• The STI’s 2.4% total return in 3Q22 was mainly driven by the trio of DBS, OCBC and UOB, which averaged a 7.3% total return over the quarter. During the quarter, the trio saw S$969 million of combined net fund inflows with the net fund inflows to DBS and OCBC more than offsetting the net fund outflows booked by UOB.

• Globally, Banks stocks saw less than one-third of the declines of REITs, as the hawkish tone on US interest rates notched higher and the outlook for global growth weakened. This coincided with the S-REIT Sector seeing the most net fund outflows of the Singapore sectors in 3Q22.

• The Sectors that saw the next highest net fund inflows in 3Q22 were Telecommunications and Consumer Cyclicals. This was mostly driven by Singtel, while StarHub also booked net fund inflows. Consumer Cyclical stocks that saw the most net fund inflows over the quarter included Genting Singapore, Jardine C&C and The Hour Glass.   

Singapore’s 200 most traded stocks for the first nine months of 2022, that are currently listed for trading span all major Sectors. Combined the 200 stocks make up approximately 80% of the total market capitalisation of all stocks listed on Singapore Exchange, in addition to more than 95% of the total trading turnover of all stocks listed in SGX over the past nine months.

The STI’s 2.4% total return in 3Q22 was mainly driven by the trio of DBS Group Holdings (DBS), Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB), which averaged a 7.3% total return over the quarter. As tabled below, during the quarter, the trio saw S$969 million of combined net fund inflows with the net fund inflows to DBS and OCBC more than offsetting the net fund outflows booked by UOB.

Source: SGX, Refinitiv, Bloomberg (Data as of 30 Sep 2022)

Within the Bank Sector, 3Q22 total returns varied from 14% for DBS to 2% for UOB as tabled below. During 3Q22, DBS became the first bank in Southeast Asia to announce a landmark set of decarbonisation commitments as part of the bank’s commitment to being net zero in its financed emissions by 2050. During 3Q22, the trio reported that 2Q22 NIMs rose 13bps YoY for both DBS and OCBC, and 11bps YoY for UOB. For the 2Q22/1H22 loan books, UOB and OCBC maintained loan growth of 8% YoY, with DBS reporting loan growth of 7% YoY. All three banks expect loan growth in the mid-single digits for the remainder of the year.

Source: SGX, Refinitiv, Bloomberg (Data as of 30 Sep 2022)

Focusing on Singapore’s 200 most traded stocks for the first nine months of 2022, that are currently listed for trading, the Sectors that saw the next highest net fund inflows in 3Q22 were Telecommunications and Consumer Cyclicals. This was mostly driven by Singtel, with the 100 share per lot and 10 share per lot counters attracting inflows, while StarHub also booked net fund inflows.

Source: SGX, Refinitiv, Bloomberg (Data as of 30 Sep 2022). Note the market capitalisation of Singtel is listed twice, due to the universe of 200 stocks representing the most traded counters rather than most traded primary securities with the official market capitalisation tallies are based on the market capitalisation of the primary counter only.  

As tabled below, Consumer Cyclical stocks that saw the most net fund inflows over the quarter included Genting Singapore, Jardine Cycle & Carriage and The Hour Glass.

Source: SGX, Refinitiv, Bloomberg (Data as of 30 Sep 2022) ^Note currently placed SGX Watch-List

Globally, REITs were among the stocks that led declines in 3Q22, as the hawkish tone on US interest rates notched higher and the outlook for global growth weakened. This coincided with the S-REIT Sector seeing the most net fund outflows of the Singapore sectors in 3Q22. As tabled below, the S-REIT Sector is comprised of REITs, Stapled Trust and two Business Trusts.

Source: SGX, Refinitiv, Bloomberg (Data as of 30 Sep 2022), *Stapled Trust, **Business Trusts. . Note the market capitalisation of Cromwell European REIT is listed twice, due to the universe of 200 stocks representing the most traded counters rather than most traded primary securities with the official market capitalisation tallies are based on the market capitalisation of the primary counter only.  

For the 4Q22 ahead, local markets will be looking towards the MAS October Monetary Policy Statement and the 3Q22 earnings and business updates that will begin in earnest in mid-to-late October. The opening of the 20th National Congress of the Chinese Communist Party on 16 October and FOMC meetings scheduled for 2 November and 14 December will also be significant international events. With governments looking to accelerate growth and decelerate inflation, the final sessions of 3Q22 also served a reminder that international financial stability risk can stem from fiscal origins.