Key Singapore Market Moves and Flows in 3Q21

• In 3Q21, the STI saw its narrowest quarterly trading range since 3Q17, generating a 0.2% decline in total return, while the FTSE APAC Index declined 2.5% and the FTSE All-World Index gained 0.1%. The 100 most actively traded Singapore stocks in 2021 also averaged a 3.5% decline in 3Q21, bringing their average nine month total return to 24.9%.
   
• Singapore Telecommunications saw the most net institutional inflow of the 100 stocks in 3Q21, with S$200 million in net buying, and a 9% total return, while global peers declined 2%. Last week the company announced that Pension Fund Australian Super will buy a 70% stake in Singtel’s Australia tower network for A$1.9 billion.
   
• RH Petrogas led the price performances of the 100 most actives in September with a 19% gain, while Rex Int added 9%. The Energy Sector was the strongest performing Sector across the globe and the Singapore most actives in 3Q21. Leading global stocks last week, the Energy sector remains in focus with the scheduled OPEC+ virtual meeting tonight. 
   
• For 4Q21, key drivers of the stock market will continue to include how well stocks and sectors can contend with ongoing COVID-19 constrained growth, interest rate expectations, global trade, demand for commodities as well as corporate strategic efforts to maximise operational efficiency key drivers, with the latter showing no signs of abating.

 
The Straits Times Index (“STI”) saw its narrowest trading range in 3Q21 in four years, since 3Q17, with a 6% differential between the 10 August high (3,207.99) and the 22 Sep low (3,037.79). This was on the back of global banking stocks also seeing their narrowest trading range since 3Q18, and banks making up more than 40% of the STI.

The 2/10 year UST yield curve, saw a comparatively steady quarter, ending at 120bps, similar to its end of June level. From 30 June to 4 August, the yield curve flattened from 120 bps to 100 bps, then from 4 August to 30 Sep, the yield curve steepened from 100 bps back to 120 bps. This saw measured moves in two global stock sectors that are important to the STI, and REITs:

• From 30 June to 4 August, global Banks declined 2%, then from 4 August to 30 Sep, global Banks gained 4%. Steeper yield curves suit banks that borrow short and lend long. While the trio of SGX-listed banks were less correlated to their global peers over the quarter, DBS Group Holdings and United Overseas Bank finished the quarter averaging a 2.6% gain, in-line with the 2.8% gain of the Bloomberg World Banks Index, while Oversea-Chinese Banking Corp declined 1.8%.
• From 30 June to 4 August, global REITs gained 4%, then from 4 August to 30 Sep, global REITs declined 4%. With the steepening of the yield curve driven by gains on the long end of the curve, the higher yields decreased the yield premium of 10 year USTs over REITs. Like the global REITs, the iEdge S-REIT Index also gained 4% from 30 June to 4 August, then declined 4% between 4 August and 30 Sep.

For the quarter ahead, interest rate expectations will continue to be a key driver,in addition to how well listed companies and respective setors can contend with the ongoing COVID-19 constrained growth, global trade, demand for commodities as well as corporate strategic efforts to maximise operational efficiency.

The Energy Sector was also the strongest performing Sector across the globe in 3Q21 as well as the past week. Over 3Q21, the two stocks that represent the Energy Sector that are among Singapore’s 100 most traded stocks this year, Catalist-listed Rex International, and Mainboard-listed RH Petrogas, saw the highest combined net institutional inflows proportionate to sector market cap for the three months. While Brent Crude Oil gained 4.5% over the quarter, from US$75.13/bbl to US$78.52/bbl, the gains in September were greater, from US$72.99/bbl to US$78.52/bbl. The 7.6% monthly gain for Brent Crude Oil coinciding with RH Petrogas ranking as the strongest performer of the 100 stocks in September, with a 19% return, while Rex International ranked just outside the top 10 performers with a 9% gain. OPEC+ meets tonight via video conferencing to set production targets for November, with consensus expectations that ministers will continue to gradually raise supply, and possibly boost more than the already planned 400,000 b/d. In the September Monthly Oil Market Report, OPEC estimated that world oil demand will grow by 4.2 mb/d to 100.8 mb/d in 2022, exceeding pre-pandemic levels.

