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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AEM Holdings has started 2021 as Singapore’s most traded technology stock. So far this year, Singapore’s 10 most traded technology stocks have averaged S$90 million in turnover a day, while being recipient to S$100 million in net institutional inflow. 
	 </li>
	<li>
The 10 technology stocks generated 11% median and 19% average gains over the first 15 sessions of 2021, following average gains of 32% in 2020. ISDN and UMS Holdings have led the 10 stocks since the turn of the year. Since the end of Sep 2020, both UMS and Frencken’s gains have paralleled the SOX. 
	 </li>
	<li>Back in August, ISDN reported a 73% surge in 1H2020 (ended 30 June) net profits, with the industrial automation firm expected to report its FY20 results by late February. During its 2H20 a German Laboratory confirmed the efficacy of ISDN's Waterliq as a disinfectant against COVID-19 on surfaces.</li>
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Singapore’s most traded technology stocks began 2021 on a firm note, with the 10 most traded stocks of the genre generating a median gain of 11% over 15 trading sessions. This maginally outpaces the 7% median gain of the top quartile of global hardware and semiconductor stocks, and followed similar parallels last year with these 10 Singapore stocks generating a 30% median total return, outpacing the global top quartile total return, at 25%. While demand was a key driver in 2020, supply factors have played a role in early 2021.

 

Like the Philadelphia Semiconductor Index (“SOX”), UMS Holdings has posted double digit gains in the month this far, which has coincided with reports of demand for semiconductors by global car manufacturers outweighing supply. Integrated circuits and semiconductors maintain an increasingly wide field of application, and should note that the Chairman and CEO of UMS Holdings did signal potential supply constraints last year, noting the resurgence of COVID-19, trade tensions and currency volatility meant the group would stay prudent and sharpen its production efficiencies and supply chain networks to cope with the challenges ahead. The global semiconductor industry saw a cyclcial downturn in the first half of 2019.
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2021-01/Capture_27.PNG' alt='SOX Index' />
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 <div class='content-caption'>SOX Index</div>
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The paralleled perfomances of the SOX, UMS Holdings and Frencken Group are illustarted below. While Frencken Group reported a 10% decline in revenue in its 1HFY20 (ened 30 June), the semiconductor segment sales grew 74% yoy to S$88 million, with higher orders for both front-endand back-end semiconductor equipment from customers in Europe and Asia, reflecting the strong recovery of the global semiconductor industry which saw a cyclcial downturn in 1HFY19. The SOX has gained 37% from the end of September 2020, while UMS Holdings and Frencken Group have seen respective 37% and 41% price gains. UMS Holdings’ share price has rallied from 99.0 cents per share at the end of September 2020, to S$1.36 on 22 Janaury, whilst Frencken Group’s hare price has rallied from 98.5 cents at the end of September 2020, to S$1.39 on 22 January. AEM Holdings has started 2021 as Singapore’s most traded technology stock. So far this year, Singapore’s 10 most traded technology stocks have averaged S$90 million in turnover a day, while being recipient to S$100 million in net institutional inflow. As noted above, the 10 technology stocks generated an 11% median gains over the first 15 sessions of 2021, following median gains of 30% in 2020. 
While the median and average gains of the 10 stocks were similar in 2021, the average is skewed over the past 15 sessions due to the performance of ISDN Holdings. Back in August, ISDN Holdings reported a 73% surge in 1HFY20 (ended 30 June) net profits, with the industrial automation firm expected to report its FY20 results by late February. During its 2HFY20 a German Laboratory confirmed the efficacy of ISDN's Waterliq as a disinfectant against COVID-19 on surfaces. ISDN Holdings also led the gains of the 10 stocks in 2020, followed by AEM Holdings and Nanofilm Technologies. 
Investors who subscribed for the Nanofilm Technologies IPO at S$2.59 on 30 October have doubled their money, based on the share price of S$5.21 on 22 January. Had investors bought the stock on the 30 October open at S$2.77, those investors have still made close to 90%. While Nanofilm Technologies has seen comparatively less net institutional inflow over the past 15 sessions, the stock was also recipient to net retail inflow over the 15 sessions. Fu Yu Corporation now leads the 10 stocks in net institutional inflows for the 2021 year to date. Fu Yu Corporation saw net institutional inflows close to S$50 million last week, with co-founders Ching Heng Yang, Ho Nee Kit and Tam Wai selling a 29.8% stake in the precision plastic products manufacturer for S$58.3 million to local fund management firm Pilgrim Partners Asia. This followed the co-founder resignations on 18 January (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/6CZM3TURNA43EYNE/017dbd172efea1443ea24620af19935ecf244d260f96307355bd702b8950c0c8">here</a> for more), with the company noting the co-founders established the business in 1978 and worked tirelessly over the past 42 years to grow the Group into one of the largest manufacturers of precision plastic products in Asia today. 
The 10 stocks, sort by highest daily turnover over the past 15 trading sessions, are tabled below.

