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 150 most traded stocks in the 2021 YTD have made up the lion’s share of day-to-day turnover, which includes 22 stocks that have seen a greater than 10-fold increase in daily turnover in the 2021 YTD from 2020. This includes 11 stocks listed on the Mainboard, and 11 stocks listed on Catalist.  
	 
	
Last week, Del Monte Pacific, the largest of the relevant 11 Mainboard stocks by market value, reported a 1QFY22 (end 31 Jul) turnaround net profit of US$18.3 million. The company also ended its FY21 on a stronger note reporting back on 23 June an FY21 turnaround net profit of US$63.3 million, reversing the US$81.4 million loss in FY20.  
	 
	
Last week, Grand Venture Technology’s proposed placement of up to 25 million new shares on Catalist received approval in-principle from SGX. The largest of the relevant 11 Catalist stocks by market value, the homegrown manufacturing solutions and services intends to undertake a transfer of listing to the Mainboard. 
	 
	
While the 22 stocks generated a median total return of 93% in the 2021 YTD, the comparatively higher return of the 22 stocks over the past 36 weeks was matched by higher risk, with the 22 stocks also generating a median 180 day historical volatility of 93%. 
	 

Global concerns of deaccelerating economic growth have mounted since the end of June, with global stocks gaining 2.0% over the 10 weeks, whilst Asia Pacific stocks, including the STI, have generated 0.2% gains. Since June, Mining, Utilities, Technology, Healthcare Products and Basic Materials have been among the stronger industries of the market, while segments such as Lodging, Food Services, Leisure, Airlines and Transport have been among the lesser performing. Beyond the benchmarks and sector performances, multiple Singapore stocks have been propelled into the most 150 traded stocks this year on the back of a surge in trading turnover.  

Singapore’s 150 most traded stocks in the 2021 YTD contributed more than 95% of the day-to-day turnover of all stocks listed on SGX. Among the 150 stocks, 22 stocks have seen a more than 10-fold increase in daily turnover in the 2021 YTD from 2020. This includes 11 stocks listed on the Mainboard, and 11 stocks listed on Catalist. The Sectors most represented by the 22 stocks include the Industrial Sector, with six stocks, while four stocks represent the Consumer Cyclical Sector while the Energy, Basic Materials Sector and Real Estate (excl. REITs) were each represented by three stocks.

While the 22 stocks generated a median total return of 92.9% in the 2021 YTD, the comparatively higher return of the 22 stocks over the past 36 weeks was matched by higher risk, with the 22 stocks generating a median 180-day historical volatility of 93.0%. The 22 stocks that have seen a greater than 10-fold increase in daily turnover in the 2021 YTD from 2020 are tabled below and sort by the highest turnover growth.




			Stocks Among 150 Most Traded in 2021 YTD with More than 10-Fold Increase In Trading Turnover from 2020
			
			
			SGX Code
			
			
			Mkt Cap S$M
			
			
			2021 YTD Average Daily Trading Turnover
			
			
			Trading Turnover Growth (x)
			
			
			2021 Net Insti Inflow S$M
			
			
			MTD Price Change %
			
			
			QTD Total Return %
			
			
			YTD Total Return %
			
			
			180 Day Volatility %
			
			
			Board
			
		


			OIO
			
			
			KUX
			
			
			119.3
			
			
			$929,835
			
			
			20511
			
			
			1.1
			
			
			-6.3
			
			
			189.1
			
			
			241.0
			
			
			268.0
			
			
			CATALIST
			
		


			RH Petrogas
			
			
			T13
			
			
			101.5
			
			
			$1,213,199
			
			
			631
			
			
			-1.1
			
			
			4.6
			
			
			-17.0
			
			
			448.0
			
			
			174.9
			
			
			MAINBOARD
			
		


			Mercurius
			
			
			5RF
			
			
			108.8
			
			
			$1,050,520
			
			
			529
			
			
			2.8
			
			
			110.3
			
			
			7.9
			
			
			241.7
			
			
			136.2
			
			
			CATALIST
			
		


			LHN
			
			
			41O
			
			
			132.9
			
			
			$1,060,568
			
			
			95
			
			
			0.7
			
			
			0.0
			
			
			-15.8
			
			
			86.3
			
			
			66.2
			
			
			CATALIST
			
		


			Kim Heng
			
			
			5G2
			
			
			64.3
			
			
			$592,650
			
			
			50
			
			
			0.2
			
			
			13.8
			
			
			-1.1
			
			
			184.4
			
			
			109.8
			
			
			CATALIST
			
		


