Top 5 recovering Singapore share prices amid worsening coronavirus pandemic

Since the global financial market lows of 23 March 2020 driven by panic selling amid a worsening coronavirus pandemic, a majority of markets have managed to recover, even if only slightly.

In Singapore, blue-chip stocks in the financial, aviation, technology and leisure sectors have also experienced rebounds in the last two weeks, thanks to improved domestic investor sentiments following the unveiling of a massive Covid-19 fiscal stimulus by the Singapore government, as well as new global developments on the front of Covid-19 treatments.

IG’s Singapore Blue Chip Index – which tracks the equity performance of DBS Group, OCBC, Singapore Exchange, Singapore Airlines, Wilmar International and more – showed a price increase of 11.5% since 06 April.

Below, we review how five popular Singapore stocks have performed since the start of April 2020.

IG is a world-leading online trading and investments provider for thousands of financial markets. With CFDs, you can buy long or sell short on Singapore Blue Chip shares depending on whether you think prices will rise or fall. Start today by opening an account on IG's market-leading trading platform.

1. Singapore Airlines share price: +15%

Share price of Singapore Airlines (SIA) has managed to do a turnaround in the last two weeks, since hitting a 21-year low of S$5.35 a share in late-March.

Since 03 April, the national carrier of Singapore has seen its share value rebound 14.6%, following a series of government interventions and fiscal programmes. As at 09:30 SGT on 15 April, share price hit a four-week high of S$6.37 per share.

As part of the Singapore government’s coronavirus economic stimulus – announced in three parts, the aviation sector would receive at least S$750 million in financial aid, including an enhanced jobs support scheme that will pay up to 75% of the first S$4600 of each employee’s monthly wage.

On Monday 13 April, SIA also received an approval in-principle from the Singapore Exchange Securities Trading Limited (SGX) for the listing of and quotation for up to 1.78 million rights shares, up to S$3.5 billion in rights mandatory convertible bonds (MCBs), and up to 1.30 million new shares to be issued as per the conversion of the rights MCBs.

An extraordinary general meeting (EGM) in which shareholders will get to vote on the equity debt financing scheme will be held on 30 April via live webcast and audio feed.

2. OCBC share price: +14%

Shares of Oversea-Chinese Banking Corp (OCBC) are currently trading at just under S$9 per share, an improvement of roughly 14.3% since our last share price update on Singapore's main three banks in March 2020.

Between February and March, the Singapore money lender saw its stocks crash roughly 30% in value, dropping to S$7.81 a share – a level not seen since April 2016.

OCBC’s share price has recovered slightly in the last two weeks, following the Singapore government’s S$59.9 billion coronavirus three-part budget most recently unveiled on 06 April. However, this is still some ways below the company’s 2020 peak of S$11.20 achieved on 17 January, just a week prior to the coronavirus outbreak.

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Apart from the national stimulus, Singapore banks received an added boost from the Monetary Authority of Singapore (MAS). The central bank announced on 07 April a series of fiscal measures aimed at helping financial institutions to focus on dealing with issues related to the Covid-19 pandemic and supporting their customers during this time.

As part of the measures, Singapore financial companies will be allowed to adjust their capital and liquidity requirements to help sustain lending activities; set more realistic accounting loan loss allowances; as well as defer implementation of the final set of Basel III reforms and margin requirements for other instruments and new regulations and policies, to ease operational burdens.

MAS also said in the same announcement that it does not see a need to restrict banks’ dividend policies.

3. Genting Singapore share price: +52%

Since hitting an 11-year low price of S$0.51 per share on 19 March, the parent company of Resorts World at Sentosa has seen its stock value skyrocket roughly 52%.

As at 12:00 SGT on 17 April, Genting Singapore is trading at S$0.775 per share on IG’s trading platform – a six-week high.

Like most travel, leisure and hospitality equities, Genting Singapore’s market capitalisation had also been erased significantly (by roughly 45%) as a result of the coronavirus pandemic, whose impact on financial markets appears for now to have peaked in mid-March.

But an in-depth look at trading charts revealed a steeper recovery slope for Genting Singapore than the likes of Singapore Airlines and resort operator Banyan Tree Holdings.

One possible reason for this could be the fact that the Singapore government had rolled out a second and third coronavirus relief package worth over S$50 billion in late-March and early-April that included an enhanced Job Support Scheme and property tax rebates with extra benefits for tourism-related industries.

According to analysts, Genting Singapore is poised to reap significant cost savings.

DBS researchers estimated that as part of the enhanced Job Support Scheme – assuming a 75% wage offset for each employee on an average monthly salary of S$2500, Genting Singapore could potentially receive at least S$16.4 million per month for the next nine months.

An additional 60% property tax rebate – up from the initial 10% - also translates to further savings of around S$20 million.

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4. DBS share price: +11%

DBS Group's securities are inching toward the S$20 per share price level once again, with shares trading at S$19.97 - a one-month high - as at 14:00 SGT on 14 April 2020.

Shares of Singapore’s largest money lender have risen over 11% since 03 April, a week that saw stocks dipping under S$18 apiece. This is a stark contrast from our last update on Singapore's three main banks, in which DBS had suffered a 36.6% decline in share price.

This latest rally has coincided with the Singapore government’s third and latest stimulus package announced on 06 April 2020 that included a slew of financial assistance measures aimed at helping local businesses of all sizes tide over this tumultuous period.

It also comes on the back of further banking sector-specific fiscal measures unveiled by the Monetary Authority of Singapore (MAS) announced a day after the national budget aimed at helping financial institutions to cope with the financial burden caused by the Covid-19 pandemic.

As part of the measures (and as mentioned earlier), Singapore financial companies will be allowed to adjust their capital and liquidity requirements to help sustain lending activities, as well as loosen their margin requirements for non-centrally cleared derivatives and other new regulations and policies.

Singapore’s central bank also said in the same announcement that it does not see a need to restrict banks’ dividend policies, though the release of capital buggers should not be used to finance share buybacks during this period.

5. Venture Corporation share price: +29%

Share price of Singapore technology product and services conglomerate Venture Corporation is starting to rise again, following an extended price rout that had lasted over a month.

Between 05 March and 23 March 2020, the company’s share price had fallen as much as 26%.

A series of small rises and falls followed in the two weeks after, before a firm upward slope was established starting 03 April, as market volatility began to subside with the coronavirus situation improving slightly in Europe as well as the US.

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A third economic stimulus unveiled by the Singapore government on 06 April – taking the total amount of coronavirus-financial aid to US$59.9 billion since the start of the Covid-19 outbreak – also boosted the ongoing Venture stock value recovery by 28.9% to the current one-month high share price of S$16.38 per share, as at 10:30 SGT on 17 April.

It should also be noted that the group’s Board of Directors had also announced on 08 April that it had obtained approval from authorities to postpone its annual general meeting to as late as 29 June.

As a result, the previously announced final 2019 dividend payout date of 22 May 2020 will now be revised, with a new date to be revealed in due course.

How to trade Singapore stocks with IG

Looking to trade OCBC, DBS, Genting Singapore and other stocks? Open a live or demo account with IG and buy (long) or sell (short) the asset using derivatives like CFDs in a few easy steps:

• Create an IG Trading Account or log in to your existing account
• Enter <company name> or <ticket code> in the search bar and select it
• Choose your position size
• Click on ‘buy’ or ‘sell’ in the deal ticket
• Confirm the trade