Singapore Strategy Outlook – June 2025

Shifting from Defence to Rotation: Where the Smart Money Is Moving

This summary distills insights from six Singapore equity strategy reports published in June 2025. The research includes macroeconomic views, sector rotations, and stock recommendations gathered from local brokers.

Market Context

After a turbulent April triggered by tariff shocks, investor sentiment has turned more constructive in June. Equity markets are stabilising as the 90-day US-China tariff truce nears its July expiry, while domestic policy tailwinds—particularly the S$5b Equity Disbursement Programme (EQDP)—offer a fresh catalyst for small and mid-cap (SMID) stocks.

Singapore’s 2025 GDP forecasts have broadly been revised lower to 1.6%, reflecting global trade weakness. Yet, local consumption and policy buffers are keeping downside risks contained. The STI trades within a 3,700–3,900 band, with rotational activity picking up.

Key Sector Themes

1. Defensive Yield Remains Core

Telcos, public transport operators, and utilities continue to attract flows for their resilient earnings and consistent dividends. Stocks like NetLink Trust, ComfortDelGro, and OCBC remain stable anchors in portfolios.

2. Property and REITs Repositioning

Investors are rotating into undervalued property developers and commercial REITs with strong asset backing. Standouts include UOL Group, PropNex, and CICT. Industrial and office REITs are preferred over retail and hospitality.

3. SMID Cap Rotation Gaining Momentum

The EQDP is driving interest in quality SMID names with stable earnings, strong ROEs, and dividend track records. These include CSE Global, Frencken, PanUnited, and Valuetronics.

4. Caution Still Warranted on Tech

Tech exporters like Venture and AEM remain under pressure amid soft PMIs and uncertain trade flows. Most houses maintain an underweight view pending more clarity post-July.

5. Aviation Recovery Continues

Stocks tied to aviation services, such as SIA Engineering and SATS, continue to benefit from normalising travel and margin improvement in engineering services.

High Conviction Stocks (Mentioned in Multiple Reports)

Theme	Stocks
Defensive Yield	NetLink Trust, ComfortDelGro, OCBC, Singtel
Property	UOL Group, PropNex, CapitaLand IntCom, CICT
Industrial/Infra	Sembcorp Ind, ST Engineering, Seatrium, Keppel Corp
SMID EQDP Beneficiaries	CSE Global, BRC Asia, PanUnited, Q&M Dental, Valuetronics
Consumer & REITs	Sheng Siong, DFI Retail, Elite UK REIT, First REIT
Aviation Recovery	SIA Engineering, SATS

These stocks were independently recommended by at least two research houses and are flagged as high-conviction ideas for 2H2025.

Strategic Takeaways

• Tone shift confirmed: From risk-off in April to selective risk-on by June

• Stay anchored in defensives, but begin rotating into EQDP beneficiaries and undervalued property plays

• Watch key catalysts: July tariff truce expiry and Q3 EQDP capital deployment

• Avoid premature tech exposure until macro indicators improve