INSTITUTIONS were net sellers of Singapore stocks over the five trading sessions through to Feb 1, with S$329 million of net institutional outflow, as 11 primary-listed companies conducted buybacks with a total consideration of S$15.2 million.

CapitaLand Investment again led the buyback consideration tally, buying back 5 million shares at an average price of S$2.92 per share on Jan 26.

It also led the share buyback consideration tally in January, followed by Yangzijiang Financial Holding, Singapore Technologies Engineering, Venture Corporation and OUE.

CapitaLand Investment has bought back a total of 52.6 million shares, or 1.03 per cent of its issued shares excluding treasury shares, under its current mandate. It will be reporting its FY23 results prior to the Feb 28 open.

The five sessions also saw The Hour Glass buy back 223,100 shares at an average price of S$1.52 per share and it has now bought back 0.93 per cent of its issued shares excluding treasury shares under its current mandate.

Secondary-listed Jardine Matheson also bought back 6,400 shares on Jan 31 at an average price of US$40.36 per share. The diversified Asia-based group bought back 361,800 shares during the month of January, while ranking among the 10 stocks that booked the highest net institutional inflow for the month.

Leading the net institutional outflow over the five sessions were DBS, OCBC, Singapore Technologies Engineering, Singapore Exchange, Keppel DC Reit, CapitaLand Ascendas Reit, City Developments, Jardine Cycle & Carriage, Seatrium and Mapletree Pan Asia Commercial Trust.

Meanwhile, UOB, Keppel, Yangzijiang Shipbuilding Holdings, Sembcorp Industries, Frasers Centrepoint Trust, Genting Singapore, CapitaLand Integrated Commercial Trust, ComfortDelGro Corporation, Golden Agri-Resources, and Mapletree Industrial Trust led the net institutional inflow.

The five trading sessions saw close to 70 changes to director interests and substantial shareholdings filed for more than 30 primary-listed stocks.

Directors or CEOs again filed 11 acquisitions and two disposals while substantial shareholders filed seven acquisitions and one disposal.

ComfortDelGro Corporation

ComfortDelGro Corporation substantial shareholder Silchester International Investors increased its deemed interest in the company to above the 7.0 per cent threshold on Jan 29.

This follows the London-based investment management company increasing its deemed interest above the 6.0 per cent threshold on Dec 1, and emerging as substantial shareholder of ComfortDelGro Corporation on Nov 7.

Silchester acts as investment manager for certain commingled funds and in acting for its clients.

The investor manager has maintained that it is given full discretion over its client investments and is empowered to vote on their behalf.

However, Silchester maintains it does not act as the client’s custodian and therefore shares are not held in its name but in the name of each client’s custodian bank.

Aside from Jardine Matheson Holdings, ComfortDelGro also ranked among the 10 stocks that booked the highest net institutional inflow in January.

Like 2023, the global land transport leader has so far booked the highest net institutional inflow this year for the large contingent of non-STI stocks.

On Jan 24, ComfortDelGro announced that its joint venture with the Go-Ahead Group, Connecting Stockholm, had been awarded a contract by the Stockholm Public Transport Administration, Trafikforvaltningen, to operate and maintain the Stockholm Metro.

This represents ComfortDelGro’s first rail contract in Sweden and will be its largest rail passenger operation outside of Singapore. ComfortDelGro holds a 45 per cent stake in Connecting Stockholm.

ComfortDelGro is expected to report its FY23 (ended Dec 31) financial results before the end of February.

For its H1FY23 and FY22, Singapore operations contributed 58 per cent of the group’s revenue.

In line with the group’s strategic focus, ComfortDelGro introduced a new segmental reporting framework effective H1FY23, which comprises public transport, taxi & private hire vehicle (PHV), other private transport, inspection & testing services and other segments.

CosmoSteel Holdings

On Jan 25, CosmoSteel Holdings CEO Jack Ong Tong Hai acquired 2.75 million shares at an average price of S$0.13 per share. With a consideration of S$360,938, this took his direct interest from 13.45 per cent to 14.50 per cent.

