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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<ul>
<li>The STI posted a 2.7% gain last week, in-line with the FTSE APAC Index, returning the Singapore benchmark to levels last traded 6 weeks ago on 10 June. Global stocks were led by consumer cyclicals, industrial and technology sectors over the week, which also ranked as the worst performing global stock sectors over the 2022 YTD. </li>
</ul>
<ul>
<li>Singapore stocks attracted S$97 million of net institutional inflows last week, with the 20 stocks that attracted the most inflows drawing S$156 million $156 million in value, with remaining Singapore-listed stocks seeing S$59 million of net outflows. </li>
</ul>
<ul>
<li>The 20 stocks also included 8 stocks that attracted the most net institutional inflows for the 2022 YTD. These eight stocks were Singapore Telecommunications, City Developments, Keppel Corporation, Sembcorp Industries, CapitaLand Integrated Commercial Trust, Ascott Residence Trust, Sembcorp Marine, and Singapore Airlines. </li>
</ul>
STI’s Week Gains of 2.7% in-line with Region, as YTD Underperforming Sectors Led Global Stocks 

Last week, the STI broke above its recent five week range-trading consolidation, ending the week up 2.7% at 3,181.34, bringing the STI back to levels last traded on 10 June. The regional FTSE Asia Pacific Index also generated an identical 2.7% return last week in SGD terms. The week’s gain saw S$97 million of net institutional inflows across the local stock market, with the 20 stocks that attracted the most inflows drawing S$156 million in value, with remaining Singapore-listed stocks seeing S$59 million of net outflows.

The 20 stocks that attracted the most net institutional inflows for the week also included eight stocks that have also attracted the most net institutional inflows for the 2022 year through to 22 July. These eight stocks were Singapore Telecommunications, City Developments, Keppel Corporation, Sembcorp Industries, CapitaLand Integrated Commercial Trust, Ascott Resident Trust, Sembcorp Marine, and Singapore Airlines. The three market themes of regional economic re-opening, global sector rotations on growth and inflation outlooks, and corporate transformative efforts to boost shareholder value have been in focus during the first half of the year.  At the same time, Singapore’s economy has continued to report above trend, albeit still uneven growth.

