Broker: Lim & Tan Securities
Date of Report: 25 August 2025
Singapore Market Surges on Rate Cut Hopes: Sector Rotation, Institutional Flows, and Key Stock Highlights
Market Overview: Rally Powered by Fed Rate Cut Signals
Wall Street posted its strongest session in months as Federal Reserve Chair Jerome Powell hinted at possible interest rate cuts in the near term, sparking a global rally. The S&P 500 soared 1.5%, nearly touching its record high, while the Dow Jones surged 846 points (1.9%) to a new peak. The Nasdaq jumped 1.9%. This optimism spilled into Asian and global markets, with the Singapore Straits Times Index (FSSTI) closing at 4,253.0, up 0.5% for the day and 11.4% year-to-date.
| Index |
Close |
1D (%) |
MTD (%) |
YTD (%) |
| FSSTI Index |
4,253.0 |
0.5 |
1.1 |
11.4 |
| Dow Jones |
45,631.7 |
1.9 |
1.8 |
5.6 |
| S&P 500 |
6,466.9 |
1.5 |
0.9 |
8.7 |
| NASDAQ |
21,496.5 |
1.9 |
0.2 |
9.6 |
| UKX Index |
9,288.1 |
1.1 |
1.7 |
13.6 |
| HSI Index |
25,165.9 |
0.2 |
1.6 |
25.5 |
Commodities Performance Snapshot
| Commodity |
Close |
1D (%) |
MTD (%) |
YTD (%) |
| Gold |
3,346.3 |
-0.1 |
1.7 |
27.5 |
| Crude Oil |
63.2 |
1.4 |
-8.7 |
-11.9 |
| Baltic Dry |
1,964.0 |
-2.9 |
-1.9 |
97.0 |
| Crude Palm Oil |
4,529.0 |
0.7 |
6.6 |
10.7 |
Singapore’s Economic Outlook: Construction Sector as a Stabilizer
Singapore’s economy expanded by 4.3% year-on-year in Q2 2025, following 3.9% growth in Q1. The construction sector stands out as a pillar of resilience, supported by strategic public investments and a robust development pipeline. The government allocated S$19.6 billion for infrastructure in the 2025 Budget, driving medium-term activity.
Key projects include:
- Changi Airport Terminal 5 (T5) and MRT expansions (Transport)
- Tengah Hospital development (Healthcare)
- Woodlands North Coast initiative (Industrial)
- 55,600 private residential units, including Executive Condominiums, under construction as of Q2 2025 (Housing)
Land supply will be ramped up with the Government Land Sales program releasing land for 9,755 private units in 2025—50% above the 2021–2023 average. The HDB also surpassed plans by launching 5,547 Build-To-Order flats in July 2025, with full-year targets set at 19,600 BTO flats and 10,200 Sale of Balance Flats (highest SBF supply since 2016).
BRC Asia: Riding the Construction Wave
BRC Asia ($3.92, up 16 cents) reported strong results for the nine months ended 2025:
- Revenue: S\$1.12 billion (S\$408.9 million in 3Q2025)
- Gross Profit: S\$112.2 million (S\$44.8 million in 3Q2025)
- Profit After Tax: S\$63.9 million (S\$21.8 million in 3Q2025)
- Total Comprehensive Income: S\$63.1 million (S\$21.4 million in 3Q2025)
- Sales Order Book: S\$2.0 billion as of 31 July 2025, boosted by the T5 win
| Metric |
9M 2025 |
3Q 2025 |
| Revenue |
S\$1.12 bln |
S\$408.9 mln |
| Gross Profit |
S\$112.2 mln |
S\$44.8 mln |
| Profit After Tax |
S\$63.9 mln |
S\$21.8 mln |
| Comprehensive Income |
S\$63.1 mln |
S\$21.4 mln |
| Sales Order Book |
S\$2.0 bln |
— |
Market cap: S$1.08bln
Forward PE: 12x
PB: 2.3x
Dividend yield: 4%
Consensus target price: S$3.92 (no upside)
Recommendation: HOLD (due to relatively lofty valuations vs. peers)
Sector Rotation: Rate Cut Outlook Shifts Sentiment
With rate cut expectations for September 2025 surging to 90%, Lim & Tan Securities turns “Neutral” on Singapore’s banking sector and “Overweight” on Singapore’s REIT sector. Lower rates are seen as headwinds for banks but tailwinds for REITs.
