SG Morning Highlights | Institutions & Individual Investors Were Net Buyers of Singapore Stocks in August

Advancers / Decliners is 59 to 56, with 77.24 million securities worth S$42.50 million changing hands.

The Purchasing Managers' Index (PMI) had a slower contraction in August, improving by 0.1 points to 49.9. The Singapore Institute of Purchasing and Materials Management (SIPMM) attributed the increase to “a slower contraction in the indexes of new orders, new exports, inventory, employment, and a reversal to expansion for factory output.” Electronics PMI likewise improved by 0.2 points in August but remained in contraction territory at 49.5.

Individual Investors were net buyers of Singapore stocks in August, with market makers and active traders bridging the difference between net institutional and net retail fund flow. Together, August's net institutional inflow at S$408 million and net retail inflow of S$600 million reversed the combined ~S$950 million net outflow of both client segments in July and June. The Singapore stock sectors that saw the most net retail inflow were REITs, Telecommunications, Real Estate (ex-REITs) and Technology.

Keppel and DBS have signed a memorandum of understanding (MOU) to jointly scale up sustainable urbanisation and digitalisation solutions in Asia, with a focus on India. The collaboration aims to accelerate energy optimisation across energy-intensive segments in the region, including healthcare and hospitality as well as commercial and industrial real estate, said both parties in a joint statement on Monday (Sep 4). Under the MOU, businesses can access Keppel’s suite of energy-as-a-service solutions, including high-efficiency cooling, sustainable energy and storage, as well as electric vehicle charging infrastructure, while DBS provides financing solutions to help them overcome potential cost barriers.

Singapore has continued to attract companies to expand their global footprint from the city-state, with major energy and agriculture groups building operations to trade biofuels, carbon offsets and crude. A key goal is to grow new trade flows for renewable fuels as the global energy transition gathers pace, Low Yen Ling, the minister of state at the trade and industry ministry, said at APPEC by S&P Global Commodity Insights on Monday. Over 60 companies including Exxon Mobil Corp, Repsol SA, Prax Group Holdings, Archer-Daniels-Midland Co and Bunge Ltd are trading biofuels from Singapore, Low told attendees at the conference, according to a transcript of her prepared remarks. Engie SA is also providing renewable energy certificates, carbon offsets and power purchase agreements, she said.

Hiring activity in Singapore declined by 14% in July with the index falling to 12 in July from 139 in the same month last year due to the continued challenges posed by global uncertainties, according to the foundit Insights Tracker. The tracker found that only three of the 15 sectors it monitors posted an increase in online recruitment activity led by the Import/Export sector with a 2% growth in July, on the back of the rise in the country's total merchandise trend in the first quarter of 2022. Job demand in the Oil & Gas, and Retail/Trade and Logistics sectors remain unchanged. Other sectors recorded a significant decline in online recruitment activity led by the IT, Telecom/ISP, and BPO/ITES which fell by 26%, and Production/ Manufacturing sectors by 20%.

PALM oil should be included as feedstock for the production of sustainable aviation fuel (SAF), said Acting Transport Minister Chee Hong Tat. He made the comments at a regional meeting of transport ministers from the Association of South-east Asian Nations (Asean).“We should take a pragmatic approach based on science and evidence, instead of an ideological approach based on pre-conceived bias and dogma,” said Chee, who was speaking on developing sustainable transport with his Asean counterparts on Monday (Sep 4).

Average interest rates over 10 years for the Singapore Savings Bond (SSBs) are up for the fourth consecutive tranche, at 3.16 per cent. The latest tranche, which opened on Monday (Sep 4), offers a first-year interest rate of 3.05 per cent. The interest rate at the 10-year mark is 3.48 per cent. This is higher than the previous tranche of SSBs, which offered a 10-year average return of 3.06 per cent. The first-year interest rate for the last issuance, issued on Sep 1, stood at 3.01 per cent. The latest round of SSBs will close on Sep 26, and its issue date is Oct 2. The total amount offered is S$800 million. This round's issuance size is larger than the previous tranche, which offered S$600 million.