Broker: CGS International
Date of Report: July 31, 2025

Singapore Stocks Surge to New Highs: Market Outlook, Key Movers, and Sector Trends for July 2025

Singapore Market Overview: Riding High Amid Global Uncertainty

Singapore’s equity market continued its impressive run in July 2025, with the MSCI Singapore Free SGD index (SIMSCI) closing at 427.37 points, a robust 4.28% rise from the previous month. This marks a new high for the index, reflecting buoyant investor sentiment even as global markets remain cautious in the face of looming US trade policy deadlines and persistent macroeconomic headwinds.

The Monetary Authority of Singapore’s (MAS) Equity Market Development Programme (EQDP) injected S\$1.1 billion into fund managers for small-cap investments, helping lift market confidence. Meanwhile, the much-watched US trade deal “deadline” of August 1st looms large, with uncertainty over whether countries will rush to sign or seek further extensions.

Singapore’s economic fundamentals have shown resilience as well, with June’s Non-Oil Domestic Exports (NODX) rebounding 13% year-on-year, beating both in-house and Bloomberg consensus estimates. Gains were seen in both electronics (up 8% yoy) and non-electronics (up 14.5% yoy) exports. Inflation remained muted, with June core and headline rates steady at 0.6% and 0.8% yoy, respectively. The MAS maintained its Singapore Dollar Nominal Effective Exchange Rate (S\$NEER) policy unchanged.

Sector Performance and Market Flows: Winners and Losers

Strong sectoral performance was observed in July, led by Utilities, Industrials, and Consumer Discretionary stocks. Communications, Transport, and Consumer Staples lagged behind.

Institutional investors have been net buyers for four consecutive weeks, particularly favoring Financials, Technology, Developers, Telcos, Utilities, and Consumer Cyclicals. Retail investors, by contrast, were net sellers, mostly taking the other side of these trades.

Company Highlights: Major Movers and Market Swings

Top Gainers Among MSCI Singapore Constituents

• Keppel Ltd: Closed at 8.47, up 1.05 (+14.15%) on strong results.
• Sembcorp Industries Ltd (SCI): Closed at 7.76, up 0.91 (+13.28%), buoyed by contract wins.
• Singapore Technologies Engineering (STE): Closed at 8.77, up 0.98 (+12.58%), driven by new contracts.

Top Losers Among MSCI Singapore Constituents

• Singapore Airlines Ltd (SIA): Closed at 6.80, down 0.17 (-2.44%), retracing from previous highs.
• Sea Ltd (SE): Closed at 159.25, down 0.69 (-0.43%).
• United Overseas Bank Ltd (UOB): Closed at 36.19, up 0.19 (+0.53%), relatively flat.

Biggest Market Cap Swings (Over US\$500m)

• iFAST Corp Ltd: Closed at 9.06, up 2.46 (+37.27%), propelled by strong results.
• Frencken Group Ltd (FRKN): Closed at 1.66, up 0.42 (+33.87%).
• Yangzijiang Financial Holding (YZJFH): Closed at 0.97, up 0.23 (+30.41%) on potential asset spin-off news.
• Singapore Post Ltd (SPOST): Closed at 0.49, down 0.12 (-19.67%) amid concerns over strategic direction and divestment of its freight forwarding business, Famous Holdings, for S\$177.9m.
• Frasers Centrepoint Trust (FCT): Closed at 2.22, down 0.06 (-2.63%).
• SIA Engineering Co Ltd: Closed at 3.07, down 0.08 (-2.54%).

Corporate News: IPOs, Divestments, and Strategic Developments

• NTTDCR: Launched a pure-play data centre REIT IPO on the SGX at US\$1 per unit, issuing 1.03 billion shares. The REIT, sponsored by NTT Group, holds assets across Japan, the EU, and the US.
• Singapore Post (SPOST): Completed the divestment of its freight forwarding arm, Famous Holdings, for S\$177.9 million.

Stock Initiation: LHN Ltd

• Initiated coverage with an “Add” rating and a target price of S\$1.00, based on 10x CY26F P/E.
• Key growth drivers include:
  • Expansion in the co-living (Coliwoo) segment.
  • Potential value-unlocking through a Coliwoo spin-off.
  • New developments in property and industrial segments.

Property Market Update: Home Prices and Rental Trends

• Private residential home prices rose 1% year-on-year in 2Q25 (vs. 0.8% in 1Q25).
• Landed home prices increased by 2.2%, outpacing non-landed homes at 0.7%.
• Rental prices grew 0.8% year-on-year (vs. 0.4% in 1Q25); however, rental growth has slowed due to macro uncertainties.
• Category 1 office rents fell by 3.2% year-on-year, despite a drop in vacancy rates from 11.7% to 11.0%.
• Category 2 office rents grew by 2.7% year-on-year, indicating cautious sentiment among renters.

Technical Analysis: Bullish Momentum with Near-Term Caution

• The MSCI Singapore Index exceeded the previous six-month target of 420.00 points, peaking at 436.32 points on July 21, 2025.
• Momentum indicators (MACD, short-term rate of change) are flattening, and the mid-term stochastic oscillator signals an overbought market.
• A near-term correction is possible, with support expected at 409.00–416.00 points. Major support remains at 395.00 points.
• The long-term (six-month) target has been upgraded to 446.00 points.

Valuation and Outlook: Index Target and Sector Ratings

• CY25F MSCI Singapore target maintained at 411.7 points, based on 15x CY25F earnings. An index target review is scheduled post-2Q25 results season.
• Sector Ratings:
  • Overweight: Sectors with positive outlooks based on market cap-weighted absolute recommendations.
  • Neutral: Sectors with balanced prospects.
  • Underweight: Sectors with negative outlooks.

Conclusion: Navigating Opportunities Amid Cautious Optimism

Singapore’s equity market heads into the second half of 2025 with optimism, driven by robust exports, supportive policy initiatives, and strong sectoral performance. However, investors should remain vigilant for potential short-term corrections as technical indicators suggest an overbought environment and global uncertainties linger. The long-term trajectory remains bullish, with key support levels providing downside protection and new highs within reach.

For investors and market watchers, the evolving landscape offers both opportunities and risks—making sector rotation, stock selection, and awareness of policy shifts more crucial than ever.