			Fortress Minerals
			
			
			OAJ
			
			
			222.5
			
			
			$791,610
			
			
			47
			
			
			-0.9
			
			
			-11.9
			
			
			-29.4
			
			
			50.8
			
			
			75.8
			
			
			CATALIST
			
		


			Samudera Shipping
			
			
			S56
			
			
			337.0
			
			
			$615,484
			
			
			34
			
			
			-1.1
			
			
			17.9
			
			
			66.3
			
			
			161.4
			
			
			45.2
			
			
			MAINBOARD
			
		


			Golden Energy
			
			
			AUE
			
			
			753.0
			
			
			$566,700
			
			
			31
			
			
			-0.1
			
			
			3.2
			
			
			10.3
			
			
			98.8
			
			
			68.8
			
			
			MAINBOARD
			
		


			CFM
			
			
			5EB
			
			
			51.4
			
			
			$1,571,940
			
			
			24
			
			
			1.8
			
			
			4.1
			
			
			-16.4
			
			
			537.5
			
			
			159.3
			
			
			CATALIST
			
		


			Grand Venture
			
			
			JLB
			
			
			394.5
			
			
			$612,248
			
			
			23
			
			
			5.0
			
			
			4.9
			
			
			43.1
			
			
			292.5
			
			
			55.4
			
			
			CATALIST
			
		


			The Place Hldgs
			
			
			E27
			
			
			658.6
			
			
			$2,540,821
			
			
			23
			
			
			2.9
			
			
			0.0
			
			
			-14.5
			
			
			239.4
			
			
			96.6
			
			
			MAINBOARD
			
		


			VCPlus
			
			
			43E
			
			
			109.2
			
			
			$599,753
			
			
			21
			
			
			3.8
			
			
			0.0
			
			
			0.0
			
			
			257.1
			
			
			129.5
			
			
			CATALIST
			
		


			China Star Food
			
			
			42W
			
			
			22.1
			
			
			$583,115
			
			
			14
			
			
			0.6
			
			
			13.6
			
			
			-13.8
			
			
			25.0
			
			
			105.1
			
			
			CATALIST
			
		


			Leader Env
			
			
			LS9
			
			
			121.3
			
			
			$1,335,031
			
			
			14
			
			
			-1.1
			
			
			5.3
			
			
			-27.1
			
			
			9.8
			
			
			89.5
			
			
			MAINBOARD
			
		


			Del Monte Pac
			
			
			D03
			
			
			758.1
			
			
			$702,957
			
			
			13
			
			
			5.7
			
			
			11.4
			
			
			5.4
			
			
			106.9
			
			
			51.7
			
			
			MAINBOARD
			
		


			Hong Fok
			
			
			H30
			
			
			675.7
			
			
			$1,218,681
			
			
			12
			
			
			-6.3
			
			
			0.6
			
			
			-3.6
			
			
			9.4
			
			
			39.3
			
			
			MAINBOARD
			
		


			FJ Benjamin
			
			
			F10
			
			
			27.8
			
			
			$502,099
			
			
			12
			
			
			0.3
			
			
			4.0
			
			
			-23.5
			
			
			73.3
			
			
			134.5
			
			
			MAINBOARD
			
		


			InnoTek
			
			
			M14
			
			
			193.3
			
			
			$1,123,454
			
			
			12
			
			
			-0.3
			
			
			5.0
			
			
			-11.5
			
			
			50.2
			
			
			36.4
			
			
			MAINBOARD
			
		


			MM2 Asia
			
			
			1B0
			
			
			125.6
			
			
			$1,313,276
			
			
			12
			
			
			6.9
			
			
			-3.6
			
			
			-20.6
			
			
			-52.0
			
			
			79.0
			
			
			MAINBOARD
			
		


			Tuan Sing
			
			
			T24
			
			
			588.8
			
			
			$1,637,655
			
			
			12
			
			
			3.8
			
			
			-2.0
			
			
			-2.0
			
			
			57.8
			
			
			38.1
			
			
			MAINBOARD
			
		


			Metal Component
			
			
			5DX
			
			
			20.6
			
			
			$610,897
			
			
			11
			
			
			-1.5
			
			
			13.2
			
			
			-27.1
			
			
			87.0
			
			
			152.7
			
			
			CATALIST
			
		


			Koh Eco
			
			
			5HV
			
			
			149.3
			
			
			$715,921
			
			
			11
			
			
			-1.2
			
			
			12.8
			
			
			-11.7
			
			
			71.0
			
			
			122.4
			
			
			CATALIST
			
		


			Total
			
			
			 
			
			
			5,735.6
			
			
			$21,888,415
			
			
			 
			
			
			22.1
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			9.1
			
			
			4.0
			
			
			149.0
			
			
			101.6
			
			
			 
			
		


			Median 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			4.3
			
			
			-11.6
			
			
			92.9
			
			
			93.0
			
			
			 
			
		

Source: SGX, Refinitiv, Bloomberg (Data as of 10 September 2021). While the 22 stocks make up 0.6% of the total market value of all stocks listed on SGX, they have contributed 1.7% of the 2021 YTD trading turnover of all stocks listed on SGX.

