- The STI gained 5.4% over the past fortnight, recovering half of the declines posted between 13 Sep and 21 Oct. This has brought the STI’s 2022-to-date total return to 4%, which compares to an 18% decline for the FTSE Developed Index and 21% decline for the FTSE Asia Pacific Index.
- The STI’s five strongest stocks since 21 Oct included Wilmar, Sembcorp Ind, Keppel DC REIT, UOB and Keppel Corp, with four of the five stocks providing financials/business updates over the period. UOB was among the most defensive STI stocks between 13 Sep and 21 Oct, in addition to YZJ Shipbuilding, Genting SG, DBS, Emperador.
- Underpinning the STI’s 5.4% partial recovery, the trio of DBS, OCBC & UOB averaged 6.7% gains over the past fortnight. As noted in financial updates, the combined 3Q22 Net Interest Income of the trio, climbed to S$7.4 billion, up S$1.3 billion from 2Q22, on net interest margin expansions and loan growth.
During the 2H22-to-date, the STI has closed as high as 3,301.96 on 11 Aug, and as low as 2,969.95 on 21 Oct, with a similar 10% variance between the outermost daily closes observed in 1H22. Current global outlooks for growth, trade and inflation, in addition to the Ukraine Crisis remain highly fluid, creating dynamic market conditions which has seen the Singapore stock market on the move for much of 2022.
For the nine trading sessions that followed the 21 Oct close of 2,969.95 through to 4 Nov, the STI gained 5.4% to 3,130.11, with the ~160 point partial rebound representing half of the ~320 point decline from 13 Sep to 21 Oct.
During the five-week decline through to 21 Oct, SATS and six of the seven STI REITs led the STI lower, whilst the last nine sessions have seen more diversified leaderboard in terms of the performances. During the five-week decline through to 21 Oct, the higher for longer rate US rate outlook saw the seven REITs in the STI average 18.7% declines, while the trio of DBS Group Holdings (DBS), Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB) were comparatively more defensive with 5.1% declines, as both segments generally moved in-line with global peers. Since 21 Oct, 10-year UST Note yields have not pushed any higher, while locally the spotlight gravitated to earnings and business updates.
The STI’s five strongest stocks over the past two weeks included Wilmar International, Sembcorp Industries, Keppel DC REIT, United Overseas Bank and Keppel Corporation. The STI stocks, sorted by highest gains posted since 21 Oct, are tabled below.
| STI Stock | Code | 13 Sep – 21 Oct, 2022 Price Chg. % | 21 Oct – 4 Nov, 2022 Price Chg. % | Mkt Cap S$M | YTD Net Fund Flow S$M | YTD Total Return % | Sector |
| Wilmar Intl | F34 | -13.3 | 12.5 | 24,654 | 73.7 | -1 | Consumer Non-Cyclicals |
| Sembcorp Ind | U96 | -15.7 | 10.0 | 5,485 | 193.1 | 58 | Utilities |
| Keppel DC Reit | AJBU | -18.8 | 10.0 | 3,025 | -139.9 | -26 | REITs |
| UOB | U11 | -5.7 | 9.3 | 47,559 | -265.8 | 10 | Financial Services |
| Keppel Corp | BN4 | -13.0 | 8.7 | 12,456 | 369.6 | 46 | Industrials |
| DFIRG USD* | D01 | -17.0 | 8.4 | 4,458 | -11.5 | -12 | Consumer Non-Cyclicals |
| CapLand IntCom T | C38U | -17.9 | 6.9 | 12,336 | 119.9 | -6 | REITs |
| CityDev | C09 | -14.6 | 6.8 | 7,092 | 303.3 | 21 | Real Estate (excl. REITs) |
| ST Engineering | S63 | -16.4 | 6.7 | 10,369 | -84.4 | -7 | Industrials |
| DBS | D05 | -3.7 | 6.4 | 88,713 | -13.4 | 9 | Financial Services |
| SIA | C6L | -7.0 | 6.0 | 15,863 | 54.4 | 7 | Industrials |
| Singtel | Z74 | -12.8 | 5.9 | 41,599 | 817.8 | 11 | Telecommunications |
