Lim & Tan Securities
Date of Report: 8 September 2025
Singapore Market Outlook September 2025: Key Trends, Sector Moves, and Company Spotlight

Market Overview: Robust Gains and Shifting Sentiment in Global Equities

Singapore’s FSSTI Index continues its impressive rally, closing at 4,307.1, reflecting YTD gains of 13.7%. The global equity landscape shows mixed performance, with notable advances in Hong Kong’s HSI (+26.7% YTD) and Singapore’s SHCOMP (+13.7% YTD), while US indices like the S&P 500 and NASDAQ show steady, moderate growth. However, volatility remains subdued, as seen in the VIX at 15.2 (-12.5% YTD), suggesting cautious optimism among investors 1.

Macroeconomic Trends: US Labor Market Softens, Rate Cuts Loom

US labor market weakness intensified in August: Non-farm payrolls rose by only 22,000 (vs. 79,000 in July), well below expectations.
Unemployment climbed to 4.3% (from 4.2%), reinforcing the case for a Federal Reserve rate cut at the September policy meeting.
Investors now anticipate up to three rate cuts in 2025, which favors interest rate-sensitive sectors like REITs due to lower financing costs and improved yield premiums.
Singapore’s 3M compounded SORA and 10-year government bond yields have also declined sharply YTD, boosting the attractiveness of yield vehicles 1 – 4.

Sector Highlights: Consensus Yields and Valuation Leaders

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Company Spotlight: Marco Polo Marine’s Strategic Leap in Offshore Vessel Design

Marco Polo Marine (MPM): Next-Generation CSOV Plus

– Marco Polo Marine (S\$0.069, market cap S\$259 million) has announced a partnership with Salt Ship Design AS for the conceptualization and construction of the CSOV Plus, a purpose-built Commissioning Service Operation Vessel. – The CSOV Plus is designed for dual-sector operations in both offshore wind and oil & gas, a first for the industry, supporting activities from construction to maintenance and technician transfer. – Key design features include: – Battery hybrid power system for reduced emissions and fuel use – Capability for alternative fuels (including methanol) – 100-tonne Active Heave Compensated (AHC) crane for subsea and wind farm equipment – Expansive deck for cargo and project customization – Advanced walk-to-work system handling wave heights up to 3.0m – Construction will begin in Batam in Q2 2026, with delivery in Q2 2028. – MPM currently trades at 10.4x FY25F PE and 1.1x PB. The planned listing of its Taiwan subsidiary further affirms its success in the Taiwan wind market. – Lim & Tan Securities maintains a BUY rating on MPM with a target price of S\$0.082 [[2]].

Macro News Impacting Global Markets: US, China, and Taiwan

US: Labor Market Deterioration and Equity Risks

– BCA Research highlights further labor market deterioration could trigger a maximum underweight position in equities. – Initial jobless claims have trended higher, while measures of job openings are declining. – The market remains in a “low hiring, low firing” regime, but employment is increasingly difficult to secure. – The current consensus is underweight equities, overweight fixed income, and neutral on cash [[3]].

China/Hong Kong: Taiwan’s Tech Blacklist Targets Chinese AI and Chip Leaders

– Taiwan has joined the US campaign to curb China’s tech progress, blacklisting Huawei Technologies and SMIC, barring local firms from business without a license. – This marks Taiwan’s first public action addressing US concerns on chip export controls and signals a more assertive stance in strategic tech competition [[3]].

Share Transactions: Key Acquisitions, Disposals, and Buybacks (1–5 September 2025)

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Share Buybacks: Major Market Moves

– HK Land: 235,000 shares @ US\$6.39 – Sembcorp Industries: 170,000 shares @ S\$6.11 – Global Investment Limited: 180,000 shares @ S\$0.13 – Keppel Ltd: 340,000 shares @ S\$8.50 – OCBC: 250,000 shares @ S\$16.90 – UOB: 100,000 shares @ S\$35.91 – Raffles Medical: 400,000 shares @ S\$1.01 – SIA Engineering: 73,800 shares @ S\$3.10 – ST Engineering: 500,000 shares @ S\$8.20 – The Hour Glass Ltd: 39,500 shares @ S\$2.00 [[4]]

Fund Flows: Institutional and Retail Investors’ Top Moves

Institutional investors net bought S$21.6m for the week of 25 Aug (vs. -S$17.5m previous week)
Retail investors net bought S$33.7m (vs. -S$0.9m previous week)
Sectoral flows reveal strong buying in REITs, Technology, Telcos, and Utilities 5 – 6

Dividend Calendar: Key Interim and Final Distributions

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SGX Watchlist: Companies Under Regulatory Scrutiny

32 companies remain under SGX’s Watchlist, including recent additions such as Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Hldgs, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare. Long-standing names include Amos Group, Ascent Bridge, ASTI Holdings, and British And Malayan Holdings, among others. Entry dates range from 2017 to June 2024 9.

What’s Ahead: September 2025 Market Calendar

A busy September is anticipated, with major corporate actions, dividend distributions, and ongoing market developments shaping investor sentiment. Stay tuned for further updates in the coming weeks 8.

Conclusion: Navigating Opportunities and Risks in Singapore and Global Markets

The Singapore market continues to outperform, supported by robust sectoral earnings and strategic corporate moves, particularly in the offshore and technology spaces. With global labor market dynamics shifting and monetary policy expected to ease, investors should remain vigilant, diversify across resilient sectors, and monitor regulatory changes impacting cross-border business ties. The upcoming months promise both challenges and opportunities for informed market participants.
Lim & Tan Securities
8 September 2025