Singapore Stock Market Report: FSSTI, REITs, Fund Flows & Top Stock Picks (May 28, 2025)

Lim & Tan Securities

28 May 2025

Singapore Market Review: CapitaLand Ascendas REIT Acquisition and Indonesia’s Energy Plans

Financial Market Overview

The FSSTI Index closed at 3,896.1, showing a 0.5% increase for the day, 1.7% month-to-date, and 2.9% year-to-date. [[1]] Other major market indices include:

• INDU Index: 42,343.7 (1D: 1.8%, MTD: 4.1%, YTD: -0.5%) [[1]]
• SPX Index: 5,921.5 (1D: 2.0%, MTD: 6.3%, YTD: 0.7%) [[1]]
• CCMP Index: 19,199.2 (1D: 2.5%, MTD: 10.0%, YTD: -0.6%) [[1]]
• UKX Index: 8,778.1 (1D: 0.7%, MTD: 3.3%, YTD: 7.4%) [[1]]
• NKY Index: 38,100.1 (1D: 1.0%, MTD: 5.7%, YTD: -4.5%) [[1]]
• HSI Index: 23,382.0 (1D: 0.4%, MTD: 5.7%, YTD: 16.6%) [[1]]
• SHCOMP Index: 3,340.7 (1D: -0.2%, MTD: 1.9%, YTD: -0.3%) [[1]]
• VIX Index: 19.0 (1D: -7.8%, MTD: -23.2%, YTD: 9.3%) [[1]]

The daily market value was S\$947.4 million, with a daily market volume of 1,124.9 million shares. The 52-week high for the STI was 4,005.2, and the low was 3,198.4. [[1]]

Key Interest Rates

• 3 Mth SGD SORA: 2.3 (1D: -0.2%, MTD: -3.8%, YTD: -25.5%) [[1]]
• SG 10 YR Bond Yield: 2.4 (1D: -1.6%, MTD: -2.7%, YTD: -15.7%) [[1]]
• US 10 YR Bond Yield: 4.4 (1D: 0.1%, MTD: 6.9%, YTD: -2.6%) [[1]]

US Futures

As at 8.00am SG time: [[1]]

• Dow Jones: 42,431.0 (1D: 0.0%, MTD: 4.1%, YTD: -0.5%) [[1]]
• S&P 500: 5,936.3 (1D: 0.0%, MTD: 6.3%, YTD: -0.9%) [[1]]
• NASDAQ: 21,464.8 (1D: 0.0%, MTD: 9.2%, YTD: 0.0%) [[1]]

Commodities

• Gold: 3,311.7 (1D: 0.3%, MTD: 0.7%, YTD: 26.2%) [[1]]
• Crude Oil: 60.9 (1D: -2.1%, MTD: 4.6%, YTD: -15.1%) [[1]]
• Baltic Dry: 1,340.0 (1D: -0.1%, MTD: -3.3%, YTD: 34.4%) [[1]]
• Crude Palm Oil: 3,862.0 (1D: -0.2%, MTD: -1.1%, YTD: -5.5%) [[1]]

Market Commentary

The US market rose between 1.8% to 2.5% due to easing trade tensions with the EU, improved US consumer confidence, and a pullback in treasury yields. [[1]]

Idea of the Day: CapitaLand Ascendas REIT (CLAR)

CapitaLand Ascendas REIT (CLAR), trading at \$2.61 (up 1 cent), announced a trading halt and proposed acquisitions of 9 Tai Seng Drive and 5 Science Park Drive, both Tier III colocation data centers in Singapore. [[1]] The total purchase consideration is approximately S\$700.2 million. [[2]]

• The acquisition will be partly funded by a private placement of new units to institutional, accredited, and other investors at an issue price between S\$2.465 and S\$2.515 per New Unit, raising gross proceeds of no less than approximately S\$500.0 million. The remainder will be funded by debt financing. [[2]]

Mr. William Tay, Executive Director and Chief Executive Officer of the Manager, stated that these acquisitions would further anchor CLAR in Singapore, increasing Singapore’s share in CLAR’s portfolio to approximately 67% of total assets under management. [[2], [3]]

