To The Moon

$DBS(D05.SI)$

Singapore’s equity markets are having a standout moment in 2025. Both the Singapore Exchange (SGX: S68) and DBS Group Holdings (SGX: D05) have recently notched fresh all-time highs, buoyed by strong earnings, resilient balance sheets, and renewed investor interest in Southeast Asia’s economic hub. For investors who may have missed these rallies, the pressing question is clear: which other Singapore “golden stocks” might catch up next?

In this article, we review the drivers behind SGX’s and DBS’s ascent, analyze broader market sentiment, and identify other high-quality Singapore-listed companies that are poised to benefit from current trends. We conclude with actionable takeaways for investors looking to capitalize on Singapore’s continued economic and financial market strength.

Singapore Markets in Focus: A Tale of Resilience and Growth

Against the backdrop of a volatile global macroeconomic environment, Singapore equities have demonstrated resilience in 2025. While many developed market indices have struggled with persistent inflationary pressures and slowing growth, Singapore’s benchmark Straits Times Index (STI) has outperformed regional peers, thanks in no small part to its heavyweight constituents, SGX and DBS.

Why SGX Is Hitting New Highs

SGX has been a standout performer this year, with its stock price climbing over 18% year-to-date, reaching an all-time high in June 2025. The exchange operator has benefited from higher trading volumes in equities and derivatives as market participants hedge against global uncertainty. SGX has also capitalized on its position as a gateway to China and ASEAN markets, attracting foreign capital seeking exposure to Asia’s growth while mitigating geopolitical risks.

SGX’s continued investment in multi-asset platforms—spanning equities, fixed income, commodities, and currencies—has diversified revenue streams and reduced reliance on any single segment. Most recently, SGX reported quarterly earnings that beat analysts’ expectations, citing robust derivatives growth and a healthy pipeline of new listings, particularly in REITs and technology firms.

With a dividend yield exceeding 3%, a debt-free balance sheet, and steady free cash flow generation, SGX remains a core holding for income-oriented investors and institutions alike.

DBS: A Banking Powerhouse at Its Peak

DBS has likewise surged to record highs in 2025, climbing approximately 15% year-to-date, driven by sustained net interest margin (NIM) expansion and strong loan growth. The bank’s exposure to rising interest rates in the region has boosted profitability, while its disciplined cost controls and digital transformation initiatives have improved operating efficiency.

In its latest quarterly results, DBS reported double-digit year-over-year growth in net profit, driven by higher fee income from wealth management and treasury products in addition to core lending. Importantly, DBS maintains one of the strongest capital adequacy ratios in Asia and continues to return capital to shareholders through generous dividends and periodic share buybacks.

With both SGX and DBS firing on all cylinders, it is instructive to consider which other Singapore-listed “golden stocks” might soon follow suit.

Broader Market Sentiment: Why Singapore Equities Still Appeal

Several structural and cyclical factors support the Singapore market’s current momentum:

• Regional Safe Haven Status: Amid rising geopolitical tension elsewhere in Asia, Singapore remains politically stable and investor-friendly.

• Robust Economic Fundamentals: Singapore’s GDP growth is forecast at ~2.5% for 2025, underpinned by trade, services, and finance.

• Rising Institutional Interest: Global fund managers continue to allocate to Singapore due to its transparency, corporate governance standards, and yield opportunities.

However, it is worth noting that valuations for some blue chips have become stretched. The STI trades at around 13x forward earnings—higher than its 10-year average of 12x but still below the broader MSCI World Index. This suggests room for selective upside if earnings continue to deliver.

Golden Stocks That Could Catch Up

While SGX and DBS have already delivered impressive gains this year, several other high-quality Singapore-listed companies are well-positioned to benefit from the same favorable macro tailwinds. Below are some names that warrant closer attention:

1. Oversea-Chinese Banking Corporation (OCBC, SGX: O39)

Often seen as DBS’s slightly more conservative peer, OCBC has lagged DBS in 2025 but remains attractively valued. The bank trades at a forward P/E of just under 9x, with a dividend yield approaching 5%. Its strong capital base and growing wealth management franchise provide upside potential, particularly as regional wealth creation accelerates.

OCBC’s diversified income streams from insurance (via Great Eastern) and asset management give it stability in volatile times. Investors seeking value in Singapore’s banking sector may find OCBC compelling as a catch-up trade.

2. United Overseas Bank (UOB, SGX: U11)

UOB, the smallest of Singapore’s three banks, has also trailed DBS but stands to benefit from the same tailwinds of rising rates and loan growth. UOB’s regional expansion strategy, particularly into Malaysia, Thailand, and Vietnam, positions it well to tap into ASEAN’s growing middle class. With a healthy dividend yield and prudent risk management, UOB remains a solid candidate for long-term investors.

3. CapitaLand Investment (CLI, SGX: 9CI)

As one of Asia’s largest real estate investment managers, CLI has underperformed relative to its potential this year, partly due to cautious sentiment around property markets. However, its recurring fee income from managing REITs and private funds provides resilience. CLI’s strategic focus on high-quality assets in gateway cities and its growing exposure to data centers and logistics properties add growth optionality.

4. Singtel (SGX: Z74)

Singapore Telecommunications has struggled in recent years due to competition and sluggish core earnings. But with its ongoing restructuring, cost-cutting initiatives, and investments in 5G and digital businesses, Singtel is beginning to turn the corner. At a P/E of ~12x and a dividend yield near 4.5%, Singtel could surprise to the upside if earnings recovery takes hold.

5. Keppel Corporation (SGX: BN4)

Keppel, a diversified conglomerate with interests in real estate, infrastructure, and offshore & marine, is undergoing a significant transformation. The spin-off of its offshore & marine business and its pivot toward renewable energy and urban solutions align with global trends. Its discounted valuation relative to net asset value makes Keppel a potential catch-up play.

Risks to Consider

While the outlook for Singapore equities remains constructive, investors should remain mindful of potential risks:

• Global Economic Slowdown: Weaker growth in major export markets could hurt Singapore’s open economy.

• Higher-for-Longer Interest Rates: Prolonged monetary tightening could dampen credit growth and property markets.

• Geopolitical Tensions: Escalation of tensions in the South China Sea or broader U.S.-China rivalry could weigh on investor sentiment.

Takeaways: Positioning for Singapore’s Next Leg Higher

The Singapore market has demonstrated resilience and rewarded investors who stuck with its highest-quality names. SGX and DBS, both at all-time highs, exemplify the strength of Singapore’s financial and economic model.

For those who missed the early part of this rally, there are still opportunities among Singapore’s other “golden stocks.” Names like OCBC, UOB, CapitaLand Investment, Singtel, and Keppel offer a combination of reasonable valuations, solid fundamentals, and potential catalysts that could drive catch-up performance.

In sum, investors should continue to favor companies with strong balance sheets, recurring cash flows, and clear strategic direction. A disciplined, selective approach focused on value and quality remains the best way to navigate Singapore’s market in 2025 and beyond.

Disclaimer: I want to make it clear that I am not a financial advisor, and nothing I say is intended to be a recommendation to buy or sell any financial instrument. Additionally, it's important to remember that there are no guarantees or certainties in trading or investing, and you should never invest money that you can't afford to lose.

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