The overall market is buoyant, and there are various key themes investors are looking at, one of which is asset monetisation. Companies that trade at a discount to their respective book values are able to reduce the gap by divesting certain assets at or near the actual market value. Proceeds are then used to pay shareholders as dividends or fund share buybacks, or invest in new growth areas.
The Singapore stock market has chalked up another year of double-digit gains, and PhillipCapital remains “very positive” that further gains are ahead. “The economy is benign, interest rates have collapsed. You have no choice. If you’re looking for yield, you have to go into the equity market, or you just earn 1% on fixed deposits,” says Paul Chew, the firm’s head of research.
Of course, the $5 billion from the Equity Market Development Programme (EQDP) is a key factor as well. “It is not just the money of EQDP. You must understand the message behind EQDP. What are they trying to do? They are trying to support the whole economy, the whole stock market,” says Chew, speaking together with his colleagues on Jan 10 on the 1Q2026 market outlook.
