Singapore's benchmark index .STI rises as much as 0.7% to 3,486.98 points, highest level since July 17

Singapore's benchmark index .STI rises as much as 0.7% to 3,486.98 points, highest level since July 17

The Straits Times Index (STI) in Singapore rose as much as 0.7% to 3,486.98 points on December 1, its highest level since July 17, 2020 [1]. This surge follows a robust month of November, during which the index gained 15.8% in price and 16.2% in total return [1].

November was the strongest month of gains for the STI since May 2009. The combined Assets under Management (AUM) of the SPDR® STI ETF and Nikko AM STI ETF reached S$2.0 billion as of the end of November, up 75% from the end of November 2019 [1]. Of the 100 most traded stocks in Singapore, four of the top five performers were non-STI stocks: Broadway Industrial Group, Hi-P International, SATS, and Alset International [1].

Several factors contributed to the strong performance of the Singapore stock market in November. Brent Crude Oil, which rose 25% during the month, boosted the shares of energy-related companies such as Sembcorp Marine, which gained 35% [1]. The Gold-Brent Crude Price Ratio spread return also reached early March levels, benefiting gold mining companies [1].

Record performances for global stocks were largely driven by vaccine developments that have met optimistic timelines reiterated by the World Health Organization (WHO) in early October [1]. This positive news led to rallies in cyclical/broad economy stocks in Singapore, while medical suppliers saw price declines and tech stocks experienced net institutional outflows [1].

Financial services stocks, which make up approximately 40% of the STI, were the main drivers of the index's gains in November. DBS, OCBC, and UOB, the three largest banks in Singapore, averaged 21% total returns with net institutional inflows of S$1.5 billion [1].

Rotation within the Singapore market was also evident in November, with net institutional inflows into financial services and net institutional outflows from technology stocks. This was the reverse of the net institutional flows observed for the most active stocks of these two sectors for the prior 10 months [1].

References:
[1] "SGX: STI posts strongest month of gains since May 2009," SGInvestors, December 1, 2020. https://sginvestors.io/sgx-mygateway/2020/12/sti-posts-strongest-month-of-gains-since-may-2009