3Q21 Net Institutional Flows & Sector Moves

Together the 100 most traded stocks over the past seven months booked S$754 million of net institutional outflow in 3Q21, bringing the total net institutional outflow for the 100 stocks for the past nine months to S$988 million. While the STI stocks typically dominate the inflows and outflows based on their comparative size in terms of market capitalisation, the 100 stocks do represent 12 sectors. Hence, another lens relevant to the flows is stock inflow/outflow in proportion to stock market capitalisation. When proportioning the combined net institutional flows of the 12 Sectors to the combined sector market capitalisation, the Energy Sector was observed to see the highest net institutional inflows in 3Q21, followed by Materials & Resources Sector and the Telecommunications Sector. In terms of average performances over 3Q21, the Energy Sector generated the highest gains over 3Q21, while The Technology (Hardware/Software) Sector saw the second highest average total returns, followed by REITs.

The average sector performances of the most 100 traded stocks in 3Q21, with sector flows proportionate to sector market capitalisation are tabled below.

Note the average performance can be skewed significantly by one stock’s performance. For instance, in 3Q21, Yinda Infocomm declined 15%, while Singapore Telecommunications, NetLink NBN Trust and StarHub averaged 5% total returns.

Singapore Telecommunications saw the most net institutional inflow of the 100 stocks in 3Q21, with S$199.8 million in net buying, and a 9% total return, while global peers declined 2%. The gains in the Singtel share price since the company announced the issuance of S$1.0 billion 3.3% Subordinated Perpetual Securities under its S$10 billion Guaranteed Euro Medium Term Note Programme, has now seen the company marginally outpace global telecommunication indices over the past nine months.  The company has also been a part of the recent wave of Singapore companies conducting strategic reviews, after announcing in May, it was weighing options for its digital marketing and cyber security businesses. Fitch Ratings noted the review signaled suggests a sharper focus on profitable growth and prudent capital preservation, and on 12 Aug reported a turnaround net profit of S$445 million for its 1Q22 (ended 30 June). Last week the company announced that Pension Fund Australian Super will buy a 70% stake in Singtel’s Australia tower network for A$1.9 billion. StarHub also saw a 2% total return in 3Q21, with S$4.5 million of net institutional inflow, and the company proposing an investment in shares of MyRepublic Broadband on 22 Sep. The clear operational highlight of the proposal is to harness synergies across both broadband operation. The Telcocommunications Sector has changed significantly in Singapore in the past few years with the introduction of new mobile virtual network operators, providing broadband services, reducing the cost of mobile data, phone plans for users. At the same time, cost savings have been an important aspect of StarHub’s three year DARE for transformation program which began in October 2018. The program is expected to achieve costs savings of S$273 million by the end of next month. 

While Real Estate was the least performing sector across the globe in 3Q21, CapitaLand Invest (“CLI”) generated a 15% return from its debut through to the end of the quarter, PropNex gained 15% over the quarter, while Hongkong Land edged 3% higher. The remaining seven developers and operators among the 100 most traded Singapore stocks averaged 6.5% declines. Since its debut on 20 Sep, CLI has averaged S$85 million in daily trading turnover, which is markedly higher than the previous entity, CapitaLand, which averaged daily trading turnover of S$37 million a day in the 2021 year through to 9 Sep, and S$33 million in 2020.

2021 YTD Top Traded 100 Stocks by Turnover

The recent performances of the 100 most traded stocks over the past nine months are tabled below. Together the 100 stocks represent S$622 billion or 70% of the total S$888 billion market value of all stocks listed in Singapore. The table is sorted by highest total returns in 3Q21.