The full 20 stocks, which also included six non-STI stocks are tabled below.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stocks with Highest Net Insti Inflow for Week ending 22 July
			</td>
			<td>
			Code
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			Last Week Net Insti Flow (S$M)
			</td>
			<td>
			July MTD Total Return %
			</td>
			<td>
			2022 YTD Total Return %
			</td>
			<td>
			2022 YTD Net Insti Flow (S$M)
			</td>
			<td>
			5 Year Annualised Total Return %
			</td>
			<td>
			Sector
			</td>
		</tr>
<tr>
<td>
			UOB
			</td>
			<td>
			U11
			</td>
			<td>
			45,985
			</td>
			<td>
			26.1
			</td>
			<td>
			4.6
			</td>
			<td>
			4.1
			</td>
			<td>
			-267.9
			</td>
			<td>
			7.3
			</td>
			<td>
			Financial Services
			</td>
		</tr>
<tr>
<td>
			DBS
			</td>
			<td>
			D05
			</td>
			<td>
			80,449
			</td>
			<td>
			24.9
			</td>
			<td>
			5.3
			</td>
			<td>
			-2.2
			</td>
			<td>
			-693.7
			</td>
			<td>
			13.0
			</td>
			<td>
			Financial Services
			</td>
		</tr>
<tr>
<td>
			SIA
			</td>
			<td>
			C6L
			</td>
			<td>
			15,981
			</td>
			<td>
			18.5
			</td>
			<td>
			5.5
			</td>
			<td>
			7.8
			</td>
			<td>
			36.4
			</td>
			<td>
			-4.0
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			CapLand Int Com T
			</td>
			<td>
			C38U
			</td>
			<td>
			13,856
			</td>
			<td>
			9.1
			</td>
			<td>
			-3.7
			</td>
			<td>
			2.6
			</td>
			<td>
			138.8
			</td>
			<td>
			5.4
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			JMH USD
			</td>
			<td>
			J36
			</td>
			<td>
			22,229
			</td>
			<td>
			9.0
			</td>
			<td>
			5.0
			</td>
			<td>
			6.4
			</td>
			<td>
			-0.7
			</td>
			<td>
			0.6
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Samudera Shipping
			</td>
			<td>
			S56
			</td>
			<td>
			604
			</td>
			<td>
			8.0
			</td>
			<td>
			48.3
			</td>
			<td>
			130.1
			</td>
			<td>
			14.6
			</td>
			<td>
			55.0
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Mapletree Ind Tr
			</td>
			<td>
			ME8U
			</td>
			<td>
			7,070
			</td>
			<td>
			7.6
			</td>
			<td>
			1.2
			</td>
			<td>
			-0.2
			</td>
			<td>
			-94.0
			</td>
			<td>
			12.8
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			Ascendas REIT
			</td>
			<td>
			A17U
			</td>
			<td>
			12,225
			</td>
			<td>
			5.7
			</td>
			<td>
			2.1
			</td>
			<td>
			1.3
			</td>
			<td>
			-66.9
			</td>
			<td>
			7.3
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			Mapletree Com Tr
			</td>
			<td>
			N2IU
			</td>
			<td>
			6,124
			</td>
			<td>
			5.6
			</td>
			<td>
			1.8
			</td>
			<td>
			-4.3
			</td>
			<td>
			-160.0
			</td>
			<td>
			7.8
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			Venture
			</td>
			<td>
			V03
			</td>
			<td>
			5,043
			</td>
			<td>
			5.4
			</td>
			<td>
			4.2
			</td>
			<td>
			-2.6
			</td>
			<td>
			-94.3
			</td>
			<td>
			10.0
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			ComfortDelGro
			</td>
			<td>
			C52
			</td>
			<td>
			3,120
			</td>
			<td>
			5.3
			</td>
			<td>
			2.9
			</td>
			<td>
			4.3
			</td>
			<td>
			-39.3
			</td>
			<td>
			-5.5
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			Sembcorp Ind
			</td>
			<td>
			U96
			</td>
			<td>
			5,339
			</td>
			<td>
			4.3
			</td>
			<td>
			4.9
			</td>
			<td>
			51.1
			</td>
			<td>
			164.1
			</td>
			<td>
			14.7
			</td>
			<td>
			Utilities
			</td>
		</tr>
<tr>
<td>
			Lendlease REIT
			</td>
			<td>
			JYEU
			</td>
			<td>
			1,867
			</td>
			<td>
			3.9
			</td>
			<td>
			3.1
			</td>
			<td>
			-1.5
			</td>
			<td>
			7.2
			</td>
			<td>
			N/A
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			Singtel
			</td>
			<td>
			Z74
			</td>
			<td>
			43,764
			</td>
			<td>
			3.7
			</td>
			<td>
			4.7
			</td>
			<td>
			14.2
			</td>
			<td>
			597.2
			</td>
			<td>
			-3.0
			</td>
			<td>
			Telecommunications
			</td>
		</tr>
<tr>
<td>
			Keppel Corp
			</td>
			<td>
			BN4
			</td>
			<td>
			11,635
			</td>
			<td>
			3.7
			</td>
			<td>
			1.2
			</td>
			<td>
			32.2
			</td>
			<td>
			196.4
			</td>
			<td>
			3.5
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			CDL Hosp Trust
			</td>
			<td>
			J85
			</td>
			<td>
			1,605
			</td>
			<td>
			3.6
			</td>
			<td>
			2.4
			</td>
			<td>
			13.9
			</td>
			<td>
			6.5
			</td>
			<td>
			0.8
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			Ascott Trust
			</td>
			<td>
			HMN
			</td>
			<td>
			3,780
			</td>
			<td>
			3.1
			</td>
			<td>
			0.9
			</td>
			<td>
			13.5
			</td>
			<td>
			41.0
			</td>
			<td>
			4.1
			</td>
			<td>
			REITs
			</td>
		</tr>
<tr>
<td>
			CityDev
			</td>
			<td>
			C09
			</td>
			<td>
			7,028
			</td>
			<td>
			2.9
			</td>
			<td>
			-4.9
			</td>
			<td>
			18.0
			</td>
			<td>
			227.3
			</td>
			<td>
			-4.7
			</td>
			<td>
			Real Estate (excl. REITs)
			</td>
		</tr>
<tr>
<td>
			Sembcorp Marine
			</td>
			<td>
			S51
			</td>
			<td>
			3,296
			</td>
			<td>
			2.8
			</td>
			<td>
			-2.8
			</td>
			<td>
			28.0
			</td>
			<td>
			40.6
			</td>
			<td>
			-36.1
			</td>
			<td>
			Industrials
			</td>
		</tr>
<tr>
<td>
			AEM SGD
			</td>
			<td>
			AWX
			</td>
			<td>
			1,295
			</td>
			<td>
			2.7
			</td>
			<td>
			1.2
			</td>
			<td>
			-19.5
			</td>
			<td>
			-48.3
			</td>
			<td>
			49.2
			</td>
			<td>
			Technology (Hardware/ Software)
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			292,294
			</td>
			<td>
			155.7
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			5.2
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
<tr>
<td>
			Median 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			2.6
			</td>
			<td>
			5.3
			</td>
			<td>
			 
