Analysts Expect Singapore Stocks to Outperform in 2025 with Market Reforms
ANALYSTS expect Singapore stocks to outperform and see significant upside in 2025, but there is a caveat: This is likely to happen only if market reforms are put in place to raise their relative valuations.
Macquarie Analysts’ Expectations
Macquarie analysts expect companies to post an estimated 5 per cent rise in earnings-per-share growth, bringing the benchmark Straits Times Index (STI) to their base target of 4,000. Meanwhile, positive “value-up” style reforms could lead the index to a bull case target of 4,410.
Key Driver of Upside
“Practically, given the huge weight of financials on the index, much of the upside hinges on whether the banks can continue to rally,” they said in an outlook note in December, adding that they were “constructive” on Singapore equities.
Conclusion
In conclusion, analysts expect Singapore stocks to outperform in 2025, but it is contingent on market reforms that raise their relative valuations. Macquarie analysts have set a base target of 4,000 and a bull case target of 4,410 for the STI, which is dependent on the performance of the financial sector.
FAQs
Q: What is the expected earnings-per-share growth rate for Singapore companies in 2025?
A: Macquarie analysts expect an estimated 5 per cent rise in earnings-per-share growth.
Q: What is the base target for the Straits Times Index (STI) according to Macquarie analysts?
A: The base target for the STI is 4,000.
Q: What is the bull case target for the Straits Times Index (STI) according to Macquarie analysts?
A: The bull case target for the STI is 4,410.
Q: What is the key driver of upside in Singapore stocks according to Macquarie analysts?
A: The huge weight of financials on the index, which is dependent on the performance of the banks, is the key driver of upside.
