Retail investors in Singapore have significantly increased their net buying activity, acquiring $487m in shares since the end of 2024.
This marks a substantial rise from the $192m net retail buying recorded in 2024, with the focus shifting towards the Financial Services, Real Estate Investment Trusts (REITs), and Technology sectors.
This trend follows a broader pattern of retail investors buying during weaker market performances and selling during stronger ones.
Over the past five weeks, the 50 Singapore Exchange (SGX)-listed stocks with the highest net retail buying saw an average decline of 2.7%, whilst those with the most net retail selling experienced an average gain of 3.7%.
This behaviour aligns with historical trends, where retail investors tend to buy more during market downturns and sell during upswings. Notably, non-Straits Times Index (STI) stocks such as Keppel REIT, AEM Holdings, and CapitaLand India Trust were among those with the highest net retail buying.
Conversely, stocks like Suntec REIT, Rex International, and Japfa saw the most net retail selling. Despite these trends, some exceptions were observed, with Oversea-Chinese Banking Corporation and Centurion Corporation outperforming the STI, registering gains of 3.4% and 3.1%, respectively, whilst still attracting significant net retail inflows.
The data, based on historical transactions, provides insights into retail investor behaviour but does not predict future trends. It highlights how retail investors have historically reacted to market conditions, offering a glimpse into their strategic shifts in the current economic climate.
