Lim & Tan Securities
Date of Report: 5 September 2025

Singapore Market Insights: Latest Trends, Top Stocks, and Corporate Moves for September 2025

Market Overview: Strong Gains Across Regional Indices Amidst Easing Labor Market and Rate Cut Hopes

The Singapore market, as represented by the FSSTI Index, closed at 4,296.8, up 0.2% for the day and 0.6% month-to-date, with a robust 13.4% year-to-date gain. This performance stands out amid global volatility, as other major indices like the Dow Jones, S&P 500, and Nasdaq also registered strong YTD growth. Notably, Hong Kong’s HSI soared by 24.9% YTD, while China’s SHCOMP lagged with a comparable 12.4% YTD increase.
Monetary policy expectations have shifted, with the Federal Reserve signaling a possible rate cut at its mid-September meeting. Singapore’s 3M compounded SORA has fallen about 149 basis points year-to-date, while the 10-year government bond yield dropped 100 basis points, a positive backdrop for REITs due to lower financing costs and an enhanced yield premium.

Labor Market Softening, Rate Cut Expectations, and REITs Outlook

US private payrolls rose by 54,000 in August, missing consensus forecasts, with layoffs hitting a post-2020 high.
The unemployment rate is expected to climb to 4.3%, up from 4.2% in July.
Fed Chair Jerome Powell flagged a possible rate cut at the September 16-17 FOMC meeting, balancing labor risks and inflation.
Easing monetary policy and falling interest rates support REITs, with Singapore’s SORA and 10-year yields sharply lower year-to-date.

Dividend and Value Opportunities: Top Consensus Picks and Yield Highlights

Investors seeking income and value should note these top picks based on consensus forward dividend yield, lowest P/E, P/B, and EV/EBITDA ratios:

ST Engineering: Ambitious S\$250 Million AI Initiative and Workforce Transformation

ST Engineering is investing S$250 million over five years to drive advancements in physical artificial intelligence (AI), focusing on robotics and human-machine collaboration. The company’s Manned-Unmanned Teaming Operating System (Mumtos) leverages agentic and physical AI to coordinate robots, drones, and autonomous vehicles, now enhanced with smell sensors for gas detection and vital rescue applications.
Mumtos is adaptable for both defense and commercial sectors, with potential applications limited only by imagination.
The initiative aims to upskill 4,000 engineers, hire 1,000 AI specialists, and leverage government schemes for training.
Over 10,000 staff are already considered “AI-ready.”
STE’s market cap: S$24.8 billion. Trades at 28x forward PE, 9x PB, 2.1% dividend yield. Consensus target: $8.73 (9.8% upside).
The company maintains an “Accumulate” rating amid global geopolitical tensions.

Macro Market News: US, Hong Kong, and China in Focus

In the US, the rapid development of AI is expected to fuel political volatility and prompt more aggressive fiscal policy, including potential corporate tax hikes and Big Tech taxation. Geopolitically, AI is heightening distrust among major powers.
Hong Kong’s ambition to become a global gold trading hub faces a talent shortage, particularly for physical precious metals traders with global experience and bilingual skills. Banks are vigorously competing for talent, with significant poaching and international recruitment underway.

Shareholder Activity: Key Acquisitions, Disposals, and Buybacks

Major recent transactions include:

Share buybacks also remain active, with major companies such as HK Land, Sembcorp Industries, Keppel Ltd, OCBC, UOB, and ST Engineering repurchasing shares.

Institutional and Retail Fund Flows: Sector-Wise Insights

Institutional investors were net buyers by S$21.6 million for the week of 25 August, compared to a net sell of S$17.5 million the previous week. Retail investors were net buyers by S$33.7 million versus a net sell of S$0.9 million previously.

Dividends and Special Distributions: Upcoming Key Dates

Investors can look forward to a packed dividend calendar, with major payouts from Mapletree Logistics Trust, Mapletree Industrial Trust, Capitaland Ascott Trust, Far East Hospitality Trust, Keppel Ltd, CICT, DBS, UOB, ComfortDelGro, and more. Both interim and special dividends are scheduled for September and October 2025.

SGX Watch-List: Companies Under the Spotlight

There are currently 32 companies under the SGX Watch-List, including the latest additions such as Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare.

What’s Ahead: Key Dates and Events for September 2025

Monthly corporate actions, earnings releases, and dividend distributions are set to drive market activity.
Investors should monitor sector flows, as fund movement across consumer, financial, industrial, real estate, REITs, technology, and utilities sectors remains dynamic.

Conclusion: Strategic Outlook for Investors

Singapore’s stock market is buoyed by robust index gains, easing rates, and a supportive environment for REITs and value stocks. Corporate actions across leading companies, active fund flows, and a rich dividend calendar provide multiple investment opportunities. With ongoing macro shifts and the rise of technology and AI in the corporate sector, investors should stay vigilant and diversified to capture value in the months ahead.