CGS International
June 30, 2025

Singapore Stocks Hit New Highs: June 2025 Market Review, Sector Movers, and Top Company Insights

Market Overview: Singapore Market Momentum and Key Events

Singapore’s stock market continued its bullish run in June 2025, with the MSCI Singapore Free SGD Index (SIMSCI) closing at 409.26 points, rising 0.62% month-on-month. The index hit a new high in early June, marking the second consecutive month of record-breaking performance. Despite this strong showing, investor attention is sharply focused on the looming expiration of the US tariff reprieve on July 9, a critical event expected to influence global market sentiment going forward.

The report maintains a CY25F MSCI Singapore target of 411.7 points, grounded on a 15x CY25F earnings multiple. The expectation is for the index to oscillate around this target, with markets watching closely for any developments on the US tariff front.

Macroeconomic Highlights: Trade, Inflation, and Housing

• NODX (Non-Oil Domestic Exports): Singapore’s NODX for May 2025 fell by 3.5% year-on-year, missing both internal (+5.6%) and Bloomberg consensus (+7.8%) forecasts. Electronic exports rose 1.7% year-on-year, led by robust performances in PCs (+50.9%), ICs (+4.3%), and Consumer Electronics (+49%). However, non-electronic exports dropped 5.3% year-on-year, dragged down by non-monetary gold (-25.9%), Petrochemicals (-17.8%), and Specialised Machinery (-11.7%).
• Inflation: Core inflation eased to 0.6% year-on-year in May (down from 0.7% in April), while headline inflation also moderated to 0.8% (from 0.9%). These figures aligned with consensus estimates, with cooling food inflation and slower increases in private transport costs being key contributors to the decline.
• Private Home Sales: The Urban Redevelopment Authority reported a 53% month-on-month drop (+40% year-on-year) in new private home sales for May 2025, primarily due to a lack of new project launches.

Sector Performance: Winners, Laggards, and Institutional Flows

Outperformers: Real Estate, Services, and Utilities sectors led the market in June. Notably, Utilities and Capital Goods delivered robust year-to-date gains, up 24.09% and 24.25% respectively.

Underperformers: Transport, Retail, and Staples lagged, with Consumer Staples suffering the steepest year-to-date loss of -7.42%.

Institutional and Retail Flows: Sector Rotation in Focus

• Institutional Investors: Net sellers in June, with outflows from Financials, Telcos, and Consumer Non-cyclicals. Inflows targeted Industrials, REITs, Developers, and Tech.
• Retail Investors: Slight net buyers, favoring Financials, Consumer Non-cyclicals, and Telcos, while selling Industrials, Developers, and Tech.

Top Movers: Company Performance and Special Situations

Mid-Large Cap Standouts

• Hong Leong Asia Ltd (HLA): Up 35.59% to 1.60, riding the construction boom.
• Boustead Singapore Ltd (BOCS): Surged 28.83% to 1.43, also construction-driven.
• Hour Glass Ltd (THG): Gained 20.00% to 1.92.
• First Sponsor Group Ltd (FSG): Down 2.83% to 1.03.

Corporate News: Strategic Acquisitions and Capital Moves

• ELITE: Acquired three UK properties for £9.2 million, partially funded by a £4 million private placement at £0.295 per unit.
• CapitaLand Investment Ltd (CLI): Secured additional capital commitments for its value-add lodging fund Clara II and acquired a mixed-use asset in Tokyo for around 30 billion yen (S\$267.2 million).
• Food Empire Holdings (FEH): After an 80% price appreciation year-to-date (as of mid-June), analysts see further upside potential, driven by the possibility of positive earnings surprises and upward consensus revisions.

Technical Analysis: Momentum Flattening, Upside Capped

The MSCI Singapore Index narrowly hit its short-term target of 417.00 points on June 6 and is now eyeing a limited upside to 418.00 points in the near term. The technical indicators (MACD and 23-period rate of change) are flattening, while the mid-term stochastic oscillator signals overbought conditions. Any correction is expected to find support between 387.00 and 395.50 points, with a major support at 372.13 points. The long-term target (six months) is set at 420.00 points.

Analyst Coverage

• LOCK Mun Yee: [email protected], +65 6210 8606
• LIM Siew Khee: [email protected], +65 6210 8664
• CHUA Wei Ren, CMT: [email protected], +65 6210 8612

Investment Ratings and Framework

Stocks are rated on a total return basis (target price plus forward net dividend yield) over a 12-month horizon:

• Add: Expected return exceeds 10%
• Hold: Expected return between 0% and 10%
• Reduce: Expected return is below 0%

Sectors and countries are rated Overweight, Neutral, or Underweight based on market cap-weighted recommendations or relative positioning to the benchmark.

There are 551 companies under coverage as of March 31, 2025.

Conclusion: Singapore’s Market Outlook for H2 2025

Singapore’s stock market remains in bullish territory but faces short-term uncertainties as global markets await clarity on US tariff decisions in July. Real estate, utilities, and capital goods are leading sectoral performance, while key large-cap and mid-cap names such as Keppel, SGX, CapitaLand Investment, and Hong Leong Asia drive market momentum. Investors should remain watchful of macroeconomic developments and sector rotations as the market navigates potential volatility in the months ahead.