To The Moon

The $Straits Times Index(STI.SI)$ added 1.85% this week to close at 4,087.81, hitting a record high of 4,102.97, as Industrials took the lead in 2025 accumulated net institutional inflows. $OKP(5CF.SI)$, with Or Kim Peow at the helm for 58 years also hit an all-time high above S$1.00. Meanwhile, investor appetite for yield and digital infrastructure is set to be tested with the launch of the NTT DC REIT IPO on Monday.

STI ended the week up 1.85% at 4,087.81. The new all-time high reached today was 4,102.97.

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Since the end of 2019 the STI has generated a 62% total return. A monthly DCA plan in an STI ETF has delivered a 7.0% compound annual growth rate since end-2019. While this trails the lump-sum total return over the same period, it highlights how coordinated efforts with market partners can deliver accessible, long-term solutions tailored to Singapore investors.

Around two-thirds of Singapore-listed stocks are set to report their 1HFY25 results over the coming six weeks. The extent to which these earnings beat or miss expectations will be pivotal in shaping the near-term outlook for the Straits Times Index (STI). While the 12-month consensus target price for the STI constituents remains constructive, it has moderated since the end of 1Q25. Singapore 2Q25 Advanced GDP will also be released on Monday, with Refinitiv expectations for +0.6% QoQ growth and 3.5% YoY growth compared to -0.6% and 3.9% in 1Q25. DBS maintains domestic driven themes and high yield defensive names remain relevant amid ongoing uncertainties, while flagging 3Q25 volatility risks here.

Over the week the USD/SGD oscillated around 1.28, and the 3-month Compounded SORA broke below 2.00%. The $USD Index(USDindex.FOREX)$ nudged higher towards 98.00 from the 96.38 low on July 1, as 10-year UST yields consolidated around 4.35%.

US Inflation Uncertainty Meets Fiscal Optimism on Tariffs

The June 17–18 FOMC minutes revealed that while tariffs are expected by the Fed to exert upward pressure on inflation, their impact remains uncertain due to delayed pass-through, supply chain adjustments, and varied pricing strategies among firms. Treasury Secretary Bessent told CNBC International this week the Congressional Budget Office (CBO) projects US$2.8 trillion in tariff revenues over the next decade a figure he expects to rise with new trade deals underway. Fed Gov Waller this week continued to make his case for a Fed Funds Rate cut on July 30, acknowledging that this is a minority view and not political. This following his speech on the Fed Balance Sheet where Gov Waller made the case for continuing to shrink the Fed’s balance sheet but argued it doesn’t need to return to pre-crisis levels. Instead, it should align with its ample-reserves framework—estimated at around US$5.8 trillion or 19% of GDP, with US$2.7 trillion in reserve balances, US$2.3 trillion in currency, and an average of $780 billion in Treasury General Account (TGA) liabilities. The current balance sheet is around US$6.7 trillion (around 22% of GDP), and back at the March FOMC Gov Waller was the sole dissenter to slowing the Fed balance sheet runoff. The July FOMC black out period will commence July 19 with the FedWatch Tool indicating 5% expectations of  a cut on July 30, and majority expectations for 50 bps over the following three FOMCs before 2026.

Industrials Take Lead in Local Sector Net Institutional Inflow in 2025

2025 portfolio allocations continued to carve out new beachheads this week, with Singapore’s Industrial Sector taking the lead in net institutional inflows year-to-date. However, $Singtel(Z74.SI)$ ’s close above S$4.00 on Thursday—its first since October 2016—was accompanied by a S$16 million net inflow, narrowing the brief gap of Industrials over Telecommunications prior to the opening bell Friday.

