Singapore Equities: Can the Rally Continue?
- ellaintan
- Sep 5
- 2 min read
Analysts are turning more positive on Singapore equities as we move into the final quarter of 2025. Across five major strategy reports, the consensus is that the local market still offers upside. Liquidity tailwinds, easing interest rates and resilient corporate earnings form the backbone of this constructive view.
Why the Street sees upside
Fresh inflows: External funds, Singapore’s S$5 billion equity development programme, and maturing T-bills could channel more money into dividend stocks
Falling rates: Lower bond yields and SORA rates cut REIT funding costs, widening yield spreads and boosting dividend appeal
Attractive valuations: The market trades at around 15x forward P/E, below the long-term average, with a healthy ~4% dividend yield
Earnings resilience: 1H25 results were solid across banks, tech suppliers, and cyclical plays, showing corporate strength
Balanced risks
Rate-cut pace: If interest rate cuts are slower than expected, the REIT re-rating story could stall
Global uncertainties: Trade tensions and tariffs may re-ignite inflationary pressures and weigh on sentiment
Banks at an inflection point: As rates decline, net interest margins could compress, capping earnings momentum
Sector reversals: Defensive and thematic plays (e.g. defence, power) have shown how quickly trends can turn if optimism runs ahead of fundamentals
The stocks analysts agree on
Several names stood out for being repeatedly recommended across the reports:
CapitaLand Integrated Commercial Trust – High-quality income REIT positioned to benefit from lower rates and stable leasing
DFI Retail Group – Consumer staple with improving efficiency and margin gains
Food Empire – Small-mid cap exporter with strong growth and cash generation
Keppel Ltd – Leveraged to infrastructure and capital recycling
Sembcorp Industries – Renewable energy and transition play with multiple catalysts
Singtel – Balanced growth and yield profile, supported by asset monetisation
Yangzijiang Shipbuilding – Large orderbook (~US$23bn) providing visibility and exposure to global shipping demand
Other frequently mentioned names include ComfortDelGro, DBS, Sheng Siong, Venture Corp, and REITs like Ascendas and Lendlease Global Commercial Trust.
Bottom line
The consensus view is that Singapore equities remain attractive into year-end, especially in income REITs and selected small-mid caps. Risks remain, but overall, this is a market where staying invested with a focus on quality and resilience still makes sense.
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