Over the five trading sessions from Nov 1 to 7, institutions were net sellers of Singapore stocks, resulting in a net institutional outflow of S$141 million. This was a slower pace than the S$404 million net outflow over the preceding five sessions.
Stocks that led the net institutional outflow over those five sessions were OCBC, Capitaland Ascendas Reit, CapitaLand Integrated Commercial Trust, Mapletree Pan Asia Commercial Trust, Mapletree Industrial Trust, UOB, Frasers Centrepoint Trust, Suntec Reit, Frasers Logistics & Commercial Trust and Keppel.
Meanwhile, DBS, Hongkong Land Holdings, Singtel, Jardine Matheson Holdings, Singapore Technologies Engineering (ST Engineering), Sheng Siong Group, Yangzijiang Shipbuilding Holdings, Jardine Cycle & Carriage, Yanlord Land Group and Capitaland Investment led the net institutional inflow over the five sessions.
DBS booked S$109 million in net institutional inflow on Nov 7 following the release of its Q3 FY2024 (ended Sep 30) results in which it posted a 15 per cent increase in net profit from the year-ago period to S$3 billion. The group also announced a significant buyback programme.
It was also announced last week that Yangzijiang Shipbuilding will join the MSCI Singapore Index from the close of Nov 25, advancing to the mid-cap size segment per MSCI’s GIMI (global investable market indexes) methodology.
With the shipbuilder’s market capitalisation now at S$10 billion, this achievement is notable given the rising cut-off market cap thresholds for developed markets across all four MSCI reviews this year. Notably, in the November 2024 rebalance, Singapore stands out as the only Asia developed market with a net increase in MSCI Standard Index constituents.
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From a sector perspective, real estate investment trusts (Reits) and financial services booked the most net institutional outflow in the five sessions, while the real estate (excluding Reits) and industrials sectors bucked the trend and booked the most net institutional inflow.
Seven primary-listed companies conducted buybacks with a total consideration of S$3.4 million in the five sessions.
ST Engineering led the consideration tally after buying back 512,900 shares at an average price of S$4.51 per share on Nov 1. This took the number of shares acquired on the current mandate to four million shares, or 0.2 per cent of the issued shares (excluding treasury shares) as at the beginning of its mandate in April.
Digital Core Reit Management acquired 303,300 units of Digital Core Reit on Nov 7. This brings the total units repurchased to 1.25 per cent of its issued units since the beginning of the current mandate.
During the five trading sessions, 70 director interests and substantial shareholdings were filed for more than 30 primary-listed stocks. Directors or CEOs filed three acquisitions and no disposals, while substantial shareholders filed seven acquisitions and seven disposals.
SIA Engineering Company
Between Nov 6 and 7, SIA Engineering Company (SIAEC) bought back 290,100 shares at an average price of S$2.46 per share.
This took the number of shares acquired on the current mandate to 3.14 million shares, or 0.29 per cent of the issued shares (excluding treasury shares) as at the beginning of the mandate in July. This has already surpassed the 0.22 per cent of issued shares (excluding treasury shares) bought back in its FY2024 (ended Mar 31).
On Nov 5, SIAEC reported that its H1 FY2025 (ended Sep 30) group revenue increased 12.1 per cent from a year earlier to S$576.2 million.
This was attributed to demand for maintenance, repair, and overhaul services (MRO) remaining strong, with all operating segments recording higher revenue. The group noted that MRO demand remains strong due to healthy air travel and delays in new aircraft deliveries. Airlines are keeping older planes in operation, increasing the need for MRO support.
The group’s H1 FY2025 expenditure rose by 11.5 per cent to S$572.8 million, primarily due to higher material, manpower and repair costs, as well as an exchange loss compared to a gain in the previous period. Consequently, the group’s H1 FY2025 operating performance improved by S$3.3 million from the year-ago period, resulting in an operating profit of S$3.4 million.
The share of profits from associated and joint venture companies increased by 17.2 per cent to S$58.6 million, with S$56.2 million from the engine and component segment, and S$2.4 million from the airframe and line maintenance segment. This brought the group’s H1 FY2025 net profit to S$68.8 million, a 16 per cent improvement from the same period last year.
