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Institutional inflows return to Singapore, but long-term trend unclear

This represents the highest weekly inflow since 27 December 2024.

Institutional investors poured $39m into Singapore stocks in the first week of March, marking the first weekly net buying by institutions since late January, according to SGX.

This also represents the highest weekly inflow since 27 December 2024, signalling a potential shift in market sentiment after months of sustained outflows.

Prior to this influx, Singapore’s stock market had experienced $1.115b in net institutional outflows up to 28 February 2025. The latest inflows suggest a renewed confidence in the market, with investors selectively buying into sectors that had previously faced heavy selling pressure.

The Industrials and Consumer Non-Cyclicals sectors were the biggest beneficiaries of institutional investments. The Industrials sector recorded $102.1m in net inflows, reversing $93.5m in outflows from the first two months of 2025.

ST Engineering and Singapore Airlines led the buying activity, reflecting optimism in aerospace and transport recovery.

Meanwhile, Consumer Non-Cyclicals saw $22.6min inflows, more than offsetting the $8m in prior outflows, with Wilmar International, Thai Beverage, and First Resources attracting strong investor interest.

Several stocks that received high institutional inflows also saw double-digit price gains. ISDN Holdings surged 12.9% after reporting a 72% increase in FY24 attributable net profit, driven by strong industrial automation and hydropower business growth.

ST Engineering and Hong Leong Asia also recorded significant gains, highlighting strong investor confidence in companies with robust earnings and long-term growth potential.

The return of institutional buying suggests a broader shift in investor sentiment, with renewed optimism about Singapore’s economic resilience and sectoral recovery.

Investors appear to be reallocating capital into industries poised for stable growth, particularly industrials and consumer staples, which offer both defensive and growth-oriented opportunities.

With institutional inflows reversing a months-long trend of outflows, market watchers will be closely monitoring whether this shift marks the beginning of a sustained recovery or a temporary reallocation of capital.

The strength of corporate earnings, macroeconomic stability, and global market conditions will play a crucial role in determining whether institutional interest in Singapore stocks will continue in the coming months.
 

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