Overview of Singapore Market Performance

The MSCI Singapore Free Index (SIMSCI) wrapped up 2024 at 373.14 points, reflecting a moderate month-on-month (MoM) increase of 0.7% or 2.76 points. While the anticipated rate cut by the US Federal Reserve occurred in December, the market experienced a pullback due to fewer projected rate cuts in 2025. Despite minor setbacks, the year-end analysis highlights key sectoral performances, corporate news, and stock movements that shape the investment landscape in Singapore.

Sectoral Performance: Winners and Losers

Sector-wise, Utilities, Industrials, and Financial Services emerged as the outperformers for December 2024. Conversely, Transportation, Real Estate, and Communications lagged behind. Institutional investors were net buyers, focusing on Industrials, Financials, and Utilities, while retail investors exhibited a selling trend, particularly in Industrials.

Key Stock Movements: Deep Dive Analysis

Top Gainers

• Sembcorp Industries (SCI): SCI closed at S\$5.52, with a notable 5.75% increase. The performance was fueled by contract wins, contributing to its strong December showing.
• Singapore Tech Engineering (STE): STE ended the month at S\$4.66, registering a 3.56% gain. Similar to SCI, contract wins supported its upward momentum.
• DBS Group: As one of Singapore’s leading financial institutions, DBS Group’s stock rose by 3.04% to S\$43.72. Its robust financial services operations underpin its consistent performance.

Top Losers

• SEA Ltd: SEA Ltd saw a sharp decline of 5.55%, closing at S\$107.48. The drop aligns with the broader US tech pullback, impacting its valuation.
• Grab Ltd: Similarly affected by the US tech retreat, Grab Ltd fell 4.80%, ending the month at S\$4.76.
• Capitaland Investment (CLI): CLI dropped 4.03% to S\$2.62 due to a reported S\$141 million loss following the reclassification of its asset, CLAS, from subsidiary to associate status.

Big Swings (Market Cap >US\$500M)

• Frasers Hospitality Trust (FHT): FHT experienced an impressive surge of 38.10%, closing at S\$0.58. This performance highlights its strong fundamentals and investor confidence.
• Japfa Ltd: Japfa’s stock rose by 25.33% to S\$0.47, driven by a significant contract win.
• Yangzijiang Shipbuilding Holdings (YZJSGD): YZJSGD recorded a 24.07% increase, ending the month at S\$2.99, also bolstered by a contract win.
• DFI Retail Group Holdings Ltd: DFI declined by 9.41% to S\$2.31, attributed to internal challenges, including the termination of senior executives.
• Singapore Post Ltd (SPOST): SPOST dropped by 8.62% to S\$0.53, reflecting operational challenges during the month.
• Digital Core REIT Management (DCREIT): DCREIT faced a 5.69% decline to S\$0.58, linked to the issuance of new units for fees.

Corporate Developments

• CERT to SERT Rebranding: CERT will be renamed SERT starting January 2, 2025, following its €280 million (S\$395 million) acquisition by Icona Capital and Stoneweg.
• TKMED Buyout: Tamarind Health offered a buyout for TKMED at S\$0.456 per share, marking a significant transaction in the healthcare sector.

Technical Analysis

The MSCI Singapore Index shows signs of short-term weakening momentum, with a potential bearish head-and-shoulder pattern suggesting a possible correction to the support level of 362.00 points. However, the long-term outlook remains bullish, with an upgraded target of 392.00 points. Key levels to watch include resistance at 383.00 points and support at 349.00 points in case of extended weakness.

Investment Themes for 2025

CGS International’s 2025 investment themes emphasize high-yield, high-growth stocks, value-up plays, and considerations around interest rates and bond yields. Investors are advised to stay nimble amid trade and tariff uncertainties, as well as inflationary pressures from interest rates.

Sector-Specific Performance