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.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

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<li>
The five strongest stocks of the FTSE ST All-Share Index from 31 July through to 3 Sep included Olam Intl, Frencken, YZJ Shipbldg, OUE and Straits Trading. Together the five stocks have averaged a 19% total return over the five weeks, bringing their average 2021 YTD total return to 50%. 
	 </li>
	<li>
Olam Intl presently ranks just outside the top 50 stocks by trading turnover for the 2021 YTD, following its ranking as the 100th most traded stock in 2020. Based on current market values, effective the Friday 17 September close, Olam Intl will also be the top placed stock in the STI Reserve List. 
	 </li>
	<li>Since reporting a turnaround profit attributable to shareholders of S$30.1 million for its 1HFY21 (ended 30 June), OUE has bought back 5.1 million shares or 0.6% of its shares as of the 30 April approved mandate to buy back up to 10% of its outstanding shares (excl. treasury shares). The preceding mandate saw OUE buy back 2.4% of its shares.  </li>
</ul>
 
With an 11.8% total return in the 2021 year to 3 Sep, the FTSE ST All-Share Index is currently comprised of the 30 STI stocks in addition to another 77 mid-cap to small-cap stocks. The five strongest performing stocks of the FTSE ST All-Share Index for the five weeks from 31 July through to 3 Sep included Olam International, Frencken Group, Yangzijiang Shipbuilding, OUE and The Straits Trading Company. As tabled below, the stocks have averaged an 18.9% total return over the five weeks that have brought their 2021 year to date average total return to 49.8%. All five stocks were recipient to net institutional buying over the five weeks, with net inflows totaling S$128.4 million.  

<table class="table table-striped"><tbody>
<tr>
<td>
			Five Strongest Stocks of FTSE ST All-Share Index Since 31 July 2021 
			</td>
			<td>
			Code
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			Total Return (%) Since 31 July
			</td>
			<td>
			Net Insti Inflow Since 31 July S$M
			</td>
			<td>
			52W Low
			</td>
			<td>
			52W High
			</td>
			<td>
			YTD Price Chg %
			</td>
			<td>
			YTD Total Return %
			</td>
			<td>
			Net Insti Inflow YTD S$M
			</td>
		</tr>
<tr>
<td>
			Olam Intl
			</td>
			<td>
			O32
			</td>
			<td>
			5,978.5
			</td>
			<td>
			26.0
			</td>
			<td>
			12.8
			</td>
			<td>
			1.20
			</td>
			<td>
			1.81
			</td>
			<td>
			9.5
			</td>
			<td>
			15.0
			</td>
			<td>
			-0.4
			</td>
		</tr>
<tr>
<td>
			Frencken
			</td>
			<td>
			E28
			</td>
			<td>
			982.1
			</td>
			<td>
			21.1
			</td>
			<td>
			8.0
			</td>
			<td>
			0.93
			</td>
			<td>
			2.42
			</td>
			<td>
			74.2
			</td>
			<td>
			77.8
			</td>
			<td>
			38.0
			</td>
		</tr>
<tr>
<td>
			YZJ Shipbldg SGD
			</td>
			<td>
			BS6
			</td>
			<td>
			6,396.6
			</td>
			<td>
			18.2
			</td>
			<td>
			101.9
			</td>
			<td>
			0.88
			</td>
			<td>
			1.69
			</td>
			<td>
			69.6
			</td>
			<td>
			74.8
			</td>
			<td>
			315.8
			</td>
		</tr>
<tr>
<td>
			OUE
			</td>
			<td>
			LJ3
			</td>
			<td>
			1,259.3
			</td>
			<td>
			15.2
			</td>
			<td>
			3.6
			</td>
			<td>
			1.09
			</td>
			<td>
			1.62
			</td>
			<td>
			20.0
			</td>
			<td>
			20.9
			</td>
			<td>
			4.9
			</td>
		</tr>
<tr>
<td>
			Straits Trading
			</td>
			<td>
			S20
			</td>
			<td>
			1,310.0
			</td>
			<td>
			13.8
			</td>
			<td>
			2.2
			</td>
			<td>
			1.49
			</td>
			<td>
			3.31
			</td>
			<td>
			57.1
			</td>
			<td>
			60.5
			</td>
			<td>
			-3.9
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			18.9
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			46.1
			</td>
			<td>
			49.8
			</td>
			<td>
			 
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			15,926.5
			</td>
			<td>
			 
			</td>
			<td>
			128.4
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			354.4
			</td>
		</tr>
</tbody></table>
 Source: SGX, Refinitiv, Bloomberg (Data as of 3 September 2021)

 

All five stocks tabled above reported earnings growth in August:

