Industrials buck market selloff as institutions buy in, SGX reports

Transportation-led demand drove $170m in inflows despite wider equity outflows.

Institutional investors put more money into Singapore industrial stocks in early July, even as the broader stock market recorded net outflows, according to the latest market update from the Singapore Exchange (SGX).

SGX said the industrial sector attracted $170m in net institutional inflows between 30 June and 11 July, making it the strongest-performing sector during the period, led by transportation, logistics and engineering stocks.

The inflows came even though Singapore equities as a whole recorded net institutional outflows of $84m over the same period.

According to SGX, transportation stocks accounted for the largest share of industrial inflows. Singapore Airlines, SATS, Yangzijiang Shipbuilding, and Seatrium were amongst the companies that saw institutional buying.

The exchange said logistics and engineering counters also attracted inflows, reflecting continued investor interest in companies linked to trade, transport, and infrastructure.

SGX noted that the industrial sector has been supported by several long-term trends, including regional supply chain activity, the continued recovery in aviation, and investment in infrastructure and digital connectivity.

The exchange also highlighted that Singapore Airlines has benefited from strong travel demand, whilst SATS continues to gain from higher passenger traffic and cargo volumes.

Meanwhile, Yangzijiang Shipbuilding, and Seatrium remain closely watched as global demand for shipbuilding and offshore engineering projects continues.

Outside industrials, institutional investors were net buyers of selected financial and telecommunications stocks, whilst most other sectors recorded net outflows during the period.

The figures were published in SGX's latest Market Updates report, which tracks institutional trading activity across Singapore-listed companies.