Sector Returns and Institutional Fund Flow Shifts

Banks, Materials and Consumer Discretionary total returns paced overall Singapore stock market in November

In the month of November, the market capitalization weighted total returns for the overall Singapore stock market was at +1.8%, which compares with the Straits Times Index (STI) +3.3%.

By sector*, the market was paced by Banks (+11.4%), Materials (+6.9%) and Consumer Discretionary (+5.3%). This was partially offset by Telecommunication Services (-3.4%), REITs (-2.9%) and Industrials (-2.3%). Sectorial rotation was in play during the month as investor fund flows shift to Banks from defensive sectors (e.g. Telecommunications Services, REITs).

Institutional investors net buy (+)/sell (-) at +S$175.4m in November, vs. -S$552.0m in October. Financials, Consumer Discretionary, Consumer Staples were the top net buy sectors

Institutional investors net bought (+S$175.4m) in the month of November, this compares with a net sell (-S$552.0m) in October. Financials (+S$1bn), Consumer Discretionary (+S$57.5m) and Consumer Staples (+S$23.1m) were the top net buy sectors in November. The top net sell sectors were Telecommunication Services (-S$378.2m), Real Estate/REITs (-S$299.8m) and Industrials (-S$180.3m).

Singapore banks were a net buy (+S$1bn) as expectations of an interest rate hike rose. Genting Singapore was a net buy on earnings beat. MOE stocks also saw net buy activities

Institutional investors net bought (+S$1bn) of Singapore banks stocks, with DBS the highest at +S$619.4m. Singapore banks stocks posted total returns of 11.4% in the month, benefiting from fund flow shifts as expectations of a Fed interest rate hike in December rose. Notably, Genting Singapore saw a net buy (+S$137.3m) on an earnings beat (FY3Q16) and a proposed interim dividend. Sembcorp Industries and Keppel Corp, both Maritime & Offshore Services (MOE) stocks, saw net buys of (+S$30.9m) each.

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