Singapore Stock Market: Institutional Shifts and Director Confidence
Recent market activity reveals a nuanced picture of investor sentiment in Singapore. Over the five trading sessions ending March 5, 2026, institutions were net sellers of Singapore stocks, offloading S$41 million worth of shares. This brings the total net outflow for the first quarter of 2026 to S$148 million. However, this selling pressure is counterbalanced by increased activity in share buybacks and director confidence, signaling potential underlying strength.
Institutional Activity: Who’s Buying and Selling?
Several prominent stocks experienced significant institutional outflow during the period. These included DBS, Sembcorp Industries, Genting Singapore, Keppel, CapitaLand Investment, Sats, Hongkong Land, Olam Group, Suntec Real Estate Investment Trust and Sheng Siong. Conversely, Singapore Airlines, OCBC, Yangzijiang Shipbuilding, Seatrium, ST Engineering, AEM, Singtel, Keppel DC Reit, City Developments Ltd, and UOB Kay Hian saw net institutional inflow.
Surge in Share Buybacks: A Vote of Confidence?
A notable trend was the increase in share buybacks, with 26 primary-listed companies collectively spending S$131 million to repurchase their own shares. This activity was likely boosted by earnings season and share performance plans. Singtel led the charge, investing approximately S$50 million in its value realisation share buyback programme, acquiring 10.15 million shares at an average price of S$4.92 each. Stoneweg Europe Stapled Trust and Hongkong Land likewise participated in buyback initiatives.
Director Transactions: Insider Perspectives
Director and CEO transactions provide further insight into market sentiment. Over the period, more than 130 director interests and substantial shareholdings were filed for over 50 primary-listed stocks. A total of 25 acquisitions and five disposals were reported by directors or CEOs, while substantial shareholders recorded nine acquisitions and ten disposals.
Key Director Purchases
Several key executives demonstrated confidence in their companies by increasing their shareholdings. CEO Kong Chee Min of Centurion acquired 50,000 shares, while executive director and joint chairman David Loh and non-executive director and joint chairman Han Seng Juan collectively added 1.56 million shares to their holdings. Dr Loo Choon Yong, executive chairman of Raffles Medical Group, purchased 1.8 million shares. Nam Cheong CEO Leong Seng Keat also increased his stake by 400,000 shares.
Company-Specific Developments Driving Insider Activity
These director purchases often followed positive company news. Centurion’s FY25 net profit from core business operations increased 26 per cent to S$139.2 million, driven by strong rental reversions and occupancies. Raffles Medical Group reported a 13.4 per cent growth in FY25 profit after tax and minority interests, supported by resilient hospital services. Nam Cheong experienced a rebound in H2 FY25, with profit after tax and minority interests rising 17.4 per cent year on year.
Placement Agreements: Funding Future Growth
Geo Energy Resources and Aoxin Q&M Dental Group both announced placement agreements to raise capital. Geo Energy aims to raise up to S$14.9 million for working capital, while Aoxin Q&M intends to raise up to S$17.7 million to fund business expansion, including potential mergers and acquisitions.
Frequently Asked Questions (FAQ)
- What does institutional outflow signify? It indicates that institutions (like banks, funds, and insurance companies) are selling more shares than they are buying.
- Why do companies buy back their own shares? Share buybacks can signal confidence in the company’s future prospects and can also boost earnings per share.
- What is the significance of director transactions? Director purchases can be seen as a positive sign, suggesting that those with inside knowledge believe the company is undervalued.
- What are placement agreements? These are agreements to issue new shares to investors, typically to raise capital for growth or other purposes.
Disclaimer: The writer is the market strategist at SGX. To read SGX’s market research reports, visit sgx.com/research.
