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


Singapore’s economy expanded 1.3% YoY in 1Q21, a reversal from the 2.4% YoY contraction in 4Q20. Key drivers of the 1Q21 GDP growth were manufacturing, finance &amp; insurance and wholesale trade sectors, with 11% YoY manufacturing growth and the wholesale trade segment bolstered by a 7% YoY increase in foreign wholesale trade sales volume.  &nbsp;
Strength in the manufacturing, finance &amp; insurance and wholesale trade sectors was also observed in relevant Singapore-listed stocks. Singapore’s 20 most traded manufacturing-related stocks averaged 14% gains in 1Q21, while bank stocks lead global stock markets in 1Q21, and multiple trade and logistic related stocks reported resilient 1Q21 earnings. &nbsp;
MTI maintains a GDP growth forecast for Singapore in 2021 at 4.0% to 6.0%. In 1Q21, Singapore’s 100 most traded stocks by turnover averaged 16% total returns. In the 2Q21 to 24 May, the returns have been comparatively muted, with a 2% average total return.&nbsp; Half of the 10 strongest stocks in 2Q21 to 24 May, have been manufacturing-related.&nbsp;&nbsp; 

&nbsp;
Singapore’s full 1Q21 GDP report, released today, indicated that local economic conditions continued to improve in March, with GDP growing 1.3% YoY, increasing from the preliminary 0.2% reading based on activity in January and February. Key drivers of the GDP growth were manufacturing, finance &amp; insurance and wholesale trade sectors. The report noted that since February, the external economic environment has improved, even though the pandemic continues to disrupt activities in many economies and threatens to undermine any recovery (the full report can be found here). Likewise, social and economic impacts of COVID-19 remain the overarching theme in global markets. As of 23 May, 1.7 billion COVID-19 vaccination doses had been administered across the globe, while total recorded COVID-19 cases stood at 166 million. Regional markets have had a stable start to week with new daily confirmed global COVID-19 cases reaching an eight week low on Sunday, which has followed Thursday’s record of more than 33 million vaccine doses administered in one day.  The strength in Singapore’s manufacturing, finance &amp; insurance and wholesale trade sectors in 1Q21 was echoed in the Singapore stock market. For instance: &nbsp;

Singapore’s Manufacturing Sector expanded 11% YoY in 1Q21, following a 10% YoY expansion in 4Q21. Growth of the sector was supported by output expansions in the electronics, precision engineering and chemicals clusters. Similarly, Singapore’s 20 most traded manufacturing-related stocks that span multiple industries such as Consumer Non-Cyclicals (i.e. food and beverage processing &amp; products), Industrials, Healthcare, Materials and Resources, in addition to Technology averaged 14% gains in 1Q21. In the 2Q21 to 24 May, the same 20 stock have averaged a 4% gain, while the STI generated a 0.2% decline in total return. The five strongest performing manufacturing-related stocks since the end of 1Q21 through to 24 May spanned four industries, with Riverstone Holdings, UG Healthcare Corp representing Healthcare, Jiutian Chemical Group representing Materials and Resources, Yangzijiang Shipbuilding Holdings representing Industrials, and Frencken Group representing Technology. &nbsp;
Globally, Finance Sectors benefited from resilient business investment going into 2021, expansionary monetary policy and a repricing of the short to long term treasury yield curves in 1Q21. This saw bank stocks lead global stock markets in 1Q21. The day-to-day moves of global bank indices were 95% correlated with DBS Group Holdings, Oversea-Chinese Banking Corp and United Overseas Bank in 2020. Likewise, the median gain of the top quartile of globally listed banks is 21% in the 2021 year to 24 May. The Singapore trio continued to move in tandem with their global peers, averaging 19% gains, while being recipient to S$2.1 billion of net institutional and net proprietary inflows in the 2021 year to 2 May. The three banks, which have now consistently reported more than S$5.0 billion in combined quarterly net interest income for more than three years, are pursuing digitalisation, broadening wealth management services, and continuing to focus on supply chains and growth markets. The trio are also currently trading at an average 15% premium to book value, similar to the 18% premium for the top quartile of global banks. DBS Group Holdings’ 1Q21 (ended 31 Mar) net profit doubled from the previous quarter and increased 72% from a year ago, and the first time quarterly earnings crossed SGD 2 billion. &nbsp;

