Lim & Tan Securities
Date of Report: 22 July 2025

Singapore Market Heats Up: MAS Injects \$1.1B, Bukit Sembawang Shines, and Sector Flows Reveal New Opportunities

Executive Market Overview

The Singapore market is showing robust performance, with the FSSTI Index closing at 4,207.1, marking a 0.4% gain for the day, a 5.2% increase month-to-date, and a strong 10.1% year-to-date climb. The trading session saw S\$1,555.5 million in market value and a daily volume of 2,185.9 million. In comparison, global indices such as the Dow Jones, S&P 500, and NASDAQ displayed mixed results, reflecting sector-specific movements and anticipation of a tech-dominated earnings week. Commodities also saw significant moves, with gold steady at \$3,346.5 (+27.3% YTD), crude oil up 1.7% to \$67.3, and crude palm oil rising 1.9% to \$4,315. The Baltic Dry Index surged 6.5% in a day, highlighting shipping sector momentum.

Monetary Authority of Singapore’s \$1.1B Market Injection: A Game Changer

In a landmark move to boost liquidity and investor confidence, the Monetary Authority of Singapore (MAS) has allocated an initial \$1.1 billion to three top asset managers—Avanda Investment Management, Fullerton Fund Management, and JP Morgan Asset Management. This is part of the ambitious \$5 billion Equity Market Development Programme, targeting revitalization of SGX-listed stocks, with a particular emphasis on small and mid-cap companies.

• This initiative aims to deepen market liquidity, crowd in private capital, and encourage retail participation in long-term equity investments.
• Fullerton’s unit trust will invest widely across SGX-listed stocks, open to all investor types with daily liquidity.
• JP Morgan will leverage local and global expertise to unlock potential in Singapore equities.
• Avanda is focusing on small and mid-cap SGX companies, aligning with the programme’s spirit.
• MAS will also invest \$50 million over three years to enhance equity research and listing support, extending the GEMS scheme to 2028 and expanding research coverage especially for small/mid-caps and pre-IPO companies.

These strategic moves are expected to not only increase liquidity but also improve research quality, investor protection, and product diversity, providing a significant lift to the entire Singapore equity ecosystem.

Bukit Sembawang Estates: Competitive Pricing and Strong Fundamentals

Bukit Sembawang Estates (\$4.36, unchanged) remains a standout in the property development sector. The company responded to shareholder queries ahead of its 59th AGM, focusing on its Pollen Collection landed housing project:

• Pricing Policy: The average transacted price for intermediate terraces at Pollen Collection (1,615 sqft, 99-year leasehold in Seletar Hills, District 28) is \$2,415 psf on land. This is considered competitively priced, factoring in location and tenure.
• Landed vs. Condo Dynamics: Landed homes are valued on land area and are restricted to Singaporeans, resulting in a more limited buyer pool and unique pricing dynamics compared to condominiums or cluster housing, which attract both local and foreign buyers.
• Sales Strategy: Units are released in batches to calibrate supply with demand, allowing flexibility in response to market absorption rates.
• Valuation: At \$4.36, Bukit Sembawang is capitalized at \$1.13 billion, trades at 0.7x book value, and offers a 4.6% dividend yield. The stock has climbed 15% since its “Accumulate” rating was reaffirmed earlier this year, supported by a robust net cash balance sheet and reasonable valuations.

Sector and Stock Picks: Highest Yields and Value Buys

Investors seeking strong yield and value should consider the following stocks with the highest consensus forward dividend yields and lowest valuation multiples within the FSSTI universe:

Institutional and Retail Fund Flows: Sector Dynamics

Institutional investors recorded a net buy of +S\$87.3 million for the week of 7 July, down from +S\$213.3 million the previous week. Retail investors were net sellers at -S\$325.5 million, continuing the prior week’s trend of -S\$304.7 million.