Key Merits of the Acquisition:

1. Deepen CLAR’s presence in Singapore, particularly in the technology sector. The properties will increase the value of CLAR’s Singapore portfolio by 6.6% to approximately S\$11.7 billion, accounting for 67% of CLAR’s total AUM of S\$17.6 billion. [[3]]
2. The acquisition of 9 Tai Seng Drive will significantly expand CLAR’s data center AUM by 32.8% to approximately S\$1.9 billion, with 54% in Singapore (S\$1.0 billion) and 46% in the UK/Europe (S\$0.9 billion). [[3]]
3. Enhance the quality of CLAR’s portfolio with well-located, modern properties completed approximately six years ago in 2019, with attractively long remaining land lease tenures. [[3], [4]]
4. Provide stable income streams, aligning with CLAR’s strategy to tap into global technological advancement and digital transformation trends, diversifying and strengthening its customer base. [[4]]
5. 9 Tai Seng Drive is fully committed by well-established end users in the digital, e-commerce, and financial services industries, with a weighted average lease expiry of 4.4 years as of 15 May 2025. [[4]]
6. 5 Science Park Drive is fully occupied by Shopee, serving as the e-commerce giant’s regional headquarters. [[4]]
7. The first-year NPI yield of the proposed acquisition of 9 Tai Seng Drive is attractive at approximately 7.2% pre-transaction costs and 7.1% post-transaction costs. [[4]]
8. Assuming the Proposed Acquisitions were completed on 1 January 2024, the pro forma impact on the DPU for the financial year ended 31 December 2024 is expected to be an improvement of approximately 0.206 Singapore cents or a DPU accretion of 1.36%. The proposed acquisitions of 9 Tai Seng Drive and 5 Science Park Drive are DPU accretive on a standalone basis. [[4], [5]]

Following the completion of the Proposed Acquisitions, CLAR will own 232 properties, including 98 in Singapore, 34 in Australia, 50 in the US, and 50 in the UK/Europe. [[5]] Capitaland Ascendas REIT’s market cap stands at S\$11.5b, and currently trades at 17.2x forward PE and 1.2x PB, with a dividend yield of 5.9%. Consensus target price stands at S\$3.12, representing 19.5% upside from current share price. [[5]]

The report maintains an “Accumulate” rating on CLAR, citing its DPU accretive foray into the tech space and diversification of its portfolio in terms of country and asset class risk, along with expectations of lower interest rates moving forward. [[5]]

FSSTI Stock Selection

Highest Consensus Forward Dividend Yield (%) [[2]

1. FRASERS LOGISTICS TRUST 7.59 [[2]]
2. MAPLETREE INDUSTRIAL TRUST 6.88 [[2]]
3. DBS BANK 6.85 [[2]]
4. MAPLETREE LOGISTICS TRUST 6.82 [[2]]
5. MAPLETREE PAN ASIA COMM TRUST 6.75 [[2]]

Lowest Consensus Forward P/E (X) [[2]

1. YANGZIJIANG SHIPBUILDING 6.22 [[2]]
2. JARDINE CYCLE & CARRIAGE 7.61 [[2]]
3. JARDINE MATHESON 8.17 [[2]]
4. UOB BANK 9.97 [[2]]
5. OCBC BANK 10.12 [[2]]

Lowest Trailing P/B (X) [[2]

1. HONGKONG LAND 0.39 [[2]]
2. UOL GROUP 0.42 [[2]]
3. JARDINE MATHESON 0.47 [[2]]
4. CITY DEVELOPMENTS 0.48 [[2]]
5. MAPLETREE PAN ASIA COMM TRUST 0.66 [[2]]

Lowest Trailing EV/EBITDA (X) [[2]

1. YANGZIJIANG SHIPBUILDING 2.96 [[2]]
2. GENTING SINGAPORE 5.14 [[2]]
3. JARDINE CYCLE & CARRIAGE 6.01 [[2]]
4. DFI RETAIL GROUP 6.69 [[2]]
5. VENTURE CORP 7.59 [[2]]

