SINGAPORE: Outflows from Singapore’s banking sector reached S$701 million in April, as institutional investors showed buying interest in telecommunications and industrial stocks, Singapore Business Review reported.
The Straits Times Index (STI) fell 3.5% for the month, with dividends cushioning the total return loss to 2.3%. In early April it saw a steep 15% drop due to global trade concerns, followed by a 13% rebound by month-end.
Amid market volatility, Singtel recorded a net inflow of S$512 million in April alone, securing its position as the most bought stock by institutions for the month and year-to-date.
The telecommunications sector was the strongest-performing group with S$522 million in institutional inflows. NetLink NBN Trust and StarHub also drew positive flows while the FTSE ST Telecommunications Index posted a 9.5% total return.
Others drawing institutional capital included SGX, which saw inflows of S$96.4 million, and ST Engineering, which recorded S$95.6 million in inflows, as well as Singapore Airlines.
In the industrials sector, ComfortDelGro and Sembcorp Industries were among the top net buys.
The real estate sector didn’t fare as well, with Real Estate Investment Trusts (REITs) facing S$74 million in institutional outflows. However, Frasers Centrepoint Trust, CapitaLand Ascendas REIT, and CapitaLand Integrated Commercial Trust still attracted interest, ranking among the top 25 most net bought stocks in April.
According to Singapore Business Review, Singapore equities saw a net outflow of S$73 million from institutions in April, mainly due to outflows from the banking sector, but the inflows into non-bank sectors suggest a measured confidence in sectors with stable returns amid global uncertainty.
As the earnings season approaches, investors are expected to stay on defensive plays and high-yielding assets. /TISG
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