To The Moon

Singapore’s stock market is on fire in July 2025, with the Singapore Exchange (SGX) and DBS Group Holdings smashing all-time highs, signaling robust momentum in the Lion City’s financial sector. SGX surged 15% year-to-date (YTD) to S$11.50, driven by record trading volumes, while DBS climbed 20% YTD to S$42.50, fueled by strong loan growth and digital banking wins. As REITs like CapitaLand Integrated Commercial Trust (CICT) also hit record levels, investors are hunting for the next breakout stars. Which Singapore stocks could join this elite club, and are DBS or SGX still worth buying at these peaks? This report explores the catalysts driving Singapore’s market, highlights underrated stocks with high potential, and outlines strategic investment approaches to seize golden opportunities while managing risks.

Market Landscape: Singapore’s Financial Firepower

Singapore’s market is thriving amid global volatility:

• Financial Sector Strength: SGX’s trading volumes hit a record S$1.5 billion daily average in Q2 2025, up 20% year-over-year, while DBS’s net interest income rose 15% to S$4.2 billion, driven by loan growth and digital banking adoption.

• REIT Rally: REITs like CICT are soaring, with a 10% YTD gain, fueled by strong rental income and Singapore’s status as a commercial hub.

• Global Context: The S&P 500’s dip to 6,135 and potential 5-10% pullback to 5,800-6,000, alongside geopolitical tensions (Israel-Iran conflict pushing oil to $75 per barrel), add volatility, but Singapore’s stability shines.

• Trade Dynamics: U.S.-China trade tensions and Trump’s tariff threats could impact Singapore’s export-driven economy, though its financial sector remains resilient.

• Monetary Policy: The Monetary Authority of Singapore (MAS) maintained a neutral stance, supporting SGD strength and boosting banking stocks like DBS.

Social media sentiment on X is bullish, with users hyping SGX’s trading surge and DBS’s dividend appeal, but some warn of overvaluation risks at these highs.

Top Stocks to Watch: The Next High-Flyers

Here’s a curated list of Singapore stocks with breakout potential, driven by strong catalysts and undervalued opportunities:

• CapitaLand Integrated Commercial Trust ( $Cict Mobile Communication Technology Co.,Ltd.(688387)$ ): Up 10% YTD to S$2.15, with 5% rental income growth in Q1 2025. Targets S$2.30 with stable 5.5% dividend yield. Support at S$2.00.

• Keppel Corporation ( $Korea Electric Power(KEP)$ ): Up 12% YTD to S$6.80, driven by S$10 billion in infrastructure contracts and green energy pivot. Targets S$7.50, support at S$6.50.

• SATS Ltd ( $SATS Ltd.(SPASF)$ ): Up 8% YTD to S$3.40, fueled by 20% air travel recovery and cargo growth. Targets S$3.80, support at S$3.20.

• DBS Group Holdings (DBS): Up 20% YTD to S$42.50, with 15% loan growth and 4.5% dividend yield. Targets S$46, support at S$40.

• Singapore Exchange (SGX): Up 15% YTD to S$11.50, with record trading volumes. Targets S$12, support at S$11.

Key News and Highlights

SGX’s Trading Surge

SGX’s record S$1.5 billion daily trading volume in Q2 2025, up 20% year-over-year, reflects strong investor activity in equities and derivatives. Its 22x forward P/E is high but justified by 10% revenue growth and a 3.5% dividend yield. Analysts target S$12-$13, a 4-13% upside, but overvaluation risks suggest a dip to S$11 as a buying opportunity.

DBS’s Banking Dominance

DBS’s 20% YTD gain to S$42.50 is driven by 15% net interest income growth to S$4.2 billion and digital banking expansion, with 70% of transactions now online. Its 15x P/E and 4.5% dividend yield make it a safer bet than SGX. Analysts target S$46-$48, a 8-13% upside, with support at S$40.

CICT’s REIT Resilience

CICT’s 10% YTD gain to S$2.15 reflects strong office and retail demand, with 5% rental income growth in Q1 2025. Its 5.5% dividend yield and stable cash flows targetMutability: Buy on Dip target S$2.30, with support at S$2.00. A dip to S$2.00 offers a strong entry point.

Keppel’s Infrastructure Push

Keppel’s 12% YTD gain to S$6.80 is fueled by S$10 billion in infrastructure contracts, including offshore wind projects. Its green energy pivot targets S$7.50, with support at S$6.50, offering 10-15% upside.

SATS’s Aviation Rebound

SATS’s 8% YTD gain to S$3.40 is driven by a 20% air travel recovery and cargo growth. Targets S$3.80, with support at S$3.20, offering 12-18% upside as travel rebounds.

Trading and Investment Strategies

Short-Term Plays

• Buy CICT on Dip: Enter at S$2.00-S$2.10, target S$2.30, stop at S$1.95. A 7-15% gain on REIT stability.

• Buy SATS: Grab at S$3.20-S$3.30, target S$3.80, stop at S$3.10. A 12-18% upside on travel recovery.

• Buy Keppel: Enter at S$6.50-S$6.60, target S$7.50, stop at S$6.30. A 10-15% gain on infrastructure momentum.

Long-Term Investments

• Hold DBS: Buy at S$40-S$42, target S$46, for 8-15% upside and 4.5% dividend yield.

• Hold SGX: Buy at S$11-S$11.20, target S$12, for 4-9% upside, but watch valuation risks.

• Diversify with REIT ETF ( $SGX USD/CNH - main 2509(UCmain)$ ): Buy at S$1.50, target S$1.80, for broad REIT exposure.

Hedge Strategies

• VIXY ETF: Buy at $15, target $18, stop at $13, to hedge against global volatility.

• Gold ETF ( $SPDR Gold Shares(GLD)$ ): Buy at $200, target $220, stop at $190, as a safe-haven hedge.

• SGD Cash: Hold 20% cash to seize dips if global tensions escalate.

My Trading Plan

I’m bullish on CICT and DBS for their stability and yield but see upside in Keppel and SATS for growth. I’ll buy CICT at S$2.10, targeting S$2.30, with a S$2.00 stop, and DBS at S$42, targeting S$46, with a S$40 stop. I’m hedging with VIXY at $15, targeting $18, and keeping 20% cash to capitalize on dips if geopolitical tensions (e.g., Israel-Iran conflict) or trade uncertainties shake markets. I’ll monitor SGX’s trading volumes, DBS’s loan growth, and global trade developments for cues.

Visualizing Stock Performance

The Bigger Picture

Singapore’s market is sizzling in July 2025, with SGX and DBS hitting all-time highs, driven by trading volumes and banking strength. CICT, Keppel, and SATS are underrated gems with breakout potential, offering stable dividends, infrastructure growth, and aviation recovery. DBS’s 4.5% yield and 15x P/E make it a safer buy than SGX’s 22x P/E, while CICT and Keppel balance income and growth. Global volatility, including geopolitical tensions and trade uncertainties, demands hedging with VIXY or GLD. Investors should buy on dips, hold for long-term gains, and stay nimble for market swings. Singapore’s golden stocks are shining—pick your winners and trade smart.

Which Singapore stock is your top pick—DBS, SGX, or a hidden gem? Share your strategy below!

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📝 Disclaimer: This post is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.

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