Indonesia’s Energy Plans

Indonesia plans to add 69.5 gigawatts (GW) of power capacity by the end of 2034, largely from renewable sources, but will still include new coal-fired power plants. [[2]] This expansion requires an investment of over 2,967 trillion rupiah (S\$235 billion). [[2]]

• Despite previous commitments to environmentally friendly plans and a 2060 net-zero emissions target, Indonesia has walked back its commitment to retiring coal assets. [[2], [3]]
• Energy Minister Bahlil Lahadalia stated that coal should not be considered an illicit commodity and is acceptable for use if needed. [[3]]
• Some new coal power plants are expected to enter commercial operation as late as 2033. [[3]]
• Indonesia aims for 8% economic growth by 2029. [[3]]
• State utility Perusahaan Listrik Negara will invest 568 trillion rupiah in new power plants, with the government offering opportunities of over 1,566 trillion rupiah to investors. [[3]]
• The plan includes 42.6GW of power plants with renewable sources, such as 17.1GW from solar, 11.7GW from hydroelectricity, 7.2GW from wind power, and 5.2GW from geothermal, along with 10.3GW of energy storage. A plan for 0.5GW of energy from nuclear power plants is also included, with operations starting in 2032. [[3]]
• Gas-fired power plants with a total capacity of 10.3GW are planned, as well as 6.3GW of coal-fired power plants. [[3]]
• Indonesia will add 47,758km of transmission lines to supply renewable power to areas of high energy demand. [[3]]

Geo Energy Resources

Geo Energy, capitalized at \$530 million and trading at 37.5 cents, has an undemanding forward P/E ratio of 6.3x, a price-to-book ratio of 0.9x, and a dividend yield of 4.8%. [[3]] Recent comments by the Indonesian Energy Minister suggest that coal remains an important part of the country’s energy source. [[3], [4]]

• Tailwinds for the company include expected increases in 2025 coal sales, addition of coal reserves, and strategic infrastructure investment for long-term growth. [[4]]
• Bloomberg consensus TP of S\$0.59 represents a potential 55% upside. [[4]]

China’s Luxury Car Market: Seres Group and Aito

Seres Group, formerly known for its 30,000 yuan minivans, has become a top high-end car seller in China through its partnership with Huawei Technologies and the Aito brand of premium electric and hybrid SUVs. [[3]] Sales tripled to around 427,000 vehicles in 2024. [[3]]

• Aito’s M9 SUV has become the best-selling car brand in China in the 500,000 yuan and above category. [[3]]
• Deliveries of the M9, featuring Huawei’s Harmony operating system, a triple-screen dashboard, and luxury options, were around 151,000 units. [[3]]
• Seres chairman Zhang Xinghai believes Aito’s success is due to market recognition and customer preferences. [[3]]
• The luxury car market in China experienced a 23 per cent decline in 2024, impacted by the nation’s economic slowdown and weak consumer sentiment. [[4]]

Macro Market News Affecting US, Hong Kong, and China Markets

US: BCA Research suggests staying long US duration due to inflation divergence between the US and Eurozone. [[4]] Global price pressures remain contained outside the US, where rising input prices are largely driven by tariffs. [[4]]

• The Fed is constrained by elevated inflation expectations, while the ECB sees trade tensions as a deflationary shock. [[4]]
• US Bond strategists recommend staying long duration, hedged by short January 2026 fed funds futures. [[4]]

China/HK: Seres Group has become a top high-end car seller, partnering with Huawei to launch the Aito brand of premium electric and hybrid SUVs. [[4]]

Share Transactions (1 May’25 – 27 May’25)

Acquisitions: [[4]]

