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STI Posts Strongest Monthly Gain Since March

Posted November 1, 2021 at 11:00 am
Singapore Exchange
  • The STI gained 3.6% in October, producing its strongest monthly price gain since the 7.3% gain in March 2021, and strongest performance for the month of October since the 4.8% gain in October 2017. This brings the total return of the STI for the first 10 months of 2021 to 15.7%.
     
  • Overarching market drivers in October included global progress in containing COVID-19, the global growth outlook remaining largely intact for 2021 and 2022, while rising commodity prices, supply disruptions and the continued local focus on strategic corporate restructuring also provided market cues.
     
  • Proportionate to month-end market capitalisation, within the STI, Sembcorp Industries, Jardine Cycle & Carriage, City Developments, Yangzijiang Shipbuilding Holdings and Venture Corporation saw the highest net institutional inflows in October, while averaging 7.9% price gains.

In October, the Straits Times Index (“STI”) gained 3.6%, finishing the month at 3,198.17. This was the STI’s strongest monthly price gain since the 7.3% gain in March 2021, and strongest October since the 4.8% gain in October 2017. The FTSE ASEAN All-Share Index also gained 3.9% over the month, outpacing the broader Asia Pacific, which declined 0.9%, weighed by Japan stocks. Globally, the FTSE All World Index gained 4.2% during October, led by auto manufacturers, energy, technology, consumer cyclical and lodging stocks in addition to REITs. Overall, the total market capitalisation of Singapore’s listed stocks increased 3.0% over the month, from S$887.9 billion to S$914.2 billion.

Overarching market drivers in October included global progress in containing COVID-19, the global growth outlook remaining largely intact for 2021 and 2022, while rising commodity prices, supply disruptions and the continued local focus on strategic restructuring also provided market cues.

On the COVID-19 front, in October, the 7-day rolling average of daily new confirmed global COVID-19 cases continued September’s decline, ending the month at 430,000 cases a day, down from above 650,000 cases per day in mid-August. The key test for November will be for this trend to continue, with the objective of the 7-day rolling average breaking below the 360,000 cases per day level, a key level last reached in mid-to-late June and mid-to-late February. The data provided by ourworldindata.org also shows that the in mid-October the 7-day rolling average of daily confirmed COVID-19 deaths reached lows not seen since early November 2020. However, gaps in vaccination rates across countries remain, so much so that in its October World Economic Outlook, the IMF noted over half of the countries in the world are not on track to reach the goal of vaccinating 4% of their population by the end of 2021.

While the IMF October Outlook marginally trimmed its global growth outlook for 2021 to 5.9% (from 6.0% in July), the above average 4.9% growth rate for 2022 was kept intact. Similarly, Singapore GDP is expected to grow between 6.0% and 7.0% in 2021, and remain above trend in 2022.

Inflation expectations driven by rising commodity prices and supply disruptions also impacted the STI in October through its largest sector, the Banks. DBS Group Holdings, Oversea-Chinese Banking Corporation and United Overseas Bank averaged a 3.4% gain in October. Their average gains for the month were as high as 4.3% as of the 27 Oct Asia close, before global banks declined 1.3% on global inflation concerns that pushed 2-year UST yields higher, resulting in the 2/10-year UST yield curve flattening by close to 10 basis points by the last session of the month.

With auto manufacturers also leading global stocks in October, Jardine Cycle & Carriage led the STI in October with a 16.1% gain and S$50 million of net institutional inflow. Also in-line with global trends, Hongkong Land gained 14.0% over the month, while outside the STI, among the most actives, Rex International Holding gained 61.9% as the price of Brent Crude Oil increased from US$78.52 to US$84.38.

Overall the STI was recipient to S$295 million of net institutional inflow in October, with 18 of the 30 stocks seeing net inflows, and 12 stocks seeing net outflows. Within the STI, proportionate to month-end market capitalisation, Sembcorp Industries, Jardine Cycle & Carriage, City Developments, Yangzijiang Shipbuilding Holdings and Venture Corporation saw the highest net institutional inflows in October, while averaging 7.9% price gains. The next five STI stocks that saw the highest net institutional inflows proportionate to month-end market capitalisation averaged a 4.0% gain, similar to the STI’s 4.1% gain.