			</td>
			<td>
			5.4
			</td>
			<td>
			 
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			4.4
			</td>
			<td>
			14.9
			</td>
			<td>
			 
			</td>
			<td>
			7.3
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Source: SGX, Bloomberg, Refinitiv (Data as of 22 July 2022)

IMF Maintains 3.7% Real GDP Growth and 4.8% Headline Inflation Outlook for Singapore in 2022 

The STI maintains its ranking as the strongest as the strongest developed stock benchmark in the 2022 YTD with a 4.0% total return, with the FTSE Developed Index declining 14.6% in SGD terms. Beyond the benchmark however, there have been diversified performances across the myriad of sectors and industries that make up the broader local stock market.

These diversified performances have paralleled local economic developments. As the IMF noted in the Annual Country <a href="https://www.imf.org/en/Publications/CR/Issues/2022/07/20/Singapore-2022-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-521048?cid=em-COM-123-45160">Report</a> released Friday, despite multiple COVID waves, Singapore’s economic recovery “has been impressive, but is uneven” and that “while corporate earnings, profitability and debt servicing capacity have recovered, significant disparities in performance persist, given the differentiated COVID-19 restrictions across sectors”, with the “profitability of firms in the property and multi-industry sectors still below pre-pandemic level”. Within the real estate sector, the report highlighted that the private residential housing market, driven by strong demand, runs the risk of diverging further from fundamentals, while commercial real estate is recovering following a few slow years due to the pandemic.

For the mega drivers, the IMF noted that Singapore’s real GDP is expected to grow 3.7% this year (as compared to 2021’s +7.6%) driven by ‘pent-up demand as the economy reopens and border restrictions are further eased on the back of the high vaccination while trade-related sectors may see some moderation amid a potential capacity constraint of the global electronics industry and consumer-facing sectors are expected to rebound as the economy reopens, and the construction sector is also expected to further recover as border restrictions on migrant workers ease.

Over the medium term, the IMF project Singapore’s real GDP growth to converge to 2.5%. Meanwhile the IMF project headline inflation to rise to 4.8% in 2022, before moderating to 2.5% in 2023, with MAS core inflation reaching 3.0% in 2022 and 2.0% in 2023. The MAS, in its July Monetary Policy Statement, forecast core inflation of between 3-4% this year (vs. earlier forecast of 2.5-3.5%) with CPI-all items inflation expected to come in at 5-6% (higher than earlier forecast range of 4.5-5.5%).

 
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The STI posted a 2.7% gain last week, in-line with the FTSE APAC Index, returning the Singapore benchmark to levels last traded 6 weeks ago on 10 June. Global stocks were led by consumer cyclicals, industrial and technology sectors over the week, which also ranked as the worst performing global stock sectors over the 2022 YTD. 


Singapore stocks attracted S$97 million of net institutional inflows last week, with the 20 stocks that attracted the most inflows drawing S$156 million $156 million in value, with remaining Singapore-listed stocks seeing S$59 million of net outflows. 


The 20 stocks also included 8 stocks that attracted the most net institutional inflows for the 2022 YTD. These eight stocks were Singapore Telecommunications, City Developments, Keppel Corporation, Sembcorp Industries, CapitaLand Integrated Commercial Trust, Ascott Residence Trust, Sembcorp Marine, and Singapore Airlines. 

