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

Frasers Logistics & Commercial Trust / Equity Bottom-Up

Frasers Logistics & Commercial Trust (FLT SP)





While local earnings reports remain firmly in focus, recent institutional flows have been broadly aligned with global trends since the end of June. This had included broad rotation from stocks to bonds, and within the global stock market, rotation to sectors such as Technology Hardware and REITs, that have outpaced global benchmarks. 
	 
	
In Singapore, Fixed Income ETFs saw combined net inflows of S$256 million since the end of June, three times higher than Equity ETFs, with the ICBC CSOP FTSE Chinese Government Bond ETF, iShares Barclays USD Asia High Yield Bond Index ETF and ABF Singapore Bond Index Fund ETF ranking among the top five ETFs by net inflows. 
	 
	Globally, Technology and REIT Sectors have led, while the Lodging, Real Estate (Non-REIT) and Transport Sectors have trailed since the end of June. In Singapore, the majority of the 20 stocks that were recipient to the highest net institutional inflow from the end of June through to 6 August also represented the REIT and Technology Sectors. 

 

The 3Q21 to date has seen most Asian equity markets subject to international outflows with global portfolio managers rotating to bond markets. The FTSE World Government Bond Index has gained 1.1% since the end of June, paring its 2021 year-to-date decline to 3.8%, with 10-year UST gains seeing their benchmark yield decline from 1.47% to 1.31%.  The recent rotation to Fixed Income markets was also observed in Singapore-listed ETFs. Across the four major Singapore-listed ETF asset classes, Fixed Income ETFs recorded the highest combined net inflows of S$256 million in 3Q-to-date, three times higher than the Equity ETFs. The ICBC CSOP FTSE Chinese Government Bond ETF, iShares Barclays USD Asia High Yield Bond Index ETF and ABF Singapore Bond Index Fund ETF have ranked among the top five ETFs by net inflows in the 3Q-to-date. Meanwhile the two STI tracking ETFs recorded a combined net outflow of S$3 million over the same period.  During the 3Q21-to-date, the strongest equity sectors across the globe were Technology and REITs. Materials and Resources and Healthcare Product Sectors were also observed to have outpaced. The majority of the Singapore-listed stocks that saw the highest net institutional inflow in the 3Q-to-date as tabled below, represented or were adjacent to these Sectors.  
The stocks recipient to the highest net institutional inflow in the 3Q-to-date are tabled below. Note there are 21 stocks in the table, given both AIMS APAC REIT and Suntec REIT were recipient to S$5.7 million in net institutional inflows. The 21 stocks averaged a 9.9% total return in the 3Q-to-date.




			Stock
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			QTD Net Insti. Flow S$M
			
			
			QTD Total Return %
			
			
			YTD Net Insti. Flow S$M
			
			
			YTD Total Return %
			
			
			Sector
			
		


			CapitaLand
			
			
			C31
			
			
			21,177
			
			
			94.8
			
			
			9.7
			
			
			48.2
			
			
			27.2
			
			
			Real Estate (excl. REITs)
			
		


			AEM
			
			
			AWX
			
			
			1,176
			
			
			58.4
			
			
			8.9
			
			
			-55.8
			
			
			22.3
			
			
			Technology (Hardware/ Software)
			
		


			Ascendas REIT
			
			
			A17U
			
			
			13,087
			
			
			40.0
			
			
			6.4
			
			
			-216.3
			
			
			8.0
			
			
			REITs
			
		


			Mapletree Ind Tr
			
			
			ME8U
			
			
			7,873
			
			
			38.1
			
			
			5.0
			
			
			-62.7
			
			
			6.4
			
			
			REITs
			
		


			Raffles Medical
			
			
			BSL
			
			
			2,746
			
			
			33.5
			
			
			24.6
			
			
			51.4
			
			
			50.4
			
			
			Healthcare
			
		


			SPH
			
			
			T39
			
			
			3,024
			
			
			29.8
			
			
			11.1
			
			
			149.4
			
			
			70.9
			
			
			Consumer Cyclicals
			
		


			Frasers L&amp;C Tr
			
			
			BUOU
			
			
			5,581
			
			
			25.0
			
			
			5.6
			
			
			-10.1
			
			
			11.8
			
			
			REITs
			
		


