, while three stapled trusts - Ascott Residence Trust, CDL Hospitality Trust and Far East Hospitality Trust gained 4.3%, 2.3% and 1.6% respectively. Mandarin Oriental which has been a comparatively more defensive play since the end of 2019, added 0.5%. 

 

With one of the highest vaccination rates in the world, Singapore is presently pursuing a 'Living with COVID-19' strategy as it seeks to build a COVID-resilient nation. Given the disease has become more manageable with a higher vaccination rate, the government said over the weekend that it should now "drastically simplify" health protocols, including procedures on what should be done if people tested positive or came in contact with infected persons. While Singapore's Prime Minister reiterated the need to protect the vulnerable, he said we must also "connect ourselves back to the world", in particular continuing to re-open the country's borders safely.  
Singapore has also announced that eight more countries will be added to Vaccinated Travel Lanes (VTLs), and with more such arrangements expected this will keep us connected to global supply chains and help to preserve the country's hub status. Similarly, Malaysia has announced earlier in the month it is looking to reopen its borders to international travel once 90% of its adult population is fully vaccinated.  
This has seen Singapore’s 10 most traded stocks that represent the travel and hospitality industries, average 3.3% gains in the 11 Oct Morning Session. Together the 10 stocks have contributed 8% of the day-to-day turnover of all stocks listed on SGX, with the Morning Session gains taking their average 2021 to date total return to 6.3%. The 10 stocks include Singapore Airlines which was the strongest performer of the 10 in the Morning Session with a 6.6% price gain, in addition to STI constituents, Genting Singapore, ComfortDelGro Corporation and SATS.




			Most Traded Transport &amp; Hospitality Related Stocks in 2021
			
			
			Code
			
			
			2021 YTD Avg. Daily T/O S$M
			
			
			Mkt Cap S$M
			
			
			11 Oct Morning Session *
			
			
			2020 Total Return %
			
			
			2020 Net Insti Flow S$M
			
			
			2021 YTD Total Return % *
			
			
			2021 YTD Net Insti Flow S$M
			
		


			SIA
			
			
			C6L
			
			
			41.2
			
			
			15,223
			
			
			6.6
			
			
			-33
			
			
			-643
			
			
			28
			
			
			-275
			
		


			Genting Sing
			
			
			G13
			
			
			23.9
			
			
			8,747
			
			
			5.5
			
			
			-5
			
			
			112
			
			
			-9
			
			
			-132
			
		


			ComfortDelGro
			
			
			C52
			
			
			20.3
			
			
			3,316
			
			
			2.0
			
			
			-27
			
			
			-336
			
			
			-5
			
			
			-146
			
		


			SATS
			
			
			S58
			
			
			9.5
			
			
			4,679
			
			
			3.6
			
			
			-21
			
			
			-131
			
			
			9
			
			
			26
			
		


			Ascott Trust
			
			
			HMN
			
			
			5.3
			
			
			3,077
			
			
			4.3
			
			
			-18
			
			
			-3
			
			
			-5
			
			
			-44
			
		


			CDL Hosp Trust
			
			
			J85
			
			
			1.9
			
			
			1,376
			
			
			2.7
			
			
			-18
			
			
			-57
			
			
			-6
			
			
			-14
			
		


			SIA Engineering
			
			
			S59
			
			
			1.5
			
			
			2,357
			
			
			3.3
			
			
			-28
			
			
			-19
			
			
			10
			
			
			-3
			
		


			Far East Hosp Trust
			
			
			Q5T
			
			
			1.2
			
			
			1,223
			
			
			1.6
			
			
			-13
			
			
			-9
			
			
			6
			
			
			8
			
		


			Man Oriental USD
			
			
			M04
			
			
			0.5
			
			
			3,623
			
			
			0.5
			
			
			-8
			
			
			5
			
			
			28
			
			
			2
			
		


			Total
			
			
			 
			
			
			105.1
			
			
			 
			
			
			 
			
			
			 
			
			
			-1,081
			
			
			 
			
			
			-577
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			3.3
			
			
			-19
			
			
			 
			
			
			6
			
			
			 
			
		

 Source: SGX, Refinitiv, Bloomberg. *Data as of 12am 11 October 2021, all other data as of 8 October.

 
Globally, recent global border re-openings to facilitate international travel for business and leisure purposes have impacted stocks. For the week ending 24 Sep, when the United States announced it would re-open borders for vaccinated travelers in November, United Airlines ended the week up 10.0%, while Singapore Airlines, SIA Engineering and SATS averaged 4.3% gains for the week. Pre-pandemic, the Unites States was home to 80 million visitors a year, with 100 million outbound travelers, with the reduction in global travel also significantly impacting airlines and adjacent industries.  
In Singapore, international travel and tourism has impacted shopping, accommodation, food and beverage, sightseeing and entertainment activity. Overall, Singapore’s annual tourism receipts took a significant decline in 2020, after growing gradually from S$13 billion in 2009 to S$28 billion in 2019, the receipts came to S$5 billion in 2020. As Mandarin Oriental International noted in July, a return to profitability will be dependent on the removal of barriers to international travel, particularly in Asia. This was echoed by the CEO of SPH REIT who noted last week that ‘notwithstanding the rollout of vaccinations, both in Singapore and globally, which will lead to the relaxation for international travel restrictions, full recovery for leisure travel will still take some time’. As tabled above, the 10 stocks averaged 19.1% declines in total return in 2020, with S$1,081 million in net institutional outflow, with 6.3% average total returns in 2021 year to date, on S$577 million in net institutional outflow. 



