Lim & Tan Securities
Date of Report: 23 September 2025

Singapore Market Update: Top Stocks, Institutional Flows, and Key Corporate Actions – September 2025

Market Overview and Major Indices Performance

The Singapore market remains resilient amid global volatility, with the FSSTI index closing at 4,297.4, representing a modest year-to-date (YTD) gain of 13.5%. Other major indices such as the S&P 500 and Nasdaq posted YTD gains of 13.8% and 18.0% respectively, highlighting bullish sentiment in global equities. Commodities showed mixed performance, with gold surging 42.8% YTD, while crude oil declined by 12.7% over the same period.

Idea of the Day: Keppel Infrastructure Trust (KIT)

Keppel Infrastructure Trust (KIT) stands out as the largest SGX-listed infrastructure business trust, offering investors exposure to a robust and diversified portfolio valued at \$8.7 billion AUM (as of June 30, 2025). The trust’s assets span over 10 mature economies, focusing on essential infrastructure in investment-grade jurisdictions.

• Portfolio Segmentation: Energy Transition (62%), Environmental Services (10%), Distribution and Storage (28%)
• Geographical Spread: Australia/New Zealand (28%), Singapore (24%), Saudi Arabia (24%), Europe (19%)
• Key Assets: Includes Ixom and Ventura (Australia/NZ), Aramco Gas Pipelines (Saudi Arabia), Singapore’s Keppel Merlimau Cogen Plant, Marina East Desalination Plant, Senoko Waste-to-Energy Plant, Eco Management Korea Holdings (South Korea), German Solar Portfolio, and Borkum Riffgrund 2 wind farm (Europe)

KIT’s Growth and Strategic Initiatives

KIT leverages megatrends such as energy transition, climate change, urbanisation, and digitalisation. The trust’s three-pillar strategy includes:

• Strategic Acquisitions aligned with secular trends
• Value Creation via active management and growth investments
• Optimisation through asset recycling to unlock and redeploy capital into higher-yield opportunities

Recent Transactions and Financial Highlights

• Divestment of Philippine Coastal (Mar 2025): \$192 million proceeds
• Partial divestment of Ventura (Aug 2025): \$109 million proceeds
• Total divestment proceeds: ~\$301 million
• Proposed investment of \$122.3 million for a 46.7% stake in Global Marine Group (UK-based subsea cable service provider), projected to increase pro forma DPU by 3.5% and FFO by 1.3%
• 1H 2025 distributable income: \$119.4 million (+31.2% YoY)
• Distribution Per Unit (DPU): 1.97 cents (+1% YoY)
• Net gearing: 39.3%, with substantial undrawn loan facilities
• Market cap: S\$2.8 billion, trading at 25.6x forward PE, 1.7x PB, with a 7.0% dividend yield
• Consensus target price: S\$0.48 (4.3% upside)

Despite lofty valuations, the current environment may allow yield compression and price appreciation for KIT. The recommendation is to accumulate on weakness.

Keppel DC REIT: Strategic Expansion in Japan

Keppel DC REIT and Keppel Ltd have acquired a 100% interest in Tokyo Data Centre 3, a newly built hyperscale data centre in Inzai City, Greater Tokyo, for JPY 82.1 billion (S\$707 million), reflecting a 1.1% discount to valuation. Keppel DC REIT will hold a 98.47% effective interest, with the remainder held by Keppel.

• 15-year lease to a global hyperscaler with built-in annual rent escalation, providing cash flow resilience
• Second Japanese data centre asset for Keppel DC REIT
• Strategic location in an established Japanese data centre cluster; built to Tier III-equivalent seismic standards
• Managed by an experienced global operator

Financial Impact and Preferential Offering

• Acquisition expected to be DPU-accretive: FY2024 DPU rises by 2.8% (from 9.451 cents to 9.712 cents)
• Portfolio occupancy improves from 95.8% to 95.9%, WALE increases from 6.9 to 7.2 years
• Assets under management rise to S\$5.7 billion, with 25 data centres across 10 countries
• Preferential offering to raise S\$404.5 million; entitled unitholders can subscribe for 80 new units per 1,000 held at S\$2.24 per unit (5.2% discount to prior day)
• Funds to be used for acquisition, asset enhancement, lease extension, and debt repayment
• Estimated pro forma accretion: 3.4%
• Market cap: S\$5.3 billion, trading at 1.5x PB, 4.4% annualized dividend yield
• Consensus target price: S\$2.51 (6.4% upside)

Shareholders are recommended to subscribe for their entitlement, deepening exposure to a resilient Japan data centre hub.

Top Consensus Dividend Yields and Valuations in FSSTI Universe

Key Share Transactions: Acquisitions, Disposals, and Buybacks

Several notable share transactions were recorded from 1 September to 22 September 2025, underscoring continued corporate activity:

Institutional and Retail Fund Flows: Sector Analysis

The week of 15 September 2025 saw significant institutional net selling (S\$584.5m) contrasted with robust retail net buying (S\$363.8m)—a reversal from the previous week. The top institutional net buys included ST Engineering, AEM, and Hongkong Land, while the top sells were DBS, UOB, and OCBC. Retail investors favored DBS, UOB, OCBC, and CapitaLand Investment.

Corporate Dividend Announcements and Payout Dates

A wide range of companies announced interim, special, and final dividends, with notable payouts from Mapletree Logistics Trust, Capitaland Ascott Trust, DBS, UOB, Comfort Delgro, and others. Below is a summary of recently announced dividends:

SGX Watch-List: Companies Under Close Observation

32 companies remain under the SGX Watch-List, including several new additions since 2H2023. Notable names include Amos Group, Ascent Bridge Ltd, ASTI Holdings, British And Malayan Holdings, and several others. The latest additions since December 2023 and June 2024 are Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare.

Global Macro Trends Impacting Singapore, US, and China Markets

Recent market movements have been shaped by rising geopolitical risks, especially in commodities. Gold is expected to outperform amid supply shocks, while copper may weaken. In China, regulatory pressures have eased, allowing technology giants like Tencent and Alibaba to pursue aggressive acquisition strategies both domestically and overseas, especially in AI and data centre infrastructure.

• Tencent acquired podcasting startup Ximalaya and a stake in SM Entertainment
• Alibaba invested over 380 billion yuan (S\$68 billion) in AI infrastructure and formed a US\$4 billion JV with E-Mart’s e-commerce platform in South Korea
• Both companies are actively involved in disposals, joint ventures, and new market entries

China’s technology sector is seeing a normalization of regulation, giving companies and investors renewed confidence to pursue deals—particularly in AI and robotics.

Conclusion: Key Takeaways for Investors

• Singapore’s equity market remains buoyant, with notable sector rotations and robust retail participation
• Infrastructure and data centre assets continue to attract yield-seeking investors, with KIT and Keppel DC REIT delivering accretive transactions and strategic asset growth
• Fund flows suggest shifting sentiment, with institutions trimming exposure while retail investors increase stakes in major banks and industrials
• Monitor SGX Watch-List for potential turnaround plays or further corporate restructuring
• Global macro and sectoral trends—especially in technology and commodities—are shaping investment narratives in Asia-Pacific

Stay tuned for further updates and in-depth analysis as Singapore’s market continues to evolve through the remainder of 2025.