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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In the 2022 YTD, Malaysian Crude Palm Oil Futures have rallied 17% to MYR 5,500/MT, following a 30% rally in 2021. Gains have extended to Singapore-listed non-cyclical consumer stocks that maintain upstream palm oil production activities. Golden Agri-Res, First Resources, Bumitama Agri have averaged 17% YTD returns. 
	 </li>
	<li>
The 2022 YTD has also seen Indonesia require permits for palm oil exporters, with producers to set aside 20% of planned export volumes for a mandatory domestic sale and Malaysia palm oil stockpiles declining on tight labour conditions following the 2021 border restrictions. 
	 </li>
	<li>Olam Intl is currently the largest stock of the STI Reserve List and 21st largest stock of the FTSE ST All-Share Index. It will release its FY21 (ended 31 Dec) results before the 28 Feb open.</li>
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In the 2022 YTD, Malaysian Crude Palm Oil (CPO) Futures have rallied 17% to MYR 5,500/MT, following a 30% rally in 2021. The decline in global output continuing into early 2022 has seen <a href="https://www.reuters.com/article/indonesia-palmoil-idAFJ9N2S101Q">Indonesia</a> requiring permits for palm oil exports, with producers to set aside 20% of planned export volumes for a mandatory domestic sale, while the world biggest importer of crude palm oil, <a href="https://www.reuters.com/world/india/india-cuts-tax-crude-palm-oil-imports-help-consumers-refiners-2022-02-13/">India</a>, is cutting taxes on crude palm oil imports to help refiners and consumers. Meanwhile, <a href="https://www.reuters.com/markets/commodities/malaysia-end-dec-palm-oil-stocks-smaller-than-expected-output-plummets-2022-01-10/">Malaysia</a> palm oil stockpiles have continued to tighten amid recent flooding. 
Aside from the supply chain factors pertaining to 2021, the Council of Palm Oil Producing Countries <a href="https://www.cpopc.org/wp-content/uploads/2021/12/CPOPC-OUTLOOK-2022.pdf">maintains</a> there has been structural changes in the global palm oil supply due to a slowdown in new plantings throughout Indonesia and Malaysia since 2015. The majority of global CPO production is located in Indonesia and Malaysia, while India and China, Europe and the United States are among the biggest importers. Palm Oil is used for food and industrial products across the world and also used for bioenergy. 
Golden Agri-Resources has added 14% its 60% gain in 2021, First Resources has added 20% to its 21% gain in 2021 and Bumitama Agri has added 18% to its 11% gain in 2021. Together with Wilmar International and Olam International the five most traded Agri and Food Ingredient Plays have averaged 13% gains in the 2022 YTD, outpacing the STI’s 10% gain.

<table class="table table-striped"><tbody>
<tr>
<td>
			Most Traded SGX-listed Agri and Food Ingredient Plays in 2022 YTD 
			</td>
			<td>
			Code
			</td>
			<td>
			Mkt Cap (S$M)
			</td>
			<td>
			YTD Net Insti Flow (S$M)
			</td>
			<td>
			YTD Avg. Daily T/O (S$M)
			</td>
			<td>
			MTD Total Return %
			</td>
			<td>
			YTD Total Return 

			%
			</td>
			<td>
			2021 Total Return 

			%
			</td>
			<td>
			P/B 

			(x)
			</td>
		</tr>
<tr>
<td>
			Wilmar Intl*
			</td>
			<td>
			F34
			</td>
			<td>
			29,715
			</td>
			<td>
			82.2
			</td>
			<td>
			26.2
			</td>
			<td>
			11
			</td>
			<td>
			14
			</td>
			<td>
			-7
			</td>
			<td>
			1.2
			</td>
		</tr>
<tr>
<td>
			Olam Intl**
			</td>
			<td>
			O32
			</td>
			<td>
			6540
			</td>
			<td>
			2.7
			</td>
			<td>
			4.3
			</td>
			<td>
			5
			</td>
			<td>
			1
			</td>
			<td>
			24
			</td>
			<td>
			1.0
			</td>
		</tr>
<tr>
<td>
			Golden Agri-Res
			</td>
			<td>
			E5H
			</td>
			<td>
			3554
			</td>
			<td>
			10.7
			</td>
			<td>
			2.8
			</td>
			<td>
			14
			</td>
			<td>
			14
			</td>
			<td>
			60
			</td>
			<td>
			0.6
			</td>
		</tr>
<tr>
<td>
			First Resources
			</td>
			<td>
			EB5
			</td>
			<td>
			2854
			</td>
			<td>
			1.8
			</td>
			<td>
			2.5
			</td>
			<td>
			10
			</td>
			<td>
			20
			</td>
			<td>
			21
			</td>
			<td>
			2.0
			</td>
		</tr>
<tr>
<td>
			Bumitama Agri
			</td>
			<td>
			P8Z
			</td>
			<td>
			1101
			</td>
			<td>
			1.1
			</td>
			<td>
			0.3
			</td>
			<td>
			15
			</td>
			<td>
			18
			</td>
			<td>
			11
			</td>
			<td>
			1.3
			</td>
		</tr>
<tr>
<td>
			Total 
			</td>
			<td>
			 