Wholesale trade continued grow in Singapore, in-line with trade growth throughout Asia Pacific. Singapore’s wholesale trade segment was bolstered by a 6.7% increase in foreign wholesale trade sales volume which was in turn a reversal from the 0.5% drop seen in 4Q20. Yangzijiang Shipbuilding Holdings currently maintains the highest levels in its outstanding order book since 2009, with a large proportion of container ships. On 31 March, the World Trade Organisation estimated that global merchandise trade volume would increase by 8.0% in 2021. Food Empire Holdings saw a higher sales contribution from the Group’s South-East Asia market in 1Q21, partially offset by lower contribution from the Group’s CIS and Russia markets, related to Covid-19 disruptions and logistical and supply chain delays at ports of discharge due to lack of shipping containers worldwide. In 1Q21, UMS Holdings saw its sales revenue in Singapore increase 51%, with Malaysia and Taiwan sales revenue growing &nbsp;by grow by 93% and 70% respectively.&nbsp; ARA LOGOS Logistics Trust noted its 1Q21 YoY revenue growth was due to the commencement of new leases at several properties as well as higher revenue generated from the Australia portfolio, and the portfolio committed occupancy rose to 99.1%. EC World REIT also maintains a 99.1% occupancy rate, across its eight logistics and e-commerce focused properties. Total retail sales in China for the first four months of 2021 increased 29.6% YoY, of which, online retail sales of physical goods increased 27.6% YoY. Mapletree Logistic Trust’s portfolio occupancy stood at 97.5% as of 31 March, with the FY20/21 seeing the portfolio acquired 18 well-located modern logistics facilities in China, Vietnam, Australia, Japan, and South Korea and India, as well as the remaining 50% interest in 15 properties in China with a total value of S$1.6 billion. Within Asia, the value of trade between China and its ASEAN partners from 2015 to 2019 has soared. The period saw 91% growth with Vietnam, 61% growth with Indonesia, 31% growth with Malaysia, and 24% growth with both Thailand and Singapore. At the same time, India and South Korea grew their total trade value with China by 15% and 6% respectively. The Regional Comprehensive Economic Partnership is expected to further enhance regional supply chains and the wide range of B2B transactions that underpin wholesale trade.&nbsp; &nbsp;
In 1Q21, Singapore’s 100 most traded stocks by turnover averaged 16% total returns. In the 2Q21 to 24 May, the returns have been comparatively muted, with a 2% average total return. This brings their average 2021 year to 24 May total return to 19%.  The 100 most traded stocks by turnover in the 2021 year to 24 May are tabled below and sort by highest turnover. The 100 stocks include 26 REITs or Property Trusts representing the S-REIT Sector, 18 stocks representing the Industrials Sector, with the Real Estate (ex-REITs), Healthcare and Technology (Hardware/Software) Sectors each represented by nine stocks.&nbsp;&nbsp;  The five stocks of the 100 tabled below, that were recipient to the highest net institutional and net proprietary inflow proportionate to current market capitalisation were Fu Yu Corporation, Q &amp; M Dental Group, Yangzijiang Shipbuilding Holdings, UMS Holdings, and Singapore Press Holdings. The 10 stocks of the FTSE ST All- Share Index that were recipient to the highest net institutional and net proprietary inflow proportionate to current market capitalisation were tabled here in a Market Update published yesterday.




Stock


Code


Mkt Cap S$M


YTD Net Insti &amp; Net Prop Inflow S$M


Total Return 1Q21


Total Return 2Q21 to 24 May


Total Return YTD


Sector




DBS


D05


76,104


1,080


15%


5%


20%


Financial Services




Singtel


Z74


40,294


-85


6%


0%


6%


Telecommunications




UOB


U11


43,028


351


14%


1%


15%


Financial Services




OCBC Bank


O39


53,910


623


17%


4%


21%


Financial Services




SIA


C6L


14,054


-166


30%


-15%


11%


Industrials




YZJ Shipbldg SGD


BS6


5,580


252


34%


17%


56%


Industrials




Wilmar Intl


F34


30,276


15


17%


-9%


6%


Consumer Non-Cyclicals




Ascendas REIT


A17U


12,132


-202


3%


-2%


0%


REITs




CapLand Int Com Trust


C38U


13,211


-18


1%


-6%


-5%


REITs




CapitaLand


C31


18,783


-36


15%


-2%


13%


Real Estate (excl. REITs)