STI’s Week Gains of 2.7% in-line with Region, as YTD Underperforming Sectors Led Global Stocks 

Last week, the STI broke above its recent five week range-trading consolidation, ending the week up 2.7% at 3,181.34, bringing the STI back to levels last traded on 10 June. The regional FTSE Asia Pacific Index also generated an identical 2.7% return last week in SGD terms. The week’s gain saw S$97 million of net institutional inflows across the local stock market, with the 20 stocks that attracted the most inflows drawing S$156 million in value, with remaining Singapore-listed stocks seeing S$59 million of net outflows.

The 20 stocks that attracted the most net institutional inflows for the week also included eight stocks that have also attracted the most net institutional inflows for the 2022 year through to 22 July. These eight stocks were Singapore Telecommunications, City Developments, Keppel Corporation, Sembcorp Industries, CapitaLand Integrated Commercial Trust, Ascott Resident Trust, Sembcorp Marine, and Singapore Airlines. The three market themes of regional economic re-opening, global sector rotations on growth and inflation outlooks, and corporate transformative efforts to boost shareholder value have been in focus during the first half of the year.  At the same time, Singapore’s economy has continued to report above trend, albeit still uneven growth.

The full 20 stocks, which also included six non-STI stocks are tabled below.




			Stocks with Highest Net Insti Inflow for Week ending 22 July
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			Last Week Net Insti Flow (S$M)
			
			
			July MTD Total Return %
			
			
			2022 YTD Total Return %
			
			
			2022 YTD Net Insti Flow (S$M)
			
			
			5 Year Annualised Total Return %
			
			
			Sector
			
		


			UOB
			
			
			U11
			
			
			45,985
			
			
			26.1
			
			
			4.6
			
			
			4.1
			
			
			-267.9
			
			
			7.3
			
			
			Financial Services
			
		


			DBS
			
			
			D05
			
			
			80,449
			
			
			24.9
			
			
			5.3
			
			
			-2.2
			
			
			-693.7
			
			
			13.0
			
			
			Financial Services
			
		


			SIA
			
			
			C6L
			
			
			15,981
			
			
			18.5
			
			
			5.5
			
			
			7.8
			
			
			36.4
			
			
			-4.0
			
			
			Industrials
			
		


			CapLand Int Com T
			
			
			C38U
			
			
			13,856
			
			
			9.1
			
			
			-3.7
			
			
			2.6
			
			
			138.8
			
			
			5.4
			
			
			REITs
			
		


			JMH USD
			
			
			J36
			
			
			22,229
			
			
			9.0
			
			
			5.0
			
			
			6.4
			
			
			-0.7
			
			
			0.6
			
			
			Industrials
			
		


			Samudera Shipping
			
			
			S56
			
			
			604
			
			
			8.0
			
			
			48.3
			
			
			130.1
			
			
			14.6
			
			
			55.0
			
			
			Industrials
			
		


			Mapletree Ind Tr
			
			
			ME8U
			
			
			7,070
			
			
			7.6
			
			
			1.2
			
			
			-0.2
			
			
			-94.0
			
			
			12.8
			
			
			REITs
			
		


			Ascendas REIT
			
			
			A17U
			
			
			12,225
			
			
			5.7
			
			
			2.1
			
			
			1.3
			
			
			-66.9
			
			
			7.3
			
			
			REITs
			
		


			Mapletree Com Tr
			
			
			N2IU
			
			
			6,124
			
			
			5.6
			
			
			1.8
			
			
			-4.3
			
			
			-160.0
			
			
			7.8
			
			
			REITs
			
		


			Venture
			
			
			V03
			
			
			5,043
			
			
			5.4
			
			
			4.2
			
			
			-2.6
			
			
			-94.3
			
			
			10.0
			
			
			Technology (Hardware/ Software)
			
		


			ComfortDelGro
			
			
			C52
			
			
			3,120
			
			
			5.3
			
			
			2.9
			
			
			4.3
			
			
			-39.3
			
			
			-5.5
			
			
			Industrials
			
		


			Sembcorp Ind
			
			
			U96
			
			
			5,339
			
			
			4.3
			
			
			4.9
			
			
			51.1
			
			
			164.1
			
			
			14.7
			
			
			Utilities
			
		


			Lendlease REIT
			
			
			JYEU
			
			
			1,867
			
			
			3.9
			
			
			3.1
			
			
			-1.5
			
			
			7.2
			
			
			N/A
			
			
			REITs
			
		


