Manufacturing-related stocks post S$52m net inflows in Q1, returns dip 0.5%

Shipping firms Sembcorp Marine and Yangzijiang Shipbuilding were the most traded manufacturing-related stocks on SGX last quarter.

The indicative iEdge SG Advanced Manufacturing Index, comprising 110 SGX-listed stocks, booked S$52m of net institutional inflows in the first quarter ending 31 March but total returns continued to fall as the global economy weakens, according to a report by the Singapore Exchange (SGX).

Last quarter’s institutional inflow was led by Singapore-based shipbuilder Sembcorp Marine, which in February completed a S$4.5b merger with Keppel Offshore & Marine. This was followed by Singapore Technologies Engineering, Thai Beverage PCL, Tianjin Pharmaceutical Da Re Tang Group Corp, Venture Corp.

SGX said the Index posted a 0.5% dip in total returns in the first quarter, after 52 stocks reported lower returns, 49 constituents booked positive returns whilst returns in the remaining nine stocks were mostly unchanged.

SGX traced the lower overall returns to Singapore's weak non-oil domestic exports, which fell for the fourth straight month in February. 

READ: SG likely to see ‘worst export performance’ since 2019

“In tandem, export data for South Korea and Taiwan have also registered YoY contractions since October on the weak global outlook, and some moderation to the optimistic outlook for both China’s economic growth, and rapprochement with US policymakers since late January,” SGX said.

Total returns booked by shipping companies Sembcorp Marine and Yangzijiang Shipbuilding fell the steepest among the top 10 Index heavyweights, after posting a 13.8% drop and an 11.8% decline, respectively last quarter.

While returns at the China-based firm plummeted, the report also showed Yangzijiang Shipbuilding was the most traded stock in the Index averaging S$42m worth of shares changing hands per day in those three months.

Singapore-based Sembcorp Marine followed closely behind with an average daily trading turnover of S$41.5m.