SGX Stock Highlights: Consensus Yields & Valuations
| Stock |
Highest Forward Div Yield (%) |
Lowest Forward PE (x) |
Lowest Trailing PB (x) |
Lowest Trailing EV/EBITDA (x) |
| DFI Retail Group |
15.66 |
6.80 |
— |
— |
| Frasers Logistics Trust |
6.70 |
— |
— |
— |
| Mapletree Industrial Trust |
6.42 |
— |
— |
— |
| Mapletree Logistics Trust |
6.15 |
— |
— |
— |
| DBS Bank |
6.04 |
— |
— |
— |
| Yangzijiang Shipbuilding |
— |
4.74 |
— |
— |
| Hongkong Land |
— |
— |
0.46 |
— |
| UOL Group |
— |
— |
0.54 |
— |
US, Hong Kong, China: Macro News and Regulatory Trends
- The Fed’s Jackson Hole symposium underscored divisions among US policymakers, with high inflation and a weakening labor market complicating rate decisions. Powell opened the door to a rate cut in September, but consensus is weaker than last year.
- China is actively working to reduce reliance on US medical imports, instructing state-owned drugmakers to seek alternatives for pharmaceutical products and raw materials—both domestic and from other countries like Japan.
- The dollar failed to act as a safe haven during April’s market turmoil, reinforcing a diversification trend away from US assets. Despite the DXY breaking below its 100 support level, safe-haven flows might return to the dollar if recession risks rise.
Share Transactions & Buybacks: August 2025
| Company |
Buy/Sell |
Shares |
Price (S\$) |
Stake (%) |
| Intraco Ltd |
Buy |
273,200 |
0.35 |
3.46 |
| Indofood Agri Resources |
Buy |
9,056,200 |
0.314 |
85.87 |
| Stamford Land Corp |
Buy |
150,000 |
0.42 |
46.23 |
| Metro Holdings Ltd |
Buy |
383,700 |
0.435 |
35.63 |
| Venture Corp Ltd |
Buy |
98,300 |
13.28 |
7.03 |
| iFast Corp Ltd |
Buy |
60,000 |
8.29 |
— |
Institutional & Retail Fund Flows: Sector Trends
- Institutional investors were net sellers (-S\$385.5m) in the week of 11 August 2025, while retail investors were net buyers (+S\$329.4m).
- Top institutional net buy stocks: City Developments (+S\$50.0m), iFast Corporation (+S\$23.4m), Genting Singapore (+S\$9.6m).
- Top institutional net sell stocks: Sembcorp Industries (-S\$153.7m), DBS (-S\$104.5m), UOB (-S\$94.8m).
- Retail net buy: Sembcorp Industries (+S\$150.4m), UOB (+S\$116.4m), DBS (+S\$106.5m).
- Retail net sell: City Developments (-S\$51.2m), Singtel (-S\$39.9m), OCBC (-S\$39.7m).
Dividend Calendar: Upcoming Singapore Payouts
| Company |
Dividend/Distribution |
Ex-Date |
Payable Date |
| Mapletree Logistics Trust |
— |
30 July |
10 Sept |
| DBS |
60 cts Interim + 15 cts Special |
14 Aug |
25 Aug |
| UOB |
85 cts Interim + 25 cts Special |
15 Aug |
28 Aug |
| Comfort Delgro |
3.91 cts Interim |
20 Aug |
28 Aug |
| Propnex |
10 cts Interim |
25 Aug |
10 Sept |
SGX Watch-List: Companies Under Scrutiny
32 companies remain 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. This list highlights issuers facing financial or operational challenges.
Conclusion: Navigating Shifting Market Winds
The Singapore market is at an inflection point, with US rate cut optimism sparking sector rotation, strong retail flows, and robust earnings from construction-linked stocks like BRC Asia. Institutional investors are cycling out of banks and into REITs, while companies gear up for substantial dividend payouts. Globally, US monetary policy and China’s decoupling efforts add complexity to the outlook. Investors should watch for further sector shifts as policy clarity emerges in the coming months.
Lim & Tan Securities
25 August 2025