			Singtel
			
			
			Z74
			
			
			43,764
			
			
			3.7
			
			
			4.7
			
			
			14.2
			
			
			597.2
			
			
			-3.0
			
			
			Telecommunications
			
		


			Keppel Corp
			
			
			BN4
			
			
			11,635
			
			
			3.7
			
			
			1.2
			
			
			32.2
			
			
			196.4
			
			
			3.5
			
			
			Industrials
			
		


			CDL Hosp Trust
			
			
			J85
			
			
			1,605
			
			
			3.6
			
			
			2.4
			
			
			13.9
			
			
			6.5
			
			
			0.8
			
			
			REITs
			
		


			Ascott Trust
			
			
			HMN
			
			
			3,780
			
			
			3.1
			
			
			0.9
			
			
			13.5
			
			
			41.0
			
			
			4.1
			
			
			REITs
			
		


			CityDev
			
			
			C09
			
			
			7,028
			
			
			2.9
			
			
			-4.9
			
			
			18.0
			
			
			227.3
			
			
			-4.7
			
			
			Real Estate (excl. REITs)
			
		


			Sembcorp Marine
			
			
			S51
			
			
			3,296
			
			
			2.8
			
			
			-2.8
			
			
			28.0
			
			
			40.6
			
			
			-36.1
			
			
			Industrials
			
		


			AEM SGD
			
			
			AWX
			
			
			1,295
			
			
			2.7
			
			
			1.2
			
			
			-19.5
			
			
			-48.3
			
			
			49.2
			
			
			Technology (Hardware/ Software)
			
		


			Total
			
			
			 
			
			
			292,294
			
			
			155.7
			
			
			 
			
			
			 
			
			
			5.2
			
			
			 
			
			
			 
			
		


			Median 
			
			
			 
			
			
			 
			
			
			 
			
			
			2.6
			
			
			5.3
			
			
			 
			
			
			5.4
			
			
			 
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			4.4
			
			
			14.9
			
			
			 
			
			
			7.3
			
			
			 
			
		

Source: SGX, Bloomberg, Refinitiv (Data as of 22 July 2022)

IMF Maintains 3.7% Real GDP Growth and 4.8% Headline Inflation Outlook for Singapore in 2022 

The STI maintains its ranking as the strongest as the strongest developed stock benchmark in the 2022 YTD with a 4.0% total return, with the FTSE Developed Index declining 14.6% in SGD terms. Beyond the benchmark however, there have been diversified performances across the myriad of sectors and industries that make up the broader local stock market.

These diversified performances have paralleled local economic developments. As the IMF noted in the Annual Country Report released Friday, despite multiple COVID waves, Singapore’s economic recovery “has been impressive, but is uneven” and that “while corporate earnings, profitability and debt servicing capacity have recovered, significant disparities in performance persist, given the differentiated COVID-19 restrictions across sectors”, with the “profitability of firms in the property and multi-industry sectors still below pre-pandemic level”. Within the real estate sector, the report highlighted that the private residential housing market, driven by strong demand, runs the risk of diverging further from fundamentals, while commercial real estate is recovering following a few slow years due to the pandemic.

For the mega drivers, the IMF noted that Singapore’s real GDP is expected to grow 3.7% this year (as compared to 2021’s +7.6%) driven by ‘pent-up demand as the economy reopens and border restrictions are further eased on the back of the high vaccination while trade-related sectors may see some moderation amid a potential capacity constraint of the global electronics industry and consumer-facing sectors are expected to rebound as the economy reopens, and the construction sector is also expected to further recover as border restrictions on migrant workers ease.

Over the medium term, the IMF project Singapore’s real GDP growth to converge to 2.5%. Meanwhile the IMF project headline inflation to rise to 4.8% in 2022, before moderating to 2.5% in 2023, with MAS core inflation reaching 3.0% in 2022 and 2.0% in 2023. The MAS, in its July Monetary Policy Statement, forecast core inflation of between 3-4% this year (vs. earlier forecast of 2.5-3.5%) with CPI-all items inflation expected to come in at 5-6% (higher than earlier forecast range of 4.5-5.5%).

 



Capitaland Integrated Commercial Trust (CICT SP)

Mapletree Pan Asia Commercial Trust (MCT SP)

Lendlease Global Commercial REIT (LREIT SP)

STI Clocks Up 6-week High on S$97 million of Net Fund Inflows