• Zixin Thomas Clive Khoo acquired 8,000,000 shares of Ho Bee Land at S\$0.033, bringing the new balance to 214,573,000 shares (13.501%). [[4]]
• Chua Thian Poh acquired 20,600 shares of Ho Bee Land at S\$1.77, bringing the new balance to 502,332,450 shares (75.65%). [[4]]
• Li Xiang Ping acquired 200,000 shares of Sinostar PEC at S\$0.144, bringing the new balance to 667,469,296 shares (69.52%). [[4]]
• Jack Ong acquired 446,200 shares of Cosmosteel at S\$0.22, bringing the new balance to 44,388,296 shares (16.98%). [[4]]
• Andy Luong acquired 100,000 shares of UMS at S\$1.15, bringing the new balance to 109,263,086 shares (15.38%). [[4]]
• Chua Kee Lock acquired 30,000 shares of Venture Corp at S\$11.08, bringing the new balance to 30,000 shares (0.01%). [[4]]
• Cheung Wai Keung acquired 150,000 shares of Wingtai Holdings Ltd, bringing the new balance to 471,619,859 shares (61.81%). [[4]]

Disposals: [[4]]

• Fidelity disposed of 481,600 shares of Boustead Singapore Ltd at S\$1.05, bringing the new balance to 25,226,266 shares (5.13%). [[4]]
• Tan Pong Tyea disposed of 194,380,175 shares of CH Offshore at S\$0.012, bringing the new balance to 0 shares. [[4]]

Share Buybacks

*5.66% of max mandate 85.3mln [[4]]

Fund Flow Data (Week of 19 May 2025)

Top 10 Institution Net Buy (+) Stocks (S\$M) [[5]]

1. SIA 32.4 [[5]]
2. ST Engineering 22.8 [[5]]
3. Hongkong Land 10.0 [[5]]
4. Seatrium 9.5 [[5]]
5. SGX 8.1 [[5]]
6. SIA Engineering 6.4 [[5]]
7. CapitaLand Integrated Commercial Trust 5.3 [[5]]
8. Keppel 5.2 [[5]]
9. Keppel DC REIT 4.1 [[5]]
10. Wilmar International 4.1 [[5]]

Top 10 Institution Net Sell (-) Stocks (S\$M) [[5]]

1. DBS (31.9) [[5]]
2. Singtel (31.0) [[5]]
3. Yangzijiang Shipbuilding (28.6) [[5]]
4. UOB (28.6) [[5]]
5. OCBC (21.7) [[5]]
6. Mapletree Industrial Trust (13.2) [[5]]
7. SATS (9.1) [[5]]
8. CapitaLand Ascendas REIT (8.1) [[5]]
9. Riverstone (7.0) [[5]]
10. Jardine Matheson (6.8) [[5]]

Top 10 Retail Net Buy (+) Stocks (S\$M) [[5]]

1. Yangzijiang Shipbuilding 37.8 [[5]]
2. OCBC 21.0 [[5]]
3. SATS 15.3 [[5]]
4. Mapletree Industrial Trust 10.6 [[5]]
5. Thai Beverage 9.5 [[5]]
6. CapitaLand Investment 8.7 [[5]]
7. Frasers Logistics & Commercial Trust 8.5 [[5]]
8. Mapletree Pan Asia Commercial Trust 7.8 [[5]]
9. Riverstone 7.4 [[5]]
10. Genting Singapore 7.1 [[5]]

Top 10 Retail Net Sell (-) Stocks (S\$M) [[5]]

1. SIA (90.1) [[5]]
2. DBS (24.9) [[5]]
3. Singtel (21.0) [[5]]
4. ST Engineering (16.3) [[5]]
5. Keppel (13.9) [[5]]
6. Seatrium (9.6) [[5]]
7. SIA Engineering (7.6) [[5]]
8. Hongkong Land (4.1) [[5]]
9. iFast Corporation (3.7) [[5]]
10. Geo Energy Resources (3.1) [[5]]

• Institutional investors net sell (-S\$121.3m) vs. (-S\$47.9m) a week ago [[5]]
• Retail investors net buy (+S\$9.6m) vs. (+S\$56.3m) a week ago [[5]]

Institutional Investors Net Buy/Sell (S\$M) by Sector

Retail Investors Net Buy/Sell (S\$M) by Sector

STI Constituents – Week of 19 May