• For the 10 weeks since the end of July, the STI declined 5.2% with reinvested dividends reducing the decline in total return to 3.5%. Because the regional Bank Sector was comparatively defensive, the STI generally outpaced Singapore’s 200 most traded stocks this year, which generated a median 6.3% decline in total return over the period.
   
• One in five of the 200 stocks have booked positive defensive returns, of which most represented the Consumer Non-Cyclicals sector. This includes Catalist-listed Zixin, and Mainboard listed Golden Agri-Res, QAF, Food Empire, Delfi, First Resources and Bumitama Agri.
   
• Zixin is a sweet potato biotech-focused value chain operator in China that expects to return to profitability in FY24 (ending 31 Mar). The Group has announced multiple strategic investments since June 2023, which has so far seen the average daily trading of the stock in 2H23 to 10 Oct, grow twelvefold from 1H23.
   

After ending July at 3,373.98, the STI has since declined 5.2% to 3,199.07 on 10 October, with dividends reducing the decline in total return to 3.5%. The decline has been comparable to the 4.8% and 4.7% declines in total return for the FTSE ASEAN Extended 60 Index and FTSE Asia Pacific Index respectively. Across Asia Pacific, Telecommunication Stocks were generally the most defensive segment over the 10 weeks. In Singapore, the trio of Singtel, NetLink NBN Trust and StarHub averaged a 0.2% total return, led by StarHub’s 7.3% total return.

Regional trade and manufacturing continues to be weighed by the ongoing downcycle in Technology, which has been sustained since July with the outlook for global growth deceleration in 2024. Three key drivers for the recent downgrades to global growth projections in 2024 include the higher for longer outlook for the Fed Funds Rate in 2024, the downward revisions to China growth estimates in 2024, and a lack of evident inroads to turn the trend of economic fragmentation on global geopolitical concerns. This has seen local private-sector economists expecting the Singapore Economy to grow by 2.5% in 2024, with top downside risks including an external growth slowdown, inflationary pressures in addition to economic developments in China. At the same time better than expected external growth and China growth in addition to a recovery in the technology business cycle are the firm upside risks.

Of the 200 most traded Singapore stocks this year, 41 stocks generated positive total returns over the 10 weeks.

• These 41 stocks represented all the key sectors, with seven of the 41 stocks representing the Consumer Non-Cyclicals Sector. The stocks of the Consumer Non-Cyclicals Sector that generated positive gains over the 10 weeks included Catalist-listed Zixin, and Mainboard listed Golden Agri-Resources, QAF, Food Empire, Delfi, First Resources and Bumitama Agri.
• The Industrials Sector was also represented by six stocks, while the Technology Sector was represented by five stocks.
• The 41 stocks also booked a combined S$1.1 billion in net institutional fund flow over the 10 weeks, with Banks, Industrials, Financial Services (Excl. Banks), Technology, and Consumer Non-Cyclicals contributing the most the S$1.1 billion. In contrast, the entire Singapore stock market booked S$450 million of net institutional fund flow over the 10 weeks.

Zixin (formerly known as China Star Food Group) is a sweet potato biotech-focused value chain operator in China. The Group reported a RMB 14.2 million loss in FY23 (ended 31 March) amid pandemic-related disruptions, and expects to return to profitability in its FY24. The Group has announced multiple strategic investments from June, summarised in the presentation included in its AGM minutes held on 8 September. The stock now ranks among the 170 most traded Singapore stocks this year, after ranking among the 300 most traded as of 30 June with its average daily trading turnover in 2H23 to 10 Oct, a twelvefold increase to its average daily trading turnover in 1H23.

The 41 of the 200 stocks that generated positive total returns over the past 10 weeks are tabled below and are sorted by highest total returns.

Source: SGX, Refinitiv, Bloomberg (Data as of 10 October 2023).  Note ^ on SGX-ST Watchlist.

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