Travel & Hospitality Stocks Advance on International Travel Progress

Yoma Strategic Holdings / Equity Bottom-Up

Key Singapore Market Moves and Flows in 3Q21

Singapore

Hutchison Port Holdings Trust is a port investor, developer and operator. The Company is also involved in transportation related services and logistics operations, including container storage and repair, container tracking, general and bulk cargo tranfer, warehousing, marine shuttle services and other related services.

SATS Limited provides integrated ground handling and in-flight catering services at Singapore Changi Airport.  The Company also provides aviation security, airline laundry, and airport cargo delivery management services.

ComfortDelGro Corporation Limited provides bus, taxi, car leasing and rental, automotive engineering, maintenance services, and diesel sales.  The Group also provides investment trading and operates vehicle inspection and assessment services, and advertising services.

Singapore Post Limited is the national postal service provider in Singapore. The Company provides domestic and international postal and courier services including end-to-end integrated mail solutions covering data printing, letter-shopping, delivery and mailroom management, and others. Singapore Post also offers end-to-end e-commerce logistics solutions.

SBS Transit Limited provides public bus services, advertisement on its bus fleet, and bus chartering.

Samudera Shipping Line Limited owns and operates ocean-going ships and provides containerized feeder shipping services. Through its subsidiaries, the Company also owns and charters vessels, provides sea and air freight forwarding, and operates shipping agency and container freight station services.

Marco Polo Marine Limited is an integrated shipping company. The Company provides services that include ship chartering, ship building and repair, and brokering services.

Penguin International Limited operates as an integrated marine and offshore services company. The Company specializes in design, construction, and operation of high-speed aluminum ships. Penguin International owns and operates a fleet of vessels as well as aluminum shipbuilding yards. Penguin International serves customers worldwide.

Keppel Infrastructure Trust is a listed business trust that provides investors with the opportunity to invest in a large and well-diversified portfolio of core infrastructure assets located in jurisdictions with well-developed legal frameworks that support infrastructure investment. The Trust aims to provide long-term, regular, and sustainable distributions to its unit holders.

Golden Energy and Resources Ltd. engages in the exploration, mining, marketing and trading of thermal coal. The Company 's coal mining concession areas cover South and Cental Kalimantan, as well as Jambi, Indonesia.

Shenzhen International Holdings Limited operates as a holding company. The Company, through its subsidiaries, provides investment, construction, and operation of logistic infrastructure facilities, as well as offers value-added logistic services. Shenzhen International serves customers worldwide.

Shenzhen Expressway Company Limited offers toll expressway and road construction and investment services. The Company provides expressway operation, maintenance, and service station leasing services. Shenzhen Expressway also conducts real estate development, advertising, and engineering consulting businesses.

COSCO Shipping Ports Limited, through its subsidiaries, provides shipping container leasing services worldwide.  The Company also operates container terminals and provides container handling, storage, transportation and management services, as well as depot handling and stevedoring services.

Tianjin Port Co., Ltd. operates the Tianjin Port and provides related services including loading and unloading, storage, and transportation services.  The Company also acts as a freight transportation agency.

Beibuwan Port Co., Ltd. provides support services for water transportation, including loading and unloading, storage, transportation, and other port related services. Through its subsidiaries, the Company also acts as an oversea transportation agent and develops real estate.

Port of Tauranga Limited activities include the provision of wharf facilities, back up land for the storage and transit of import and export cargo, berthage, cranes, tug and pilotage services for exporters, importers and shipping companies and the leasing of land and buildings.  The Group also operates a container terminal and has bulk cargo marshalling operations.

Kamigumi Co., Ltd. provides port-harbor transportation services.  The Company's services include port-harbor transport, warehousing, trucking, packing, and heavy cargo transport.  Kamigumi also provides other services like real estate, insurance agency operations, sports clubs, and restaurant management.

Jiangxi Ganyue Expressway Co., Ltd. maintains, operates, and manages toll expressways, bridges, and other transportation facilities.  The Company manages the Changjiu Expressway, the Changzhang Expressway, the Changfu Expressway, and the Yinsanjiao Overpass.

Jiangxi Ganyue Expressway Co., (600269 CH)

Anhui Expressway Co. Ltd. principally holds, operates and develops toll expressways and highways in Anhui province in China.

Anhui Wanjiang Logistics Group Co Ltd provides loading, unloading, storage, and transition services for coal, containers, bulk and general marine cargo.

SIA Engineering Co Ltd provides airframe and component overhaul services, line maintenance and technical ground handling services. The Company also manufactures aircraft cabin equipment, refurbishes aircraft galleys, repairs and overhauls hydromechanical aircraft equipment.

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