JMH USD


J36


62,542


4


21%


-3%


17%


Industrials




SGX


S68


11,156


63


8%


5%


14%


Financial Services




ThaiBev


Y92


17,458


-166


3%


-6%


-4%


Consumer Non-Cyclicals




Genting Sing


G13


9,772


-4


8%


-11%


-4%


Consumer Cyclicals




SPH


T39


2,801


115


35%


17%


58%


Consumer Cyclicals




Mapletree Log Tr


M44U


8,438


-46


-3%


3%


0%


REITs




ComfortDelGro


C52


3,576


-20


2%


-3%


0%


Industrials




Keppel Corp


BN4


9,535


-35


-1%


0%


-1%


Industrials




Venture


V03


5,418


-113


3%


-5%


-1%


Technology (Hardware/ Software)




Sembcorp Marine


S51


2,360


32


19%


11%


31%


Industrials




AEM


AWX


994


-130


20%


-14%


4%


Technology (Hardware/ Software)




CityDev


C09


6,802


-96


0%


-5%


-4%


Real Estate (excl. REITs)




Mapletree Ind Tr


ME8U


6,608


-120


-4%


4%


0%


REITs




Suntec REIT


T82U


4,093


-28


6%


-6%


-1%


REITs




Keppel DC REIT


AJBU


4,280


-94


-2%


-3%


-5%


REITs




ST Engineering


S63


11,854


-86


2%


0%


2%


Industrials




Mapletree Com Tr


N2IU


6,773


-17


0%


-1%


-2%


REITs




Frasers L&amp;C Tr


BUOU


4,937


-15


3%


2%


5%


REITs




HongkongLand USD


H78


14,685


7


25%


-5%


19%


Real Estate (excl. REITs)




Jardine C&amp;C


C07


8,695


18


15%


-2%


13%


Consumer Cyclicals




Keppel REIT


K71U


4,222


12


13%


-6%


6%


REITs




UMS


558


715


30


23%


1%


25%


Technology (Hardware/ Software)




Jiutian Chemical


C8R


193


2


1%


17%


18%


Materials &amp; Resources




SATS


S58


4,143


5


9%


-15%


-7%


Industrials




Sembcorp Ind


U96


3,625


69


8%


12%


21%


Utilities




IFAST


AIY


2,126


49


105%


25%


157%


Technology (Hardware/ Software)




Oceanus^


579


875


-15


44%


-8%


33%


Technology (Hardware/ Software)




Medtecs Intl


546


541


8


-7%


13%


5%


Healthcare




NetLink NBN Tr


CJLU


3,761


-42


-2%


5%


3%


Telecommunications




Frasers Cpt Tr


J69U


3,839


-38


0%


-6%


-6%


REITs




Nanofilm


MZH


3,374


-20


14%


2%


16%


Technology (Hardware/ Software)




Sheng Siong


OV8


2,436


-94


-1%


7%


7%


Consumer Non-Cyclicals




Top Glove


BVA


13,607


-67


-20%


12%


-11%


Healthcare




UOL


U14


6,180


-7


2%


-6%


-3%


Real Estate (excl. REITs)




Mapletree NAC Tr


RW0U


3,517


3


9%


-1%


8%


REITs




ISDN


I07


281


-1


49%


7%


59%


Industrials




CapLand China T


AU8U


2,006


-2


-1%


-4%


-5%


REITs




Thomson Medical


A50


2,221


28


124%


-25%


68%


Healthcare




Riverstone


AP4


2,149


7


11%


23%


36%


Healthcare




DairyFarm USD


D01


7,920


-14


8%


1%


9%


Consumer Non-Cyclicals




Golden Agri-Res


E5H


2,856


26


32%


9%


44%


Consumer Non-Cyclicals




Ascott Trust


HMN


3,024


-12


1%


-9%


-9%


REITs




Frencken


E28


739


21


16%


15%


34%


Technology (Hardware/ Software)




Aztech Global


8AZ


1,029


-24


0%


12%


0%


Technology (Hardware/ Software)




UG Healthcare


8K7


404


-16


-4%


17%


12%


Healthcare




The Place Hldg


E27


823


2


276%


13%


324%


Consumer Cyclicals




Ascendas-iTrust


CY6U


1,590


-5


10%


-7%


3%


REITs




Japfa


UD2


1,791


7


11%


-3%


7%


Consumer Non-Cyclicals




Yanlord Land


Z25


2,434


-17


11%


7%


18%


Real Estate (excl. REITs)