Singtel ended the week up up 5.7% at S$4.08, ranking as the strongest STI stock on the week. With growing local attention on the potential for value-up initiatives across the broader stock market, there’s much to glean from the latest Singtel Annual Report released last Monday. Singtel’s dividend trajectory underscores its capital discipline: a 17.0 cent total ordinary dividend for FY25, comprising a 12.3 cent core payout and a 4.7 cent value realisation dividend. This reflects both underlying net profit and returns from its capital recycling programme. Since FY21, Singtel has more than doubled its dividend from 7.5 cents to 17.0 cents, with the CFO reaffirming a commitment to sustainably grow EPS and DPS while scaling platforms like Nxera and NCS.

$Keppel(BN4.SI)$ gained 1.4% on the week and is set to report 1HFY25 results on July 31. Since tariff-induced volatility eased on April 16, Keppel has attracted the highest net institutional inflow in the local market and delivered a total return of 30%. While on the topic of value realisation, among several initiatives shared at its investor day roughly six weeks ago, Keppel highlighted accelerated pathways to asset monetisation, paving the way toward its S$10–12 billion target by end-2026.

Within the STI, Keppel’s 30% return since April 16, is second only to $HongkongLand USD(H78.SI)$ , which has been buoyed by a US$200 million buyback programme—with US$114 million repurchased at an average of US$5.33 apiece since April 24. Hongkong Land declined 0.6% on the week in SGD terms.

Meanwhile net retail flows maintained a propensity to sell into gains. Keppel, despite its gains, has been the most net sold by retail investors since April 16. Singtel and $DBS(D05.SI)$ also ranked among the top five retail sell-offs over the past 12 weeks. Notably, DBS saw a reversal from S$815 million in net retail buys in early April (overall VWAP: S$40.34) to S$125 million in net retail sell since (overall VWAP: S$43.99), suggesting profit-taking amid price appreciation.

$YZJ Shipbldg SGD(BS6.SI)$ added 5.0% on the week, ranking as the STI's second best performer on the week. The trio of $DBS(D05.SI)$ , $ocbc bank(O39.SI)$ and $UOB(U11.SI)$ averaged 2.7% gains on the week,. ST Engineering and Sembcorp Industries both chalked up 3.6% gains. Singapore Airlines also generated a 3.1% gain.

What’s Driving Industrials?

• Both economic and geopolitical shifts are driving supply chain realignment, and in some cases fueling industrial services growth.

• At the same time, rapid AI and automation adoption—especially in construction and logistics—is boosting productivity and strengthening infrastructure.

• Meanwhile, in Singapore a robust pipeline of public and private projects, along with improved sector margins in 2024, has underpinned 1H25 market confidence.

$ST Engineering(S63.SI)$ has ranked as the STI’s strongest performing constituent this year while booking the third highest net institutional inflow for the year. With a long operating history the group recently highlighted its broad customer base across its aerospace, defence and smart city domains, while also noting it investments in critical digital technologies. Part of its history includes the acquisition of aviation engine parts maker MRAS which greatly boosted its network of facilities in the US to support regional and global customers. The consensus estimate target price of the stock has been upgraded from S$5.02 to S$8.30 this year.

From Innovation to Execution: CSE Global Positioned for US-Led Growth

On 26 June, $CSE Global(544.SI)$ appointed Ravinder Singh—former ST Engineering COO (Technology & Innovation)—as a non-executive, non-independent director. In mid-May it reported 1QFY25 revenue grew 4.0% YoY to S$205.5 million, driven by strong Communications and Automation performance in the US, supported by a solid S$616 million order book as of 31 March. This followed its record FY24 revenue of S$861.2 million. As The Edge Singapore reported last week, with the Trump Administration encouraging companies to onshore manufacturing and expand US data center capacity, Maybank Securities analyst Jarick Seet sees CSE Global as a likely beneficiary of these megatrends. This saw Maybank lift their TP on the stock from S$0.58 to S$0.70 back on June 27.

