STI gains 7.5% with majority of flows going to telcos, industrials

Dividends of Straits Times Index boosted a total return of 8.7%.

The Strait Times Index (STI) posted a 7.5% gain with dividends boosting a total return to 8.7% in the first quarter (Q1) of 2022, which made it the strongest performing developed market benchmark globally.

It also outperformed the Financial Times Stock Exchange (FTSE) Asia Pacific Index and FTSE All World Index, which saw a drop of 9.1% and 10.3% in Singapore dollar terms.

During the four months, Singapore stocks were recipients of close to $420m of net institutional inflows, with the majority of flows going to telecommunications, industrials, and consumer non-cyclicals.

Amongst STI’s strongest constituents were Sembcorp Industries, Jardine Cycle & Carriage, Keppel Corporation, Yangzijiang Shipbuilding Holdings, and City Developments. 

Also, DBS Group Holdings, Overseas Chinese Banking Corporation, and United Overseas Bank, which account for 45% of the STI weights, averaged 9.1% total returns in Q1 2022. 

For Q1 2022, the combined net interest income for the three banks was $5.38b, an increase from $5.31b in the fourth quarter (Q4) of 2021, while combined non-interest income amounted to $3.37b in Q1 2022, up from $2.97b in Q4 2021.