, Singapore
687 views
Photo by Nicholas Cappello for Unsplash

Retail investors buy $1.17b in stocks amidst STI April selloff

After tumbling 14.6% from the end of Q1 to April 9, the STI staged a sharp rebound of 12.9% by April 23.

Singapore’s retail investors made bold moves in April as the Straits Times Index (STI) saw one of its most volatile stretches in recent years.

After tumbling 14.6% from the end of Q1 to April 9, the STI staged a sharp rebound of 12.9% by April 23. Still, the index closed the period with a net loss of 3.2%.

Retail traders were quick to act during the initial selloff. From April 1 to 9, they poured $1.165b into the Singapore stock market, betting on a rebound.

Their net buying continued until mid-month, but by April 15, sentiment shifted. From April 15 to 23, retail investors net sold $253m, capitalising on price recoveries and growing more cautious as global headwinds mounted.

Bank stocks were a major draw. DBS, OCBC, and UOB led retail net buys in the early part of the month, with investors positioning ahead of the banks’ first-quarter earnings reports due in early May.

Outside the benchmark index, stocks like iFAST, Keppel DC REIT, Aztech Global, ESR-REIT, and First Resources also saw significant retail interest.

Interestingly, the stocks that retail investors sold off after mid-April turned out to outperform those they held onto.

Shares that were net sold gained an average of 8%, compared to just 4.1% for stocks that remained in retail portfolios. Among the most heavily net sold were Singtel, DBS, SGX, SIA, and ComfortDelGro.

Investor caution has been reinforced by a weakening macroeconomic outlook. The IMF recently downgraded its 2025 global growth forecast from 3.3% to 2.8%, with Asia’s trade-driven economies—including China and ASEAN—expected to bear the brunt of escalating US tariffs.

Reflecting this, the 12-month consensus target for the STI was trimmed by 3.4%, to 4,210 from 4,360.

Despite Singapore's Q1 GDP growth of 3.8% and a 3.3% rise in non-oil domestic exports (NODX), forward-looking indicators are turning more cautious.

A slowdown in capital goods demand and trade-related uncertainties could weigh on export-oriented sectors and earnings growth in the months ahead.

As the second quarter unfolds, investor focus will likely shift toward earnings performance and central bank signals, whilst market volatility remains a key theme in navigating the balance between risk and reward.
 

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!