			UMS
			
			
			558
			
			
			939
			
			
			23.1
			
			
			16.5
			
			
			68.3
			
			
			65.2
			
			
			Technology (Hardware/ Software)
			
		


			Frencken
			
			
			E28
			
			
			948
			
			
			14.0
			
			
			18.7
			
			
			38.0
			
			
			71.7
			
			
			Technology (Hardware/ Software)
			
		


			ARA LOGOS Log Tr
			
			
			K2LU
			
			
			1,269
			
			
			12.7
			
			
			6.0
			
			
			35.6
			
			
			52.4
			
			
			REITs
			
		


			ISDN
			
			
			I07
			
			
			366
			
			
			11.7
			
			
			16.3
			
			
			15.5
			
			
			109.6
			
			
			Industrials
			
		


			ESR-REIT
			
			
			J91U
			
			
			1,731
			
			
			10.1
			
			
			9.7
			
			
			-8.1
			
			
			19.8
			
			
			REITs
			
		


			Rex Intl
			
			
			5WH
			
			
			313
			
			
			10.0
			
			
			31.9
			
			
			10.7
			
			
			64.4
			
			
			Energy/ Oil &amp; Gas
			
		


			YZJ Shipbldg SGD
			
			
			BS6
			
			
			5,923
			
			
			9.7
			
			
			6.4
			
			
			238.5
			
			
			61.8
			
			
			Industrials
			
		


			Lendlease REIT
			
			
			JYEU
			
			
			1,022
			
			
			8.1
			
			
			5.5
			
			
			9.7
			
			
			22.0
			
			
			REITs
			
		


			OUE Com REIT
			
			
			TS0U
			
			
			2,284
			
			
			7.9
			
			
			6.7
			
			
			12.6
			
			
			16.5
			
			
			REITs
			
		


			Golden Agri-Res
			
			
			E5H
			
			
			3,110
			
			
			6.9
			
			
			6.5
			
			
			31.7
			
			
			57.1
			
			
			Consumer Non-Cyclicals
			
		


			Q&amp;M Dental
			
			
			QC7
			
			
			669
			
			
			6.0
			
			
			6.9
			
			
			24.3
			
			
			92.9
			
			
			Healthcare
			
		


			Sembcorp Marine
			
			
			S51
			
			
			1,494
			
			
			5.8
			
			
			-0.8
			
			
			39.6
			
			
			-16.8
			
			
			Industrials
			
		


			AIMS APAC REIT*
			
			
			O5RU
			
			
			1,089
			
			
			5.7
			
			
			6.3
			
			
			7.2
			
			
			29.7
			
			
			REITs
			
		


			Suntec REIT*
			
			
			T82U
			
			
			4,101
			
			
			5.7
			
			
			0.1
			
			
			-56.2
			
			
			0.8
			
			
			REITs
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			9.9
			
			
			 
			
			
			40.8
			
			
			 
			
		


			Total
			
			
			 
			
			
			79,920
			
			
			457
			
			
			 
			
			
			371
			
			
			 
			
			 
		

 Source: SGX, Bloomberg, Refinitiv (Data as of 6 August 2021)* Both stocks recipient to S$5.7 billion of Net Institutional Inflow in 3Q-to-date.  
 

As detailed in the table above, multiple rotations were indicated with net institutional outflows in 1H21 and net institutional inflows in the 3Q-to-date, as observed with AEM Holdings, Ascendas REIT, Mapletree Industrial Trust, Frasers Logistic &amp; Commercial Trust, ESR-REIT and Suntec REIT. Other stocks that have seen the majority of their 2021 year-to-date net institutional inflow logged since the end of June include Raffles Medical Group, ISDN Holdings, Rex International, Lendlease Commercial REIT, OUE Commercial REIT and AIMS APAC REIT. CapitaLand was also recipient to net institutional outflows in 1H21 and net institutional inflows in the 3Q-to-date, while pursuing a significant corporate restructure from a real estate developer to a real estate investment manager. Two other stocks that are also in the process of pursuing significant restructures, Singapore Press Holdings and Sembcorp Marine also ranked among the 20 stocks with the highest net institutional inflow in the 3Q-to-date.   
The three Singapore-listed stocks recipient to the highest net institutional inflows in the 3Q-to-date were CapitaLand, AEM Holdings and Ascendas REIT: 
 



