Singtel & Jardine Matheson

 

Increased digitalisation has also had an impact on the STI' s next largest weight after the banks, Singapore Telecommunications Singtel: Z74 +0.4% (Singtel). During January, Singtel saw the next highest amount of net institutional buying after the 3 banks, with the stock generating a 4.7 per cent return.

 

Back on Nov 11, Singtel reported that its H1FY22 (ended Sep 30) net profit more than doubled yoy to S$954 million. It attributed the result to its ongoing strategic reset to develop new growth engines in information and communications technology (ICT) and digital services. Singtel' s ICT arm, NCS, reported it had changed its revenue mix significantly over those 6 months ended Sep 30, growing its digital revenue by 37 per cent yoy, which contributed 48 per cent to NCS' total revenue.

 

Jardine Matheson Holdings JMH USD: J36 -0.33% (JMH) maintains a similar STI weight as Singtel. Together, DBS, OCBC, UOB, Singtel and JMH maintained a combined 58 per cent weight in STI as at the end of January. The conglomerate ranked as a top 20 stock by net institutional buying in January, while generating a 7.3 per cent return in Sing-dollar terms. Since its share buyback announcement on Sep 30, it has gained 16.4 per cent in Sing-dollar terms.