Singapore Market Rallies as MAS Deploys S$5 Billion to Boost Liquidity and Mid-Cap Stocks

The Monetary Authority of Singapore (MAS) accelerated efforts to revitalise the local equity market last week, unveiling the first tranche of its S$5 billion Equity Market Development Programme (EQDP). On July 21, MAS confirmed an initial S$1.1 billion allocation to Avanda Investment Management, Fullerton Fund Management, and JP Morgan Asset Management, with a mandate to target mid-cap and small-cap stocks to improve liquidity and broaden investor participation. A second round of manager appointments is expected by late 2025.

MAS also earmarked S$50 million to enhance the Grant for Equity Market Singapore (Gems) scheme, expanding funding for new listings, research on listed and private companies, and even cross-listed and feeder ETFs. The authority further signaled plans to consult on measures to help investors seek compensation for losses tied to market misconduct, including granting organisations such as Securities Investors Association (Singapore) (Sias) authority to act on investors’ behalf.

The news propelled the SGX:STI.SI:Straits Times Index more than 1.7% higher for the week, with SGX:D01.SI:DFI Retail Group surging 13.1% on a bumper dividend. Property counters rallied, including SGX:9CI.SI:CapitaLand Investment (+3.3%), SGX:C09.SI:City Developments (+8.1%), and SGX:U14.SI:UOL Group (+2.8%).

SGX:S63.SI:ST Engineering climbed 5.6% on fresh contract wins, while banks showed mixed performances: SGX:D05.SI:DBS Group rose 4.4%, SGX:U11.SI:United Overseas Bank (UOB) gained 0.4%, and SGX:O39.SI:Oversea-Chinese Banking Corporation (OCBC) slipped 0.9%.

Non-STI stocks also drew investor attention as potential EQDP targets. SGX:AWX.SI:AEM Holdings rallied 11.7%, SGX:C52.SI:ComfortDelGro 13.1%, SGX:F03.SI:Food Empire 8.4%, SGX:E28.SI:Frencken Group 15.2%, SGX:AIY.SI:iFast Corporation 5.1%, SGX:MZH.SI:Nanofilm Technologies 17.3%, SGX:OV8.SI:Sheng Siong Group 2.9%, and SGX:558.SI:UMS Holdings 4.8%.

While analysts see EQDP as a powerful near-term catalyst for liquidity, questions linger about its durability. The Gems programme, first introduced in 2019, has yet to significantly lift listings or research engagement. Observers note that sustained market vibrancy will hinge on listed companies prioritising shareholder value, with fund managers expected to exert pressure where needed.

MAS will consult later this year on civil recourse mechanisms for investors, but concerns remain about the timeliness of regulatory action, as seen in protracted cases like Noble Group. Sias has reiterated it prefers boardroom dialogue and mediation over litigation, while some argue for a dedicated legal entity to represent investors when misconduct occurs.

Market watchers say the EQDP’s success will ultimately depend on whether it drives more engagement, accountability, and sustainable liquidity across Singapore’s equities landscape.

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