CapitaLand was recipient to S$94.8 million in net institutional inflow in the 3Q-to-date. CapitaLand will be reporting its 1HFY21 (ended 30 June) results on 13 September. CapitaLand has attributed the significant restructure to sharpen its strategic focus that will create CapitaLand Investment, which is poised to be a leading listed global Real Estate Investment Manager, with a strong Asia foothold comprising fund management, lodging management, stakes in listed funds, stakes in unlisted funds and investment properties. The EGM and scheme meeting was held today, for responses to substantial and relevant questions click here. In the 2021 year-to-date leading Real Estate Investment Managers, Brookfield Asset Management Inc and Blackstone Inc have averaged 65.1% total returns in the 2021 year-to-date. 
	 
	
AEM Holdings was recipient to S$58.4 million in net institutional inflow in the 3Q-to-date. On 5 August AEM Holdings reported 1HFY21 (ended 30 June) revenue at S$192.3 million, its second highest 1HFY after the record breaking 1HFY20, and kept its FY21 revenue guidance at S$460 million to S$520 million (FY20 Revenue S$519 million, FY19 Revenue S$323 million, FY18 revenue S$262 million). AEM Holdings also announced itis raising $103.1 million in a private placement to Temasek, with 26.8 million new ordinary shares at an issue price of S$3.8477 per share (representing 9.5% of the total number of issued shares). This is to “bolster its growth opportunities by investing in next generation testing capabilities, deepening research &amp; development to accelerate product portfolio expansion, and funding its mergers and acquisitions plan”. AEM Holdings has generated a 22.3% total return in the 2021 year-to-date with four other test handlers with semiconductor testing listed in the US, Japan and Taiwan averaging 11.5% total returns [Teradyne Inc (+8.1%), Cohu Inc (-7.8%), Advantest Corp (+27.4%) and Chroma ATE Inc (+18.2%)]. Answering an FY21 AGM question, the AEM chair noted COVID-19 has accelerated global digitalisation by 6-8 years, driving significant investment into digital infrastructure for Cloud, 5G, AI, and Autonomous Vehicles, etc., that are powered by next-generation semiconductor devices.  
	 
	
Ascendas REIT was recipient to S$40.0 million in net institutional inflow in the 3Q-to-date. On 2 August, Ascendas REIT reported gross revenue for 1HFY21 (ended 30 June) rose by 12.4% y-o-y to S$586.0 million, mainly attributed to revenue contribution from two office properties in San Francisco, which were acquired in November 2020 and 11 data centres across Europe, which were acquired in March 2021, as well as two suburban offices in Australia, which were acquired in January 2021 and September 2020. In the 2021 year-to-date global Industrial REITs have averaged a 19.4% total return.

 Institutions have also been net sellers of Singapore-listed stocks in the 3Q21-to-date, with S$830 million of net institutional outflow. The 20 stocks recipient to the highest net institutional selling over the period saw S$1.1 billion of net institutional outflow. DBS Group Holdings (“DBS”), Oversea-Chinese Banking Corp (“OCBC”) and United Overseas Bank (“UOB”) were among the five stocks that led the net institutional selling over the period. During the 3Q-to-date, DBS, OCBC and UOB averaged 3.7% returns while recipient to combined net institutional outflows of more than S$330 million. This pared their combined 2021 year-to-date average total return to 23.4% on net institutional inflows to S$1.4 billion. For 2Q21, DBS, OCBC and UOB reported combined Net Interest Income (“NII”) of S$5.13 billion, which was up 3% from 1Q21 and the highest QoQ increase in combined NII since 2Q19. The three banks have been reporting more than S$5.0 billion in combined quarterly NII since the end of 2017. Globally, bank stocks, while broadly level, have lagged the stock market since the end of June, opposed to the significant outpacing observed in the first six months of 2021 on the back of the higher 10 year UST yields. The stocks recipient to the highest net institutional outflow in the 3Q-to-date are tabled below. The 20 stocks averaged a 1.6% decline in total return in the 3Q-to-date.