			</td>
			<td>
			43,765
			</td>
			<td>
			98
			</td>
			<td>
			36
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			11
			</td>
			<td>
			13
			</td>
			<td>
			22
			</td>
			<td>
			1.2
			</td>
		</tr>
</tbody></table>
 * For upstream origination, Wilmar Intl maintains oil palm plantation (FFB 4.0 MT in FY20) and sugar milling (Volume 3.5 MT in FY20), which include the cultivation and milling. **Olam Palm Gabon is the largest RSPO-certified palm plantation in Africa. Source: SGX, Refinitiv, Bloomberg (Data as of 16 Feb 2022)

 

Olam International has added 1% to its 24% gain in 2021, with the Group maintaining that the proposed demerger of Olam International is expected to enhance value by streamlining the group's portfolio and improve its overall financial position, as <a href="https://www.businesstimes.com.sg/companies-markets/olams-demerger-will-enhance-shareholder-value-improve-financial-position-it-tells">reported</a> by the Business Times.  Ahead of the scheme meeting and extraordinary meeting scheduled for 18 Feb, Olam International <a href="https://links.sgx.com/1.0.0/corporate-announcements/L6ACG2GZVM18MWY0/7ccd5742cbb168e18b07ba4bc493bfafe8b517d1202e94f55a1e44e7556c08ec">filed</a>  Responses to Substantial and Relevant Questions from Shareholders on 12 Feb. 
Olam International is also scheduled to release its FY21 (ended 31 Dec) results before the 28 Feb open. For its 1HFY21, the Group <a href="https://links.sgx.com/1.0.0/corporate-announcements/2CFK6BOFOOE8X36P/822a0a499fefbf4f29fd378c7077dd2f415805c1183c5c32311242d59695ef96">reported</a> its strongest operational PATMI since inception as it moved forward with its Re-organisation Plan, announced in Jan 2020. Olam International’s value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a sourcing network of an estimated 5.0 million farmers. Olam Group has been re-organised into two new operating groups Olam Food Ingredients and Olam Global Agri with the Company Olam International as parent holding the two groups until carve-out, IPO and demergers associated with the Re-organisation Plan are completed. Olam International is currently the largest stock of the STI Reserve List by market capitalisation and also ranks 21st largest stock of the FTSE ST All-Share Index. Note that a stock will be inserted into the STI at the quarterly review if it rises to 20th position or above when the eligible securities are ranked by full market capitalisation (before the application of any investability weightings). The full STI Ground Rules can be found <a href="https://research.ftserussell.com/products/downloads/Straits_Times_Index_Ground_Rules.pdf">here</a>.
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In the 2022 YTD, Malaysian Crude Palm Oil Futures have rallied 17% to MYR 5,500/MT, following a 30% rally in 2021. Gains have extended to Singapore-listed non-cyclical consumer stocks that maintain upstream palm oil production activities. Golden Agri-Res, First Resources, Bumitama Agri have averaged 17% YTD returns. 
	 
	
The 2022 YTD has also seen Indonesia require permits for palm oil exporters, with producers to set aside 20% of planned export volumes for a mandatory domestic sale and Malaysia palm oil stockpiles declining on tight labour conditions following the 2021 border restrictions. 
	 
	Olam Intl is currently the largest stock of the STI Reserve List and 21st largest stock of the FTSE ST All-Share Index. It will release its FY21 (ended 31 Dec) results before the 28 Feb open.

