SGX Market Updates

Manufacturing and Trade Show Signs of Improvement in August

SGX
Publish date: Thu, 29 Aug 2024, 09:32 AM
  • In August, multiple signs of an improving outlook for manufacturing and trade, have included a four-month high in ASEAN Manufacturing PMI expectations, a projected recovery in Singapore's manufacturing sector driven by strong electronics demand, and a significant month-to-month rebound in Singapore's Industrial Production in July.
     
  • Since 6 August, the iEdge SG Adv Manufacturing Index has rebounded 5%, recovering most of the declines in the first week of the month. While the Index generated a flat total return in the 2024 year to 28 August, combined trading turnover of the constituents is up 10% from 2023, reaching S$223 million in daily share transactions. 
     
  • For the month, the top-performing actively traded stocks in the iEdge SG Adv Manufacturing Index included SATS, UG Healthcare, Medtecs Intl, ThaiBev, and Willas-Array. Notably, SATS and ThaiBev were also among the three stocks of the Index that have booked the highest net institutional inflow for the month, along with ST Engineering.

Manufacturing Index Stocks Driving Trading Turnover Growth in 2024

The iEdge SG Adv Manufacturing Index measures the performance of SGX-listed companies within the global manufacturing ecosystem, that maintain substantial revenue reach throughout APAC. 

The fluid outlook for interest rates has been an overarching driver for most sectors represented by the Index in August. Since 6 August, the iEdge SG Adv Manufacturing Index has rebounded by 5%, reducing the August month-to-date decline in total return to 1%. 

The relatively flat 0.4% iEdge SG Adv Manufacturing Index total return for the 2024 year through to 28 August, generally aligns with Singapore’s Industrial Production contracting by 1.0% over the first seven months of the year. Despite this, the combined trading turnover of the Index constituents has risen by 10% from 2023, reaching S$223 million in daily share transactions in 2024

The table below highlights the stocks within the more actively traded side of the Index that have seen the largest increases in trading turnover this year.

Index ConstituentCodeYTD ADT S$M2023 ADT S$M% Increase in ADT

YTD 

NIF 

S$M

YTD 

Px 

Chg %

Sector
Broadway IndB690.1360.0062190%-1.239106.8Technology 
Willas-ArrayBDR0.0340.0021444%-0.72388.3Technology 
G Invacom^QS90.1890.021789%0.372-34.0Technology 
Mermaid MaritimeDU40.9660.156519%4.30338.9Energy/ Oil & Gas
Beng Kuang^BEZ0.9330.277237%0.568243.7Industrials
RiverstoneAP42.7730.883214%10.35627.7Healthcare
Dyna-MacNO44.3911.886133%29.91159.7Energy/ Oil & Gas
ValuetronicsBN20.4010.173132%-1.0720.0Technology 
PacificRadianceRXS0.1340.062116%-0.11273.2Energy/ Oil & Gas
InnoTekM140.0450.021109%-0.60910.2Technology 
UG Healthcare8K70.2590.125107%-0.420-26.3Healthcare
Addvalue Tech^A310.0320.01782%0.12820.0Technology 
Aztech Gbl8AZ0.9970.65652%6.3421.6Technology 
FrenckenE286.3734.41944%-0.304-3.0Technology 
YZJ Shipbldg SGDBS644.64432.97735%130.47066.4Industrials
Seatrium 5E253.34139.60335%-268.465-37.7Industrials
Baker TechnologyBTP0.0280.02227%-0.14726.9Energy/ Oil & Gas
ST EngineeringS6318.00814.91521%176.07914.7Industrials
Food EmpireF030.8880.73820%-1.732-14.2Consumer Non-Cyclicals
MarcoPolo Marine5LY0.9190.77918%3.3060.0Industrials

Note ADT refers to Average Daily Trading Value, NIF refers to Net Institutional Inflow, ^ on SGX Watchlist. All Data as of 28 August 2024, Source: SGX

Improving Outlook for Manufacturing & Trade

Though August, there have been multiple signals that the cautiously optimistic outlook for manufacturing and trade is improving: 

  • S&P Global  noted in their July ASEAN Manufacturing PMI Report that the start of the third quarter saw expectations for  the next 12 months reach a four-month high.
  • Singapore’s non-oil domestic exports (NODX) surged by 16% YoY in July, a significant rebound from the 9% decline in June, driven by a 12% MoM expansion as well as favorable base effects.
  • Singapore’s 2Q24 GDP report indicated Singapore’s manufacturing sector is expected to gradually recover in the second half of the year, with the electronics cluster projected to see strong growth due to robust demand for smartphone, PC, and AI-related chips.
  • The GDP report also relayed the recovery in manufacturing, particularly in electronics, is expected to benefit trade-related services sectors such as machinery, equipment, and supplies. 

