Review of Singapore Stock Market Performance in the H1 2025 📈
As of June 30, 2025, the $Solidion Technology Inc.(STI)$ closed at 3,966.2, up 0.7% on the day, 1.8% month-to-date (MTD), and 4.7% year-to-date (YTD) 📈.
Globally, major stock indexes also performed positively, with the $Dow Jones(.DJI)$ up 1.0%, the $S&P 500(.SPX)$ up 0.5%, and the $NASDAQ(.IXIC)$ up 0.5% 🌍.
However, the $HSI(HSI)$ fell 0.2% after earlier strong gains 📉.
The commodities market saw mixed results, with $Gold - main 2508(GCmain)$ prices stable at $3,268.0 Sand crude oil prices rising 0.4% to 65.5 dollars per barrel 🛢️.
Looking at global capital flows, the $USD Index(USDindex.FOREX)$ fell for two consecutive quarters in 2025, down 11% as of the time of writing 📉.
During periods of US dollar weakness, non-US stocks typically outperform US stocks, and emerging market stocks, including those in Asia, often perform well. Moreover, Asian stocks (excluding Japan) are supported by domestic fiscal policies and may benefit from a weaker US dollar. As part of the Asian market, Singapore’s stock market also reaps these benefits 🌍.
Singapore’s economic structure is diversified, with a stable policy environment. Its position as an international capital hub is solid, and companies have strong profitability, all of which boost investors’ confidence in the Singapore stock market 🏢.
In the first half of 2025, the growth of the AI industry chain and high-end services led to a robust profit outlook for related companies, driving the overall stock market upward 🚀.
Let’s see the top 10 gainers in 1st half 2025：
Looking at the performance of specific stocks, the top 10 gainers with a market value greater than 1 billion Singapore dollars are $YZJ Fin Hldg(YF8.SI)$ , $Hong Leong Asia(H22.SI)$ , $Centurion(OU8.SI)$ , $ST Engineering(S63.SI)$ , $Pacific Century(P15.SI)$ , $HongkongLand USD(H78.SI)$ , $UOB Kay Hian(U10.SI)$ , $SIA Engineering(S59.SI)$ , $SingaporeLandGrp(U06.SI)$ , and $HPL(H15.SI)$ 📈.
Investment holding: 3 companies ( $Hong Leong Asia(H22.SI)$ , $Pacific Century(P15.SI)$ , $HPL(H15.SI)$ )
Real estate: 3 companies ( $Centurion(OU8.SI)$ , $HongkongLand USD(H78.SI)$ , $SingaporeLandGrp(U06.SI)$ )
Finance: 2 companies ( $YZJ Fin Hldg(YF8.SI)$ , $UOB Kay Hian(U10.SI)$ )
Engineering and manufacturing: 1 company ( $ST Engineering(S63.SI)$ )
Aviation services: 1 company (SIA Engineering)
In terms of industry distribution,
Investment holding and real estate industries account for a large proportion of the top 10 gainers, with 3 companies each. This may indicate that these two industries performed strongly in the Singapore stock market in the first half of 2025. The finance industry also had 2 companies on the list, showing its significance in the Singapore stock market. In addition, the engineering and manufacturing and aviation services industries each had 1 company on the list 🏢.
Finance industry: Banks hold an important weight in the Straits Times Index. Despite facing net interest margin pressure in 2025, interest rates are expected to structurally remain above the level before the Federal Reserve started raising rates in 2022. Loan growth, improved wealth management activities, and alleviated asset quality pressures may mitigate the net interest margin pressure, allowing bank revenues to maintain their current level. Moreover, bank stocks continue to offer attractive dividend yields (over 5%), with the potential to further increase dividends 🏦.
Real Estate Investment Trusts (REITs) industry: With declining interest rates, REITs have become more attractive, offering yields higher than bank deposit rates. For example, in 2025, the yield of Singapore REITs was about 6.2%, higher than the Singapore bank yield of about 5.6%. This has led to a significant increase in REITs prices 🏢.
Manufacturing industry: In May 2025, Singapore’s manufacturing factory output grew by 3.9% year-on-year, exceeding economists’ forecasts. The electronics industry grew by 3.9%, with the information and communication and consumer electronics sectors growing by 42.6%. Almost all manufacturing clusters recorded positive growth, indicating the continued strength of Singapore’s industrial production 🚀.
