Singapore Fund Flow - UOB Kay Hian 2021-04-13: Banking & Shipbuilding Sectors Saw The Most Fund Inflows By Institutions In March 2021

Singapore Fund Flow - UOB Kay Hian Research | SGinvestors.io YANGZIJIANG SHIPBLDG HLDGS LTD (SGX:BS6) OVERSEA-CHINESE BANKING CORP (SGX:O39) SINGAPORE AIRLINES LTD (SGX:C6L) JARDINE STRATEGIC HLDGS LTD (SGX:J37) CAPITALAND LIMITED (SGX:C31)

Singapore Fund Flow - Banking And Shipbuilding Sectors Saw The Most Fund Inflows By Institutions In March 2021




A busy start to the month of March.

  • We note that the first two weeks of March saw the most movement in net buys and sells (week of 1 Mar 21 and week of 8 Mar 21).
  • Interestingly, institutional investors were active throughout the month while retail investors’ activity tailed off markedly after the first two weeks of March. In addition, retail investors appeared to take a risk-off mentality based on trading value of the top 25 stocks, buying S$741m worth of stocks but selling S$1.5b, whereas institutional investors were more balanced, buying S$1.27b and selling S$1.35b.
  • (see SGX Market Fund Flow Overview; SGX Cumulative Fund Flow By Sector; SGX Weekly Fund Flow By Sector.)




Where did institutional and retail opinions diverge?

  • Key divergences in stock calls were:
    1. DBS (SGX:D05) with institutional net buying S$292m worth of stock and retail selling of S$545m,
    2. Singapore Airlines (SGX:C6L) with net institutional selling S$131m in stock and retail buying of S$172m,
    3. OCBC (SGX:O39) with S$77m in net purchases from institutions and net sales from retail of S$240m, and
    4. Yangzijiang Shipbuilding (SGX:BS6) with institutional buying S$136m worth of stock while retail investors sold S$100m.
  • Singapore Airlines remains a favourite among retail investors as it was consistently bought by retail investors for the whole of March, and net buying of S$172m was three times higher than the second most bought stock, Ascendas REIT (SGX:A17U) with S$58m.
  • With the global adoption of vaccination programmes accelerating and Singapore’s acceptance of IATA’s COVID-19 travel pass, aviation stocks have attracted positive sentiment. However, we believe investors should be cautious given recent newsflow on new variants of COVID-19 and even restrictions on Singapore Airlines’s flights to Hong Kong. We believe that border openings will probably occur in late-3Q21 at best, and even then it will likely be gradual.




Notable actively-traded stocks in March 2021

  • Apart from financial and shipbuilding stocks, some of the most actively-traded companies for both the institutional and retail segments were
    • Ascendas REIT (SGX:A17U) with S$85m worth of stock sold by institutions and S$58m bought by retail investors, and
    • ComfortDelGro (SGX:C52) where institutional buying of S$46m in stock almost mirrored that of retail selling S$49m of stock.
  • In addition, we note that retail investors bought S$40m in Top Glove (SGX:BVA) which may be a response to the uneven pace of COVID-19 vaccinations as well as new variants of the virus that have been occurring globally.


M&A activity and its effect on trading



Changes to STI constituent companies.






Adrian LOH UOB Kay Hian Research | Singapore Research UOB Kay Hian | https://research.uobkayhian.com/ 2021-04-13
SGX Stock Analyst Report BUY MAINTAIN BUY 1.360 SAME 1.360
BUY MAINTAIN BUY 14.680 SAME 14.680
HOLD MAINTAIN HOLD 4.470 SAME 4.470
NOT RATED MAINTAIN NOT RATED 99998.000 SAME 99998.000
BUY MAINTAIN BUY 3.810 SAME 3.810



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