STI Stocks that saw most net Insti Inflow proportionate to Mkt Cap in OctoberCodeMkt Cap S$MOct Net Insti Flow S$MOctober Net Insti. Flow Proportionate to Mkt CapOct Px Change %Sector
Sembcorp IndU963,58724.30.7%9.8Utilities
Jardine C&CC078,89350.00.6%16.1Consumer Cyclicals
CityDevC096,63932.80.5%5.9Real Estate (excl. REITs)
YZJ Shipbldg SGDBS65,60720.80.4%2.9Industrials
VentureV035,46517.00.3%4.7Technology (Hardware/ Software)
UOBU1144,778136.60.3%3.5Financial Services
SATSS584,70211.10.2%0.7Industrials
SingtelZ7441,27974.20.2%1.6Telecommunications
CapLand IntCom TC38U13,92924.00.2%5.9REITs
ThaiBevY9217,83430.00.2%8.4Consumer Non-Cyclicals

Source: SGX, Refinitiv, Bloomberg (Data as of 29 October 2021)

Meanwhile, Singapore Exchange, Keppel DC REIT, ComfortDelGro Corporation, Mapletree Industrial Trust and Mapletree Logistics Trust saw the highest net institutional outflows in October while average a 1.1% decline in price.     

The seven technology stocks among Singapore’s most traded 60 stocks so far this year were mixed, with performances ranging from a 4.7% gain for Venture Corporation to a 9.4% decline for Nanofilm Technologies International. This coincided with a report on 26 Oct that Singapore’s Industrial Production declined 2.8% in September from August. Nonetheless, precision engineering and the electronics cluster have been Singapore’s strongest manufacturing segments over the first three quarters of 2021, and the aforementioned seven technology stocks averaged a 44.9% total return over the past 10 months, with their median total return at 23.7%.

The October performances and net institutional flows of the 60 most traded Singapore stocks which includes the 30 STI stocks (in Bold) are tabled below.

