• For the first four months of 2022, the STI generated an 8.7% total return, ranking as the strongest performing developed market benchmark globally for the four months. This was a significant outperformance to the FTSE Asia Pacific Index and FTSE All-World Index which saw comparative declines of 9.1% and 10.3% in SGD terms.
   
• DBS, OCBC and UOB averaged 9.1% total returns over the first four months of 2022. For 1Q22, the combined net interest income for the three banks for 1Q22 was S$5.38 billion, up from S$5.31 billion in 4Q21, while combined non-interest income amounted to S$3.37 billion, up from S$2.97 billion in 4Q21.
   
• Outside of the STI, the majority of actively traded stocks that saw the highest increases in turnover for the four months (relative to 2021) were impacted by higher commodity prices and economic re-openings as the Ukraine crisis continued and global COVID-19 cases returned to mid-Dec 2021 levels, following the significant upward spike in Jan. 

For the first four months of 2022, the STI generated a 7.5% gain, with dividends boosting the total return to 8.7%. This placed the STI the strongest performing developed market benchmark globally for the four months. This was a significant outperformance to the FTSE Asia Pacific Index and FTSE All-World Index which saw comparative declines of 9.1% and 10.3% in SGD terms. During the four months Singapore stocks were recipient to close to S$420 million of net institutional inflows, with majority of flows going into Telecommunications, Industrials and Consumer Non-Cyclicals. 

Together, DBS Group Holdings (DBS), Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB), which account for 45% of the STI weights, averaged 9.1% total returns over the first four months of 2022. For 1Q22, the combined net interest income for the three banks for 1Q22 was S$5.38 billion, up from S$5.31 billion in 4Q21, while combined non-interest income amounted to S$3.37 billion, up from S$2.97 billion in 4Q21. Across the region, the top quartile of Asia Pacific listed banks by market value (which includes DBS, OCBC and UOB) averaged 6.0% total returns over the four months. This was a contrast to the top quartile of Asia Pacific listed technology stocks by market value which averaged 25% declines. During the four months, higher inflation prints saw consensus estimates for the Federal Reserve Target Band at the end of 2022, increase from 75-100 bps to 275-300 bps, with expectations of a 50 bps rate hike at the conclusion of tonight’s FOMC.

The STI’s strongest constituents over the four months were Sembcorp Industries, Jardine Cycle & Carriage, Keppel Corporation, Yangzijiang Shipbuilding Holdings and City Developments. Sembcorp Industries, Keppel Corporation and City Developments ranked among the top 10 recipients of net institutional inflows over the four months, with Jardine Cycle & Carriage ranking #12. Over the four months, Yangzijiang Shipbuilding Holdings generated a 30.7% return adjusted for the distribution of the Yangzijiang Financial Holding spin-off, while dry bulk freight rates, gauged through the Baltic Dry Index, remain more than double that of pre-COVID rates. Moreover, on the strategic initiatives (which include sustainability), Sembcorp Industries continues aim for its sustainable solutions portfolio to comprise 70% of the Group’s net profit before exceptional items and corporate costs in 2025 (from 40% in 2020), and Keppel Corporation is accelerating its execution of Vision 2030. Meanwhile gains posted by City Developments and Jardine Cycle & Carriage have coincided with local and regional re-openings. 

Outside of the STI, actively traded stocks that moved up the ladder of turnover rankings by more than 10 places from 2021 levels included Mapletree North Asia Commercial Trust, coinciding with its merger progress with Mapletree Commercial Trust, in addition to commodity plays Rex International which transferred from Catalist to the Mainboard, Geo Energy Resources, Golden Agri-Resources, First Resources, RH Petrogas and Golden Energy and Resources and Bumitama Agri. Actively traded REITs and Stapled Trusts that also climbed the ladder of turnover rankings by more than 10 places from 2021 levels included re-opening plays Lendlease Commercial REIT, CDL Hospitality Trusts, Sasseur REIT, Far East Hospitality Trust and Frasers Hospitality Trust. Other non-STI actively traded stocks that saw similar turnover increases included Samudera Shipping, SIA Engineering, Yoma Strategic Holdings, Hong Fok Corporation, Straits Trading Corporation, mm2 Asia, The Hour Glass, Sinjia Land and Stamford Land. The shifts in turnover rankings reflected the impact interest rate normalisation, corporate restructures, higher commodity prices and economic re-opening themes had on the participation and performances of Singapore stocks in the 2022 year thus far.

Source: SGX, Refinitiv, Bloomberg (data as of 29 April 2022). Note stocks sort by highest turnover for the first four months of 2022.