Manulife REIT USD


BTOU


1,585


-31


3%


1%


5%


REITs




Rex Intl


5WH


225


2


24%


-4%


18%


Energy/ Oil &amp; Gas




SingPost


S08


1,586


-18


-1%


1%


0%


Industrials




Sunpower


5GD


734


-7


-1%


16%


16%


Industrials




Keppel Infra Tr


A7RU


2,720


-28


4%


-1%


3%


Utilities




HPH Trust USD


NS8U


2,717


3


20%


3%


24%


Industrials




Haw Par


H02


2,960


35


23%


3%


26%


Healthcare




StarHub


CC3


2,077


-18


-2%


-4%


-7%


Telecommunications




First Resources


EB5


2,194


-4


9%


1%


10%


Consumer Non-Cyclicals




COSCO SHP SG


F83


661


6


0%


5%


5%


Industrials




Lendlease REIT


JYEU


880


-3


14%


-7%


5%


REITs




ESR-REIT


J91U


1,486


-21


1%


2%


3%


REITs




Q&amp;M Dental


QC7


543


27


42%


10%


57%


Healthcare




ParkwayLife REIT


C2PU


2,577


4


6%


5%


12%


REITs




Raffles Medical


BSL


1,998


18


13%


-3%


9%


Healthcare




ARA LOGOS Log Tr


K2LU


1,100


16


23%


6%


31%


REITs




Olam Intl


O32


5,648


-3


12%


5%


18%


Consumer Non-Cyclicals




Avarga


U09


280


8


12%


-1%


12%


Materials &amp; Resources




Yoma Strategic


Z59


313


-35


-52%


1%


-52%


Real Estate (excl. REITs)




CDL H Trust


J85


1,449


-2


0%


-5%


-4%


REITs




SIA Engineering


S59


2,366


-1


10%


-3%


7%


Industrials




Cromwell REIT EUR


CWBU


2,124


-20


-2%


6%


3%


REITs




Leader Env


LS9


165


-7


100%


-17%


65%


Industrials




Hong Fok


H30


693


-8


20%


-6%


12%


Real Estate (excl. REITs)




Sarine Tech


U77


205


-5


43%


-1%


41%


Industrials




Sasseur REIT


CRPU


1,101


-5


11%


2%


14%


REITs




Sri Trang Agro


NC2


3,026


42


72%


2%


76%


Consumer Cyclicals




Frasers Property


TQ5


4,621


-10


-2%


-2%


-4%


Real Estate (excl. REITs)




Aspen


1F3


233


-7


5%


-7%


-2%


Real Estate (excl. REITs)




First REIT


AW9U


410


5


10%


14%


25%


REITs




SPHREIT


SK6U


2,337


-10


5%


-3%


2%


REITs




Fu Yu


F13


230


49


13%


6%


20%


Industrials




Yinda Infocomm


42F


251


7


44%


121%


218%


Telecommunications




Sing Medical


5OT


152


1


19%


-16%


0%


Healthcare




CSE Global


544


266


11


11%


3%


14%


Technology (Hardware/ Software)




Hong Leong Asia


H22


722


6


0%


27%


27%


Consumer Cyclicals




MM2 Asia


1B0


140


0


-48%


2%


-47%


Consumer Cyclicals




KepPacOakREITUSD


CMOU


924


-8


11%


1%


12%


REITs




AusGroup


5GJ


83


-3


43%


-10%


29%


Energy/ Oil &amp; Gas




GKE


595


101


-5


11%


-2%


8%


Industrials




AIMS APAC REIT


O5RU


982


-1


5%


10%


15%


REITs




Average


&nbsp;


&nbsp;


&nbsp;


16%


2%


19%


&nbsp;




Median


&nbsp;


&nbsp;


&nbsp;


10%


1%


9%


&nbsp;




Total 


&nbsp;


647,432


959


&nbsp;


&nbsp;


&nbsp;


&nbsp;




&nbsp;Source: SGX, Refinitiv, Bloomberg (Data as of 24 May 2021), ^on SGX Watch List

Capitaland Integrated Commercial Trust (CICT SP)

Singapore Stocks Paralleled GDP Strengths in 1Q21