STI gains 7% in six weeks, logs highest close since Aug 2023

Net institutional inflow boosted the index.

The Straits Times Index (STI) closed its session on 27 May at 3,318.45, its highest level since August 2023, following gains in the past six weeks, Singapore Exchange (SGX) market strategist Geoff Howie said.

From the 16 April close at 3,144.76, through 27 May, the STI gained 5.5%, with dividends boosting the total return to 7.4%. 

Howie said the STI performed better than the FTSE Asia Pacific Index that recorded a 5.3% total return. The two STI ETFs moved in tandem over the past six weeks, averaging 7.1% returns.

“The increasingly cautiously optimistic outlook for industrial-driven global growth into 2025 has also seen the iEdge SG Manufacturing Index move in tandem with the STI with an 8.0% total return,” Howie said. 

“At the same time the sustained less dovish outlook for global interest rates into 2025 saw the iEdge S-REIT Index generate a 1.1% total return. Majority expectations remain anchored to 50bps of cuts to the Fed Funds Rate between now and the end of Q1 2025,” he added.

In the past six weeks, the Singapore stock market booked around $330m of net institutional inflow. Top drivers in absolute terms were banks, financial services, and real estate management and development. 

The healthcare and energy sector also logged net institutional inflow, whilst the remaining sectors booked net institutional outflow.

UOB, DBS, and OCBC Bank led the broader market net institutional inflow with combined net inflow of close to $600m from 16 April to 27 March, with average of 10% total returns.

The real estate management and development sector recorded the third highest inflow since 16 April. Top stocks were Hongkong Land, City Developments, and UOL. 

Among the most actively traded stocks, Yoma Strategic Holdings booked the second highest net institutional inflow relative to market capitalisation, following Samudera Shipping, Howie noted.

“Maritime-related stocks were clearly in play over the six weeks, as Yangzijiang Shipbuilding, Dyna-Mac Holdings and Marco Polo Marine made up the next three stocks in the ranking,” he added.