The Straits Times Index (STI) commenced the year with a robust 1.8% increase, closing January at 3,855.82, outperforming regional counterparts such as the FTSE ASEAN All-Share Index, which fell by 2.9%. This growth was primarily fuelled by the banking sector, with DBS Group Holdings, Oversea-Chinese Banking Corporation, and United Overseas Bank averaging returns of 3.2%. These banks, which now constitute 54% of the STI’s weight, are set to report their FY24 results between 10 and 26 February.
Singtel, Singapore’s leading telecommunications company, saw an 8.1% rise in January, continuing its asset optimisation and cost reduction strategy initiated in 2021. Seatrium, focusing on offshore renewables and cleaner marine solutions, also posted a significant 7.7% increase. Both companies recorded the highest net institutional inflows for the month, following UOB.
Despite these gains, institutions were net sellers of Singapore stocks in January, with a net outflow exceeding S$500 million. The on-market share buyback for primary-listed companies totalled S$111 million, led by OCBC, Sembcorp Industries, and others. Notably, DBS refrained from buybacks in January after significant repurchases in the previous months.
Among the 100 most traded stocks, Japfa led with a 30.9% gain, coinciding with a privatisation offer. LHT Holdings also saw a notable increase following a substantial share acquisition. The STI’s performance highlights the resilience of Singapore’s market amidst varying global economic conditions.