<ul>
<li>
On 13 August, Olam International reported its strongest operational earnings since inception. The CEO attributed the Groups strong <a href="https://links.sgx.com/1.0.0/corporate-announcements/2CFK6BOFOOE8X36P/822a0a499fefbf4f29fd378c7077dd2f415805c1183c5c32311242d59695ef96">results</a> for its 1HFY21 (ended 30 June) to the food security agenda, rising protein consumption, emerging markets food staples and industrial and fibre demand growth, rising technology adoption and sustainability focus. The company has <a href="https://links.sgx.com/1.0.0/corporate-announcements/EX5V91U8N66F9VE9/628e1ba169ef297a804b189cda1f46ad6d01c7ea0affd31aa92b00a06744c9f1">secured</a> three committed loan facilities aggregating US$5.2 billion with a term loan facility for general corporate purposes, and bridge loan facilities will be used to facilitate Olam International’s re-organisation Plan. Olam International’s Olam Food Ingredients (“OFI”) <a href="https://links.sgx.com/1.0.0/corporate-announcements/SBYSWOVWPC4QFVSC/eb62267d816c884ee6e92996035ba673e88c1b7269d31d36c066fbfa2b62f80f">intends</a> to seek primary listing on the London Stock Exchange, with a concurrent listing in Singapore. OFI was created in early 2020 following a re-organisation of Olam to unlock and maximise Olam’s long-term value, including an IPO and concurrent demerger by the first half of 2022. Olam International presently ranks just outside the top 50 stocks by trading turnover for the 2021 year to 3 Sep following its ranking as the 100th most traded stock in 2020. Based on current market values, effective the Friday 17 September close, Olam Intl will also be the top placed stock in the STI Reserve List (joining Suntec REIT, Keppel REIT, Frasers Centrepoint Trust and NetLink NBN Trust). 
	 </li>
	<li>On 12 Aug close, Frencken Group <a href="https://links.sgx.com/1.0.0/corporate-announcements/5UL4JX0XN3HCRLZ8/4cba13c57e3abf3bd73e98c2c285f0a66d72994399e963075fde15a681f4e80e">reported</a> 1HFY21 (ended 30 June) PATMI of $31.3 million, an increase of 67.2% YoY, attributed to the continued strength of the semiconductor industry, recovery of certain business segments affected by the COVID outbreak in 1HFY20, as well as the Group’s continual efforts to engage customers. With regard to potential business and operational impacts arising from supply chain disruptions and soaring freight costs, Frencken Group noted back in April it had witnessed across-the-board price increases of raw materials for both its Mechatronics and IMS Divisions, however, certain contracts with customers provide the leeway for the Group to pass on these costs to customers if material prices increase above a certain threshold. The Group added it is in close communications with its customers on their forecasts and plans to ensure the supply chain is in sync and to enable early mitigation of potential challenges. 
	 </li>
	<li>Yangzijiang Shipbuilding has now secured <a href="https://links.sgx.com/1.0.0/corporate-announcements/SS5Y8WUHW93WFXSZ/59fba98f00e7bcf5f6b20565fa7c82ee079ca8aa311a5457f96e41e162082ccb">orders</a> for 118 vessels at a contract value of US$7.2 billion this year. When <a href="https://links.sgx.com/1.0.0/corporate-announcements/V9P7TXF60WDUZTEG/7eba2215a572f3e4af4d8889be1e90d7373f66eac5b590d0897fa08b356dbb8c">reporting</a> 39% YoY growth in its 1HFY21 (ended 30 June) PATMI to RMB 1.64 billion for 1H2021 on 5 Aug, the company cited a Clarksons report that started that global new shipbuilding orders in 1HFY21 made a seven year high, with a total contract value of US$52 billion, underpinned by huge number of orders placed for containerships which accounted for more than half of the new shipbuilding orders in the first half of 2021. 
	 </li>
	<li>On 3 Aug, OUE <a href="https://links.sgx.com/1.0.0/corporate-announcements/1TEHJHIJ6PP1WUA4/a8aabf2472d71c8530a9456f9b61190c15033b1b8c2e0b1d2f254b7cbd7022bc">reported</a> a turnaround profit attributable to shareholders of S$30.1 million for its 1HFY21 (ended 30 June) on the back of an increase in profit attributable to shareholders was mainly due to the absence of fair value loss recognised on US Bank Tower in 1HFY20. The disposal of US Bank Tower in September 2020 and partial divestment of the OUE Bayfront Property in March 2021 enabled the Group to improve its net gearing by paring down existing debt and strengthening its cash reserves to weather the challenging operating environment. OUE has bought back 5.1 million shares or 0.6% of its shares as of the 30 April approved mandate to buy back up to 10% of its outstanding shares (excl. treasury shares). The preceding mandate saw OUE buy back 2.4% of its shares.  
	 </li>
	<li>On 13 Aug, The Straits Trading Company <a href="https://links.sgx.com/1.0.0/corporate-announcements/X9SCUY9SG97QHZ9Z/786dad74ebbd151b91ad2582c5d974aa44f4a3f26c08bfe830207446f236f52a">reported</a> an increase in 1HFY21 (ended June 30) EBITDA to S$186.9 million, compared to S$27.7 million in 1HFY20. With the results, executive chairman Chew Gek Khim noted that despite the global pandemic, the group's performance in 1HFY21 demonstrated the resilience of its strategy as a conglomerate investment company, with both operations as well as financial investments in real estate, hospitality, and resources.</li>
</ul>
 

