Chart of the Day: 5 of SGX's tech stocks average 25% total return in H1 2021

The 20 most traded manufacturing stocks contributed 20% to the combined average daily turnover.

This chart from SGX shows that five of the 20 manufacturing stocks representing the technology (hardware/software) sector, namely Frencken, UMS, Nanofilm, AEM, and Venture, averaged a 25% total return in the first half (H1) of 2021. 

Similar to the role of manufacturing in Singapore’s economy, Singapore’s 20 most traded stocks with manufacturing-related activities have contributed 20% to the combined average daily turnover of stocks listed for trading on the SGX in the same period.

In UMS’ FY2020 annual report, chairman Andy Luong noted that global chip demand for automotive electronics had been gaining momentum since the fourth quarter, fiscal year (FY) 2020 and will continue to serve as a key growth driver as demand exceeds supply. 

Meanwhile, the Frencken Group estimated in May that its semiconductor segment will post revenue growth in H1 this year as compared to the second half (H2) of 2020, on the back of strong global demand for front-end and back-end semiconductor equipment. 

AEM Holdings’ current revenue guidance for FY 2021 (ended 31 December) is currently between $460m to $520m with heavier weighting in H2 2021, SGX said. 

Nanofilm Technologies International raised $510m in its October 2020 listing with an initial public offering price of $2.59, and its stock trading at double that price at $5.44. 

Meanwhile, Venture Corporation has gained 6% since providing a general corporate update on 23 June, highlighting that despite recent pandemic challenges, its entities in Malaysia have been able to continue operations as an essential economic sector, SGX reported.