SGX flat despite posting strongest half-year performance in 26 years; Keppel, Singtel rise

SINGAPORE – Trading on the local stock exchange was brisk this week, as the start of earnings season and a handful of corporate deals lifted the Straits Times Index to a high above 4,977 points on Feb 5.

The Singapore Exchange (SGX) edged lower over the week, despite posting on Feb 5 its best half-year performance since listing in 2000 and reiterating expectations of stronger trading activity and more listings.

Net profit for the first half ended Dec 31, 2025, edged up 0.8 per cent to $342.7 million. Adjusted profit, after excluding certain non-cash and non-recurring items with less bearing on operating performance, rose 11.6 per cent to $357.1 million.

Revenue for the half-year increased 7.9 per cent to $736.2 million, from $682.2 million in the year-ago period.

SGX Group chief executive Loh Boon Chye said sustained growth across the group’s multi-asset business led to its strongest half-year performance.

He added that SGX is confident of delivering medium-term revenue growth of between 6 per cent and 8 per cent, alongside sustainable shareholder returns.

The group declared an interim quarterly dividend of 11 cents a share, payable on Feb 24, bringing total dividends in the first half to 21.75 cents a share – up 20.8 per cent year on year.

SGX said it is confident that it can continue to deliver the 0.25-cent quarterly dividend increase until the end of the 2028 financial year (FY), according to previous guidance.

Robust activity in the stock market is also expected to continue as measures introduced under the Equity Market Development Programme (EQDP) in 2025 continue taking effect, said Mr Loh.

An average of $1.51 billion worth of shares changed hands each day, up 20 per cent from a year earlier and the highest in five years, while retail participation hit a four-year high.

A strong pipeline of initial public offerings (IPOs) has also been lined up, thanks to a global listing board expected to launch later in 2026 to facilitate dual listings on the SGX and Nasdaq.

Shares of SGX closed on Feb 6 at $17.57, down 0.3 per cent through the week.

Parliament debates EQDP’s effectiveness

The effectiveness of the

EQDP was debated in Parliament on Feb 3,

with the Workers’ Party noting that recommendations seeking to revitalise the stock market are still insufficient.

In an adjournment motion, WP MP Louis Chua said that while he welcomed the group’s work and the $5 billion EQDP allocation to asset managers, the measures may fall short of delivering lasting change.

Mr Chua, an MP for Sengkang GRC, said efforts taken “appear to be focused on reducing market friction rather than instituting structural interventions that improve company fundamentals in the long term”.

He added that too many listed companies are currently generating “uncompetitive returns”, with 61 per cent of them generating returns on equity below 8 per cent, while only 14 companies have daily trading volumes above US$20 million (S$25.4 million).

To lift valuations, he called for mandatory value-up disclosures alongside stronger corporate governance and tougher enforcement for non-compliance.

Mr Chua’s fellow Sengkang GRC MP Jamus Lim said that reforms could also be made to enrich the capital-raising life cycle.

This would involve strengthening the full corporate-finance pipeline, from angel funding and venture capital to private equity, IPOs on a secondary board and graduation to the mainboard.

Associate Professor Lim said Singapore’s angel investment market is “mature but shallow”, with a liquid funding environment and nearly 24 angel and seed investment networks, but noted that Temasek has shifted away from early-stage start-ups towards firms in later funding rounds.

He called for deeper domestic liquidity at later venture capital stages, with greater focus on pre-IPO funding and a clearer mandate to target locally based companies.

In response, Minister for National Development Chee Hong Tat said that while Singapore needs to facilitate company growth, this cannot be achieved without delivering good shareholder returns.

Mr Chee, who is also deputy chairman of the Monetary Authority of Singapore, added that the review group’s strategy is to strengthen the market’s attractiveness on its own merits to draw capital to Singapore.

He noted that the EQDP measures are aimed at building fund-management capabilities and improving how listed companies enhance shareholder value and engage investors.

KKR, Singtel buy STT GDC for $6.6 billion

Singtel shares jumped this week, closing on Feb 6 at $4.72, up 2.8 per cent over the period.

The telecommunications company announced on Feb 4 that it is part of a consortium with global investment firm KKR that will take full ownership of ST Telemedia Global Data Centres (STT GDC) in a deal worth $6.6 billion.

KKR and Singtel will buy ST Telemedia’s 82 per cent stake in STT GDC, in which they already hold stakes of about 14 per cent and 4 per cent, respectively.

Singtel will invest about $740 million and hold a 25 per cent stake in the data centre provider after the acquisition. KKR will own the remaining 75 per cent.