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From Drones to Deals: ISOTeam’s Innovation and Execution Power 2025 Momentum

Notably, Jarick also recently highlighted ISOTeam’s AI drone painting solution, which could cut its costs by 30–40% and aligns with Singapore’s push to reduce manpower. Testing begins on an HDB site by September 2025, with plans to expand if successful. ISOTeam has attracted S$4.4 million in net institutional inflows this year which represents 7% of its S$59 million market cap. A leading public-sector facilities maintenance firm, on July 2, ISOTeam also announced S$21 million in new contracts across six segments, including high-profile sites like Tuas Terminal Gateway, Resorts World Sentosa, and Orchard Gateway, with completions stretching to mid-2027. The stock’s average daily turnover has tripled this year, while price gains lifted its P/E from 5.9x to 8.9x, supported by a 19% ROE.

From Foundations to Future: OKP Holdings Hits S$1.00 with Record Order Book

OKP Holdings share price rallied 5.9% this week, and has surged 205% year-to-date, reaching a new high this week above S$1.00 before ending the week at S$0.99. This brings its average annualised total return since listing in July 2002 to 13.6%.  This year the P/E has increased from 3x to 9x, supported by a 19% ROE and a sharp rise in liquidity—averaging more than S$320,000 traded daily, up from less than S$25,000 in 2024, placing it among Singapore’s 100 most traded stocks this year. With a market cap of close to S$313 million, OKP Holdings operates across three core segments—construction led by its A1-grade subsidiaries for unlimited-value public projects, maintenance for stable recurring income, and rental from investment properties in Singapore and Australia to enhance revenue resilience.

On May 30, OKP Holdings announced its wholly-owned subsidiary secured a record S$258 million contract from the Land Transport Authority (LTA) for the construction of new cycling paths across Singapore’s East Region. The 72-month project, which commenced in May 2025, is slated for completion in May 2031. With this win, the Group’s net construction order book has reached an all-time high of S$736 million, with visibility extending through to 2031. Since establishing the company 58 years ago, the founder of the Group, Or Kim Peow, has played a pivotal role in its growth—guiding it through key milestones and shaping its strategic direction.

Mr Or maintains that Singapore’s construction sector remains upbeat, with BCA projecting 2025 demand at S$47–53 billion, up from S$44 billion in 2024 with the positive outlook strengthening prospects for transport infrastructure and civil engineering firms like OKP Holdings. He also highlighted that the Group deploys smart automation with AI-driven machinery to reduce manual labor, minimise errors, and enhance safety, adding that the 360° AI vision system on excavators replaces manual signaling, both productivity and on-site safety. As discussed in the 10 in 10 with OKP Holdings, the Group is also backed by a strong balance sheet with free cash and cash equivalents totalling S$124 million at the end of 2024, the Group is well-positioned to capitalise on growth opportunities.

Other highlights on the week include:

• The Edge Singapore sharing insights from SATS building its global network with the WFS deal.

• SGX 10 in 10 with China Everbright Water (CEWL) examines how the environmental protection group leverages strong policy tailwinds, state-backed support, full-chain water management capabilities, stable government-backed cash flows, and flexible financing to deliver resilient, long-term value to shareholders and investors.

• REITsavvy on the NTT DC REIT IPO which is potentially the largest Data Centre IPO in Asia, offering investors a projected 7.5% yield and exposure to a US$1.6 billion global data centre portfolio anchored by tech giants. Beansprout have also published an insightful and balanced 15-minute overview on YouTube.

• GEM COMM on Lum Chang Creations and Dezign Format.

• Annual Reports for $Cortina(C41.SI)$ , $Old Chang Kee(5ML.SI)$ , $iWOW Technology Limited(NXR.SI)$ , $Valuetronics(BN2.SI)$ and $Japan Foods(5OI.SI)$ among others.

• The Business Times Ben Paul Hock Lock Siew on Stoneweg Europe Stapled Trust, and its momentum gains as investor sentiment toward European stocks improves, with potential ECB rate cuts supporting the bullish outlook.

• The Business Times Navene Elangovan's column on $DBS(D05.SI)$ and Singtel helping lift Temasek’s portfolio to record S$434 billion.

• Combined $STI ETF(ES3.SI)$ is nearing S$3.0 billion, reaching S$2.9 billion this week.