CGS International
May 30, 2025

Singapore Markets Surge to New Highs: Detailed Sector & Stock Review for May 2025

Singapore Market Overview: New Highs and Rosy Economic Indicators

The Singapore MSCI Index (SIMSCI) closed May 2025 at 407.3 points, up 18.4 points (+4.74%), reaching a new high for the year. This performance surpasses previous peaks seen earlier in 2025, prior to the “Liberation Day” tariffs. The positive momentum was underpinned by strong economic data: Non-oil domestic exports (NODX) jumped 12.4% year-on-year in April, far exceeding consensus expectations. Electronics NODX surged 23.5%, led by PCs, disk media products, and integrated circuits (ICs). Non-electronics exports also saw robust growth at 9.3%, with non-monetary gold, ships, and specialized machinery driving the gains.

Inflation remains moderate, with core inflation at 0.7% year-on-year and headline inflation steady at 0.9%. These figures were slightly above consensus, attributed mainly to higher services costs, while accommodation and private transport costs helped offset upward pressure. As a result, CGS International’s economists have trimmed the 2025 CPI forecast to 1.5%, in line with revised guidance from the Monetary Authority of Singapore, citing weaker global demand.

New private home sales in April 2025 fell 9% month-on-month but soared 120% year-on-year, according to Urban Redevelopment Authority data.

MSCI Singapore Index: Targets and Technical Outlook

CGS International maintains its full-year 2025 MSCI Singapore Index target at 411.7 points, based on 15x estimated 2025 earnings, but expects some oscillation around this mark for the remainder of the year. The index recently broke through the 407.00-point resistance, confirming bullish momentum. However, technical indicators suggest a short-term correction toward 395.50 points may occur before a potential rebound. The short-term target has been upgraded to 417.00 points for the next 1-2 months, while the key major support is at 372.13 points.

1Q25 Earnings Season: Surprises and Sector Trends

The first-quarter 2025 earnings season ended with a balanced surprise ratio (6 positive vs. 6 negative, and 23 in-line results), even as more companies opted out of quarterly financial reporting, with 10 releasing optional business updates. Transport and Consumer sectors led the outperformers, while Services, Retail, and Developers lagged. Notably, there was no clear trend among companies missing expectations.

April’s sector outperformers included:

• Communications
• Capital Goods
• Transport

Lagging sectors were Services, Retail, and Developers.

Market Flows: Institutional and Retail Dynamics

Institutional investors were net buyers over the past four weeks, focusing on Industrials, Telcos, and Developers, while reducing exposure to Financials, REITs, and Tech. Retail investors, in contrast, were net sellers of Industrials, Telcos, and Financials, but net buyers of REITs, Consumer, and Tech stocks.

Corporate News: Privatisations, Divestments, and M&A Activity

• OSS controlling stakeholders made a S\$0.16 per share offer to privatize the lifestyle products retailer and distributor.
• MINT divested three Singapore industrial properties for S\$535.3 million.
• QNM proposed to privatize its subsidiary AOXIN at S\$0.0321 per share.
• Epicsoft Asia made a S\$0.6029 per share offer to take BLT private.
• FPL re-attempted privatisation of FHT, offering S\$0.71 per stapled security.

Sector Performance Table

Major Movers: Top Gainers and Losers Among MSCI Constituents

Big Swings: Major Moves in Mid-Large Cap Stocks (Market Cap >US\$500m)

Key Stock and Sector Insights

• Sea Ltd led the MSCI gainers with a 20.26% jump, reflecting strong momentum in technology and digital services.
• Singapore Airlines continued its upward trajectory (+6.26%), boosted by robust travel demand and earnings.
• Singapore Technologies Engineering rose 5.53%, likely benefiting from contract wins and steady demand in capital goods.
• Hotel Properties Ltd was the biggest large-cap gainer (+21.43%), though the cause was unclear, even after an SGX regulatory query.
• SIA Engineering surged 20.54% on news of a contract win.
• Sinarmas Land Ltd advanced 17.46%.
• Riverstone Holdings slid 24.31%, leading the decliners, followed by Frasers Logistics & Commercial (-11.17%) and Pacific Century Regional Developments (-10.71%).
• CapitaLand Investment and CapitaLand Integrated Commercial Trust underperformed due to higher-for-longer interest rate concerns and limited financial disclosures.
• MID-LARGE cap gainers such as SML benefited from a privatisation offer.

Conclusion: Outlook for Singapore Equities

The bullish momentum in Singapore equities remains intact, with strong economic data, controlled inflation, and resilient earnings supporting the trend. However, some near-term correction is anticipated after the recent surge, as technical indicators show signs of being overbought. With ongoing institutional inflows, robust sectoral performances, and active corporate actions, the Singapore market is set for continued dynamism in the months ahead.

Analysts Covering the Report

• LOCK Mun Yee
• LIM Siew Khee
• CHUA Wei Ren, CMT

Rating Framework

Stock Ratings:

• Add: Total return expected to exceed 10% over the next 12 months.
• Hold: Total return expected between 0% and 10% over the next 12 months.
• Reduce: Total return expected to fall below 0% over the next 12 months.

Sector and country ratings are defined in similar market cap-weighted or benchmark-relative terms.

Distribution as of March 31, 2025:

• Add: 71.0%
• Hold: 20.9%
• Reduce: 8.2%