Singapore’s S$5bn equity program targets small-mid cap stocks

Published 16/06/2025, 11:30
© Reuters.

Investing.com -- The Monetary Authority of Singapore (MAS) is preparing to implement its S$5 billion Equity Market Development Program (EQDP) in the third quarter of 2025, aimed at broadening investor participation beyond large-cap stocks. The program, announced in February, will invest in strategies managed by Singapore-based asset managers with a strong focus on Singapore-listed equities.

Macquarie has identified a basket of small-mid cap stocks that could benefit from the EQDP mandates, screening for companies with over US$0.5 million average daily value traded that are not in the index. The firm’s analysis includes Singapore REITs and notes that mandates will likely be allowed to hold up to 40% in ASEAN stocks outside Singapore.

Performance of the identified stocks has lagged so far, with the Singapore-only basket of 18 stocks underperforming the 30-stock Straits Times Index by 13-19% since August 2024. Macquarie suggests that deploying the S$5 billion allocation could constitute approximately three months of buying activity and potentially change relative performance.

The EQDP is part of a series of measures announced by the Equities Market Review Group to improve the competitiveness of Singapore’s equity market, which Macquarie notes has among the highest concentration of liquidity in its top-10 listed equities among Asian markets covered by the firm.

Macquarie’s top picks for small-cap Singapore stocks that may benefit from these new mandates include CD, FR, IFAST, PREIT and STH, while its preferred large-cap index selections are OCBC, SCI, STE, CLAR and DFI. The firm also highlights KDCREIT, which will join the Straits Times Index on June 23.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.