Ong is responsible for steering the group’s corporate and business strategies as well as leading sales and marketing to major end-users and oil majors.

He first joined the group in 1998. He has comprehensive, well-rounded experience and deep-seated knowledge of both the group and the steel industry, in particular, the group’s logistics and operations functions.

Since joining the group, he has also acquired in-depth management experience in inventory and warehousing logistics and management, information systems and technology management and administration.

In May 2023, CosmoSteel Holdings announced its intention to acquire a warehouse in the industrial region of Johor, Malaysia for RM21 million (approximately S$6.3 million), which was approved by shareholders at the EGM held in October 2023.

Ong said CosmoSteel Holdings will be commencing the relocation of part of its inventories to the warehouse in Malaysia in Q3FY24 (ending Jun 30) with the strategic imperative to reduce the group’s operating cost structure so that it can be more sustainable in the long term.

He added that there is a cost advantage for the group to relocate a part of its warehouse operations in Malaysia and that overall, he believes the move will enhance the group’s cost efficiency and empower it to operate more competitively as an inventory specialist.

CosmoSteel Holdings’ extensive product inventory includes steel pipes, fittings, flanges, cables, and cable management, as well as structural products.

For its FY23 (ended Sep 30), the group recorded a 23.1 per cent year-on-year increase in net profit to S$2.8 million. This was achieved on the back of an 81.1 per cent year-on-year increase in revenue to S$83.4 million.

Ong has also highlighted that another reason for acquiring the warehouse in Malaysia stems from the group’s desire to give CosmoSteel sufficient headroom and flexibility to scale up for future expansion.

Accordingly, it intends to ramp up sales and marketing efforts to grow its business from existing as well as new customers.

Ong has also noted that following the relocation, a substantial part of the warehouse at 90 Second Lok Yang Road will be freed up, presenting an opportunity for divestment.

CosmoSteel Holdings and its subsidiaries are backed by close to 40 years of established track record as a service-oriented and reliable solutions provider in the sourcing and distribution of piping system components in the energy, marine and other industries in South-east Asia and other regions.

CosmoSteel Holdings had announced in June 2023 that it had obtained an extension of time up to Jun 4, 2024, to meet the exit criteria for the watch-list by SGX, under the financial entry criteria.

China Kunda Technology Holdings

On Jan 25, China Kunda Technology Holdings executive chairman and CEO Cai Kaoqun increased his direct interest from 1.64 per cent to 1.95 per cent.

The 1.28 million shares were acquired at an average price of S$0.013 per share.

This increased his total interest in the Catalist-listed stock to 31.99 per cent and followed his acquisition of 2.68 million shares at the same price between Jan 18 and 23.

Cai is responsible for the overall strategic and business management of the group.

Union Steel Holdings

Lian Bee Metal acquired 15,000 shares of Union Steel Holdings on Jan 25, which increased its substantial shareholding from 5.6 per cent to 5.64 per cent.

Lian Bee Metal’s direct interest in Union Steel crossed the 5.0 per cent substantial shareholder threshold on Sep 4.

Union Steel is a multi-business investment holding company, with three primary business drivers – metals, scaffolding and engineering.

The company will be holding an EGM on Feb 7, to seek shareholder approval for a proposed share split of every one existing share into three shares.

January Net Institutional Flow

Leading the net institutional outflow in January were DBS, Keppel DC Reit, City Developments, Mapletree Logistics Trust, Jardine Cycle & Carriage, AEM Holdings, Singapore Exchange, Singapore Technologies Engineering, Mapletree Pan Asia Commercial Trust, and CapitaLand Ascendas Reit.

For the month of January, UOB, Yangzijiang Shipbuilding Holdings, OCBC, Sats, Sembcorp Industries, Venture Corporation, Keppel, ComfortDelGro Corporation, Jardine Matheson Holdings and Genting Singapore led the net institutional inflow.

While Singapore stocks saw a total S$384 million of net institutional outflow in January, the number of stocks which experienced net inflow was comparable to those that received net outflow from institutional investors.

Inside Insights is a weekly column on The Business Times, read the original version.

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