StockCodeMkt Cap S$MOct Net Insti. Flow S$MOct Px Change %Oct Total Return %2021 YTD Net Insti. Flow S$M2021 YTD Total Return %Sector
DBSD0580,97991.94.04.0977.628.8Financial Services
SingtelZ7441,27974.21.61.6-116.99.4Telecommunications
UOBU1144,778136.63.53.5369.522.9Financial Services
OCBC BankO3953,07533.82.62.6220.921.3Financial Services
CapitaLand Invest9CI17,889-27.41.21.2-1.716.6Real Estate (excl. REITs)
YZJ Shipbldg SGDBS65,60720.82.92.9264.353.2Industrials
SIAC6L15,431-17.53.43.4-318.521.5Industrials
CapLand Int Com TC38U13,92924.05.95.91.72.8REITs
Ascendas REITA17U12,963-14.83.03.0-172.06.9REITs
Wilmar IntlF3427,250-17.32.62.6-246.3-3.3Consumer Non-Cyclicals
SGXS6810,362-110.1-3.0-2.2-174.46.9Financial Services
JMH USDJ3656,48223.98.58.5-49.78.6Industrials
Genting SingG139,411-0.68.38.3-122.2-7.2Consumer Cyclicals
Mapletree Log TrM44U8,679-27.2-1.0-1.0-44.73.4REITs
Mapletree Ind TrME8U7,314-39.6-1.1-1.1-133.8-1.2REITs
VentureV035,46517.04.74.7-147.70.7Technology (Hardware/ Software)
ThaiBevY9217,83430.08.48.4-322.4-0.6Consumer Non-Cyclicals
ComfortDelGroC523,381-18.73.33.3-159.4-4.6Industrials
Keppel CorpBN49,78912.03.13.1-102.53.5Industrials
SPHT393,16718.81.51.5220.079.0Consumer Cyclicals
CityDevC096,63932.85.95.9-232.0-6.3Real Estate (excl. REITs)
Suntec REITT82U4,251-2.84.96.5-77.85.9REITs
Mapletree Com TrN2IU7,240-0.75.35.3-26.84.9REITs
Keppel DC REITAJBU4,098-37.5-3.6-3.6-222.3-11.5REITs
ST EngineeringS6311,9325.10.50.5-70.74.2Industrials
Sembcorp MarineS512,480-0.5-4.8-4.848.7-36.5Industrials
HongkongLand USDH7817,35627.714.014.0-13.642.8Real Estate (excl. REITs)
Frasers L&C TrBUOU5,588-11.50.00.04.911.8REITs
AEMAWX1,2986.83.73.7-22.323.7Technology (Hardware/ Software)
Keppel ReitK71U4,164-8.56.66.6-38.56.1REITs
IFASTAIY2,395-34.2-8.1-8.126.2189.6Technology (Hardware/ Software)
UMS558880-23.2-2.9-2.329.955.8Technology (Hardware/ Software)
Jardine C&CC078,89350.016.116.150.018.9Consumer Cyclicals
NanofilmMZH2,488-20.3-9.4-9.4-44.4-13.9Technology (Hardware/ Software)
SATSS584,70211.10.70.729.25.3Industrials
Sembcorp IndU963,58724.39.89.884.020.9Utilities
Frasers Cpt TrJ69U4,095-4.16.26.2-81.70.3REITs
NetLink NBN TrCJLU3,9753.82.52.5-46.58.5Telecommunications
UOLU146,1047.65.45.4-32.7-4.4Real Estate (excl. REITs)
Mapletree NAC TrRW0U3,559-16.15.75.7-56.08.3REITs
Jiutian ChemicalC8R173-1.47.47.4-4.310.1Materials & Resources
Top GloveBVA7,0461.5-3.3-1.4-59.7-51.0Healthcare
Sheng SiongOV82,135-15.3-4.1-4.1-132.4-4.7Consumer Non-Cyclicals
CapLand China TAU8U2,025-39.5-1.60.5-63.8-7.1REITs
Medtecs Intl546199-2.0-5.2-5.26.0-61.3Healthcare
FrenckenE28974-6.6-1.7-1.731.876.3Technology (Hardware/ Software)
Ascott TrustHMN3,37113.111.411.4-27.5-0.3REITs
ISDNI07272-0.4-0.8-0.81.354.7Industrials
Oceanus5799721.1-2.4-2.4-17.348.1Consumer Non-Cyclicals
Rex Intl5WH4437.161.961.917.2132.9Energy/ Oil & Gas
ESR-REITJ91U1,924-8.63.23.226.229.2REITs
Golden Agri-ResE5H3,3635.012.812.844.369.9Consumer Non-Cyclicals
DairyFarm USDD016,518-4.34.04.0-43.5-9.4Consumer Non-Cyclicals
RiverstoneAP41,275-3.7-3.4-3.42.9-16.4Healthcare
Olam IntlO326,2745.0-3.4-3.418.720.6Consumer Non-Cyclicals
Aztech Gbl8AZ805-5.50.00.0-68.1-17.6Technology (Hardware/ Software)
Kep Infra TrA7RU2,645-27.9-2.8-2.8-85.14.0Utilities
ARA LOGOS Log TrK2LU1,307-1.8-2.2-2.279.456.8REITs
Thomson MedicalA502,247-0.31.21.220.470.0Healthcare
Raffles MedicalBSL2,5626.3-6.2-6.270.440.2Healthcare
Total 597,319141  -934  
Average   3.13.2 17.5 

Source: SGX, Refinitiv, Bloomberg (Data as of 29 October 2021)

Originally Posted on November 1, 2021 – STI Posts Strongest Monthly Gain Since March

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