<table class="table table-striped"><tbody>
<tr>
<td>
			10 Most Traded Technology Stocks in 2021 YTD
			</td>
			<td>
			SGX 

			Code
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			2021 YTD Average Daily Turnover S$M
			</td>
			<td>
			YTD Net Insti Flow S$M 
			</td>
			<td>
			2021 YTD Total Return 
			</td>
			<td>
			2020 Total Return 
			</td>
			<td>
			180 Day Volatility
			</td>
		</tr>
<tr>
<td>
			AEM
			</td>
			<td>
			AWX
			</td>
			<td>
			1146
			</td>
			<td>
			19
			</td>
			<td>
			26.0
			</td>
			<td>
			21%
			</td>
			<td>
			75%
			</td>
			<td>
			49%
			</td>
		</tr>
<tr>
<td>
			Venture
			</td>
			<td>
			V03
			</td>
			<td>
			5890
			</td>
			<td>
			16
			</td>
			<td>
			-2.2
			</td>
			<td>
			5%
			</td>
			<td>
			25%
			</td>
			<td>
			26%
			</td>
		</tr>
<tr>
<td>
			ISDN
			</td>
			<td>
			I07
			</td>
			<td>
			320
			</td>
			<td>
			14
			</td>
			<td>
			2.1
			</td>
			<td>
			81%
			</td>
			<td>
			79%
			</td>
			<td>
			74%
			</td>
		</tr>
<tr>
<td>
			UMS
			</td>
			<td>
			558
			</td>
			<td>
			725
			</td>
			<td>
			13
			</td>
			<td>
			21.6
			</td>
			<td>
			26%
			</td>
			<td>
			10%
			</td>
			<td>
			38%
			</td>
		</tr>
<tr>
<td>
			Nanofilm
			</td>
			<td>
			MZH
			</td>
			<td>
			3441
			</td>
			<td>
			11
			</td>
			<td>
			0.5
			</td>
			<td>
			18%
			</td>
			<td>
			70%
			</td>
			<td>
			59%
			</td>
		</tr>
<tr>
<td>
			Fu Yu
			</td>
			<td>
			F13
			</td>
			<td>
			218
			</td>
			<td>
			6
			</td>
			<td>
			47.1
			</td>
			<td>
			9%
			</td>
			<td>
			10%
			</td>
			<td>
			36%
			</td>
		</tr>
<tr>
<td>
			Frencken
			</td>
			<td>
			E28
			</td>
			<td>
			593
			</td>
			<td>
			5
			</td>
			<td>
			5.0
			</td>
			<td>
			5%
			</td>
			<td>
			47%
			</td>
			<td>
			48%
			</td>
		</tr>
<tr>
<td>
			Valuetronics
			</td>
			<td>
			BN2
			</td>
			<td>
			289
			</td>
			<td>
			2
			</td>
			<td>
			-1.3
			</td>
			<td>
			13%
			</td>
			<td>
			-24%
			</td>
			<td>
			33%
			</td>
		</tr>
<tr>
<td>
			Hi-P
			</td>
			<td>
			H17
			</td>
			<td>
			1607
			</td>
			<td>
			2
			</td>
			<td>
			1.9
			</td>
			<td>
			-1%
			</td>
			<td>
			34%
			</td>
			<td>
			46%
			</td>
		</tr>
<tr>
<td>
			CSE Global
			</td>
			<td>
			544
			</td>
			<td>
			261
			</td>
			<td>
			2
			</td>
			<td>
			0.7
			</td>
			<td>
			9%
			</td>
			<td>
			-10%
			</td>
			<td>
			32%
			</td>
		</tr>
<tr>
<td>
			Median 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			11%
			</td>
			<td>
			30%
			</td>
			<td>
			42%
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			19%
			</td>
			<td>
			32%
			</td>
			<td>
			44%
			</td>
		</tr>
</tbody></table>
 Source: Refinitiv, Bloomberg, SGX StockFacts (Data as of 22 January 2021)

 

