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

<ul>
<li>Telecommunications was the top net buy sector on SGX in Oct 2019, attracting net institutional inflows of S$55.9 million, and reversing Sept’s outflow of S$41.4 million. Singtel was also the top net buy stock last month, garnering the highest inflow of S$71.5 million. &nbsp;</li>
<li>The three largest teleco players on SGX – Singtel, NetLink NBN Trust and StarHub – have a combined market cap of about S$60 billion. In the month of October, the trio averaged a total return of 3.7%. In the YTD, Singtel and NetLink were the strongest performers, averaging total returns of 16.3% and 25.2% respectively. &nbsp;</li>
<li>Last month, Singapore unveiled plans to issue licences to operate two full-fledged 5G networks and two smaller ones with limited coverage. The government intends to turn 5G into the backbone of Singapore’s digital economy, securing the city-state’s competitive edge, and enhancing its appeal as a key trading and connectivity hub in the region and beyond.</li>
</ul>
Telecommunications was the top net buy sector on SGX in October 2019, attracting net institutional inflows of S$55.9 million, and reversing September’s outflow of S$41.4 million. Singtel was also the top net buy stock last month, garnering the highest inflow of S$71.5 million.
The three largest telecommunications service providers on SGX – Singtel, NetLink NBN Trust and StarHub – have a combined market capitalisation of about S$60 billion. Singapore’s smallest telco – M1 – delisted in March 2019, after local conglomerate Keppel Corp and media company Singapore Press Holdings jointly bought out Malaysian telecoms provider Axiata Group’s 28.7% stake in M1.
In the month of October 2019, the three telco players have averaged a total return of 3.7%, bringing their year-to-date and one-year total returns to 6.7% and 3.9% respectively. In the YTD, Singtel and NetLink were the strongest performers, averaging total returns of 16.3% and 25.2% respectively.
The table below details the three largest telco plays on SGX, sorted by market cap.
<figure class="editor-figure mceNonEditable"><img src="https://api2.sgx.com/sites/default/files/2019-11/telcos-5G.PNG" class="editor-image img-responsive"></figure>
<div class="content-caption">telcos-5G</div>

Singapore’s 5G Rollout Plans
Last month, Singapore’s Minister for Communications and Information S. Iswaran announced <a href="https://www.gov.sg/~/sgpcmedia/media_releases/imda/press_release/P-20191017-1/attachment/MEDIA%20RELEASE%20SGD%20Industry%20Day%202019.pdf" target="_blank" rel="noopener">plans</a> to issue licences to operate two full-fledged 5G networks and two smaller ones with limited coverage. All four networks can be rolled out by next year, although nationwide coverage will take much longer, and be limited to only two networks due to the scarcity of 5G airwaves for islandwide reach. 5G airwaves for nationwide coverage (the 3.5Ghz band) are expected to be available only in 2021.
The minister noted that 5G will be the backbone of Singapore’s digital economy, securing the city-state’s competitive edge, and enhancing its appeal as a key trading and connectivity hub in the region and beyond. “With a trusted, secure and resilient 5G standalone infrastructure in place, we can invest in, and support the growth of, a thriving 5G innovation ecosystem that fuels innovation, creates more opportunities and maximises benefits for businesses and consumers,” he added.
The smaller 5G networks will meet Singapore’s immediate industrial needs, such as in smart ports and factories, for the remote operation of cranes or vehicles to move shipping containers or goods round the clock. They will also be useful for consumer applications like virtual reality and augmented reality gaming.
Singapore will likely be the first country in Southeast Asia to launch 5G services. Other countries in the region are also in the process of testing and building 5G infrastructure – Viettel, the biggest telco and IT services provider in Vietnam, has been awarded the country's first 5G trial license, while Malaysia’s Maxis recently signed an agreement with China's Huawei to build its 5G network. South Korea, China and the US have already launched 5G services, using a combination of the far-reaching 3.5Ghz airwaves as well as another type of airwaves that are more abundant, known as millimetre airwaves.



Telecommunications was the top net buy sector on SGX in Oct 2019, attracting net institutional inflows of S$55.9 million, and reversing Sept’s outflow of S$41.4 million. Singtel was also the top net buy stock last month, garnering the highest inflow of S$71.5 million. &nbsp;
The three largest teleco players on SGX – Singtel, NetLink NBN Trust and StarHub – have a combined market cap of about S$60 billion. In the month of October, the trio averaged a total return of 3.7%. In the YTD, Singtel and NetLink were the strongest performers, averaging total returns of 16.3% and 25.2% respectively. &nbsp;
Last month, Singapore unveiled plans to issue licences to operate two full-fledged 5G networks and two smaller ones with limited coverage. The government intends to turn 5G into the backbone of Singapore’s digital economy, securing the city-state’s competitive edge, and enhancing its appeal as a key trading and connectivity hub in the region and beyond.

Telecommunications was the top net buy sector on SGX in October 2019, attracting net institutional inflows of S$55.9 million, and reversing September’s outflow of S$41.4 million. Singtel was also the top net buy stock last month, garnering the highest inflow of S$71.5 million.
The three largest telecommunications service providers on SGX – Singtel, NetLink NBN Trust and StarHub – have a combined market capitalisation of about S$60 billion. Singapore’s smallest telco – M1 – delisted in March 2019, after local conglomerate Keppel Corp and media company Singapore Press Holdings jointly bought out Malaysian telecoms provider Axiata Group’s 28.7% stake in M1.
In the month of October 2019, the three telco players have averaged a total return of 3.7%, bringing their year-to-date and one-year total returns to 6.7% and 3.9% respectively. In the YTD, Singtel and NetLink were the strongest performers, averaging total returns of 16.3% and 25.2% respectively.
The table below details the three largest telco plays on SGX, sorted by market cap.

telcos-5G

Singapore’s 5G Rollout Plans
Last month, Singapore’s Minister for Communications and Information S. Iswaran announced plans to issue licences to operate two full-fledged 5G networks and two smaller ones with limited coverage. All four networks can be rolled out by next year, although nationwide coverage will take much longer, and be limited to only two networks due to the scarcity of 5G airwaves for islandwide reach. 5G airwaves for nationwide coverage (the 3.5Ghz band) are expected to be available only in 2021.
The minister noted that 5G will be the backbone of Singapore’s digital economy, securing the city-state’s competitive edge, and enhancing its appeal as a key trading and connectivity hub in the region and beyond. “With a trusted, secure and resilient 5G standalone infrastructure in place, we can invest in, and support the growth of, a thriving 5G innovation ecosystem that fuels innovation, creates more opportunities and maximises benefits for businesses and consumers,” he added.
The smaller 5G networks will meet Singapore’s immediate industrial needs, such as in smart ports and factories, for the remote operation of cranes or vehicles to move shipping containers or goods round the clock. They will also be useful for consumer applications like virtual reality and augmented reality gaming.
Singapore will likely be the first country in Southeast Asia to launch 5G services. Other countries in the region are also in the process of testing and building 5G infrastructure – Viettel, the biggest telco and IT services provider in Vietnam, has been awarded the country's first 5G trial license, while Malaysia’s Maxis recently signed an agreement with China's Huawei to build its 5G network. South Korea, China and the US have already launched 5G services, using a combination of the far-reaching 3.5Ghz airwaves as well as another type of airwaves that are more abundant, known as millimetre airwaves.

Telco Plays Grab Spotlight as Singapore Unveils 5G Rollout Plans

StarHub Ltd

Telco Plays Grab Spotlight as Singapore Unveils 5G Rollout Plans