100 Most Traded Stocks in 2021	Code	Mkt Cap S$M	Sep Total Return	Sep Net Insti Flow S$M	3Q21 Total Return	3Q21 Net Insti Flow S$M	9M21 Total Return	9M21 Net Insti Flow S$M	Sector
Frencken	E28	991	-1%	-2.7	24%	14.4	79%	38.4	Technology (Hardware/ Software)
Raffles Medical	BSL	2,729	4%	4.5	24%	46.2	49%	64.1	Healthcare
First Resources	EB5	2,572	12%	7.6	23%	15.6	30%	6.4	Consumer Non-Cyclicals
OUE Com Reit	TS0U	2,474	11%	26.3	16%	33.4	26%	38.1	REITs
IFAST	AIY	2,606	12%	37.2	16%	10.5	215%	60.4	Technology (Hardware/ Software)
StarhillGbl Reit	P40U	1,391	4%	26.7	15%	31.3	33%	38.6	REITs
Rex Intl	5WH	273	9%	4.2	15%	9.3	44%	10.1	Energy/ Oil & Gas
CapitaLand Invest*	9CI	17,691	15%	25.7	15%	25.7	15%	25.7	Real Estate (excl. REITs)
PropNex	OYY	633	-7%	-0.1	15%	-3.4	134%	-3.1	Real Estate (excl. REITs)
ESR-REIT	J91U	1,863	0%	29.5	15%	53.0	25%	34.8	REITs
SPH	T39	3,119	1%	40.2	15%	81.6	76%	201.1	Consumer Cyclicals
Olam Intl	O32	6,495	10%	14.2	13%	12.1	25%	13.8	Consumer Non-Cyclicals
UMS	558	907	-2%	-1.2	13%	8.0	60%	53.2	Technology (Hardware/ Software)
HPH Trust USD	NS8U	2,839	18%	7.3	12%	2.2	35%	-4.7	Industrials
ARA LOGOS Log Tr	K2LU	1,334	5%	38.7	11%	58.3	60%	81.2	REITs
SPHREIT	SK6U	2,618	4%	24.2	10%	25.5	16%	16.7	REITs
Lendlease Reit	JYEU	1,027	-2%	15.2	9%	27.2	26%	28.9	REITs
Far East HTrust	Q5T	1,223	6%	18.5	9%	15.7	4%	8.2	REITs
Singtel	Z74	40,619	6%	232.1	9%	199.8	8%	-191.1	Telecommunications
Oceanus	579	996	17%	-1.9	8%	-3.7	52%	-18.3	Consumer Non-Cyclicals
AEM	AWX	1,249	-2%	22.6	6%	85.1	19%	-29.2	Technology (Hardware/ Software)
KepPacOakReitUSD	CMOU	1,106	6%	19.4	6%	18.0	28%	5.5	REITs
Ascendas-iTrust	CY6U	1,649	-1%	-0.4	6%	-0.4	10%	-8.7	REITs
SATS	S58	4,668	2%	14.2	6%	23.8	5%	18.1	Industrials
Cromwell Reit EUR	CWBU	2,303	5%	25.7	6%	29.5	14%	30.4	REITs
Frasers L&C Tr	BUOU	5,588	1%	17.9	6%	51.5	12%	16.4	REITs
NetLink NBN Tr	CJLU	3,877	3%	6.6	5%	6.9	6%	-50.4	Telecommunications
Prime US ReitUSD	OXMU	1,354	5%	20.1	4%	12.7	21%	0.5	REITs
SIA	C6L	14,926	-1%	-38.6	4%	-98.2	18%	-300.9	Industrials
HongkongLand USD	H78	15,211	16%	31.3	3%	-7.2	25%	-41.3	Real Estate (excl. REITs)
DBS	D05	77,871	1%	-41.1	3%	-56.4	24%	885.8	Financial Services
UOB	U11	43,297	1%	43.1	2%	-41.6	19%	232.9	Financial Services
Ascendas Reit	A17U	12,585	-1%	26.6	2%	99.1	4%	-157.2	REITs