The current market value of the 22 stocks ranges from S$758 million for Del Monte Pacific, to S$21 million for Metal Component Engineering. On 9 Sep, Del Monte Pacific reported 1QFY22 (ended 31 Jul) EBITDA of US$75.0 million, a 77% YoY increase from US$42.4 million with net profit reaching US$18.3 million.


This reversed the US$3.2 million loss in 1QFY21. Del Monte Pacific also ended the last FY on a stronger note – reporting back on 23 June an FY21 turnaround net profit to US$63.3 million, reversing the US$81.4 million loss in FY20. In 1QFY22, the Group noted it significantly improved its margins by 600 basis points to 28.9% from better sales of higher-margin branded products in the US and lower costs.
	The Group’s second largest and most profitable subsidiary, Del Monte Philippine’s, saw its international market sales for the July ending quarter rise 40% YoY to US$67.8 million on robust sales of Packaged Fruit and Beverages including premium packaged pineapple (Del Monte Deluxe Gold) in the US, and S&amp;W packaged products in Asia.
	For its outlook the Group maintained it is well-positioned to build on the momentum achieved in FY21 and expects to offset the impact of commodity and transportation headwinds and barring unforeseen circumstances, the Group expects to generate higher net profit in FY22. Del Monte Pacific is 71%-owned by NutriAsia Pacific Ltd and Bluebell Group Holdings Limited, which are beneficially-owned by the Campos family of the Philippines.

Of the 11 Catalist-listed stocks tabled above, Grand Venture Technology maintains the highest market value. The stock has generated a 292.5% total return in the 2021 year to 10 Sep, and was recipient to a similar level of net buying by institutions seen by Del Monte Pacific over the 36 weeks.


On 3 Sep, Grand Venture Technology proposed a placement of up to 10 million vendor shares and up to 25 million new shares on Catalist, with the latter receiving approval in-principle from SGX on 8 Sep. With a placement price of S$1.14 per share, the proceeds will build on the competencies, customer base, and capacity scale of the homegrown manufacturing solutions and services provide that serves semiconductor, analytical life sciences, electronics and other industries.
	Furthermore, in-line with the company’s intention to undertake a transfer of listing to the Mainboard, as announced on 1 Sep, the placement also allows the company to increase its share trading liquidity, public float and shareholder count.
	Back on 10 Aug, Grand Venture Technology reported a 282.7% YoY surge in its 1HFY21 (ended 30 June) net profit to S$8.5 million, while also declaring its maiden dividend.

Catalist-listed OIO Holdings saw the greatest increase in trading turnover in the 2021 YTD from 2020. The core business units of OIO Holdings are blockchain technology services and mechanical and engineering services.


The group’s blockchain arm aims to expand blockchain technology and accelerate its integration by offering B2B consulting and software development services to various industries.
	Following the acquisition of Moonstake Pte Ltd in May 2021, OIO Holdings extends its business beyond the corporate level by providing digital wallets and staking solutions.
	Back on 12 Aug, OIO Holdings reported for its 1HFY21 (ended 30 June), revenue increased 142% YoY of S$1.6 million, on the back of 276% jump from the blockchain business segment. The company noted that despite achieving a gross profit of S$1.2 million during the period under review, it recorded a net loss of S$0.6m, mainly attributed to items from the new blockchain business segment – namely promotional expenses incurred, non-cash impairment due to the weaker crypto market in June and higher staff related costs.
	On 9 Sep, OIO Holdings proposed a subscription for 894,841 new ordinary shares in the capital of the company, representing approximately 0.5% of the issued shares of the company, at an issue price of S$0.601 for each subscription share, amounting to an aggregate gross consideration of US$400,000 (S$537,800). The proposed subscriber is Mr Makoto Matsuoka who is in the business of the construction and real estate industries in Japan, and an acquaintance Mr Mitsuru Tezuka, a substantial shareholder of the Company.




Stocks That Have Attracted Significant Trading Activity in 2021