Since the end of July, the FTSE ST All-Share Index has declined 2.2% in price, however the seasonally heavy month for dividends in August trimmed the decline in total return to 1.0%.  Nanofilm Technologies International, Singapore Exchange, Sembcorp Marine,

Hutchison Port Holdings Trust and Japfa were the least performing stocks of the FTSE ST All-Share Index over the five weeks, averaging a 15.6% decline in total return. Following the September Index <a href="https://research.ftserussell.com/products/index-notices/home/getnotice?id=2601461&amp;_ga=2.32678014.1323095893.1630894118-875071171.1608699665">rebalancing</a>, Aztech Global, G.H.Y Culture &amp; Media Holding, The Place Holdings and PropNex will join the FTSE ST All-Share Index effective the 17 Sep close. 
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The five strongest stocks of the FTSE ST All-Share Index from 31 July through to 3 Sep included Olam Intl, Frencken, YZJ Shipbldg, OUE and Straits Trading. Together the five stocks have averaged a 19% total return over the five weeks, bringing their average 2021 YTD total return to 50%.  
	 
	
Olam Intl presently ranks just outside the top 50 stocks by trading turnover for the 2021 YTD, following its ranking as the 100th most traded stock in 2020. Based on current market values, effective the Friday 17 September close, Olam Intl will also be the top placed stock in the STI Reserve List. 
	 
	Since reporting a turnaround profit attributable to shareholders of S$30.1 million for its 1HFY21 (ended 30 June), OUE has bought back 5.1 million shares or 0.6% of its shares as of the 30 April approved mandate to buy back up to 10% of its outstanding shares (excl. treasury shares). The preceding mandate saw OUE buy back 2.4% of its shares.  

 
With an 11.8% total return in the 2021 year to 3 Sep, the FTSE ST All-Share Index is currently comprised of the 30 STI stocks in addition to another 77 mid-cap to small-cap stocks. The five strongest performing stocks of the FTSE ST All-Share Index for the five weeks from 31 July through to 3 Sep included Olam International, Frencken Group, Yangzijiang Shipbuilding, OUE and The Straits Trading Company. As tabled below, the stocks have averaged an 18.9% total return over the five weeks that have brought their 2021 year to date average total return to 49.8%. All five stocks were recipient to net institutional buying over the five weeks, with net inflows totaling S$128.4 million.  




			Five Strongest Stocks of FTSE ST All-Share Index Since 31 July 2021 
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			Total Return (%) Since 31 July
			
			
			Net Insti Inflow Since 31 July S$M
			
			
			52W Low
			
			
			52W High
			
			
			YTD Price Chg %
			
			
			YTD Total Return %
			
			
			Net Insti Inflow YTD S$M
			
		


			Olam Intl
			
			
			O32
			
			
			5,978.5
			
			
			26.0
			
			
			12.8
			
			
			1.20
			
			
			1.81
			
			
			9.5
			
			
			15.0
			
			
			-0.4
			
		


			Frencken
			
			
			E28
			
			
			982.1
			
			
			21.1
			
			
			8.0
			
			
			0.93
			
			
			2.42
			
			
			74.2
			
			
			77.8
			
			
			38.0
			
		


			YZJ Shipbldg SGD
			
			
			BS6
			
			
			6,396.6
			
			
			18.2
			
			
			101.9
			
			
			0.88
			
			
			1.69
			
			
			69.6
			
			
			74.8
			
			
			315.8
			
		


			OUE
			
			
			LJ3
			
			
			1,259.3
			
			
			15.2
			
			
			3.6
			
			
			1.09
			
			
			1.62
			
			
			20.0
			
			
			20.9
			
			
			4.9
			
		


			Straits Trading
			
			
			S20
			
			
			1,310.0
			
			
			13.8
			
			
			2.2
			
			
			1.49
			
			
			3.31
			
			
			57.1
			
			
			60.5
			
			
			-3.9
			
		


