The MSCI Singapore index (SIMSCI) closed on Jan 25 at 387.97 points, up 15.44 points or 4.14% m-o-m. The gain comes even as countries and markets around the world tried to take stock and position themselves following the US government transition, given the “capriciousness” of the Trump administration, say a team of analysts at CGS International Research.
Communications, Capital Goods and Financials outperformed in January, while Retail, Real Estate and Transportation underperformed during the month.
Within the index, last month’s outperformers were Singtel, Oversea-Chinese Banking Corporation (OCBC) and New York Stock Exchange-listed Sea.
Meanwhile, the underperformers were CapitaLand Investment, Singapore Exchange and Nasdaq-listed Grab.
Outside of the index and among listed companies with market capitalisation of above US$500 million, outperformers were Japfa , following a privatisation offer; BRC Asia , with an expected rise in construction projects; and PropNex.
See also: SGX reports February SDAV of $1.5 bil, 42% m-o-m higher while bellwether index grew 1% m-o-m
On the other hand, underperformers were Yanlord Land, Golden Agri-Resources and Frasers Property .
In the preceding four weeks, institutional investors were net sellers, selling Financials, REITs, Developers, Tech and Consumer (cyclicals and non-cyclicals), while there were “marginal inflows” into Energy, Telcos, Utilities and Healthcare, say CGSI analysts.
Retail investors, in contrast, were net buyers, taking the opposite side of institutional trade-flows.
See also: STI climbs to highest in 17 years at 3,886.98, while Jan SDAV up 9% m-o-m at $1.04 bil
On the macroeconomic front, the Monetary Authority of Singapore (MAS) announced on Jan 24 in its Monetary Policy Statement that it will slightly reduce the slope of the S$NEER to 1%.
CGSI’s economists estimate a 0.5 percentage point reduction, and also believe there is still room for further easing by the MAS, “though this would depend on actualisation of risks to inflation and growth”.
Charts: CGSI