			Stock
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			QTD Net Insti. Flow S$M
			
			
			QTD Total Return %
			
			
			YTD Net Insti. Flow S$M
			
			
			YTD Total Return %
			
			
			Sector
			
		


			UOB
			
			
			U11
			
			
			44,656
			
			
			-134.7
			
			
			3.1
			
			
			139.9
			
			
			19.7
			
			
			Financial Services
			
		


			CityDev
			
			
			C09
			
			
			6,131
			
			
			-122.3
			
			
			-7.3
			
			
			-269.6
			
			
			-13.8
			
			
			Real Estate (excl. REITs)
			
		


			Singtel
			
			
			Z74
			
			
			37,651
			
			
			-108.5
			
			
			0.6
			
			
			-499.4
			
			
			-0.3
			
			
			Telecommunications
			
		


			DBS
			
			
			D05
			
			
			79,613
			
			
			-99.7
			
			
			4.0
			
			
			842.5
			
			
			25.3
			
			
			Financial Services
			
		


			OCBC Bank
			
			
			O39
			
			
			56,006
			
			
			-98.6
			
			
			3.9
			
			
			388.2
			
			
			25.1
			
			
			Financial Services
			
		


			Wilmar Intl
			
			
			F34
			
			
			28,058
			
			
			-93.6
			
			
			-1.1
			
			
			-184.9
			
			
			-1.5
			
			
			Consumer Non-Cyclicals
			
		


			Genting Sing
			
			
			G13
			
			
			9,531
			
			
			-67.9
			
			
			-5.4
			
			
			-66.5
			
			
			-6.0
			
			
			Consumer Cyclicals
			
		


			Keppel Corp
			
			
			BN4
			
			
			9,899
			
			
			-61.9
			
			
			1.6
			
			
			-121.4
			
			
			4.7
			
			
			Industrials
			
		


			SIA
			
			
			C6L
			
			
			15,074
			
			
			-59.9
			
			
			4.7
			
			
			-262.6
			
			
			18.7
			
			
			Industrials
			
		


			ComfortDelGro
			
			
			C52
			
			
			3,446
			
			
			-41.5
			
			
			-3.0
			
			
			-102.2
			
			
			-4.0
			
			
			Industrials
			
		


			SGX
			
			
			S68
			
			
			11,758
			
			
			-41.4
			
			
			-1.6
			
			
			84.6
			
			
			20.4
			
			
			Financial Services
			
		


			JMH USD
			
			
			J36
			
			
			56,718
			
			
			-34.0
			
			
			-8.6
			
			
			-49.6
			
			
			8.3
			
			
			Industrials
			
		


			HongkongLand USD
			
			
			H78
			
			
			14,035
			
			
			-32.1
			
			
			-6.1
			
			
			-66.1
			
			
			13.8
			
			
			Real Estate (excl. REITs)
			
		


			Mapletree Com Tr
			
			
			N2IU
			
			
			7,108
			
			
			-24.0
			
			
			-0.9
			
			
			-48.9
			
			
			3.0
			
			
			REITs
			
		


			Keppel Infra Tr
			
			
			A7RU
			
			
			2,720
			
			
			-23.5
			
			
			1.5
			
			
			-56.9
			
			
			7.0
			
			
			Utilities
			
		


			SingPost
			
			
			S08
			
			
			1,417
			
			
			-22.9
			
			
			-11.1
			
			
			-41.6
			
			
			-9.9
			
			
			Industrials
			
		


			IFAST
			
			
			AIY
			
			
			2,301
			
			
			-22.2
			
			
			2.1
			
			
			27.7
			
			
			178.2
			
			
			Technology (Hardware/ Software)
			
		


			Sheng Siong
			
			
			OV8
			
			
			2,315
			
			
			-19.6
			
			
			-2.5
			
			
			-103.8
			
			
			1.3
			
			
			Consumer Non-Cyclicals
			
		


			ThaiBev
			
			
			Y92
			
			
			16,578
			
			
			-18.2
			
			
			-2.2
			
			
			-343.0
			
			
			-7.6
			
			
			Consumer Non-Cyclicals
			
		


			Keppel REIT
			
			
			K71U
			
			
			4,118
			
			
			-18.1
			
			
			-3.4
			
			
			3.0
			
			
			5.1
			
			
			REITs
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			-1.6
			
			
			 
			
			
			14.4
			
			
			 
			
		


			Total
			
			
			 
			
			
			409,131
			
			
			-1,144
			
			
			 
			
			
			-731
			
			
			 
			
			
			 
			
		

 Source: SGX, Bloomberg, Refinitiv (Data as of 6 August 2021)



Frasers Logistics & Commercial Trust

Recent Global Trends & Local Flows