For the 2024 year to Nov 7, SIAEC has generated a 3.4 per cent price gain, with dividends extending the total return to 6.1 per cent. With its H1 FY2025 results, it declared an interim dividend of two Singapore cents per share that will go ex-dividend on Nov 12.
The stock has also booked S$12 million of net institutional inflow in the 2024 year to Nov 7, ranking it within the 25 stocks with the highest net institutional inflow for the period, bucking the net institutional outflow booked by the both the industrials sector and broader Singapore stock market.
SIAEC noted that MRO demand continues to be driven by healthy air travel demand. Nevertheless, the group acknowledged industry challenges such as supply chain constraints, rising costs, tight manpower and geopolitical tension, and said that it is dealing with these issues, especially supply chain problems and high costs.
The group noted that to seize opportunities and tackle challenges, it will focus on strengthening core competencies and expanding its MRO capabilities, capacity and geographical presence. More specifically, it will do so through investments and collaborations to enhance its MRO ecosystem.
SIAEC added that it will also maintain strict cost discipline, and is increasing efforts to integrate lean principles and digitalisation through an enterprise operating system framework. The group said that it is committed to building a steady pipeline of skilled talent through partnerships with institutes of higher learning.
In March 2023, SIAEC announced that it signed a memorandum of understanding with seven institutes of higher learning to create diverse pipelines of skilled professionals, offer lifelong learning opportunities for the workforce, and foster knowledge exchange between industry and academia.
DBS
As outlined above, DBS launched a new S$3 billion share buyback programme on Nov 7. Shares will be acquired on the open market and subsequently cancelled. The buybacks will also be executed at the discretion of management and will depend on market conditions.
This marks the first instance where repurchased DBS shares will be cancelled. The programme is in addition to regular buybacks for employee share plans. The last time DBS conducted a buyback for its employee share plans was in March 2020, at an average price of S$16.97.
Based on the DBS balance sheet as at September 2024, the programme will reduce the common equity tier 1 ratio by about 0.8 percentage points. The group highlighted that the initiative is part of a broader series of capital management strategies.
These strategies have included doubling the ordinary dividend over the past five years, occasional special dividends and a recent bonus issue. DBS has also reaffirmed its policy of paying ordinary dividends that are sustainable and increase with earnings.
DBS CEO Piyush Gupta highlighted that the buyback programme underscores the bank’s strong capital position and ongoing capital generation. DBS deputy CEO Tan Su Shan also said that the buyback programme broadens their approach to capital management, while a presentation from DBS chief financial officer Chng Sok Hui maintained that the buyback programme would provide a permanent lift to earnings per share in addition to raising return on equity.
Raffles Medical Group
On Oct 30, Raffles Medical Group executive chairman Loo Choon Yong acquired one million shares at an average price of S$0.8885 per share. This increased his total interest in the leading integrated private healthcare provider in Asia from 55.36 per cent to 55.41 per cent. This followed a similar transaction on Oct 29.
Since February, Dr Loo has gradually increased his total interest in the stock from 53.02 per cent. Raffles Medical operates facilities in 14 cities across Singapore, China, Japan, Vietnam and Cambodia. Founded in 1976 with two clinics in Singapore, the group now serves over two million patients annually and employs more than 2,700 staff, including nearly 430 multi-speciality physicians.
Heeton Holdings
On Nov 1, Heeton Holdings alternate director Toh Gap Seng acquired 100,000 shares at an average price of S$0.25 per share. This increased his total interest from 5.86 per cent to 5.88 per cent.
He was appointed as alternate director to executive chairman Toh Giap Eng in January 2022. With over 30 years of experience in property development and investment, he currently serves as the executive director of Hong Heng.
On Sep 3, Heeton announced it had entered the Singapore hospitality market by acquiring Capri by Fraser Changi City as part of a joint venture. The hotel will be revamped and rebranded as Dorsett Changi City Singapore, with Dorsett Hospitality International taking over operations. This acquisition marks Heeton’s first hotel investment in Singapore, and aligns with its strategy to expand in the hospitality industry.
The writer is the market strategist at Singapore Exchange (SGX). To read SGX’s market research reports, visit sgx.com/research