Singapore's Industrial Production rebounded 10% MoM and 2% YoY in July, driven by a recovery in electronics. Electronics, which make up nearly half of the sector and are heavily weighted towards semiconductors, saw a 2% YoY increase in July compared to a -11% YoY decline in June. 

Stocks Leading the iEdge SG Adv Manufacturing Index in August

For the month through to 28 August, the top-performing actively traded stocks in the iEdge SG Adv Manufacturing Index included SATS, UG Healthcare Corporation, Medtecs International Corporation, Thai Beverage, and Willas-Array Electronics (Holdings). Of the 10 actively-traded Index stocks that led the Index for the period, six were also among the 10 that led the Index in the rebound from the 6 August lows. These included UG Healthcare Corporation, Medtecs International Corporation, SATS, Pacific Radiance, Thai Beverage and Singapore Technologies Engineering. Frencken Group, Sarine Technologies, ASL Marine, and First Resources were also among the 10 active that led the Index from 6 August. 

Regional healthcare concerns this month saw UG Healthcare Corporation and Medtecs International Corporation outpace Top Glove Corporation Bhd and Riverstone Holdings. However, UG Healthcare and Medtecs International were in the red for the year up to 28 August 2024, while Top Glove and Riverstone Holdings posted respective price gains of 9.8% and 27.7%.

Notably, SATS and Thai Beverage were also among the three stocks of the Index that have booked the highest net institutional inflow for the month, along with ST Engineering. For the period, the 10 active stocks of the Index that saw the most prices gains within the Index, and 10 stocks that led the net institutional inflow within the Index are tabled below.

Actively Traded Constituents with Highest MTD gainsCodeMTD Px Chg %MTD S$NIF
SATSS5811.663.162
UG Healthcare8K79.8-0.127
Medtecs Intl5469.10.094
ThaiBevY925.011.775
Willas-ArrayBDR2.70.046
China SunsineQES2.6-0.394
PacificRadianceRXS2.40.244
SIA EngineeringS591.73.345
Emperador Inc.EMI1.20.764
ST EngineeringS630.921.599
Actively Traded Constituents with Highest MTD NIFCodeMTD Px Chg %MTD S$NIF
SATSS5811.663.162
ST EngineeringS630.921.599
ThaiBevY925.011.775
Dyna-MacNO4-6.13.759
SIA EngineeringS591.73.345
First ResourcesEB5-0.72.352
Wilmar IntlF34-0.92.312
Haw ParH02-3.41.001
Emperador Inc.EMI1.20.764
ValuetronicsBN2-7.80.593

Note, NIF refers to Net Institutional Inflow,. All Data as of 28 August 2024, Source: SGX

Meanwhile AEM Holdings, Mermaid Maritime, Global Invacom Group, Beng Kuang Marine and Tianjin Pharmaceutical Da Ren Tang Group Corporation booked the most decline among the Index actives for the month through to 28 August. At the same time Yangzijiang Shipbuilding, Seatrium, UMS Holdings, Keppel Infrastructure Trust and Frencken Group saw the most net institutional outflow for the month through to 28 August.

Yangzijiang Shipbuilding Leads Index Weight Post March Rebalance

The iEdge SG Adv Manufacturing Index is reviewed semi-annually in March and September and Index constituents will have their Index weights capped at 10% at each semi-annual rebalance date. the wide span of revenue classifications for Sector Criteria detailed in Section 10 of the Index Methodology document found here.

Since the last rebalance (and capping process) in March, Yangzijiang Shipbuilding (Holdings) comparative performance has seen the stock now rank as the largest Index weight, with a current weight of 13.96%. 

On 12 August, Yangzijiang Shipbuilding reported a 15.3% YoY increase in revenue for 1HFY24 (ended 30 June), reaching RMB 13.0 billion, with the core shipbuilding segment contributing 95.0% of total sales. The segment's revenue improved by 16.3% to RMB 12.4 billion due to increased construction activities and better pricing of newbuild vessels, with the Group delivering 35 vessels and achieving 59% of its annual delivery target. The stock has generated a 66.4% price gain in the 2024 year to 28 August.

The most active stocks of the Index this year are tabled below.