Golden Agri-Res	E5H	2,983	2%	1.5	2%	14.4	51%	39.3	Consumer Non-Cyclicals
Keppel DC Reit	AJBU	4,253	-1%	-5.9	2%	-10.0	-8%	-184.9	REITs
ParkwayLife Reit	C2PU	2,813	-4%	-6.4	2%	-4.2	23%	-2.4	REITs
StarHub	CC3	2,112	0%	0.0	2%	4.5	-3%	-20.9	Telecommunications
Kep Infra Tr	A7RU	2,720	1%	1.0	2%	-23.8	7%	-57.2	Utilities
Mapletree Log Tr	M44U	8,765	0%	10.5	1%	13.4	4%	-17.6	REITs
GKE	595	103	2%	-0.5	0%	1.6	11%	-3.7	Industrials
ST Engineering	S63	11,874	1%	-12.8	0%	-20.9	4%	-75.8	Industrials
CapLand Int Com T	C38U	13,151	-1%	9.1	-1%	22.2	-3%	-22.3	REITs
AIMS APAC Reit	O5RU	1,019	-7%	6.0	-1%	15.8	21%	17.2	REITs
Suntec Reit	T82U	4,044	-4%	-19.1	-1%	-13.2	-1%	-75.0	REITs
Mapletree Ind Tr	ME8U	7,394	-5%	-32.0	-1%	6.6	0%	-94.2	REITs
OCBC Bank	O39	51,749	1%	-12.6	-2%	-299.6	18%	187.1	Financial Services
SIA Engineering	S59	2,369	-1%	-0.3	-2%	-2.9	7%	-2.5	Industrials
Tuan Sing	T24	589	-2%	1.5	-2%	6.9	58%	6.0	Real Estate (excl. REITs)
YZJ Shipbldg SGD	BS6	5,449	-16%	-79.4	-2%	14.7	49%	243.5	Industrials
Thomson Medical	A50	2,221	-2%	-0.6	-2%	-1.2	68%	20.7	Healthcare
Keppel Corp	BN4	9,498	0%	13.6	-2%	-54.9	0%	-114.5	Consumer Non-Cyclicals
ThaiBev	Y92	16,453	-4%	-24.2	-3%	-27.6	-8%	-352.4	Consumer Non-Cyclicals
Jiutian Chemical	C8R	161	0%	1.1	-4%	1.2	2%	-2.9	Materials & Resources
Mapletree Com Tr	N2IU	6,875	2%	25.4	-4%	-1.1	0%	-26.1	REITs
Sheng Siong	OV8	2,225	-2%	-10.9	-4%	-32.9	-1%	-117.1	Consumer Non-Cyclicals
CityDev	C09	6,267	1%	1.4	-5%	-117.6	-12%	-264.9	Real Estate (excl. REITs)
COSCO SHP SG	F83	627	-2%	1.0	-5%	1.5	0%	6.5	Industrials
Ascott Trust	HMN	3,028	-8%	-18.8	-5%	-19.7	-10%	-40.6	REITs
Venture	V03	5,221	-5%	-28.1	-5%	-10.1	-4%	-164.7	Technology (Hardware/ Software)
Wilmar Intl	F34	26,556	2%	-13.5	-5%	-137.6	-6%	-229.0	Consumer Non-Cyclicals
RH PetroGas	T13	116	19%	0.0	-5%	0.1	524%	-1.1	Energy/ Oil & Gas
Yoma Strategic	Z59	282	-3%	1.5	-6%	5.3	-57%	-33.1	Real Estate (excl. REITs)
Hong Fok	H30	659	-2%	0.4	-6%	1.0	7%	-6.0	Real Estate (excl. REITs)
UOL	U14	5,792	-2%	-7.0	-6%	-16.3	-9%	-40.3	Real Estate (excl. REITs)
Frasers Cpt Tr	J69U	3,857	-2%	-19.7	-7%	-41.0	-5%	-77.6	REITs
CapLand China T	AU8U	1,898	-5%	-11.0	-7%	-37.2	-8%	-24.3	REITs
ComfortDelGro	C52	3,273	-7%	-29.7	-7%	-79.9	-8%	-140.7	Industrials
Avarga	U09	255	-3%	-0.3	-7%	0.6	5%	8.7	Consumer Cyclicals
Mapletree NAC Tr	RW0U	3,367	-3%	-13.7	-7%	-40.0	2%	-39.9	REITs