			Average
			
			
			 
			
			
			 
			
			
			18.9
			
			
			 
			
			
			 
			
			
			 
			
			
			46.1
			
			
			49.8
			
			
			 
			
		


			Total
			
			
			 
			
			
			15,926.5
			
			
			 
			
			
			128.4
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			354.4
			
		

 Source: SGX, Refinitiv, Bloomberg (Data as of 3 September 2021)

 

All five stocks tabled above reported earnings growth in August:



On 13 August, Olam International reported its strongest operational earnings since inception. The CEO attributed the Groups strong results for its 1HFY21 (ended 30 June) to the food security agenda, rising protein consumption, emerging markets food staples and industrial and fibre demand growth, rising technology adoption and sustainability focus. The company has secured three committed loan facilities aggregating US$5.2 billion with a term loan facility for general corporate purposes, and bridge loan facilities will be used to facilitate Olam International’s re-organisation Plan. Olam International’s Olam Food Ingredients (“OFI”) intends to seek primary listing on the London Stock Exchange, with a concurrent listing in Singapore. OFI was created in early 2020 following a re-organisation of Olam to unlock and maximise Olam’s long-term value, including an IPO and concurrent demerger by the first half of 2022. Olam International presently ranks just outside the top 50 stocks by trading turnover for the 2021 year to 3 Sep following its ranking as the 100th most traded stock in 2020. Based on current market values, effective the Friday 17 September close, Olam Intl will also be the top placed stock in the STI Reserve List (joining Suntec REIT, Keppel REIT, Frasers Centrepoint Trust and NetLink NBN Trust). 
	 
	On 12 Aug close, Frencken Group reported 1HFY21 (ended 30 June) PATMI of $31.3 million, an increase of 67.2% YoY, attributed to the continued strength of the semiconductor industry, recovery of certain business segments affected by the COVID outbreak in 1HFY20, as well as the Group’s continual efforts to engage customers. With regard to potential business and operational impacts arising from supply chain disruptions and soaring freight costs, Frencken Group noted back in April it had witnessed across-the-board price increases of raw materials for both its Mechatronics and IMS Divisions, however, certain contracts with customers provide the leeway for the Group to pass on these costs to customers if material prices increase above a certain threshold. The Group added it is in close communications with its customers on their forecasts and plans to ensure the supply chain is in sync and to enable early mitigation of potential challenges. 
	 
	Yangzijiang Shipbuilding has now secured orders for 118 vessels at a contract value of US$7.2 billion this year. When reporting 39% YoY growth in its 1HFY21 (ended 30 June) PATMI to RMB 1.64 billion for 1H2021 on 5 Aug, the company cited a Clarksons report that started that global new shipbuilding orders in 1HFY21 made a seven year high, with a total contract value of US$52 billion, underpinned by huge number of orders placed for containerships which accounted for more than half of the new shipbuilding orders in the first half of 2021. 
	 
	On 3 Aug, OUE reported a turnaround profit attributable to shareholders of S$30.1 million for its 1HFY21 (ended 30 June) on the back of an increase in profit attributable to shareholders was mainly due to the absence of fair value loss recognised on US Bank Tower in 1HFY20. The disposal of US Bank Tower in September 2020 and partial divestment of the OUE Bayfront Property in March 2021 enabled the Group to improve its net gearing by paring down existing debt and strengthening its cash reserves to weather the challenging operating environment. OUE has bought back 5.1 million shares or 0.6% of its shares as of the 30 April approved mandate to buy back up to 10% of its outstanding shares (excl. treasury shares). The preceding mandate saw OUE buy back 2.4% of its shares.  
	 
	On 13 Aug, The Straits Trading Company reported an increase in 1HFY21 (ended June 30) EBITDA to S$186.9 million, compared to S$27.7 million in 1HFY20. With the results, executive chairman Chew Gek Khim noted that despite the global pandemic, the group's performance in 1HFY21 demonstrated the resilience of its strategy as a conglomerate investment company, with both operations as well as financial investments in real estate, hospitality, and resources.

 

Since the end of July, the FTSE ST All-Share Index has declined 2.2% in price, however the seasonally heavy month for dividends in August trimmed the decline in total return to 1.0%.  Nanofilm Technologies International, Singapore Exchange, Sembcorp Marine,

Hutchison Port Holdings Trust and Japfa were the least performing stocks of the FTSE ST All-Share Index over the five weeks, averaging a 15.6% decline in total return.  Following the September Index rebalancing, Aztech Global, G.H.Y Culture &amp; Media Holding, The Place Holdings and PropNex will join the FTSE ST All-Share Index effective the 17 Sep close. 



5 Strongest Index Stocks over the Past 5 Weeks 