💰Expectations and Key Focus for Singapore Market in the H2 2025
For the second half of 2025, $Morgan Stanley(MS)$ released an optimistic forecast for the Singapore stock market, expecting significant growth by 2030 📈. The investment bank projects that the return on equity (RoE) will rise from 12% to 14%, and the price-to-book (P/B) ratio will increase from 1.7 times to 2.3 times over the next five years. This favorable outlook is based on three key factors: Singapore’s status as a global financial, trading, and energy hub; the rapid adoption of new technologies; and ongoing stock market reforms 🌍.
Although acknowledging potential risks such as a global trade slowdown and geopolitical tensions, Morgan Stanley maintains its overweight rating for Singapore. The company expects that blue-chip stocks like $DBS(D05.SI)$ , $SGX(S68.SI)$ , $CapitaLandInvest(9CI.SI)$ , and $Keppel(BN4.SI)$ will benefit the most from the initial capital inflows due to regulatory changes 💼.
Key macro events, monetary policies to watch in the second half of 2025 Macro events:
Global economic growth and trade situation: The global economic recovery and trade warming are crucial for Singapore’s economy and stock market. Keep an eye on global economic growth data and changes in trade policies 🌍.
Federal Reserve policy: The pace and magnitude of the Federal Reserve’s interest rate cuts have a significant impact on global financial markets and, in turn, Singapore’s stock market. Monitor the Fed’s interest rate decisions and related economic data 📈.
Geopolitical situation: Geopolitical tensions can cause market volatility. Stay informed about political dynamics and conflict risks in relevant regions 🌍.
Monetary policy: The monetary policy direction of the Monetary Authority of Singapore (MAS) directly affects the stock market. Pay attention to its interest rate decisions and the use of monetary policy tools 🏦.
Global themes affecting Singapore and Asia
Taiwan has joined the US-led efforts to restrict China’s technological rise, blacklisting Huawei and SMIC. This marks a shift in Taiwan’s strategy, with stricter controls on semiconductor exports and a more assertive stance in the technology competition. The impact may reshape the regional chip supply chain 🌍.
In the US, labor market signals are sending cautious signs. Although hard data still show some resilience, job vacancies are declining, and initial unemployment claims are rising. The current investment consensus is to underweight stocks, overweight fixed income, and maintain a neutral stance on cash. Any further weakness in the labor market could lead to a shift in investment portfolios towards more defensive strategies 📉.
Key industries in focus:
Finance industry: Continue to monitor banks’ net interest income, loan growth, asset quality, and dividend policies, as well as the impact of fintech development on traditional financial services 🏦.
Real estate industry: In addition to the performance of REITs, pay attention to the supply and demand situation in the real estate market, policy regulation, and the impact of interest rate changes on real estate companies. Also, focus on their asset portfolios, rental income, dividend policies, and market valuations 🏢.
Manufacturing industry: The positive growth of almost all manufacturing clusters in the first half indicates a broad expansion across industries. Despite concerns about potential disruptions from US tariffs, the performance shows the continued strength of Singapore’s industrial production. Monitor specific companies’ order growth, revenue expectations, and business expansion plans 🚀.
Technology industry: With the rapid development of new technologies like AI, the tech industry is expected to continue driving economic growth. Keep an eye on related companies’ R&D investment, market expansion, and policy support 🌐.
Individual stock highlights: Consensus dividend yield, valuation, and outlook
Highest expected dividend yield (%):
Lowest expected price-to-earnings ratio (X):
$YZJ Shipbldg SGD(BS6.SI)$ : 6.73
$Jardine C&C(C07.SI)$ : 8.73
$Wilmar Intl(F34.SI)$ : 10.09
$UOB(U11.SI)$ : 10.12
$ocbc bank(O39.SI)$ : 10.13
Lowest price-to-book ratio (P/B):
$HongkongLand USD(H78.SI)$ : 0.43
$UOL(U14.SI)$ : 0.45
$JMH USD(J36.SI)$ : 0.50
$CITYDEV NCCPS(C70.SI)$ : 0.52
Lowest enterprise value/EBITDA (X):
$YZJ Shipbldg SGD(BS6.SI)$ : 3.40
$Genting Sing(G13.SI)$ : 5.34
$Jardine C&C(C07.SI)$ : 6.72
$SATS LTD.(S58.SI)$ :8.09
In the short term: Key earnings dates in July and August 2025
In July, earnings dates to watch include Raffles Medical, Singapore Airlines, Mapletree Industrial Trust, City Developments REIT, and Mapletree Pan Asia Commercial Trust.
In August, Oversea-Chinese Banking Corporation is expected to announce its financial results before the market opens on August 1.
Conclusion:
Singapore Market Outlook for the second half of 2025: amid global market turbulence and shifting industry trends, Singapore’s stock market remains resilient.
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