SINGAPORE - Shares of ST Engineering hit an all-time high last week after rising by 4.3 per cent to close on May 30 at $7.82.

 

The company&rsquo s shares have been on a tear since the start of 2025, climbing more than 68 per cent on the back of record 2024 results and increased dividends over the period.

 

It also reported a solid first quarter for 2025, driven by strong growth in its defence and public security segment.

 

The strong share price performance came ahead of the weekend&rsquo s anticipated annual defence-focused Shangri-La Dialogue in Singapore.

 

Addressing the audience at the dialogue on May 31, US Defence Secretary Pete Hegseth suggested that US allies and partners in Asia should take their cue from Europe, where members of the North Atlantic Treaty Organisation are committing to spend 5 per cent of their gross domestic product on defence.

 

Shares of Singapore Exchange (SGX) climbed through the week to reach a high of $14.33 on May 30 before dropping abruptly by almost 2 per cent to close at $14.02. No announcements were made on the day.

 

Trading activity on the exchange has increased in recent months, driven by market revival measures announced in February and growing investor interest in Singapore stocks as a safe haven amid global volatility.

 

Almost 29.5 billion shares worth around $41 billion were traded in April, up from around 26.8 billion shares valued at $29.6 billion traded in March, according to SGX data.

 

The average daily value of shares traded in April, at $1.9 billion, is the highest level since March 2020.

 

Analysts pick potential winners ahead of $5 billion boost

Trading on the SGX has included shares in companies outside the benchmark Straits Times Index (STI), supported by a central bank-led programme to allocate $5 billion in seed capital to Singapore-based funds for investing in local, non-STI stocks.

 

Announced in February as part of the measures to revive the stock market, the Equity Market Development Programme (EQDP) has received positive interest from global fund managers, and suitable investment strategies will be shortlisted by end-September, the Monetary Authority of Singapore (MAS) said last week.

 

Analysts reckon the funds will likely be deployed before the end of 2025 and have been highlighting stocks they believe could benefit from this bonanza.

 

SIA Engineering is one of their favourites, with CGS CIMB, UOB KayHian, DBS and Morgan Stanley including the company in their list of stock picks. They like the company as demand for its aircraft maintenance, repairs and overhaul services is expected to grow.

 

Systems assembly provider Frencken Group and property agency PropNex are also among the analysts&rsquo top picks, owing to the companies&rsquo strong revenue forecasts for 2025.

 

Other selected stocks include instant coffee maker Food Empire, finance platform iFast, precision engineering business UMS Integration, supermarket chain Sheng Siong, Raffles Medical, technology solutions provider CSE Global, palm oil producer First Resources, transportation giant ComfortDelGro and construction firm Hong Leong Asia.

 

Some analysts also like Oiltek International, a provider of vegetable oil processing technology, and Centurion Corp, which operates workers&rsquo dormitories in Singapore. Both companies have seen their share prices climb since the start of 2025, driven in part by Oiltek&rsquo s upcoming transfer from the Catalist board to the mainboard and the potential listing of a real estate investment trust (Reit) by Centurion.

 

Analysts from UOB KayHian said they are now more bullish on the Singapore market as a result of the anticipated injection of liquidity from the EQDP, and have raised their forecast for the STI to 4,054 points by the end of 2025 from 3,720 points previously, implying an upside of 5 per cent from current levels.

 

They noted, though, that &ldquo it will be critical for the authorities to ensure that the $5 billion is not a one-off and that as the market grows, it will be able and willing to continue to lend its support&rdquo .

 

More firms could leave the local bourse

Two more companies announced moves that may impact their SGX listing status even as efforts are being made to boost market interest and attract new initial public offerings (IPOs).

 

Singapore Paincare on May 27 received a privatisation offer from Advance Bridge Healthcare at 16 cents a share, valuing the company at about $27 million. The local medical services company will be delisted from the Catalist board if the deal is successful, it said.

 

Meanwhile, Chinese manufacturer Fuxing China Group said on May 29 that trading in its American depositary shares would begin &ldquo very shortly&rdquo after it received approval to list on the Nasdaq on May 23.

 

When contacted by The Straits Times, Fuxing China Group declined to confirm whether it would maintain its SGX listing or provide further details on the Nasdaq move.

 

In 2025 so far, at least 15 companies have received privatisation offers, compared with just one IPO. This is despite ongoing efforts to draw more companies to list on the SGX, including proposals announced on May 15 to ease the disclosure requirements for firms pursuing an IPO here.

 

Other market movers

Shares of Samurai 2K Aerosol jumped by over 52 per cent last week and closed on May 30 at 9.6 cents.

 

The aerosol paint distributor said on May 28 it had agreed with its insurer on a RM16.06 million (S$4.9 million) indemnity claim for a May 2024 fire at its Johor premises.

 

It can also claim an extra RM1.79 million if the damaged properties are repaired according to certain conditions and within a set timeline.

 

The insurance claim had initially been declined due to non-compliance of the insurance policy terms, according to its insurer. However, Samurai 2K escalated the matter to the Malaysian central bank and engaged consultants to help it negotiate the claims.

 

The company reported on May 30 after market close a 31.4 per cent jump in revenue for the year ended March 31, to RM104.9 million. However, it registered losses of RM7.8 million due to the write-off of inventory worth RM12.7 million and property damage totalling RM3.5 million as a result of the fire.

 

The insurance claims receivable will be registered in 2026.

 

Acrophyte Hospitality Trust (AHT) jumped 23.4 per cent last week and closed May 30 at 29 US cents. AHT&rsquo s managers on May 30 said they were evaluating a &ldquo range of strategic options&rdquo that could result in a &ldquo potential transaction&rdquo involving AHT&rsquo s stapled securities, although this is not guaranteed.

 

Stapled securities are financial instruments where two or more different securities are contractually bound together and traded as a single unit. The AHT group comprises Acrophyte Hospitality Property Trust and Acrophyte Hospitality Management Trust.

 

The strategic review comes in the light of potential spending needs to upgrade AHT&rsquo s current properties. This involves upgrades to seven Marriott and Hyatt-branded hotels in 2025, after six other hotels were upgraded in 2024.

 

It also comes after a similar move by Frasers Hospitality Trust (FHT) in April, following which FHT&rsquo s sponsor Frasers Property made a second attempt to privatise the stapled group at 71 cents per stapled security in May. FHT comprises Frasers Hospitality Reit and Frasers Hospitality Business Trust.

 

AHT was formerly known as ARA US Hospitality Trust before the manager changed hands to come under Acrophyte AM, a unit of Acrophyte, which largely consists of the businesses of the formerly listed Chip Eng Seng.

 

The entities are all ultimately controlled by property tycoon Gordon Tang and his wife Celine, who have multiple interests in property and construction, including Suntec Reit and Singapore property developer SingHaiyi.

 

What to look out for this week

Shares of OKP Holdings, which rose 9 per cent last week, could see more trading activity &ndash after the market closed on May 30, it announced a $258.3 million contract from the Land Transport Authority to construct cycling paths across 11 towns in the eastern part of Singapore.

 

The win brings OKP&rsquo s net contract order book to a record high of $735.8 million, with contracts extending until 2031.

 

Oiltek could see more trading, too. The company will officially transfer from Catalist to the SGX mainboard on June 6.