CGS International
Date of Report: August 29, 2025
Singapore Stocks Surge to New Highs: Key Earnings, Sector Movers, and Strategy Insights for Investors

Singapore Market Overview: Bullish Momentum and New Highs in August 2025

The Singapore equities market continued its strong upward trajectory in August 2025, with the MSCI Singapore Free SGD Index (SIMSCI) closing the month at 444 points—a robust 4.5% or 19.8-point gain over the previous month. CGS International maintains its bullish stance, reiterating a SIMSCI target of 463.8 points, predicated on a forward P/E of 15.5x. Technical indicators have prompted an upgrade of the long-term target to 482.0 points, reflecting renewed market momentum and robust investor sentiment.

Economic and Macro Snapshot: Growth, Inflation, and Property Market Trends

Non-oil domestic exports (NODX) in July 2025 fell by 4.6% year-on-year, down from a 12.9% increase in June, underperforming Bloomberg consensus but aligning with internal forecasts.
Non-electronic NODX was down 6.6% YoY, while electronics NODX rose 2.8% YoY.
Both core and headline inflation moderated in July, at 0.5% and 0.6% respectively, slightly below expectations. Lower retail prices and power costs contributed to the easing, alongside a slower rise in accommodation costs.
The property market saw a surge in new private home sales (up 63% YoY and 250% MoM), buoyed by competitive developer pricing and new launches. Resale private home prices increased 5.3% YoY (0.7% MoM), though resale volumes dropped 5.6% YoY (15.1% MoM).

2QCY25 Earnings Season: Outperformers, Surprises, and Sector Trends

The second quarter 2025 earnings season wrapped up with slightly more positive surprises than negative, at a ratio of 1.13:1. Manufacturing and technology sectors led the upside, while other major sectors delivered mixed results.

Top Performing Stocks and Notable Movers

Biggest Swings in Mid-Large Cap Space (Market Cap >US\$500m)

Investor Flows: Institutional and Retail Activity

– Institutional investors were net sellers for four consecutive weeks, divesting Financials, Industrials, Utilities, REITs, and Consumer Staples. However, they increased their positions in Consumer Cyclicals, Developers, and Tech. – Retail investors acted as net buyers, focusing on Financials, Industrials, and Utilities, while paring back exposure to Developers, Tech, and Telcos.

Corporate Developments and IPO Activity

– Keppel Corporation (KEP) divested M1’s telecoms segment to Simba Telecom (a TAU AU subsidiary) for S\$1.43 billion. – Great Eastern (GE) resumed trading after a 1-for-1 bonus share issue, which increased its free float above 10% following a failed delisting vote in July.

New Research Coverage: LUCC and ITSL

– CGS International initiated coverage on LUCC with an “Add” rating and a target price of S\$0.81 (12x FY27F P/E). LUCC is highlighted as a niche urban revitalisation specialist with a strong order book and regional expansion potential. – ITSL, following its recent IPO, is now Singapore’s only publicly listed SaaS HRMS provider. It received an “Add” rating and a target price of S\$1.10 (12x FY26F P/E). Drivers include a net cash position, expansion into Malaysia and India, and new product launches.

Technical Outlook: Bullish Momentum and Upgraded Targets

The MSCI Singapore Index reached its previous 6-month target of 446 points ahead of schedule, maintaining strong momentum above its 416-point support level. Technical indicators, including MACD and stochastic oscillators, suggest further upside. The revised long-term index target is now set at 482 points, with key support levels at 416–436 points and major support at 395 points.

Stock Ratings and Analyst Recommendations

– “Add” rating: Expected total return exceeds 10% over the next 12 months. – “Hold” rating: Expected total return between 0% and 10%. – “Reduce” rating: Expected total return below 0%.
Sector and country ratings are similarly defined by overweight, neutral, or underweight stances based on market cap-weighted recommendations.

Conclusion: Singapore’s Market Outlook Remains Positive

Singapore’s equity market is riding a wave of positive momentum, led by standout performances in communications, tech, and select real estate and consumer names. Earnings surprises remain slightly positive, with institutional and retail flows showing divergent strategies. Technical analysis supports an upgraded bullish target for SIMSCI, while new listings and corporate maneuvers add vibrancy to the market landscape. Investors should continue monitoring sector rotations, stock-specific catalysts, and macroeconomic indicators as the market pushes toward new highs.