AEM knocks DBS off pedestal as top value traded stock after crossing S$10 barrier

[SINGAPORE] Advanced semiconductor and electronics test solutions provider AEM overtook DBS in terms of total value of securities traded on Friday (May 14) as tech stocks continued their rally.

About S$47.3 million worth of AEM shares had changed hands as at 9.40 am, compared to S$45.6 million for DBS, Singapore’s largest company by market capitalisation. South-east Asia’s biggest bank dominates the top spot because of its hefty S$60 price tag and active daily positions by global institutions and investors.

Shares of AEM rose as much as 7.8 per cent to S$10.68 in the first four minutes of trading on Friday.

Tech stocks like AEM and smaller ones like Asti Holdings and Avi-Tech have been beating the Straits Times Index (STI) this year. The benchmark has lagged, falling just shy of one per cent over the past month while gaining only about 6.5 per cent year to date.

Analysts said that many semiconductor and precision-engineering firms listed on the Singapore Exchange (SGX) supply major US-listed technology companies, causing their share prices to move in tandem with those of global peers and customers.

Major tailwinds include the explosion in demand for AI-linked chips and related test services. AEM stands out in investors’ radar after it announced a tie-up with ASE Technology, the world’s largest provider of independent semiconductor manufacturing services in assembly and test.

The Singapore companies’ strong earnings have flowed through to Singapore’s macro performance. Despite the geopolitical concerns triggered by the Middle East war, Singapore’s exports in March grew 15.3 per cent year-on-year, thanks to an AI-related electronics surge.

Analysts believe the tech rally still has legs, with Phillip Securities’ Chong Yik Ban expecting the blistering gains to persist through the end of this year.

Systems integration specialist CSE Global saw its shares hit an all-time high on Friday after reporting a 29.1 per cent rise in first quarter revenue the previous day.

The counter climbed as much as S$0.14 to a peak of S$1.91 within the first 15 minutes of trading on Friday. It has been on a tear this year, having gained about 80 per cent since Dec 31, and has been hitting new record highs since mid-April.

CSE’s S$265.2 million revenue was boosted by fresh demand from the data centre industry. Its first quarter order intake rose 74.6 per cent to S$271.2 million.

Alongside AEM and CSE’s gains on Friday, Frencken added as much as 3.2 per cent and UMS Integration rose as much as 6.8 per cent.

Venture Corporation was a notable outlier, rising about 0.2 per cent in the first few minutes of trading before reversing into a decline of as much as 0.7 per cent.