• This week the STI rallied in the vicinity of 3% over three sessions. This is the STI’s third 3-day snap rally in the vicinity of 3% over the past four months. These three sessions that spanned April 22, 23 & 24, saw the STI attract S$202 million in combined net institutional buying, up from S$140 million for the 3% STI total return that panned Feb 14, 15 & 16.
   
• Compared to the snap rally in Feb, this week’s rally saw considerably more of the preceding STI laggards lead the STI over the three sessions. As many as 8 of the 10 STI’s laggards in the 2024 year through to April 19 ranked among the 10 strongest STI performers over the three sessions of April 22, 23 & 24.
   
• These eight stocks included Seatrium, DFI Retail Group, Hongkong Land, CapitaLand Investment, Mapletree Pan Asia Commercial Trust, City Developments, Frasers Logistic & Commercial Trust and Mapletree Industrial Trust, with seven of the eights stocks trading at P/B ratios on average 30% below respective 5-year P/B averages.
   

The first three sessions of the week, spanning the April 22, 23 and 24, saw the STI generate a 3.7% total return. The three sessions also saw the STI constituents book a combined S$202 million of net institutional inflow. Seatrium led the gains of the STI constituents over the three sessions with an 11.7% gain, while also booking the second highest net institutional inflow proportionate to market capitalisation at 0.31%. Seatrium also ranks among the four STI stocks with the highest beta coefficients, which also includes CapitaLand Investment,  Mapletree Pan Asia Commercial Trust and DFI Retail Group. These three stocks were also among the five strongest STI constituents over the three sessions, along with Hongkong Land. Note beta simply measures the stock volatility relative to the broader market volatility.

This was the third such instance of a 3-session STI rally with returns in the vicinity of 3% in the space of four months. The preceding snap rallies occurred over the three trading sessions spanning Feb 14, 15 and 16, with the STI booking a 2.6% total return, and then in late 2023, with the STI rallying 3.2% over Dec 27, 28 and 29. This has brought some reprieve to STI declines over the past 17 weeks, with the STI booking a 2.5% total return in the 2024 year through to 24 April.

Of the 10 stocks that saw the strongest gains over the three sessions of April 22, 23 and 24, as many as eight stocks had been among the 10 laggard STI stocks in the 2024 year through to 19 April. This compares to just three of the laggard stocks in the 2024 year to Feb 13 ranking among the 10 stocks that led the STI rally over Feb 14, 15 and 16.

The eight stocks that were among the 10 STI strongest performers over April 22, 23 and 24, and laggards for the preceding 15 weeks included Seatrium, DFI Retail Group, Hongkong Land, CapitaLand Investment, Mapletree Pan Asia Commercial Trust, City Developments, Frasers Logistics & Commercial Trust and Mapletree Industrial Trust.

Seven of the eights stocks are trading at P/B ratios on average 30% below respective 5-year P/B averages, with the eight stocks also trading on average 30% below Refinitiv Consensus Estimate Target Prices. Available on the SGX Stock Screener, Refinitiv consensus estimates represents the average of individual estimates provided by analysts covering the stock and estimates typically represent an analyst's opinion of the company performance over the next 18 months.

Other notable observations included the trio of Real Estate (Ex-REIT) stocks booking combined net institutional inflows in the 3-session April rally, versus net institutional outflow in the 3-session February rally, as did Utility play Sembcorp Industries. From the close of Feb 16 through to the close of April 19, the trio of Hongkong Land, City Developments and UOL Group had averaged fair symmetrical declines in total return of 7.2% versus the STI decline in total return of 0.9%. Sembcorp Industries also declined 7.6% over the period.

Net institutional inflows to the Financial Services and Industrial sectors were relatively consistent in the 3-session February and April rallies, while the smaller net institutional outflows to the Consumer Sector and REITs were also relatively consistent. The gains of the current STI constituents over the three short 3-session periods are tabled below and sort by highest total returns over the April 22, 23 and 24 sessions.

Note ADT refers to average daily turnover, NIF refers to Net Institutional Inflow, TR refers to Total Return .
All Data as of 24 April 2024
Source: SGX, Refinitiv, Bloomberg.

Further Resources and Research

• Weekly Fund Flow Report: Data Reports - Singapore Exchange (SGX)

Recent Financial Results/Business Updates

• Seatrium: Seatrium FY2023 Annual Report
• DFI Retail Group: DFI Retail Group FY2023 Annual Report
• Hongkong Land: Hongkong Land FY2023 Annual Report
• CapitaLand Investment: CapitaLand Investment FY2023 Annual Report
• Mapletree Pan Asia Commercial Trust: Mapletree Pan Asia Commercial Trust FY2023 Annual Report
• City Developments: City Developments FY2023 Annual Report
• Frasers Logistics & Commercial Trust: Frasers Logistics & Commercial Trust 1QFY2024 Business Update | Frasers Logistic & Commercial Trust FY2023 Annual Report
• Mapletree Industrial Trust: Mapletree Industrial Trust 3QFY2324 Results

Related Analyst Reports

• Seatrium: DBS - Seatrium Limited update : Stronger than ever | DBS - Seatrium Limited update : Despite write-downs, do not write-off
• DFI Retail Group: DBS - DFI Retail Group Holdings update : Moving forward with a fresh strategic framework
• Hongkong Land: DBS - Hongkong Land update : Strong embedded value
• CapitaLand Investment: DBS - Capitaland Investment Ltd update : Disproving naysayers
• Mapletree Pan Asia Commercial Trust: DBS - Mapletree Pan Asia Commercial Trust Update : Anchored by strong Singapore
• City Developments: DBS - City Developments update : Reactivate asset recycling mode
• Frasers Logistics & Commercial Trust: CGSI Securities - Frasers Logistics & Commercial Trust update : Back to inorganic growth
• Mapletree Industrial Trust: DBS - Mapletree Industrial Trust Update : Strengthening defences as interest rates bite

Company interviews

• Frasers Logistics & Commercial Trust: Frasers Logistics & Commercial Trust: Pursuing Strategic Opportunities

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