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

Capitaland Integrated Commercial Trust / Equity Bottom-Up

Capitaland Integrated Commercial Trust (CICT SP)





With resilient business investment and regional trade supporting Banks, Industrial and Manufacturing-related stocks, in addition to multiple corporate reviews and restructures to enhance shareholder value, the STI has generated a 13.5% YTD total return, outpacing the FTSE All World Index gain of 11.3%.  
	 
	
For the month-to-date, Yangzijiang Shipbuilding, Sembcorp Industries, OCBC, DBS and CapitaLand led the STI on a total return basis. May is a seasonally important month for dividend payments in Singapore, and has seen the STI has generate a 0.4% decline in total return as of the 28 May close.   
	 
	Global COVID-19 developments have also remained a primary driver in stock rotations. Over the first two weeks of May, Singapore Airlines, Sembcorp Industries, Genting Singapore and SATS were among the five least performing STI stocks. They emerged as the four best STI performers over the subsequent two weeks.

 

The total returns of the Straits Times Index (“STI”) have been V-shaped in May, with a 4.3% decline in total return over the first two weeks, followed by a 4.1% recovery over the subsequent two weeks. Over the first two weeks of May, Singapore Airlines, Sembcorp Industries, Genting Singapore and SATS were among the five least performers of the STI, which subsequently emerged as the four best STI performers over the following two weeks. While 14 May coincided with the announcement of heightened measures in Singapore to help contain the spread of COVID-19, the global race to contain COVID-19 saw more positive developments over the past two weeks, which lent broader support to local and global equities. New records for daily global COVID-19 administered vaccine doses were set on 17 May, 18 May, 20 May and 25 May, with the 25 May seeing 40 million global Covid-19 vaccines administered in one day. Ourworldindata.org maintain that with still two days to count, the month of May has seen 730 million vaccine doses administered globally, which is up 35% from approximately 540 million global vaccine doses administered in April. At the same time, the 7-day rolling average of daily global new confirmed cases has declined to 510,000, down from above 800,000 at the end of April.  
Resilient business investment and regional trade has supported Banks, Industrial and Manufacturing-related stocks over the first five months of 2021. On more of a microeconomic front, corporate reviews and restructures to enhance shareholder value have continued into 2021. This has seen the STI generate a 13.5% total return for the 2021 year to 28 May, outpacing the FTSE All World Index gain of 11.3%. As illustrated below, the STI has kept pace with the US$90 trillion FTSE All World Index for much of the year to date.



      
    
    STI


May is a seasonally important month for dividend payments in Singapore, and has seen the STI has generate a 0.4% decline in total return as of the 28 May close. This has seen the STI remain Asia Pacific’s second best performer for the period after the Taiwan’s semiconductor heavy TAIEX. At current levels, the STI has rallied more than 30% from the late October lows, and would have to rally another 15% to retest the 3,600 May 2018 highs.  
As detailed in Singapore’s 1Q21 GDP Report last week, the volume of air passenger traffic handled at Changi Airport plunged by 96% YoY in 1Q21, extending the 98% decline in 4Q21. This brought total aircraft landings in 1Q21 to 11,144, a 71% YoY decline, following the 79% YoY decline in 4Q21. Similarly, SATS reported Friday that for its 4QFY20/21 (ended 31 Mar), the Group had handled 93% less flights YoY. Part of SATS transformation initiatives include expanding its non-travel related businesses, with this segment yielding 32% YoY revenue growth in 4QFY20/21. While reporting a FY20/21 loss, SAT’s reported a S$0.8 million net profit in its 4QFY20/21, with its net cash position at S$201 million.  Meanwhile Inflation has remained remained in the spotlight in May, but more so in Early May. Early May saw commodity prices hit new highs and on 10 May the iShares TIPS ETF, based on the Bloomberg Barclays Capital US Treasury Inflation Notes Index, trade at its highest price since its inception in December 2003. Much of the current global inflation concerns are tied to surges in commodity prices, which has benefited the relevant commodity producer stocks and midstream stocks. While commodity stocks have come off their early May highs, and the Central Banks see inflation as ‘transitory’, investors have continued buying Gold as discussed here.   For the May month-to-date, Yangzijiang Shipbuilding, Sembcorp Industries, OCBC, DBS and CapitaLand led the STI on a total return basis. Yangzijiang Shipbuilding Holdings currently maintains the highest levels in its outstanding order book since 2009, with a large proportion of the book comprised of container ships. The stock has generated a 60.8% total return in the 2021 year to 28 May. Wholesale trade growth was also a key driver in Singapore’s GDP growth reported last week. The GDP report noted that Singapore’s wholesale trade segment was bolstered by a 6.7% YoY increase in foreign wholesale trade sales volume, which was in turn a reversal from the 0.5% YoY drop seen in 4Q20. Singapore’s Merchandise trade grew 4.9% YoY in 1Q21 and looking ahead, back on 31 March, the World Trade Organisation estimated that global merchandise trade volume would increase by 8.0% YoY in 2021. Furthermore, the Regional Comprehensive Economic Partnership is expected to further enhance regional supply chains and the wide range of B2B transactions that underpin wholesale trade. Trade between China and ASEAN partners has soared over the past five years, with total bilateral trade value between China and Singapore up 50%.  Yangzijiang Shipbuilding has also been the strongest STI stock in the 2021 year to 28 May, with non-STI stocks iFAST Corporation, Thomson Medical Group, ISDN Holdings and Singapore Press Holdings also making the top five perfomers for the period among the 50 most tarded stocks.  The 50 most traded Singapore-listed stocks in the 2021 year to 28 May are tabled below, sort by the most traded stock in terms of daily turnover. The 50 stocks include the 30 STI stocks, with Dairy Farm International the least traded STI stock over the 21 weeks.




