To The Moon

Institutional flow can be assessed in both absolute dollar terms and relative to market capitalisation or liquidity. For the latter, comparing net institutional flow with average daily trading turnover (ADT) highlights where institutional activity was most significant relative to daily trading activity. 

Institutional net outflow totalled S$140.4 million for the month of July through to 13 July. Despite the broader outflow trend, the Industrials sector recorded S$170.2 million of net institutional inflow, the highest sector inflow over the period. Relative to liquidity, the inflow was equivalent to 54% of sector ADT of S$316.4 million. This was also the highest liquidity-adjusted reading across all sectors. 

Technology recorded the highest net institutional inflow in 1H26, with S$580.0 million of net institutional inflow. Through to 13 July, however, the sector recorded S$90.5 million of net institutional outflow, giving back part of its 1H26 institutional inflow. Industrials and Consumer Non-Cyclicals also recorded sizeable 1H26 net institutional inflows, at S$457.0 million and S$304.7 million, respectively.

Industrial Flows Were Concentrated, Not Broad-Based

The Industrials sector recorded the highest sector net institutional inflow for the month through to 13 July, but the inflow was concentrated rather than broad-based.

Transportation, logistics and engineering-related businesses drove the Industrials sector's S$170.2 million net institutional inflow for the month through to 13 July. $SIA(C6L.SI)$ , $SATS(S58.SI)$ and $ST Engineering(S63.SI)$ were the largest positive contributors.

Singapore Airlines recorded S$146.2 million of net institutional inflow for the month through to 13 July, equivalent to 215% of its ADT of S$68.0 million. SATS recorded S$38.9 million of net institutional inflow, equivalent to 186% of its ADT of S$20.9 million, while Singapore Technologies Engineering recorded S$36.7 million of net institutional inflow, equivalent to 82% of its ADT of S$44.7 million.

The remaining positive contributors included $YZJ Shipbldg SGD(BS6.SI)$ , $SingPost(S08.SI)$ , $HPH Trust USD(NS8U.SI)$ , $SIA Engineering(S59.SI)$ , and $Chasen(5NV.SI)$ . Their net institutional inflows, together with those of Singapore Airlines, SATS and Singapore Technologies Engineering, more than offset net institutional outflows recorded across a number of other higher-liquidity Industrials stocks.

Singapore Airlines, SATS and Singapore Technologies Engineering were the largest positive contributors to the Industrials sector’s net institutional inflow for the month through to 13 July. The three companies sit across different parts of the aviation, transportation, and engineering value chain, with Singapore Airlines providing passenger and cargo connectivity, SATS supporting gateway services, air cargo and food solutions, and Singapore Technologies Engineering providing aerospace, defence, urban solutions, and engineering capabilities. This gives the recent Industrials inflow a more specific shape: it was concentrated in businesses linked to connectivity, logistics infrastructure, and engineering capacity, rather than spread broadly across the sector.

For Singapore Airlines, institutional buying coincided with a period of significant operating and strategic developments. FY26 saw the completion of the Air India-Vistara merger, increased exposure to Air India, a S$1.1 billion fleet refurbishment and premiumisation programme through to 2030, a 39% increase in operating profit to S$2.375 billion and a FY26 dividend of S$0.37 per share including a special dividend. In May 2026, DBS Group Research maintained a HOLD rating on the airline, highlighting its strong network position and hub advantage while noting fuel cost pressures and Air India losses as near-term headwinds.

SATS provided a complementary aviation infrastructure exposure. In May 2026, DBS Group Research maintained a BUY rating and raised its target price to S$4.40, citing resilient air cargo demand, network expansion in the Americas, improving capital returns and an estimated 13% core net income CAGR over FY26-28F. In July 2026, a Corporate Monitor report highlighted SATS’ progress following the WFS acquisition, stronger revenue diversification, and improved profitability, while noting that earnings per share and return on equity remain areas to monitor.

Singapore Technologies Engineering added the engineering and aerospace component to the same theme. In May 2026, DBS Group Research maintained a BUY rating, citing 1Q26 revenue growth of 11% year-on-year to S$3.26 billion, a record S$34.5 billion order book, S$4.8 billion of contract wins and continued structural tailwinds in international defence and Commercial Aerospace. The group also reported growth across its Defence & Public Security, Commercial Aerospace and Urban Solutions & Satcom segments in 1Q26.

Together, the three companies illustrate how institutional inflows were concentrated in businesses linked to aviation, logistics and engineering. Each combined scale, regional exposure, and identifiable operating catalysts, helping explain why transportation, logistics and engineering-related businesses were the primary drivers of the Industrials sector's net institutional inflow through to 13 July. The three companies are also exposed to longer-term aviation and infrastructure developments, including the planned expansion of Changi Airport through Terminal 5 and related ecosystem investments that support Singapore's role as a regional air transport and logistics hub.

Summary

Institutional net outflow totalled S$140.4 million for the month through to 13 July. Despite this, Industrials recorded S$170.2 million of net institutional inflow and the strongest liquidity-adjusted reading among all sectors. At the same time, Technology, which recorded the highest net institutional inflow in 1H26 at S$580.0 million, recorded S$90.5 million of net institutional outflow through to 13 July.

The July data therefore points to selective institutional buying rather than a broad-based shift across the market. Within Industrials, the strongest positive flows were led by Singapore Airlines, SATS and Singapore Technologies Engineering, linking the sector’s inflow to aviation, logistics and engineering-related activity.