Institutional investors in Singapore have adjusted their positions in response to global market volatility, particularly in technology and financial sectors. Last week, the Singapore Exchange (SGX) reported a net institutional outflow of $57m, significantly lower than the year-to-date weekly average of $100m. This shift comes amid a global sell-off in technology stocks, driven by concerns over artificial intelligence (AI) spending and regulation following the US midterm elections.
The technology sector in Singapore mirrored global trends, with the FTSE ST Technology Index declining 10% and experiencing a net outflow of $71m. Financial services also saw substantial outflows, with DBS, OCBC, and UOB collectively losing $98.4m in institutional investments. In contrast, Real Estate Investment Trusts (REITs) and industrials attracted net inflows, with REITs gaining $95m and the iEdge benchmark rising by 2%.
Notably, S-REITs demonstrated resilience, with 34 out of 39 trusts recording positive returns. CapitaLand Ascendas REIT and Keppel DC REIT were amongst those attracting significant institutional inflows, at $46.4m and $9.9m, respectively. Despite these gains, many trusts still show negative year-to-date returns.
The week’s market movements highlight a partial recovery for some sectors, though technology and financial services remain under pressure. As global uncertainties persist, Singapore’s market dynamics continue to reflect broader economic trends, with defensive sectors like REITs offering some stability amidst the volatility.
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