			50 Most Traded Stocks by Turnover in YTD
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			YTD Net Insti &amp; Prop Flow S$M 
			
			
			1Q21 Total Return %
			
			
			2Q21 to 28 May Total Return %
			
			
			MTD Total Return %
			
			
			YTD Total Return %
			
		


			DBS
			
			
			D05
			
			
			77,922
			
			
			1,167
			
			
			15
			
			
			7
			
			
			2
			
			
			23
			
		


			Singtel
			
			
			Z74
			
			
			39,963
			
			
			-96
			
			
			6
			
			
			-1
			
			
			-3
			
			
			5
			
		


			UOB
			
			
			U11
			
			
			44,016
			
			
			378
			
			
			14
			
			
			3
			
			
			0
			
			
			18
			
		


			OCBC Bank
			
			
			O39
			
			
			55,956
			
			
			712
			
			
			17
			
			
			8
			
			
			4
			
			
			26
			
		


			SIA
			
			
			C6L
			
			
			14,706
			
			
			-146
			
			
			30
			
			
			-11
			
			
			-2
			
			
			16
			
		


			YZJ Shipbldg SGD
			
			
			BS6
			
			
			5,734
			
			
			261
			
			
			34
			
			
			20
			
			
			7
			
			
			61
			
		


			Wilmar Intl
			
			
			F34
			
			
			30,213
			
			
			4
			
			
			17
			
			
			-9
			
			
			-8
			
			
			6
			
		


			Ascendas REIT
			
			
			A17U
			
			
			12,090
			
			
			-219
			
			
			3
			
			
			-3
			
			
			-5
			
			
			0
			
		


			CapLand Int Com T
			
			
			C38U
			
			
			13,276
			
			
			-30
			
			
			1
			
			
			-6
			
			
			-5
			
			
			-4
			
		


			CapitaLand
			
			
			C31
			
			
			19,043
			
			
			-28
			
			
			15
			
			
			0
			
			
			1
			
			
			14
			
		


			JMH USD
			
			
			J36
			
			
			63,261
			
			
			1
			
			
			21
			
			
			-2
			
			
			-4
			
			
			18
			
		


			SGX
			
			
			S68
			
			
			11,112
			
			
			60
			
			
			8
			
			
			5
			
			
			0
			
			
			14
			
		


			Genting Sing
			
			
			G13
			
			
			10,195
			
			
			0
			
			
			8
			
			
			-7
			
			
			-2
			
			
			1
			
		


			ThaiBev
			
			
			Y92
			
			
			17,458
			
			
			-170
			
			
			3
			
			
			-5
			
			
			-2
			
			
			-3
			
		


			SPH
			
			
			T39
			
			
			2,785
			
			
			118
			
			
			35
			
			
			16
			
			
			-3
			
			
			57
			
		


			Mapletree Log Tr
			
			
			M44U
			
			
			8,481
			
			
			-41
			
			
			-3
			
			
			4
			
			
			-1
			
			
			0
			
		


			Suntec REIT
			
			
			T82U
			
			
			4,121
			
			
			-43
			
			
			6
			
			
			-6
			
			
			-5
			
			
			0
			
		


			ComfortDelGro
			
			
			C52
			
			
			3,641
			
			
			-21
			
			
			2
			
			
			-1
			
			
			-1
			
			
			1
			
		


			Venture
			
			
			V03
			
			
			5,592
			
			
			-106
			
			
			3
			
			
			-1
			
			
			-2
			
			
			2
			
		


			Keppel Corp
			
			
			BN4
			
			
			9,753
			
			
			-30
			
			
			-1
			
			
			2
			
			
			-1
			
			
			1
			
		


			Sembcorp Marine
			
			
			S51
			
			
			2,511
			
			
			37
			
			
			19
			
			
			18
			
			
			-5
			
			
			40
			
		


			AEM
			
			
			AWX
			
			
			1,011
			
			
			-137
			
			
			20
			
			
			-13
			
			
			-12
			
			
			5
			
		


			Mapletree Ind Tr
			
			
			ME8U
			
			
			6,678
			
			
			-129
			
			
			-4
			
			
			3
			
			
			-1
			
			
			-2
			
		


