Comprehensive Singapore Market Analysis – January 2025
Overview of Market Performance
The Singapore MSCI Index (SIMSCI) closed January 2025 at 387.97 points, reflecting a month-on-month increase of 15.44 points or 4.14%. Despite global market uncertainties following the U.S. government transition, Singapore’s stock market displayed strong resilience. December 2024 Non-Oil Domestic Exports (NODX) grew by 9% year-on-year, surpassing Bloomberg consensus estimates of 7.4% year-on-year. Electronics NODX saw a robust growth of 18.6%, while Non-electronics NODX expanded by 6.6%. Meanwhile, December headline inflation remained flat at 1.6% year-on-year, while core inflation eased to 1.8%, slightly exceeding expectations.
The Monetary Authority of Singapore (MAS) announced a slight reduction in the slope of the S\$NEER to 1%, with economists anticipating further easing depending on risks to inflation and growth. On the property front, December private home sales dropped 92% month-on-month (50% year-on-year) due to seasonal slowdowns. However, private home prices rose 2.3% quarter-on-quarter in Q4 2024, while HDB resale prices increased by 2.5% quarter-on-quarter.
Sector Performance Highlights
In January 2025, Communications, Capital Goods, and Financials sectors outperformed, while Retail, Real Estate, and Transportation lagged. Institutional investors were net sellers across Financials, REITs, Developers, Tech, and Consumer stocks, with marginal inflows observed in Energy, Telcos, Utilities, and Healthcare. Retail investors, on the other hand, were net buyers, opposing institutional trade flows.
Deep Dive Into Individual Companies
Top Performers
Sea Ltd (SE US)
Sea Ltd emerged as the top gainer, closing at \$123.38 with a remarkable 16.29% uplift. The rebound in gaming application revenue played a pivotal role in boosting its performance.
Recommendation: Positive momentum indicates a favorable outlook.
Singapore Telecommunications Ltd (SingTel)
SingTel closed at \$3.33, showing an 8.12% increase. The company benefited from sectoral strength in Communication Services and potential business growth prospects.
Recommendation: The upward trend supports continued optimism.
Oversea-Chinese Banking Corporation (OCBC)
OCBC closed at \$17.40, registering a 4.25% rise. This was fueled by share buybacks and sustained investor confidence in the financial sector.
Recommendation: Maintain a positive outlook.
Japfa Ltd (JAP)
Japfa surged by an exceptional 30.85% to close at \$0.62 following a privatization offer. This development underpins its valuation boost and investor enthusiasm.
Recommendation: A strong buy is suggested given the privatization momentum.
BRC Asia Ltd (BRC)
BRC Asia rose 17.6% to close at \$2.94. The anticipated uptick in Singapore’s construction activity contributed significantly to its robust performance.
Recommendation: Positive growth prospects make this an attractive investment.
PropNex Ltd
PropNex recorded a 16.4% rise, closing at \$1.10. The company’s performance was tied to positive developments in the real estate sector.
Recommendation: Continued growth in real estate supports a favorable outlook.
Top Underperformers
CapitaLand Investment Ltd (CLI)
CLI fell by 6.11%, closing at \$2.46. The underperformance was attributed to sector-wide challenges in real estate.
Recommendation: Caution is advised due to ongoing sectoral headwinds.
Singapore Exchange Ltd (SGX)
SGX ended January at \$12.27, reflecting a 3.69% decline. Market conditions and investor sentiment weighed on its performance.
Recommendation: Neutral stance with a watchful eye on market developments.
Grab Holdings Ltd
Grab Holdings closed at \$4.64, down by 1.69%. The company faced challenges amidst broader market pressures in the transportation and technology sectors.
Recommendation: Hold strategy recommended as the company navigates operational challenges.
Yanlord Land Group Ltd
Yanlord Land Group saw a steep decline of 13.64%, closing at \$0.57. The company’s performance suffered from macroeconomic pressures within real estate.
Recommendation: High caution advised due to sectoral risks.
Golden Agri-Resources Ltd (GGR)
GGR dropped 7.55%, ending the month at \$0.25. The decline reflected challenges in the agricultural commodities sector.
Recommendation: Investors should adopt a cautious approach.
Frasers Property Ltd (FPL)
FPL declined by 6.99%, closing at \$0.87. The sluggish performance was linked to ongoing challenges in the real estate market.
Recommendation: Neutral to negative outlook suggested.
Research Highlights
CGS International initiated coverage on OTEK, a provider of integrated process technology and renewable energy solutions in the vegetable oils industry. The company boasts a strong order book, patented process technologies, and an asset-light business model. A target price of \$1.44 has been set, supported by the sector’s FY26F average P/E of 18.4x.
Recommendation: Add
Technical Analysis and Outlook
The MSCI Singapore Index has reverted to an uptrend, breaking above the 381.80 resistance-turned-support level. With positive momentum, the index is forecasted to reach a longer-term target of 405.00 points within six months. Major support remains at 362.00 points, while the short-term outlook remains bullish.