The next most traded Singapore technology companies so far this year include Sunningdale Tech, Broadway Industrial Group and Grant Venture Technology.  The latter stock has gained 61% over the 15 sessions. On 14 January, Metalbank Singapore entered into a sale and purchase agreement to sell 7.52 million ordinary shares of Grand Venture Technology (“GVT”) to Sunshine Ventures. This followed the announcement of a conditional placement agreement with NT SPV 12 for the allotment and issue of an aggregate of 71,527,000 new ordinary shares in the capital of GVT on 12 January. NT SPV 12 is a limited liability company incorporated in the Cayman Islands and is a wholly owned subsidiary of private equity fund Novo Tellus PE Fund 2, LP. 
As highlighted in a 10 in 10 interview with the Singapore Exchange Research Team in December, GVT has enjoyed rapid growth over the past few years with its products progressing from incubation stage to mass production, revenue in FY19 (ended Dec 30) more than doubled and net assets grew nearly tenfold (click <a href="https://api2.sgx.com/sites/default/files/market-dialogues/migration/10%20in%2010%20with%20Grand%20Venture%20Technology%20-%20Revolutionising%20Precision%20Engineering.pdf">here</a> for more).
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AEM Holdings has started 2021 as Singapore’s most traded technology stock. So far this year, Singapore’s 10 most traded technology stocks have averaged S$90 million in turnover a day, while being recipient to S$100 million in net institutional inflow.  
	 
	
The 10 technology stocks generated 11% median and 19% average gains over the first 15 sessions of 2021, following average gains of 32% in 2020. ISDN and UMS Holdings have led the 10 stocks since the turn of the year. Since the end of Sep 2020, both UMS and Frencken’s gains have paralleled the SOX. 
	 
	Back in August, ISDN reported a 73% surge in 1H2020 (ended 30 June) net profits, with the industrial automation firm expected to report its FY20 results by late February. During its 2H20 a German Laboratory confirmed the efficacy of ISDN's Waterliq as a disinfectant against COVID-19 on surfaces.

 

Singapore’s most traded technology stocks began 2021 on a firm note, with the 10 most traded stocks of the genre generating a median gain of 11% over 15 trading sessions. This maginally outpaces the 7% median gain of the top quartile of global hardware and semiconductor stocks, and followed similar parallels last year with these 10 Singapore stocks generating a 30% median total return, outpacing the global top quartile total return, at 25%. While demand was a key driver in 2020, supply factors have played a role in early 2021.

 

Like the Philadelphia Semiconductor Index (“SOX”), UMS Holdings has posted double digit gains in the month this far, which has coincided with reports of demand for semiconductors by global car manufacturers outweighing supply. Integrated circuits and semiconductors maintain an increasingly wide field of application, and should note that the Chairman and CEO of UMS Holdings did signal potential supply constraints last year, noting the resurgence of COVID-19, trade tensions and currency volatility meant the group would stay prudent and sharpen its production efficiencies and supply chain networks to cope with the challenges ahead. The global semiconductor industry saw a cyclcial downturn in the first half of 2019.



      
    
    SOX Index


The paralleled perfomances of the SOX, UMS Holdings and Frencken Group are illustarted below. While Frencken Group reported a 10% decline in revenue in its 1HFY20 (ened 30 June), the semiconductor segment sales grew 74% yoy to S$88 million, with higher orders for both front-endand back-end semiconductor equipment from customers in Europe and Asia, reflecting the strong recovery of the global semiconductor industry which saw a cyclcial downturn in 1HFY19. The SOX has gained 37% from the end of September 2020, while UMS Holdings and Frencken Group have seen respective 37% and 41% price gains. UMS Holdings’ share price has rallied from 99.0 cents per share at the end of September 2020, to S$1.36 on 22 Janaury, whilst Frencken Group’s hare price has rallied from 98.5 cents at the end of September 2020, to S$1.39 on 22 January.  AEM Holdings has started 2021 as Singapore’s most traded technology stock. So far this year, Singapore’s 10 most traded technology stocks have averaged S$90 million in turnover a day, while being recipient to S$100 million in net institutional inflow. As noted above, the 10 technology stocks generated an 11% median gains over the first 15 sessions of 2021, following median gains of 30% in 2020.  
While the median and average gains of the 10 stocks were similar in 2021, the average is skewed over the past 15 sessions due to the performance of ISDN Holdings. Back in August, ISDN Holdings reported a 73% surge in 1HFY20 (ended 30 June) net profits, with the industrial automation firm expected to report its FY20 results by late February. During its 2HFY20 a German Laboratory confirmed the efficacy of ISDN's Waterliq as a disinfectant against COVID-19 on surfaces. ISDN Holdings also led the gains of the 10 stocks in 2020, followed by AEM Holdings and Nanofilm Technologies.  
Investors who subscribed for the Nanofilm Technologies IPO at S$2.59 on 30 October have doubled their money, based on the share price of S$5.21 on 22 January. Had investors bought the stock on the 30 October open at S$2.77, those investors have still made close to 90%. While Nanofilm Technologies has seen comparatively less net institutional inflow over the past 15 sessions, the stock was also recipient to net retail inflow over the 15 sessions.  Fu Yu Corporation now leads the 10 stocks in net institutional inflows for the 2021 year to date. Fu Yu Corporation saw net institutional inflows close to S$50 million last week, with co-founders Ching Heng Yang, Ho Nee Kit and Tam Wai selling a 29.8% stake in the precision plastic products manufacturer for S$58.3 million to local fund management firm Pilgrim Partners Asia. This followed the co-founder resignations on 18 January (click here for more), with the company noting the co-founders established the business in 1978 and worked tirelessly over the past 42 years to grow the Group into one of the largest manufacturers of precision plastic products in Asia today.  
The 10 stocks, sort by highest daily turnover over the past 15 trading sessions, are tabled below.




