đŸ”„SGX Geoff Howie 2025 wraps up & 2026 Outlook:Unlock Value, Scale Growth

Capital_Insights
12-12 15:22

2025 proved Singapore's market resilience and evolving breadth, delivering remarkably balanced returns across all capitalizations—from the $Straits Times Index(STI.SI)$ 's 21% gain to the Fledgling index's 31% surge—while buybacks hit a decade-high at S$2.15 billion and dividends are poised for another record.

What distinguishes this rally is the structural shift: daily turnover in non-STI stocks jumped from 14% to 25%, indicating institutional money is finally flowing beyond the usual blue-chip narratives. This isn't just momentum; it's a fundamental repricing as companies like $DBS(D05.SI)$ , $Singtel 10(Z77.SI)$ , and $Keppel Reit(K71U.SI)$ demonstrate that disciplined capital management and value-unlocking strategies can coexist with bold growth ambitions, creating a blueprint for the entire market of 280 stocks.

For 2026, Geoff Howie, $SGX(S68.SI)$ SVP's core thesis moves past macro uncertainty and urges investors to focus on company-specific catalysts—where "strategic asset reallocation aligned with investor priorities" will matter more than broad AI hype or tariff headlines.

The opportunity lies in two parallel tracks: 25 companies crystallizing valuations through placements in 4Q25 alone, and a renaissance in analyst coverage with 40+ fresh initiations on overlooked mid-cap and small-cap names.

This dual engine of value realization and research discovery creates a rare window for investors to own tomorrow's winners today, particularly as management teams embrace shorter-term unlocking mechanisms while pursuing multi-year expansion.

Geoff Howie's message is clear: the macro noise isn't fading, but companies that pair disciplined capital allocation with scalable growth strategies will define the next wave of outperformance.

Welcome to read Goeff’s “Unlock value. Scale growth. Own 2026”. đŸ”„

FTSE Singapore Indices delivered balanced gains in 2025, while buybacks hit 10-year high and dividends are set for more records. The current macro forces are not fading. Perhaps in 2026 there will be more opportunities beyond the usual narratives. In Singapore there is a new wave of motivation for more companies to pair disciplined value unlocking with bold growth ambitions. Research analysts are also doing their part in re-engaging the companies to provide fresh new perspectives for investors.

As 2025 wraps up, the big macro themes aren’t going anywhere—they’ll still shape the backdrop in 2026. Many macro outlooks for 2025 lost much relevance by 1Q25, with the defining 2025 moment for global markets the 90-day tariff pause emerging in 2Q25. The contrast of AI-driven optimism in 3Q25 and growing skepticism in 4Q25 is set to remain a dominant theme as we head into 1Q26.

Geoff Howie, filmed a year-end wrap and outlook for 2026 with Nasyrah Rohim and the Mediacorp Pte Ltd team.Geoff Howie, filmed a year-end wrap and outlook for 2026 with Nasyrah Rohim and the Mediacorp Pte Ltd team.

For the broader local market, the next opportunity for growth may depend on moving past the above broad narratives, with stocks embracing well-defined corporate strategies that unlock real value. We’re already seeing this play out among market cap leaders—from $DBS(D05.SI)$ ’s nimble balance sheet management to $Singtel 10(Z77.SI)$ ’s growth plan focused on sustained shareholder returns, and Keppel’s transformation aimed at delivering superior value to investors.

Applied across both tranches of 280 stocks—those above S$100 million in market value and those below—these strategies are designed not only to identify areas for value realisation but also to strengthen resilience against potential macroeconomic twists and turns. When strategic asset reallocation is aligned with investor priorities, it enhances market relevance.

With one hand focused on unlocking value, the other can work on expanding business footprints. These two strategies serve distinct purposes: value unlocking aims to realise latent potential within a shorter timeframe, whereas growth through scale, new services, or geographic expansion is typically a multi-year endeavor. The local market is filled with companies pressing ahead to expand their footprints, including the trio highlighted above.

Thus, looking ahead into 2026, what inspires me is the opportunity for companies to pair disciplined value unlocking with bold growth ambitions and thus leveraging strategic reallocation and innovation to stay resilient, relevant, and ready for the next wave of market transformation.

FTSE Russell Indices Delivered More Balanced Gains in 2025

FTSE Russell captures the lion’s share of Singapore’s stock market through five key indices: $Solidion Technology Inc.(STI)$ , FTSE ST Mid Cap, FTSE ST Small Cap, FTSE ST Fledgling, and FTSE ST Catalist. As we head into the final two hours of trading on Friday, the 2025 total returns stand at +20%, +18%, +27%, +31%, and +17%, respectively.

