CGS International | December 5, 2025

Excerpt from CGS International report

Report Summary

• CGS International remains positive on the Singapore market for 2026, expecting a liquidity boost from the Monetary Authority of Singapore’s S\$5bn Equity Market Development Programme (EQDP), which is aimed at supporting Singapore-listed equities and broadening investor participation.
• Singapore’s equity market is projected to see sustained valuation re-rating and earnings growth (+8.5% yoy), with strong investor interest driven by focus on return on equity and shareholder returns in a low interest rate environment.
• The report identifies three key market themes for 2026: (1) EQDP liquidity beneficiaries, (2) M&A or restructuring plays, and (3) mispriced or overlooked laggards (“dark horses”).
• Sector allocation is overweight for agribusiness, capital goods, construction, gaming, healthcare, internet service, REITs, and telcos. Property is upgraded to overweight based on its valuation discount.
• Top large-cap picks include BAL, CLAR, DFI, FR, iFAST, KEP, LREIT, SATS, SIE, and YZJSGD. Top small-cap picks are BRC, CSE, SANLI, and SOIL.
• Key sectors are forecasted to drive net profit growth, especially telcos, capital goods, consumer, and internet services, while tech/manufacturing and commodities may see downward revisions.
• Strong dividend yields are expected from selected stocks, particularly in agribusiness and REITs.
• Potential upside risks for financials include resilient net interest margins and capital returns via dividends/share buybacks.

Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com/