Total return of manufacturing-related stocks on SGX dip 2.4% in 2023
Top three performers last year were Tianjin Pharmaceutical Da Re Tang Group, Food Empire and Dyna-Mac.
The iEdge SG Advanced Manufacturing Index posted a 2.4% decline in total return last year and brought down its five-year overall return to 19.5%, as the challenging business environment drags manufacturers listed on the Singapore stock market.
A 5 January market update showed the five most traded stocks last year were offshore marine firm Seatrium, shipbuilder Yangzijiang Shipbuilding, agricultural firm Wilmar International, tech specialist Venture Corporation and engineering group Singapore Technologies Engineering.
Their performances, however, vary with ST Engineering recording 21% in total return in 2023 while Venture suffered from a 16% drop.
The index booked S$192M in net institutional outflows for the entire 2023 led by Venture which saw net outflow of S$230M. On the other end of the spectrum, chip test solutions provider AEM Holdings posted the highest net institutional inflow relative to its market value.
Among the 40 largest stocks by index weight, Tianjin Pharmaceutical Da Re Tang Group Corp, Food Empire Holdings, Dyna-Mac Holdings, Delfi and Frencken Group were the strongest performers last year with an average total return of 72% for the whole of 2023..
The iEdge SG Advanced Manufacturing Index comprises more than 100 public firms and accounted for 20% of the total capital traded in the Singapore Exchange last year.
“This shows the significant role that the sector plays in the stock market that parallels its influence on the economic performance of Singapore and the broader region,” the note read.