| UOL | U14 | -17.0 | 5.2 | 5,287 | -3.5 | -10 | Real Estate (excl. REITs) |
| YZJ Shipbldg SGD | BS6 | 23.9 | 4.9 | 5,057 | 60.7 | 95 | Industrials |
| OCBC Bank | O39 | -6.0 | 4.4 | 54,105 | 509.6 | 11 | Financial Services |
| Mapletree Log Tr | M44U | -18.3 | 4.2 | 7,156 | -60.5 | -18 | REITs |
| CapLand Ascendas REIT | A17U | -14.8 | 3.6 | 10,754 | -73.1 | -8 | REITs |
| Genting Sing | G13 | -1.3 | 3.2 | 9,718 | 111.9 | 7 | Consumer Cyclicals |
| SGX | S68 | -15.7 | 2.9 | 9,026 | 3.4 | -6 | Financial Services |
| ThaiBev | Y92 | -11.7 | 2.7 | 14,570 | -65.7 | -9 | Consumer Non-Cyclicals |
| Jardine C&C | C07 | -12.4 | 2.6 | 12,371 | 135.7 | 58 | Consumer Cyclicals |
| Venture | V03 | -12.0 | 2.5 | 4,696 | -73.5 | -8 | Technology (Hardware/ Software) |
| Mapletree Ind Tr | ME8U | -18.1 | 1.9 | 5,868 | -169.4 | -15 | REITs |
| Frasers L&C Tr | BUOU | -23.6 | 1.9 | 4,029 | -74.1 | -26 | REITs |
| CapitaLandInvest | 9CI | -15.7 | 1.6 | 16,416 | 51.3 | -2 | Financial Services |
| SATS | S58 | -35.5 | 1.5 | 3,002 | -136.7 | -31 | Industrials |
| Mapletree PanAsia Com Tr | N2IU | -19.7 | 0.6 | 8,164 | -127.1 | -18 | REITs |
| JMH USD* | J36 | -11.3 | 0.0 | 19,711 | -42.0 | -5 | Industrials |
| HongkongLand USD* | H78 | -13.5 | -2.0 | 13,702 | 20.1 | -13 | Real Estate (excl. REITs) |
| Emperador Inc. | EMI | -4.9 | -2.0 | 7,554 | -2.8 | N/A | Consumer Non-Cyclicals |
Source: SGX, Refinitiv, Bloomberg (Data as of 4 Nov 2022). Note Price Returns 13 Sep–21 Oct, 2022 and 21 Oct–4 Nov, 2022 in USD*
On the earnings front of five strongest STI stocks over the past two weeks:
- On 28 Oct, Wilmar International reported 3Q22 core net profit surged 38.2% YoY, with its record results were driven by good performance across all core segments.
- Sembcorp Industries did not report over the period, however did announce a new milestone for its solar portfolio in Singapore, also announcing it had entered strategic partnerships with the Japanese government and various corporations, to progress hydrogen and other decarbonisation initiatives.
- On 26 Oct, Keppel DC REIT provided an operational update, noting 3 Q22 distributable income and DPU increased by 9.0% and 5.0% YoY respectively, mainly due to contributions from acquisitions and investment, as well as completed asset enhancement initiatives.
- On 28 Oct, United Overseas Bank provided a performance update, highlighting its 3Q22 saw a record high of S$1.4 billion net profit, up 34% YoY, driven by strong net interest income, higher customer-related treasury income and lower credit allowance. Note Banks continue to command a 40% weight in the STI, with the trio and underpinning the STI’s 5.4% partial recovery over the past fortnight. The trio of DBS, OCBC & UOB averaged 6.7% gains with combined 3Q22 Net Interest Income of the trio climbing to S$7.4 billion, up S$1.3 billion from 2Q22, on net interest margin expansions and loan growth.
- On 27 Oct, Keppel Corporation provided a business update, noting that while 3Q22 net profit was lower YoY, mainly due to the absence of the gain from the en-bloc sale of a project in China in 3Q21, 9M22 revenue from both continued and discontinued operations grew 24% YoY, while the urbansiation solution provider reported good progress towards Vision 2030.
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Originally Posted November 7, 2022 – Wilmar, Sembcorp Ind & Keppel DC REIT Led STI’s 2-Week 5% Partial Rebound
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