This symmetry contrasts sharply with the previous five years, which delivered far less balanced annualised total returns of +8%, +1%, -3%, +2%, and -8% from end 2019 to end 2024. There have been clear cyclical biases, for instance banks dominate the STI, REITs shape the FTSE ST Mid Cap, and industrial services drive the FTSE ST Fledgling Index. Yet, the recent balance in performance marks an important beachhead. Even more telling, the Average Daily Turnover (ADT) split between STI and non-STI stocks has shifted from 86%-14% in 1H25 to 75%-25% in 2H25, supported in part by well-received new listings.

Valuation Momentum: Placements Fueling Growth Stories

Performance uplift, and valuation expansions, have seen some companies crystallise the latter, with around 25 stocks filing placement developments in 4Q25. These included $Keppel Reit(K71U.SI)$ , $Lendlease Reit(JYEU.SI)$ , $HRnetGroup(CHZ.SI)$ , $GSH(BDX.SI)$ , $Prime US ReitUSD(OXMU.SI)$ , $ASL Marine(A04.SI)$ , $Addvalue Tech^(A31.SI)$ , $iWOW Technology Limited(NXR.SI)$ , $IX Biopharma(42C.SI)$ , $Sanli Env(1E3.SI)$ , $GKE(595.SI)$ , $Reclaims Global(NEX.SI)$ , $Lincotrade(BFT.SI)$ , $CapAllianz(594.SI)$ , $AJJ Medtech(584.SI)$ , $Fuxing China(AWK.SI)$ , $Tritech(5G9.SI)$ , $B Wilshire Ltd(9QX.SI)$ , $Vividthree(OMK.SI)$ , $Quantum Health(V8Y.SI)$ , $Green Build(Y06.SI)$ , $HealthBank(40B.SI)$ , Singapore Institute of Advanced Medicine Holdings and $METAOPTICS LTD(9MT.SI)$

The most recent stock seeking to crystallise its valuation expansion is MetaOptics, with plans to raise S$4.85 million via a placement of 6.69 million new shares at S$0.7255 each. The funds are intended to strengthen the balance sheet and expand capital base to support a growing pipeline of global orders. The secondary fundraising follows S$6.00 million raised through 30 million shares at S$0.20 each at its September Catalist IPO. MetaOptics highlighted that proceeds will reinforce supply-chain readiness and accelerate scaling of MetaOptics’ glass-based metalens solutions. It adds that demand is rising across consumer devices, automotive systems, and industrial applications. Investors include new participants and existing shareholders who have tracked MetaOptics since its listing.

Singapore’s Buybacks Surge, Dividends Expected to Hit Record High

Buybacks by primary-listed stocks have hit a 10-year high—the entire span we’ve tracked monthly filings. In the first 11 months of this year, 83 primary-listed stocks executed on-market buybacks totaling S$2.15 billion, up from 82 stocks and S$1.35 billion in 2024.

At the same time, Singapore is on track for another record year of dividend payouts, reinforcing its reputation as a dividend powerhouse. Higher interest rates in recent years have pressured REITs, but banks stepped in, delivering yield through wider net interest margins. Janus Henderson reports Singapore led APAC ex-Japan dividend growth in 2023 and 2024, with payouts soaring 55% since 2019 to US$13.5 billion. Every Singapore company in the JHGDI raised dividends last year, led by DBS, cementing Singapore’s standout status despite its small index weight.

Fresh Starts, Fresh Research

For investors looking to re-engage with the stock market, consider connecting with research analysts who are also actively re-engaging the market. New analyst initiations provide a valuable entry point for fresh perspectives and actionable insights.

Unlock 2026 opportunities? For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.

🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now

Find out more here.

Complete your first Cash Boost Account trade with a trade amount of ≄ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.

Click to access the activity

Other helpful links:

STI New Highs! US Bull Market Ending? Would You Shift to Asian Equities?
Over the past week, Singapore’s stock market quietly delivered another surprise: $Straits Times Index(STI.SI)$ total return for 2025 has reached 25% (including dividends) — one of the strongest performances in the past 15 years. Goldman Sachs’ newest “Global Equity Outlook 2025–2035” sends a warning to global investors. Over the past decade, the S&P 500 delivered an astonishing 15% annualized return — an extremely rare “super-bull decade.” But mean reversion always arrives.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment
3
7