Lim & Tan Securities Pte Ltd
Date of Report: 22 September 2025

Singapore Market Insights: ComfortDelGro’s Strategic Moves, SGX’s Next 50 Index Launch, and Key Sector Trends

Market Overview: FSSTI and Global Indices Performance

Singapore’s FSSTI index continues its upward trajectory, closing at 4,302.7 with a year-to-date (YTD) gain of 13.6%. The market remains robust, supported by healthy trading volumes and a strong pipeline across different sectors. Globally, major indices like the Dow Jones, S&P 500, and Nasdaq have also posted solid YTD returns, reflecting resilient risk appetite among investors.

Key Commodities and Interest Rates

Commodities have seen mixed performance, with gold up a remarkable 40.5% YTD, while crude oil has declined by 12.6%. The 3-month SGD SORA and government bond yields have also shown notable changes, reflecting shifting monetary conditions.

ComfortDelGro: Full Ownership of CityCab to Drive Growth

ComfortDelGro (CDG), trading at $1.49 with a market capitalization of $3.2 billion, has announced its acquisition of the remaining shares in CityCab, making it a wholly-owned subsidiary. Previously, CDG held 53.5% and ST Engineering Land Systems (STLS) 46.5% of CityCab. CDG acquired the remaining stake from STLS for S$116.3 million, fully funded via bank facilities.
Key highlights:

• The acquisition is earnings accretive and strengthens CDG’s point-to-point mobility business.
• The purchase price was based on a Deloitte & Touche valuation of S\$98.9 million for the shares, with the final agreed consideration set at S\$116.3 million.
• CityCab’s net tangible asset and book value attributable to STLS’s shares was S\$37.4 million as of FY2024.
• The acquisition will not have a material impact on CDG’s net tangible assets or earnings per share for FY2025.
• No directors or controlling shareholders of CDG have interests in this transaction, aside from their existing roles.

CDG maintains attractive financial metrics:

• Forward P/E: 14x
• P/B: 1.2x
• Dividend Yield: 5.5%
• Consensus Target Price: \$1.73 (16.1% potential upside)

The broker maintains an “Accumulate” rating, citing decent yield and anticipated growth of 15–20% ahead.

SGX Launches iEdge Singapore Next 50 Indices

SGX Indices has introduced the iEdge Singapore Next 50 Indices, designed to track the performance of the next tier of large and liquid mainboard companies beyond the flagship Straits Times Index (STI). The indices come in two variants—weighted by market capitalization and by liquidity—broadening exposure for investors and enhancing the visibility of Singapore’s mid-cap segment.
Key features:

• Excludes the 30 largest companies by market cap, focusing on the “next 50.”
• Strong representation from Singapore REITs (17 out of 50 constituents), industrials (8), and finance (7).
• Top contributors (5% weight each): NetLink NBN Trust, Yangzijiang Financial, Suntec REIT, Keppel REIT, ComfortDelGro, Capitaland Ascott Trust.
• Institutional investors net purchased S\$425 million in small- and mid-cap stocks in the first eight months of 2025, with daily turnover up 50% to S\$163 million.

Top Companies: Valuations, Yields, and Market Ratios

Macro Market Developments: US, Hong Kong, and China

• The US labor market continues to slow, with both hard and soft data showing deceleration. While not yet signaling a sharp downturn, momentum is weakening, supporting the case for a pause in interest rate hikes.
• China is seeing a historic shift, with cross-border investment flows now surpassing the value of goods and services trade for the first time. In the first seven months of 2025, two-way financial flows hit US\$4.5 trillion, driven by equities and bond trading. This marks a step towards a more open capital account and aligns China with developed markets where investment flows dominate trade flows.
• China’s authorities remain cautious about opening the capital account too quickly, aiming for stability as they promote global usage of the yuan and offer savers more options amid low yields and property weakness.

Shareholder Movements and Buyback Activity

Significant insider transactions and share buybacks reflect ongoing confidence and strategic positioning within Singapore-listed companies.

Institutional and Retail Fund Flows: Sector Trends

• Institutional investors showed a net sell of S\$9.1 million for the week of 8 September, compared to a net buy of S\$49.1 million a week earlier.
• Retail investors returned to net buying with S\$0.5 million, reversing a previous net sell of S\$88.6 million.

Dividend Calendar: Upcoming Key Ex-Dividend Dates

Investors should note the following upcoming ex-dividend and payment dates for major Singapore-listed companies.

SGX Watch-List: Latest Additions and Overview

There are currently 32 companies under the SGX Watch-List, including recent additions such as Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare. The watch-list highlights companies requiring closer regulatory scrutiny due to various criteria.

Conclusion: Opportunities and Risks Ahead

With the FSSTI maintaining its strength and SGX initiatives driving greater visibility for mid-cap companies, Singapore’s market landscape remains dynamic. ComfortDelGro’s strategic acquisition, robust institutional activity, and a healthy pipeline of dividends provide a positive backdrop for investors. However, global macroeconomic shifts—especially in the US and China—will remain critical to monitor in the months ahead.
Stay updated for more actionable insights and timely analysis as the financial landscape continues to evolve.