Singapore Funds Flow - UOB Kay Hian 2021-07-12: Institutional Investors Were Net Buyers Of Financial Sector In 1H21

Singapore Fund Flow Strategy - UOB Kay Hian | SGinvestors.io YANGZIJIANG SHIPBLDG HLDGS LTD (SGX:BS6)

Singapore Funds Flow - Institutional Investors Were Net Buyers Of Financial Sector In 1H21

Singapore Fund Flow 1H 2021 Review

Major divergence in views on financial sector in 1H21.

A stark divergence in performance between institutional and retail investors.

  • In 1H21, institutional investors saw an average return of 24.4% for its top 10 most bought stocks, while retail investors saw a loss of 3.5% on average across its group of top 10 most bought stocks.
  • Similarly for the top 10 stocks that were most sold by institutional investors, the group saw an average loss of 1.2% while retail investors witnessed a gain of 22.6% in the stocks that it sold off.
  • See the data table and charts on the list of stocks with largest buy / sell by institutional and retail investors 1H21 and respective share price performance in PDF report attached below.

Bargain hunting and/or profit taking?

  • In our view, retail investor selling in 1H21 could have been motivated by profit-taking on stocks that outperformed in the past 52 weeks. If we look at the top 10 stocks sold by retail investors over a 52-week period to end-Jun 21, these 10 stocks had an average share price return of 46%; thus profit-taking would be understandable.
  • Similarly, we note that retail buying during 1H21 heavily favoured value stocks such as SingTel (SGX:Z74), Ascendas REIT (SGX:A17U) and Thai Beverage (SGX:Y92) which have underperformed over the past 52 weeks.

Singapore Fund Flow June 2021 Review

Banks out of favour in June with institutional investors...

...while retail investors were significant buyers of financial stocks

How did institutional and retail opinions diverge in June?

Adrian LOH UOB Kay Hian Research | https://research.uobkayhian.com/ 2021-07-12
SGX Stock Analyst Report BUY MAINTAIN BUY 1.900 SAME 1.900