• Global focus on key economic indicators for a smooth US landing has led to four stable STI sessions with a 40-point range and 1.8% gain, as markets look to the US August unemployment report on 6 Sep and potential Fed Funds Rate cut on 18 Sep.
   
• Institutions have also been net buyers over the 4 sessions, with S$171 million of net inflow, led by Financials, REITs, and SATS. The global air cargo champion reported a turnaround 1QFY25 net profit of S$65 million on 20 Aug, while also expecting positive momentum in the coming quarters.
   
• Beyond STI constituents, stocks that contributed to the net 4-session institutional inflow included Lendlease Global REIT, NetLink NBN Trust, iFAST Corp, Keppel DC REIT, CLINT, Suntec REIT & Nam Cheong. On 13 Aug, Nam Cheong reported 1HFY24 NPAT of RM 635.8 million, up from RM 31.7 million in 1HFY23, primarily due to the waiver of debts.
   

The global focus on key economic indicators for a smooth landing in the US has resulted in four stable sessions for the STI, with a 40-point range and a 1.8% gain. Key events in September include the US August unemployment report, due on 6 Sep. If the unemployment rate remains near the 4.3% level seen in July, or is reported to be higher, it will likely lead to a 25bps Fed Funds Rate cut on 18 Sep. Currently, the CME FedWatch Tool shows two-thirds of the market expecting a 25bps rate cut, and one-third expecting a 50bps rate cut. These expectations have remained unchanged over the past four sessions. 

The 1.8% 4-session STI gain coincided with S$171 million of net institutional inflow. Some of this flow can be attributed to the local earnings season which is drawing to close. As much as S$28 million of the 4-session S$171 million combined net inflow was generated by SATS on 21 August, with the stock also trading 10x its usual average daily turnover. This followed SATS reporting a turnaround 1QFY25 PATMI of S$65.0 million compared to a loss of S$29.9 million in 1QFY24. SATS attributed the turnaround to higher business volumes and a one-off gain of S$7.2 million from a loan settlement with an outgoing local partner in Indonesia. SATS’ Management noted with the continuing aviation recovery and increased air cargo volume handled, it expects positive momentum in the coming quarters. SATS has now booked the sixth highest bet institutional net inflows in the local stock market in the year-to-date, after Singapore Telecommunications, United Overseas Bank, Singapore Technologies Engineering, Oversea-Chinese Banking Corporation and Yangzijiang Shipbuilding. 

By Sector, it was Financial Services and REITs that booked the most net institutional inflow over the four sessions. The 30 stocks that booked the highest net institutional inflows over the four sessions are tabled below. 

Note NIF refers to Net Institutional Inflow, ADT refers to Average Daily Turnover, All Data as of 21 August 2024, Source: SGX

Beyond the STI constituents, stocks that contributed the most to the net institutional inflow over the four sessions included Lendlease Global Commercial REIT, NetLink NBN Trust, iFAST Corporation, Keppel DC REIT, CapitaLand India Trust, Suntec REIT and Nam Cheong  as tabled below.

Note NIF refers to Net Institutional Inflow, ADT refers to Average Daily Turnover, All Data as of 21 August 2024, Source: SGX

On 13 Aug, Nam Cheong reported 1HFY24 NPAT of RM 635.8 million, up from RM 31.7 million in 1HFY23, primarily due to the waiver of debts. At the same time, the global offshore marine group noted its business recovery is gathering pace with revenue growing 56% from 1HFY23 to RM 312.0 million for 1HFY24. Since its humble beginnings in 1968 building only fishing vessels, the Group is now Malaysia’s largest Offshore Support Vessels (OSV) builder, owning and operating one of the largest shipbuilding yards for OSVs in Malaysia. The Nam Cheong CEO noted with the results that the Group's performance continues to improve, driven by higher daily charter rates and increased utilisation of larger vessels, adding that with one of the youngest and largest fleets in the region, the Group is well-positioned to capitalise on the sustained demand in the O&G market.

Further Resources and Research 

• Weekly Fund Flow Report: Data Reports - Singapore Exchange (SGX) 
• Inside Insights: SIA Leads Buyback Consideration, Multi-Chem CEO Trims 69% Stake
• Inside Insights: Cohen & Steers Ups Digital Core REIT Interest, Beng Kuang Marine CEO also adds to Interest
• What's Trending:  GenAI unleashes hyper demand for Data Centres
   

Recent Financial Results/Business Updates

• Lendlease Global Commercial REIT: Lendlease Global 2HFY2024 Results
• NetLink NBN Trust: NetLink NBN Trust 2024 Annual Report
• iFAST Corporation: iFAST Corporation 2Q2024 Financial Statements
• Keppel DC REIT: Keppel DC REIT 1H FY2024 Results
• CapitaLand India Trust: CapitaLand India Trust 1H24 Financial Statements
• Suntec REIT: Suntec REIT 1HFY2024 Financial Results
• Nam Cheong: Nam Cheong 1HFY2024 Financial Results
• CapitaLand Ascott Trust: CapitaLand Ascott Trust 1H 2024 Financial Statements
   

Related Analyst Reports

• Lendlease Global: DBS - Lendlease Global Commercial REIT update : Holding faith in quality SG assets
• NetLink NBN Trust: CGS-CIMB - NetLink NBN Trust Update : Finalised ICO pricing removes overhang
• iFAST Corporation: CGS-CIMB - iFAST Corporation Ltd update : Volatility-fuelled trading momentum 
• Keppel DC REIT: DBS - Keppel DC REIT update : Positive rental reversions flowing into earnings
• CapitaLand India Trust: DBS - Capitaland India Trust update :True strength and potential emerge
• Suntec REIT: DBS - Suntec REIT update : Standing firm in Singapore
• CapitaLand Ascott Trust: DBS - Capitaland Ascott Trust update : Awaiting the Olympics leap
   

Company interviews 

• Lendlease Global: Smartkarma Insights: Lendlease Global Comm REIT - Growing through Sustainable Global Lens
• NetLink NBN Trust: 10 in 10 with NetLink NBN Trust - The Fibre of a Smart Nation
• iFAST Corporation: Smartkarma Insights: iFAST Corp - A Profitable Fintech Player that Deserves More Investor Attention
• Suntec REIT: 10 in 10 with Suntec REIT - Gearing up for reopening

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