Top Institutional Net Buys (Week of 7 July)

• Singtel (+S\$106.0m)
• SIA (+S\$20.4m)
• OCBC (+S\$19.9m)
• Keppel (+S\$18.3m)
• Yangzijiang Shipbuilding (+S\$12.7m)

Top Institutional Net Sells

• DBS (-S\$37.3m)
• PSC Corporation (-S\$25.4m)
• Keppel DC REIT (-S\$20.2m)
• UOB (-S\$17.4m)
• ComfortDelGro (-S\$12.5m)

Top Retail Net Buys

• PSC Corporation (+S\$25.4m)
• Mapletree Industrial Trust (+S\$24.1m)
• Keppel DC REIT (+S\$24.0m)
• ComfortDelGro (+S\$13.6m)
• Frasers Centrepoint Trust (+S\$12.4m)

Top Retail Net Sells

• DBS (-S\$118.0m)
• SIA (-S\$70.4m)
• Singtel (-S\$62.9m)
• OCBC (-S\$58.8m)
• UOB (-S\$42.6m)

Sector-wise, institutional investors rotated into technology (hardware/software) and telcos, while reducing positions in REITs. Retail investors bought into REITs but sold off financial services and technology stocks.

Key Transactions: Acquisitions, Disposals, and Buybacks

A summary of significant insider and institutional transactions from 1 July to 21 July:

• Acquisitions:
  • ISO Team: Ginko AGT Global Growth Fund acquired 5,986,800 shares (5.24% stake)
  • NTT DC REIT: JP Morgan acquired 56,144,270 shares (5.45% stake)
  • Indofood Agri Resources: PT Indofood Sukses Makmur Tbk acquired 9,056,200 shares (85.87% stake)
  • Singapore Shipping Corp Ltd: Ow Chio Kiat acquired 2,500,000 shares (44.39% stake)
  • Capitaland India Trust: Aberdeen acquired 2,515,800 shares (6.149% stake)
  • Asian Pay TV Trust: Lu Fang Ming acquired 417,100 shares (1.275% stake)
  • Zheneng Jinjiang: Zee Up Enterprises Ltd acquired 180,620,574 shares (27.46% stake)
• Disposals:
  • AIMS APAC REIT: ESR sold 57,163,098 shares (now 0.05% stake)
  • NSL Ltd: YTL Cement sold 5,000,000 shares (88.47% stake)
  • Eneco Energy Ltd: Unionsteel Holdings Ltd sold 30,000,000 shares (18.09% stake)
  • Clearbridge: Wong Kong Leong sold 80,000,000 shares (3.87% stake)
• Share Buybacks: Major buybacks include HK Land (235,000 shares at US\$6.28), DBS (350,000 shares at \$46.18), UOB (200,000 shares at \$37.00), and others across various companies.

Upcoming Dividends and Special Distributions

What’s Ahead: Key Earnings and Events Calendar

The coming weeks are packed with earnings releases and AGMs from major players including Aztech, Hutchinson Port, Digital Core REIT, OUE REIT, Mapletree Ind, Suntec REIT, FCT, Ifast Corp, Raffles Med, SIA, Keppel DC REIT, CapitaLand Ascott Trust, Keppel REIT, CDL REIT, and many more.

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

• US: Regional Fed surveys confirm sluggish manufacturing and tame inflation, with the June Dallas Fed Manufacturing survey remaining in contraction territory. Input costs have risen due to tariffs, but delivery times are stable.
• China: A severe heatwave is exposing the vulnerabilities of China’s 200 million gig workers, who are often denied legally mandated “heat wave allowances.” Despite increased workload and risk, many delivery drivers have not received compensation. This has led to social media criticism and highlights growing inequality exacerbated by climate change. In 2023, China saw over 37,000 heat wave-related deaths, nearly double compared to previous decades.

SGX Watch-List: Companies Under Scrutiny

A total of 32 companies are currently on 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. The list continues to monitor companies for compliance and performance standards.

Conclusion

Singapore’s equity market is entering a new phase of growth and opportunity, bolstered by MAS’s capital injection, renewed focus on research and investor protection, and dynamic sector rotations. With robust dividend plays, compelling valuations, and a strong calendar of upcoming events, investors have much to watch in the coming months. Bukit Sembawang Estates, in particular, stands out with its disciplined pricing strategy and strong fundamentals, while sector-wide flows highlight shifting institutional and retail sentiment across the board.