 

In the 2022 YTD, Malaysian Crude Palm Oil (CPO) Futures have rallied 17% to MYR 5,500/MT, following a 30% rally in 2021. The decline in global output continuing into early 2022 has seen Indonesia requiring permits for palm oil exports, with producers to set aside 20% of planned export volumes for a mandatory domestic sale, while the world biggest importer of crude palm oil, India, is cutting taxes on crude palm oil imports to help refiners and consumers. Meanwhile, Malaysia palm oil stockpiles have continued to tighten amid recent flooding.  
Aside from the supply chain factors pertaining to 2021, the Council of Palm Oil Producing Countries maintains there has been structural changes in the global palm oil supply due to a slowdown in new plantings throughout Indonesia and Malaysia since 2015. The majority of global CPO production is located in Indonesia and Malaysia, while India and China, Europe and the United States are among the biggest importers. Palm Oil is used for food and industrial products across the world and also used for bioenergy.  
Golden Agri-Resources has added 14% its 60% gain in 2021, First Resources has added 20% to its 21% gain in 2021 and Bumitama Agri has added 18% to its 11% gain in 2021. Together with Wilmar International and Olam International the five most traded Agri and Food Ingredient Plays have averaged 13% gains in the 2022 YTD, outpacing the STI’s 10% gain.




			Most Traded SGX-listed Agri and Food Ingredient Plays in 2022 YTD 
			
			
			Code
			
			
			Mkt Cap (S$M)
			
			
			YTD Net Insti Flow (S$M)
			
			
			YTD Avg. Daily T/O (S$M)
			
			
			MTD Total Return %
			
			
			YTD Total Return 

			%
			
			
			2021 Total Return 

			%
			
			
			P/B 

			(x)
			
		


			Wilmar Intl*
			
			
			F34
			
			
			29,715
			
			
			82.2
			
			
			26.2
			
			
			11
			
			
			14
			
			
			-7
			
			
			1.2
			
		


			Olam Intl**
			
			
			O32
			
			
			6540
			
			
			2.7
			
			
			4.3
			
			
			5
			
			
			1
			
			
			24
			
			
			1.0
			
		


			Golden Agri-Res
			
			
			E5H
			
			
			3554
			
			
			10.7
			
			
			2.8
			
			
			14
			
			
			14
			
			
			60
			
			
			0.6
			
		


			First Resources
			
			
			EB5
			
			
			2854
			
			
			1.8
			
			
			2.5
			
			
			10
			
			
			20
			
			
			21
			
			
			2.0
			
		


			Bumitama Agri
			
			
			P8Z
			
			
			1101
			
			
			1.1
			
			
			0.3
			
			
			15
			
			
			18
			
			
			11
			
			
			1.3
			
		


			Total 
			
			
			 
			
			
			43,765
			
			
			98
			
			
			36
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			11
			
			
			13
			
			
			22
			
			
			1.2
			
		

 * For upstream origination, Wilmar Intl maintains oil palm plantation (FFB 4.0 MT in FY20) and sugar milling (Volume 3.5 MT in FY20), which include the cultivation and milling. **Olam Palm Gabon is the largest RSPO-certified palm plantation in Africa. Source: SGX, Refinitiv, Bloomberg (Data as of 16 Feb 2022)

 

Olam International has added 1% to its 24% gain in 2021, with the Group maintaining that the proposed demerger of Olam International is expected to enhance value by streamlining the group's portfolio and improve its overall financial position, as reported by the Business Times.  Ahead of the scheme meeting and extraordinary meeting scheduled for 18 Feb, Olam International filed  Responses to Substantial and Relevant Questions from Shareholders on 12 Feb.  
Olam International is also scheduled to release its FY21 (ended 31 Dec) results before the 28 Feb open. For its 1HFY21, the Group reported its strongest operational PATMI since inception as it moved forward with its Re-organisation Plan, announced in Jan 2020. Olam International’s value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a sourcing network of an estimated 5.0 million farmers. Olam Group has been re-organised into two new operating groups Olam Food Ingredients and Olam Global Agri with the Company Olam International as parent holding the two groups until carve-out, IPO and demergers associated with the Re-organisation Plan are completed.  Olam International is currently the largest stock of the STI Reserve List by market capitalisation and also ranks 21st largest stock of the FTSE ST All-Share Index. Note that a stock will be inserted into the STI at the quarterly review if it rises to 20th position or above when the eligible securities are ranked by full market capitalisation (before the application of any investability weightings). The full STI Ground Rules can be found here.



Most Traded Agri and Food Ingredient Plays Outpace STI in 2022 YTD