Lim & Tan Securities
Date of Report: 3 July 2025

Singapore Market Update: Key Stock Picks, Sector Trends, and Market Insights for July 2025

Market Overview: Indices, Commodities, and Interest Rates

Singapore’s FSSTI Index closed at 4,010.8, up 0.5% for the day, with a 1.2% gain month-to-date (MTD) and a robust 5.9% year-to-date (YTD) increase. Major global indices showed mixed performance, with the Dow Jones at 44,484.4 (flat day-on-day), S&P 500 at 6,227.4 (+0.5%), and the Nasdaq at 20,393.1 (+0.9%). Notably, the Hang Seng Index (HSI) surged 20.7% YTD, reflecting strong sentiment in the Hong Kong market.

On the fixed income front, Singapore’s 3-month SORA stood at 2.0%, while the 10-year government bond yield was 2.2%. US 10-year yields remained higher at 4.3%. Market volumes were healthy, with daily value traded at S\$1.44 billion.

US Market Snapshot: Record Highs and Sector Movers

US equity markets continued their upward trend, with the S&P 500 hitting a record for the third time in four days. Tesla surged 5% after delivering nearly 374,000 Model 3 and Model Y cars, surpassing analyst expectations despite a 13% YoY sales decline. Constellation Brands advanced 4.5% after reiterating its financial forecasts, offsetting a 40.4% drop in Centene shares.

Idea of the Day: Oiltek’s Strategic Leap in Renewable Aviation Fuel

Oiltek International Limited (SGX: Oiltek, \$0.56, unchanged) announced participation in Sarawak’s Sustainable Aviation Fuel (SAF) pilot plant program. This initiative, led by SEDC Energy (a Sarawak government entity), involves a collaboration with Sulzer for a 15KTA renewable fuels modular plant utilizing Sulzer’s Bioflux technology.

• Feedstock Security: Apeiron Bioenergy, Asia’s largest used cooking oil (UCO) collector, will establish logistics, storage, and traceability systems for waste-based feedstocks.
• Industry Reach: Apeiron Bioenergy, headquartered in Singapore and present in 10 countries, has supplied over 1 million MT of UCO since 2016.
• Oiltek’s Position: Oiltek Sdn Bhd, Oiltek International’s wholly owned subsidiary, is a key contributor. Oiltek’s market cap stands at S\$240 million, trading at 24x forward PE and 9.5x PB, with a 2% dividend yield.
• Valuation & Outlook: Despite premium valuation, Oiltek’s successful pivot to renewables and robust fundamentals underpin an “Accumulate on Weakness” recommendation. The company’s solid orderbook and sector leadership position it well for future growth.

Soilbuild Construction Group: Record Orderbook and Dividend Commitment

Soilbuild Construction Group (SGX: Soilbuild Construction, \$0.865, unchanged) is a leading builder specializing in residential and business space properties, with nearly 50 years of experience. The group offers design and build, turnkey construction, project management consultancy, procurement, and M&E installation services.

• Strong FY2024 Performance: Revenue surged 58.4%, with the Construction segment up 53.1% and Precast and Prefabrication growing 87.1%.
• Major Wins: Secured the largest project in its history—S\$647.5 million for PSA Supply Chain Hub @ Tuas—pushing its orderbook above S\$1 billion.
• Business Segmentation: Construction contributed 81.5% of revenue. Precast segment (including a Malaysia facility) delivered about 18% of FY2024 revenue, with further growth potential.
• Dividend Policy: While there is no formal policy, the company paid a total of 3 cents per share for FY2024 (interim, final, and special dividends), following a turnaround in FY2023.
• Public Sector Opportunities: With A1 BCA grading, Soilbuild can tender for unlimited-value public projects. The company’s track record in green building (since 2008) enhances its competitiveness under new BCA sustainability tender criteria.

Recommendation: “Accumulate” given the strong outlook, orderbook, and sectoral tailwinds.

Top SGX Stocks: Dividend Yields and Value Picks

Macro Market News: US, China, and Hong Kong Trends

US Labor Market: The labor market remains balanced, with an unemployment rate of 4.2%—in line with the Federal Reserve’s natural rate estimate. Key metrics such as the jobs gap and vacancy-to-unemployment ratio suggest equilibrium. However, further weakness could prompt a shift to defensive portfolio positions, with increased allocations to government bonds and longer durations.

China/Hong Kong Fund Flows: Mainland investors have poured 96.4 billion yuan (S\$17.2 billion) into Hong Kong funds in one month, drawn by the widened cap under the Mutual Recognition of Funds (MRF) scheme and the search for higher overseas returns. Fidelity International and BlackRock are exploring participation in this cross-border program. The imbalance in fund allocations between retail and institutional buyers could prompt regulatory attention.

Insider Transactions and Share Buybacks

Significant share buybacks included UOB (150,000 shares at \$36.00), OCBC (300,000 at \$16.11), DBS (350,000 at \$43.71), and ST Engineering (500,000 at \$7.83).

Upcoming Dividends and Key Dates

SGX Watch-List: Companies Under Monitoring

A total of 32 companies are currently under the SGX Watch-List, including recent additions such as Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare. Ongoing monitoring of these companies is crucial for investors seeking risk-managed opportunities.

Conclusion: Singapore Market Positioned for Growth

Singapore’s equity market offers attractive opportunities in both traditional and emerging sectors. Oiltek’s leadership in sustainable fuels and Soilbuild Construction’s record orderbook underscore the strength and innovation present in the market. Investors should monitor upcoming dividends, insider transactions, and macroeconomic trends, while staying attentive to companies on the SGX Watch-List for both risk and turnaround prospects.

For investors seeking value, dividend income, or exposure to green sectors, the Singapore market continues to present a dynamic landscape for the second half of 2025.