The deal gives STT GDC an enterprise value of $13.8 billion. The company has six data centres in Singapore, where it is based, and operates more than 100 data centres across 12 major markets in the Asia-Pacific, Britain and Europe.

The move will expand Singtel’s existing data centre business under Nxera, which has three facilities in Singapore and one each in Malaysia, Indonesia and Thailand.

It will come at a time when the market for data centres is expected to grow by an average of 15 per cent a year until 2027, said JLL Research.

HSBC maintained a “buy” call on Singtel following the announcement, citing broader data centre exposure through STT GDC and limited earnings dilution.

Keppel jumps on higher profits

Keppel shares surged as much as 6 per cent on Feb 5 after the company released its second-half and full-year financial results for 2025. They closed the week at $11.64, up 6.5 per cent through the week.

For the full year, net profit – excluding non-core portfolio gains and discontinued operations – rose 39 per cent to $1.1 billion, up from $793 million a year ago.

Keppel attributed its performance for FY2025 to higher profits across all three of its business segments: infrastructure, real estate and connectivity.

It also proposed a special dividend of 13 cents a share. This will comprise two cents per share in cash and one unit of Keppel REIT for every nine shares in the company, equivalent to approximately 11 cents a share, based on Keppel REIT’s closing market price of 98 cents in February.

This comes on top of a proposed final cash dividend of 19 cents a share, to be paid out on May 8.

Including the interim cash dividend of 15 cents a share paid in August and the proposed special dividend of 13 cents a share, Keppel will pay out dividends totalling 47 cents a share for FY2025, up 38 per cent from the previous year.

Keppel on Feb 5 also announced that Mr Piyush Gupta will be appointed non-executive chairman from April 17, replacing Mr Danny Teoh, who will retire after the company’s upcoming annual general meeting.

The former DBS Bank chief executive and the Temasek India chairman was appointed Keppel’s deputy chairman and non-executive independent director in July.

Hongkong Land launches $8.2 billion private real estate fund

Hongkong Land closed at US$8.18, 3.7 per cent lower than the previous week’s close.

The property developer on Feb 3 launched the Singapore Central Private Real Estate Fund (SCPREF) – a private real estate fund with $8.2 billion of assets under management.

The fund, announced in December 2025, will focus primarily on managing prime commercial assets and acquire additional high-quality, income-producing commercial assets in Singapore’s Central Business District and Orchard Road precinct.

SCPREF’s initial portfolio comprises Asia Square Tower 1 (100 per cent interest), Marina Bay Financial Centre Tower 1 and Tower 2 and Marina Bay Link Mall (33.3 per cent interest), One Raffles Quay (33.3 per cent interest) and One Raffles Link (100 per cent interest).

The fund is the largest office-focused private investment fund in the Republic and among the largest Asia-focused funds by assets under management in the market, according to the company.

The move follows the developer’s October 2024 strategy to recycle capital from prime assets to fund new ultra-premium integrated commercial properties in Singapore.

Hongkong Land, the majority stakeholder at inception, will act as fund and property manager for SCPREF.

Other market movers

Shares of industrial property developer Soon Hock and pawnbroker MoneyMax rose this week after both flagged strong full-year results on Feb 2.

Soon Hock said the expected increase in revenue and profit was driven by its industrial development project, Stellar@Tampines. The project received a temporary occupation permit on Dec 11, 2025, while units on levels one to eight have already been issued notices of vacant possession.

The company said there were no comparable completed industrial development projects for FY2024. It expects to announce its results on Feb 23.

Soon Hock’s shares closed the week 1.6 per cent higher at 63.5 cents.

MoneyMax said it expects a “significant improvement” in its second-half and full-year net profit, buoyed by stronger financial performance in its pawnbroking business as well as retail and trading of gold and luxury items.

It attributed the improvement to higher interest income as well as higher gold prices and increased sales volume.

The Catalist-listed company will announce its second-half and full-year results on March 1. It had previously said on Jan 14 that it is also looking to transfer its listing to the mainboard to enhance its long-term value for its shareholders.

It hopes the mainboard listing will boost its image locally and overseas, and give it greater visibility and recognition.

Shares of MoneyMax rose 4.3 per cent through the week to close at 73.5 cents on Feb 6.

Gold rebounded from its Jan 30 tumble to climb 5.9 per cent on Feb 3, hitting its biggest daily gain since November 2008 as bargain-hunting and a softer US dollar supported bullion.

The precious metal was trading at just over US$4,966 an ounce on Feb 8.

What to look out for next week

Companies that will report their FY2025 earnings include DBS on Feb 9, CapitaLand Investment on Feb 11, and StarHub and iFast on Feb 12.