ManulifeReit USD	BTOU	1,521	-3%	-4.7	-7%	-5.6	4%	-33.1	REITs
Sasseur Reit	CRPU	1,038	-5%	-1.3	-8%	-4.0	11%	-8.1	REITs
Jardine C&C	C07	7,660	0%	-4.3	-8%	-36.9	2%	0.0	Consumer Cyclicals
Keppel Reit	K71U	3,906	1%	-18.3	-9%	-51.2	0%	-30.0	REITs
Yanlord Land	Z25	2,144	-7%	0.4	-9%	-3.3	4%	-18.1	Real Estate (excl. REITs)
SingPost	S08	1,428	-3%	-1.6	-10%	-27.5	-9%	-46.1	Industrials
SGX	S68	10,687	1%	-48.8	-11%	-190.3	9%	-64.3	Financial Services
Aspen	1F3	145	17%	0.6	-12%	0.8	-39%	-5.6	Real Estate (excl. REITs)
Sarine Tech	U77	230	-11%	0.1	-12%	2.6	62%	-2.5	Industrials
ISDN	I07	274	-2%	-1.4	-13%	-2.1	56%	1.7	Industrials
Sembcorp Ind	U96	3,273	-5%	-5.3	-14%	-18.2	10%	59.8	Utilities
Genting Sing	G13	8,687	-6%	-29.1	-14%	-123.0	-14%	-121.6	Consumer Cyclicals
CDL HTrust	J85	1,278	-11%	-4.8	-15%	-7.4	-15%	-14.8	REITs
Haw Par	H02	2,554	-12%	-6.3	-15%	-6.8	10%	69.0	Healthcare
Yinda Infocomm	42F	266	4%	0.4	-15%	2.1	166%	16.0	Telecommunications
Q&M Dental	QC7	524	-9%	-8.3	-15%	-5.2	53%	13.0	Healthcare
JMH USD	J36	51,972	-1%	-13.8	-16%	-58.0	0%	-73.6	Consumer Non-Cyclicals
Japfa	UD2	1,402	-4%	-1.2	-17%	-13.8	-16%	0.0	Consumer Non-Cyclicals
DairyFarm USD	D01	6,264	-2%	-3.8	-18%	-26.2	-13%	-39.2	Consumer Non-Cyclicals
Aztech Gbl**	8AZ	805	-5%	-3.1	-19%	-20.6	-18%	-62.6	Industrials
Sunpower	5GD	488	-1%	1.6	-19%	2.9	2%	-1.8	Industrials
Sembcorp Marine	S51	2,605	-2%	15.7	-21%	15.4	-33%	49.2	Industrials
MM2 Asia	1B0	123	-5%	0.3	-22%	5.8	-53%	7.2	Consumer Cyclicals
Nanofilm	MZH	2,754	-3%	4.6	-24%	-61.1	-5%	-24.1	Technology (Hardware/ Software)
Riverstone	AP4	1,319	-27%	-13.1	-25%	-17.8	-14%	6.6	Healthcare
Leader Env	LS9	120	4%	0.1	-28%	3.1	8%	-1.0	Industrials
The Place Hldg	E27	529	-20%	0.4	-31%	1.0	173%	3.2	Consumer Cyclicals
Top Glove	BVA	7,286	-29%	-9.3	-33%	-7.2	-50%	-61.2	Healthcare
CFM	5EB	37	-25%	-1.7	-40%	-1.0	360%	0.2	Industrials
UGHealthcare	8K7	213	-36%	-1.6	-40%	-3.4	-41%	-16.4	Healthcare
Medtecs Intl	546	210	-29%	1.7	-55%	-0.8	-59%	7.9	Healthcare
Total		621,849		265		-754		-988
Average			-1%		-4%		25%
Median			-1%		-2%		7%

 *Listed on 20 Sep **Listed on 11 March. Sources: SGX, Bloomberg, Refinitiv (Data as of 30 Sep 2021)

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Originally Posted on October 4, 2021 – Key Singapore Market Moves and Flows in 3Q21