Retail investors lead $671m net buys in Singapore stocks

STI dropped 10.5% in total returns over the first five trading sessions of April.

Local stocks in Singapore saw net inflows from both institutional and retail investors despite heightened global volatility driven by new US tariffs.

The Straits Times Index (STI) dropped 10.5% in total returns over the first five trading sessions of April, falling from its all-time intraday high of 4,005.18 to 3,540.50, according to an SGX Group market update.

The decline mirrored broader market trends, with the FTSE All-World Index falling 9.3% in SGD terms, the FTSE APAC Index down 9.8%, and the Bloomberg All World Banks Index slipping 10.2%. 

The downturn followed the announcement of significant new tariff policies by the Trump Administration under the US International Emergency Economic Powers Act.

Despite the sell-off, institutional investors were net buyers of $15.1m in Singapore stocks across those five sessions. 

Retail investors showed stronger activity, recording net purchases of $671m. 

On 7 April, which marked the steepest one-day decline in total returns for the STI since March 2020, the index dropped 7.5% in price and 7.1% in total returns. 

That day, institutions net bought $153.0m, whilst retail investors net bought $110.5m in Singapore equities.

Several real estate investment trusts (REITs) were amongst the most actively bought by both institutions and retail investors on 7 April . 

These included CapitaLand Ascendas REIT, Mapletree Industrial Trust, Frasers Logistics & Commercial Trust, Keppel REIT, Lendlease Global Commercial REIT, Frasers Centrepoint Trust, CapitaLand China Trust, AIMS APAC REIT, Sasseur REIT, and Frasers Hospitality Trust. 

The ten REITs averaged a 7.2% yield, attracting yield-seeking investors.

Retail investors continued to buy lagging stocks, with yield hunting becoming more evident during the period.