			10 Most Traded Technology Stocks in 2021 YTD
			
			
			SGX 

			Code
			
			
			Mkt Cap S$M
			
			
			2021 YTD Average Daily Turnover S$M
			
			
			YTD Net Insti Flow S$M 
			
			
			2021 YTD Total Return 
			
			
			2020 Total Return 
			
			
			180 Day Volatility
			
		


			AEM
			
			
			AWX
			
			
			1146
			
			
			19
			
			
			26.0
			
			
			21%
			
			
			75%
			
			
			49%
			
		


			Venture
			
			
			V03
			
			
			5890
			
			
			16
			
			
			-2.2
			
			
			5%
			
			
			25%
			
			
			26%
			
		


			ISDN
			
			
			I07
			
			
			320
			
			
			14
			
			
			2.1
			
			
			81%
			
			
			79%
			
			
			74%
			
		


			UMS
			
			
			558
			
			
			725
			
			
			13
			
			
			21.6
			
			
			26%
			
			
			10%
			
			
			38%
			
		


			Nanofilm
			
			
			MZH
			
			
			3441
			
			
			11
			
			
			0.5
			
			
			18%
			
			
			70%
			
			
			59%
			
		


			Fu Yu
			
			
			F13
			
			
			218
			
			
			6
			
			
			47.1
			
			
			9%
			
			
			10%
			
			
			36%
			
		


			Frencken
			
			
			E28
			
			
			593
			
			
			5
			
			
			5.0
			
			
			5%
			
			
			47%
			
			
			48%
			
		


			Valuetronics
			
			
			BN2
			
			
			289
			
			
			2
			
			
			-1.3
			
			
			13%
			
			
			-24%
			
			
			33%
			
		


			Hi-P
			
			
			H17
			
			
			1607
			
			
			2
			
			
			1.9
			
			
			-1%
			
			
			34%
			
			
			46%
			
		


			CSE Global
			
			
			544
			
			
			261
			
			
			2
			
			
			0.7
			
			
			9%
			
			
			-10%
			
			
			32%
			
		


			Median 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			11%
			
			
			30%
			
			
			42%
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			19%
			
			
			32%
			
			
			44%
			
		

 Source: Refinitiv, Bloomberg, SGX StockFacts (Data as of 22 January 2021)

 

The next most traded Singapore technology companies so far this year include Sunningdale Tech, Broadway Industrial Group and Grant Venture Technology.  The latter stock has gained 61% over the 15 sessions. On 14 January, Metalbank Singapore entered into a sale and purchase agreement to sell 7.52 million ordinary shares of Grand Venture Technology (“GVT”) to Sunshine Ventures. This followed the announcement of a conditional placement agreement with NT SPV 12 for the allotment and issue of an aggregate of 71,527,000 new ordinary shares in the capital of GVT on 12 January. NT SPV 12 is a limited liability company incorporated in the Cayman Islands and is a wholly owned subsidiary of private equity fund Novo Tellus PE Fund 2, LP.  
As highlighted in a 10 in 10 interview with the Singapore Exchange Research Team in December, GVT has enjoyed rapid growth over the past few years with its products progressing from incubation stage to mass production, revenue in FY19 (ended Dec 30) more than doubled and net assets grew nearly tenfold (click here for more).



Singapore’s Technology Stocks Make Firm Start to 2021  