			CityDev
			
			
			C09
			
			
			6,920
			
			
			-100
			
			
			0
			
			
			-3
			
			
			-2
			
			
			-3
			
		


			Keppel DC REIT
			
			
			AJBU
			
			
			4,198
			
			
			-107
			
			
			-2
			
			
			-5
			
			
			-4
			
			
			-7
			
		


			ST Engineering
			
			
			S63
			
			
			12,135
			
			
			-78
			
			
			2
			
			
			3
			
			
			1
			
			
			4
			
		


			Mapletree Com Tr
			
			
			N2IU
			
			
			6,873
			
			
			-17
			
			
			0
			
			
			0
			
			
			-3
			
			
			0
			
		


			Frasers L&amp;C Tr
			
			
			BUOU
			
			
			4,869
			
			
			-25
			
			
			3
			
			
			1
			
			
			-1
			
			
			3
			
		


			HongkongLand USD
			
			
			H78
			
			
			15,128
			
			
			7
			
			
			25
			
			
			-2
			
			
			-2
			
			
			23
			
		


			Jardine C&amp;C
			
			
			C07
			
			
			8,766
			
			
			20
			
			
			15
			
			
			1
			
			
			-2
			
			
			16
			
		


			Keppel REIT
			
			
			K71U
			
			
			4,258
			
			
			13
			
			
			13
			
			
			-5
			
			
			-6
			
			
			7
			
		


			UMS
			
			
			558
			
			
			757
			
			
			41
			
			
			23
			
			
			8
			
			
			-1
			
			
			32
			
		


			Jiutian Chemical
			
			
			C8R
			
			
			197
			
			
			2
			
			
			1
			
			
			19
			
			
			0
			
			
			21
			
		


			SATS
			
			
			S58
			
			
			4,445
			
			
			6
			
			
			9
			
			
			-9
			
			
			-2
			
			
			0
			
		


			IFAST
			
			
			AIY
			
			
			2,347
			
			
			56
			
			
			105
			
			
			38
			
			
			27
			
			
			184
			
		


			Sembcorp Ind
			
			
			U96
			
			
			3,929
			
			
			83
			
			
			8
			
			
			22
			
			
			4
			
			
			31
			
		


			Nanofilm
			
			
			MZH
			
			
			3,639
			
			
			3
			
			
			14
			
			
			10
			
			
			10
			
			
			25
			
		


			NetLink NBN Tr
			
			
			CJLU
			
			
			3,722
			
			
			-46
			
			
			-2
			
			
			4
			
			
			1
			
			
			2
			
		


			Frasers Cpt Tr
			
			
			J69U
			
			
			3,975
			
			
			-39
			
			
			0
			
			
			-3
			
			
			-4
			
			
			-3
			
		


			Medtecs Intl
			
			
			546
			
			
			541
			
			
			8.3
			
			
			-7
			
			
			13
			
			
			-6
			
			
			5
			
		


			Oceanus^
			
			
			579
			
			
			923
			
			
			-14.1
			
			
			44
			
			
			-3
			
			
			-3
			
			
			41
			
		


			Sheng Siong
			
			
			OV8
			
			
			2,391
			
			
			-90.5
			
			
			-1
			
			
			5
			
			
			5
			
			
			5
			
		


			UOL
			
			
			U14
			
			
			6,264
			
			
			-11.8
			
			
			2
			
			
			-4
			
			
			-4
			
			
			-2
			
		


			Top Glove
			
			
			BVA
			
			
			13,207
			
			
			-73.9
			
			
			-20
			
			
			9
			
			
			-10
			
			
			-13
			
		


			Mapletree NAC Tr
			
			
			RW0U
			
			
			3,551
			
			
			1.2
			
			
			9
			
			
			0
			
			
			-6
			
			
			9
			
		


			ISDN
			
			
			I07
			
			
			283
			
			
			-0.9
			
			
			49
			
			
			7
			
			
			-5
			
			
			60
			
		


			CapLand China T
			
			
			AU8U
			
			
			2,133
			
			
			-2.1
			
			
			-1
			
			
			-1
			
			
			-2
			
			
			-2
			
		


			Riverstone
			
			
			AP4
			
			
			2,194
			
			
			12.7
			
			
			11
			
			
			26
			
			
			2
			
			
			39
			
		


			Thomson Medical
			
			
			A50
			
			
			2,380
			
			
			28.3
			
			
			124
			
			
			-20
			
			
			-11
			
			
			80
			
		


			DairyFarm USD
			
			
			D01
			
			
			7,803
			
			
			-15.1
			
			
			8
			
			
			0
			
			
			-1
			
			
			7
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			14
			
			
			3
			
			
			-1
			
			
			17
			
		


			Median
			
			
			 
			
			
			 
			
			
			 
			
			
			8
			
			
			0
			
			
			-2
			
			
			6
			
		

 Source: SGX, Refinitiv, Bloomberg (Data as of 28 May 2021)  ^on SGX Watch List



STI Rebounds 4% Since 14 May, Continues to Outpace Global Benchmark in YTD 