Lim & Tan Securities
9 July 2025

Singapore Market Outlook July 2025: Key Stocks, Sector Trends, and Dividend Highlights

Singapore Straits Times Index Hits 52-Week High Amid Global Volatility

The Singapore Straits Times Index (FSSTI) closed at a 52-week high of 4,031.9, marking a strong year-to-date (YTD) gain of 6.4%. Despite persistent global volatility, inflationary pressures, and fresh trade policy shifts, Singapore’s financial markets have demonstrated resilience. Here’s a detailed review of the latest market trends, company highlights, and investment flows shaping the Singapore investment landscape.

Major Market Indices Snapshot

Key commodities also reflected mixed trends, with gold up 27.2% YTD, crude oil down 5.3%, and the Baltic Dry shipping index surging 44%.

Valuetronics: Navigating Trade Turbulence with Resilient Performance

Valuetronics (SGX: BN2, \$0.74, unchanged) stands out for its adaptability amid ongoing global uncertainty. FY2025 (ended 31 March 2025) saw Valuetronics expand its regional manufacturing footprint and rebalance its product mix to drive solid financial results. Key highlights:

• Resilient Results: Revenue, gross profit margin, and net profit all increased, powered by robust customer acquisition and a shift to higher-margin products.
• Strategic Diversification: Manufacturing operations in both China and Vietnam provide strategic flexibility to adapt to new US tariffs and evolving supply chain requirements.
• Tariff Impact: Reciprocal tariffs by the US (announced 2 April 2025) elevated trade risks, but Valuetronics’ diverse footprint and agile operations allow for rapid adaptation.
• Dividend Policy: The board recommends a final dividend of HK11.0 cents and a special dividend of HK8.0 cents. Together with interim and special dividends paid in December 2024 (HK8.0 cents), total dividends for FY2025 amount to HK27.0 cents per share—representing a 65% payout ratio and the highest since FY2018.
• Share Buyback: Since February 2022, the group has repurchased 34.1 million shares for HK\$107.1 million, aiming to enhance shareholder value and return on equity.
• Valuation: Market cap is \$300 million, forward PE is 10.3x, price-to-book is 1.4x, and yield is 5%-6%. Consensus target price is \$0.81, offering 9.5% upside. Recommendation: “Accumulate on Weakness.”

Stoneweg Europe Stapled Trust (SERT): Portfolio Growth & Sector Rotation

Stoneweg Europe Stapled Trust (SERT, S\$2.28, down 2 cents) announced that its 104-property portfolio is now valued at €2,250.8 million as of 30 June 2025, up 1.1% since December 2024. Key drivers and strategy insights:

• Sector Pivot: SERT’s portfolio is now 56% weighted to logistics and light industrial assets, which delivered a valuation gain of €18.7 million (+1.5% since December 2024) and €48.3 million (+4.0% since 1H 2024).
• Office Market Recovery: The office segment saw its first valuation increase this cycle, bolstered by a landmark 20-year lease with NN Group NV at Haagse Poort.
• Portfolio Strength: Over 1,000 leases, strong corporate governance, an investment-grade rating, and a diversified mainly freehold asset base.
• Attractive Metrics: Market cap stands at S\$1.3 billion, trading at 0.7x price-to-book with an 8.9% dividend yield. Consensus target price of \$2.75 implies 20.6% upside. Recommendation: “Accumulate.”

Singapore Market Fund Flows: Institutional Buying Surges

In the week of 30 June 2025, institutional investors recorded net buying of S\$213.3 million (up from S\$82.7 million the previous week), while retail investors net sold S\$304.7 million. Key institutional net buys included Keppel (S\$32.2m), CapitaLand Integrated Commercial Trust (S\$29.4m), SGX (S\$28.7m), and Hongkong Land (S\$23.0m). Top institutional net sells were Yangzijiang Shipbuilding (-S\$23.0m), Frasers Centrepoint Trust (-S\$12.9m), and Wilmar International (-S\$12.1m).

Top Yield and Value Picks: Highest Dividend, Cheapest Valuation

The report identifies stocks with the highest consensus forward dividend yields and lowest forward P/E ratios within the FSSTI universe:

Macroeconomic and Regional Market Developments

US markets dipped slightly as new tariffs on copper and pharmaceuticals were imposed. The small-cap risk premium in the US continues to erode, with small companies especially vulnerable to tariffs and input cost pressures. On the other hand, China is accelerating efforts to internationalize the yuan, launching new payment systems, easing capital controls, and opening more domestic trading products to foreign investors. The People’s Bank of China plans to establish a digital yuan international operation center in Shanghai, while Hong Kong integrates fast payment systems and contemplates stablecoin linkages.

Significant Share Transactions & Buybacks

Recent notable acquisitions and disposals include:

• Digilife Tech Ltd: Smart Co Holdings Pte Ltd acquired 140,629 shares, bringing its stake to 58.54%.
• 9R Ltd: AEI Global Capital SPC acquired 1,136,000 shares, stake now 26.02%.
• Indofood Agri Resources: PT Indofood Sukses Makmur Tbk acquired 9,056,200 shares, stake now 85.87%.

Key buybacks include HK Land (240,000 shares at US\$6.22), Trek2000 (130,000 at \$0.112), Olam (500,000 at \$0.99), UOB (200,000 at \$36.30), and OCBC (300,000 at \$16.11).

Upcoming Dividends and Special Distributions

SGX Watch-List: 32 Companies Under Close Monitoring

There are 32 companies currently on the SGX Watch-List, including latest additions such as Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare. These companies remain under scrutiny for compliance and performance issues.

What’s Ahead: Key Earnings and Events Calendar

July and August will see earnings releases from major names including Aztech, Hutchinson Port, Digital Core REIT, OUE REIT, Suntec REIT, Keppel DC REIT, Ifast Corp, Raffles Medical, SIA, Mapletree Industrial, Keppel REIT, CDL REIT, Capland China Trust, Capland India Trust, Elite UK REIT, Seatrium, Keppel Ltd, OCBC, Lendlease Global, Ascendas REIT, CICT, Venture, Genting, IREIT Global, SCI, SGX, IFS Capital, Wilmar, HL Asia, City Developments, Capland Investment, and Mewah.

Conclusion: Singapore’s Market Outlook Remains Constructive Amid Uncertainty

The Singapore market continues to show resilience, supported by institutional buying, robust dividend yields, and strategic pivots by leading companies. While global risks remain elevated—driven by trade tensions, supply chain disruptions, and macroeconomic uncertainties—well-positioned companies with diversified operations and strong balance sheets are expected to navigate challenges and deliver value. Investors should stay alert to sectoral shifts, fund flow dynamics, and upcoming earnings for opportunities in the months ahead.