Mid-caps in the spotlight
The Monetary Authority of Singapore and the Financial Sector Development Fund’s (FSDF) Equity Market Development Programme (EQDP) to encourage fund managers to tilt towards mid-market stocks is likely to shine a light on mid-cap stocks.
For yield, Bukit SembawangEstates’ recently announced dividend of 20 cents per share translates into a yield of 5% based on June 13’s closing price. Bukit Sembawang is in a net cash position, and is trading at 0.64x book.
See also: Falling local risk-free rates buoy STI, REIT index
Elsewhere, Banyan Group has attracted some interest. In the past few years, it has managed to de-gear, bringing its gearing down from 0.72x in 2020 to 0.25x in 2025 while net asset value has risen from $0.746 to $0.959. However, the stock isn’t very liquid with major shareholders Ho Kwon Ping & Family, Qatar Investment Agency, and the Ng family of Far East Organization as the group’s largest shareholders.
Of course, tourism and travel will be affected by geopolitical tensions and the on-again-off-again hot war in the Middle East. Still Amara Holdings, which owns hotels, is in the process of being privatised following a voluntary general offer.
Gold as a hedge against the dollar
See also: Iran-Israel conflict pushes up oil price, could cause STI to ease further
One way to hedge against de-dollarisation, the bond market, the Middle East and perhaps the volatility around tariffs is to buy a touch of gold.
The gold bugs at the World Gold Council are suggesting portfolios should have a bit of gold as part of their alternatives.
Carsten Menke, Head of Next Generation Research, Julius Baer says the gold market showed only a moderate reaction to the news of Israel attacking Iran.
“Historically, gold does not have a very good track record as a hedge against geopolitical shocks. For now, the attacks add to the bullish mood in the gold market. We assume that the reaction is driven by some speculators and automated trading systems in the futures market, rather than by genuine safe-haven demand. While such geopolitical shocks historically did not lastingly lift gold prices unless there was a significant economic impact, e.g. as during the 1970s oil crises, we believe it is much too early to tell in this case,” Menke says. The market is likely to lose its interest in the conflict sooner or later, as suggested by similar geopolitical shocks in the past, he adds.
“Buying from central banks should stay strong given their desire to be less dependent on the US dollar as a reserve currency. We reiterate our Constructive view on gold against this backdrop,” Menke says.
This ties in with the World Gold Council’s view. According to its data central banks added 12 tonnes of gold in April, but there were modest ETF outflows in May, when calmer heads prevailed in the bond market.
The SPDR Gold ETF is listed on the SGX in both SGD and USD.
