Singapore stocks gain traction with strong retail inflows in Q2

The Straits Times Index posted a 1.1% drop in total return for Q2 2025 through May 7.

Despite a modest decline in the broader market, several Singapore-listed stocks delivered strong performances in the early part of the second quarter, buoyed by increased participation from both retail and institutional investors.

According to the latest update from SGX, the Straits Times Index (STI) posted a 1.1% drop in total return for Q2 2025 through May 7.

Institutional investors recorded net purchases of $92m, whilst retail investors showed greater activity with net inflows totaling $904m during the same period.

Amongst the 100 most actively traded stocks, 10 companies defied market trends with double-digit returns.

These top performers—CNMC Goldmine, Food Empire, Sheng Siong, Singtel, Hongkong Land, ST Engineering, Frasers Hospitality Trust, Geo Energy Resources, Jardine Matheson, and Top Glove Corp Bhd—achieved an average return of 14% for the quarter and 28% YtD. All recorded net institutional inflows.

A second tier of stocks also posted gains, averaging 6% returns in Q2 so far. This group includes DFI Retail Group, ComfortDelGro, Frasers Centrepoint Trust, SGX, Sembcorp Industries, Raffles Medical, NetLink NBN Trust, SIA Engineering, Centurion, and Parkway Life REIT.

Notably, eight of these companies generate the majority of their revenue from Singapore, highlighting investor preference for firms with strong domestic exposure amid global uncertainty.

Sector-wise, the Telecommunications and Industrials sectors attracted the most institutional investment, whilst the Banks and Technology sectors saw the largest outflows. Retail investor activity was concentrated in growth-oriented sectors, particularly Banks, Tech, and Consumer Cyclicals.

The report comes against a backdrop of global market volatility tied to evolving US trade policies. A 90-day pause on reciprocal tariffs, currently in place until July, has led to improved sentiment, though uncertainties remain. The Federal Reserve signalled it will rely on incoming data to guide future interest rate decisions.

The International Monetary Fund recently highlighted Singapore’s strong fiscal position and financial sector resilience, noting the country's capacity to deploy targeted support if needed.

As of March 2023, government-owned financial assets net of debt stood at 95% of GDP, offering a buffer against external shocks.