Index Constituents with Highest YTD ADTCodeAug 6 close - Aug 28 close Px Chg %Aug 6 close - Aug 28 close NIF S$MMTD Px Chg %MTD S$NIFYTD ADT S$MYTD NIFS$MYTD Px Chg %Sector
Seatrium 5E23.59.857-12.5-21.49353.341-268.465-37.7Industrials
YZJ Shipbldg SGDBS66.0-5.864-7.8-23.63544.644130.47066.4Industrials
ST EngineeringS637.019.1040.921.59918.008176.07914.7Industrials
ThaiBevY929.37.6345.011.77517.02266.0931.0Consumer Non-Cyclicals
Wilmar IntlF344.7-6.784-0.92.31216.777-67.058-11.8Consumer Non-Cyclicals
SATSS5819.655.35311.663.16214.371151.27133.1Industrials
VentureV03-2.9-9.203-7.5-0.77610.75092.2742.7Technology 
FrenckenE2811.0-4.1400.8-5.4886.373-0.304-3.0Technology 
UMS5581.0-3.973-8.9-8.9115.565-35.766-23.9Technology 
AEM SGDAWX-7.9-2.227-23.8-5.4805.264-90.255-62.6Technology 
Dyna-MacNO42.92.631-6.13.7594.39129.91159.7Energy/ Oil & Gas
NanofilmMZH2.8-2.774-12.4-3.6243.774-23.320-18.6Technology 
RiverstoneAP40.6-2.277-5.8-2.7072.77310.35627.7Healthcare
Kep Infra TrA7RU3.4-5.573-5.2-6.8172.513-23.225-9.0Materials & Resources
Olam GroupVC22.8-1.366-3.4-1.1211.871-0.2757.7Consumer Non-Cyclicals
First ResourcesEB56.52.480-0.72.3521.6615.8332.8Consumer Non-Cyclicals
Medtecs Intl54620.00.1069.10.0941.226-0.711-22.6Healthcare
NIO Inc. USD OVNIO-0.9-0.330-13.9-0.6911.217-8.011-57.2Consumer Cyclicals
Top GloveBVA3.70.505-8.20.3041.0623.3509.8Healthcare
Aztech Gbl8AZ1.1-0.955-11.7-1.4990.9976.3421.6Technology 
Mermaid MaritimeDU4-12.6-0.820-23.3-0.4190.9664.30338.9Energy/ Oil & Gas
Beng Kuang^BEZ4.8-0.781-20.0-1.0140.9330.568243.7Industrials
MarcoPolo Marine5LY-1.9-0.587-12.1-0.9220.9193.3060.0Industrials
Food EmpireF03-0.5-0.864-4.0-0.9480.888-1.732-14.2Consumer Non-Cyclicals
Haw ParH020.50.515-3.41.0010.775-14.9833.4Healthcare
Emperador Inc.EMI2.40.9081.20.7640.611-1.695-17.9Consumer Non-Cyclicals
SIA EngineeringS595.92.4991.73.3450.5725.065-1.7Industrials
DelfiP34-5.4-2.286-6.0-2.2980.539-8.996-29.5Consumer Non-Cyclicals
ValuetronicsBN2-3.30.445-7.80.5930.401-1.0720.0Technology 
TJ DaRenTang USDT14-9.5-1.413-14.5-1.2890.3829.145-1.2Healthcare
ISDNI070.00.047-6.80.2680.300-1.480-25.7Technology 
UG Healthcare8K724.2-0.0609.8-0.1270.259-0.420-26.3Healthcare
G Invacom^QS90.00.018-20.50.0750.1890.372-34.0Technology 
Broadway IndB69-4.2-0.080-6.2-0.0870.136-1.239106.8Technology 
PacificRadianceRXS13.50.1262.40.2440.134-0.11273.2Energy/ Oil & Gas
Jiutian ChemicalC8R0.0-0.011-4.5-0.0330.108-1.543-19.2Materials & Resources
Oceanus5790.0-0.037-11.1-0.1730.107-1.053-11.1Consumer Non-Cyclicals
ASL Marine^A048.60.065-1.60.0660.1011.107-1.6Industrials
Grand VentureJLB-0.9-0.548-4.4-0.5470.062-2.4880.0Industrials
China SunsineQES5.3-0.3362.6-0.3940.053-0.4060.0Materials & Resources
Mencast5NF-9.10.009-9.10.0090.0520.049-16.7Industrials
QAFQ010.00.015-0.6-0.0680.052-0.487-0.6Consumer Non-Cyclicals
InnoTekM14-3.0-0.176-10.2-0.2670.045-0.60910.2Technology 
Micro-Mechanics5DD-2.00.006-8.2-0.1840.044-0.086-24.9Technology 
Zixin42W0.00.000-5.00.0050.044-0.473-16.1Consumer Non-Cyclicals
Acesian Partners5FW-5.10.000-9.80.0000.0430.296-14.0Industrials
Willas-ArrayBDR1.8-0.0232.70.0460.034-0.72388.3Technology 
Addvalue Tech^A31-7.70.025-7.70.0360.0320.12820.0Technology 
CreativeC761.70.001-4.8-0.0070.031-0.058-16.1Technology 
JEP1J4-6.20.000-7.70.0000.0301.806-4.8Industrials
Baker TechnologyBTP5.60.1970.00.2030.028-0.14726.9Energy/ Oil & Gas
Sarine TechU779.30.041-2.10.0280.0210.556-25.4Industrials

Note ADT refers to Average Daily Trading Value, NIF refers to Net Institutional Inflow, ^ on SGX Watchlist. All Data as of 28 August 2024, Source: SGX

Further Resources and Research

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Related Analyst Reports

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