News and Events

UOB Kay Hian: Identifying Stocks That Could Benefit From MAS’ S$5b Liquidity Boost

24 Feb 2025

Date: 24 February 2025

Prepared by: UOB Kay Hian

Overview

On 21 Feb 2025, the Monetary Authority of Singapore (MAS) announced a S$5b investment initiative aimed at boosting liquidity for Singapore's capital market. This initiative is expected to benefit small and mid-cap stocks, particularly those listed on the Singapore Exchange (SGX).

Top Small/Mid Cap Picks

Company	Recommendation	Share Price (S$)	Target Price (S$)	Upside (%)
ComfortDelGro	BUY	1.36	1.77	30.1
CSE Global	BUY	0.45	0.59	31.1
China Sunsine	BUY	0.48	0.58	20.8
Centurion	BUY	1.02	1.11	8.8
Digital Core REIT	BUY	0.57	0.88	54.4
Marco Polo Marine	BUY	0.05	0.072	41.2
Propnex	BUY	1.13	1.18	4.4
Riverstone	BUY	1.00	1.16	16.0
Singapore Post	BUY	0.56	0.72	29.7
Valuetronics	BUY	0.65	0.78	20.0

Analysis

The MAS investment initiative is designed to enhance market liquidity and is expected to significantly benefit small and mid-cap stocks. The focus on actively managed strategies rather than index-focused investments will help diversify investments and bring attention to undervalued stocks with strong growth potential.

Valuation Overview

Key metrics such as P/E ratios, P/B ratios, and dividend yields were considered in selecting the top stock picks. This approach ensures that the selected stocks not only have strong growth potential but also offer attractive valuations and returns to investors.