facebookSingapore Reportedly Planning to Boost Local Stocks With Temasek Fund: Which Companies Could Benefit?
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Singapore Reportedly Planning to Boost Local Stocks With Temasek Fund: Which Companies Could Benefit?

profileSudhan P

Bloomberg reported that Singapore is planning new measures to boost its domestic stock market by investing in local and regional mid-cap companies.

Here’s what you should know about the news report and the Singapore companies that could benefit from the stock market boost.

Source: Giphy

Temasek Plans to Pump in Capital to Boost the Singapore Stock Market

According to Bloomberg’s sources, 65 Equity Partners Holdings, part of Temasek with a fund size of at least US$1 billion, will invest in Singapore and regional mid-cap firms, including initial public offerings (IPOs).

Singapore Exchange recently allowed special purpose acquisition companies (SPACs), or blank cheque companies, to list in our country.

Bloomberg added that Temasek and Singapore’s sovereign wealth fund Government of Singapore Investment Corporation (GIC) will be urged to use the new SPAC framework to encourage or facilitate the listing of tech firms in their portfolios.

The Monetary Authority of Singapore (MAS) is also involved in the effort and is looking to add to its existing measures.

Here’s an excerpt from the Bloomberg report:

“An effort to ramp up domestic investments by Temasek and GIC could help bolster Singapore’s local bourse, which has struggled in recent years with tepid listings and low liquidity. A paucity of tech names — one of the hottest themes in global equity markets since the pandemic began — has also affected investor interest in Singapore’s capital markets.”

The Straits Times Index, which represents the Singapore stock market, has lagged the Nasdaq by a vast margin over the past five years. Nasdaq is a barometer of how tech stocks perform in the US.

Source: Yahoo! Finance (STI represented by dark blue line and NASDAQ by light blue line)

Potential Beneficiaries of the Temasek Capital Injection

Even though the news is not confirmed, we can still look at some Singapore mid-cap companies that could benefit if Temasek indeed pumps money into the sector.

We can use stocks that are part of the FTSE ST Mid Cap Index for this exercise.

The index consists of mid-cap companies (as the name suggests) and represents around 18% of the Singapore stock market capitalisation.

Company NameTickerShare Price
(S$, unless otherwise stated)
Price-to-Earnings (P/E) RatioPrice-to-Book (P/B) RatioDividend Yield (%)Market Cap
(S$' million, unless otherwise stated)
Ascott Residence TrustHMN0.98-0.83.13058.0
CDL Hospitality TrustsJ851.15-0.94.31413.0
CapitaLand China TrustAU8U1.29-0.84.91959.6
ComfortDelGroC521.5654.71.20.93381.1
First ResourcesEB51.4717.61.72.02319.2
Frasers Centrepoint TrustJ69U2.2925.71.02.63891.3
Frasers Logistics & Commercial TrustBUOU1.4912.01.34.45477.8
Golden Agri-ResourcesE5H0.23571.00.52.02982.6
Hutchison Port Holdings TrustNS8UUS$0.2117.10.57.4US$1829.3
Haw ParH0211.9122.00.82.52635.1
Keppel Infrastructure TrustA7RU0.54-2.46.92695.2
Keppel DC REITAJBU2.5425.92.03.44355.4
Keppel REITK71U1.07-0.85.03943.2
Mapletree North Asia Commercial TrustRW0U1.01-0.86.03523.7
Nanofilm TechnologiesMZH4.0946.75.9-2693.3
NetLink NBN TrustCJLU0.97540.11.45.23799.5
OUE Commercial REITTS0U0.44-0.85.52392.7
OlamO321.6131.41.04.05941.6
Parkway Life REITC2PU4.7532.92.42.92873.7
Raffles MedicalBSL1.3638.52.81.82540.1
SATSS583.95-2.9-4432.2
SIA EngineeringS592.08-1.5-2334.8
SPHT391.94-0.91.33087.5
SPH REITSK6U0.92-1.02.92562.3
Sembcorp IndustriesU961.86-1.02.13323.1
Sembcorp MarineS510.083-0.6-2605.2
Sheng SiongOV81.4916.25.74.42240.2
Singapore PostS080.6645.31.21.71484.7
StarHubCC31.2114.05.94.12095.0
Suntec REITT82U1.43-0.75.14072.5
Thomson MedicalA500.085157.44.617.62247.4
VentureV0318.7218.32.14.05439.2
Wing TaiW051.8532.70.41.61423.3
Yangzijiang ShipbuildingBS61.5611.80.92.96003.6
Yanlord LandZ251.184.30.35.82279.2

Source: Shareinvestor

Some of the major investments that are already part of Temasek’s portfolio include SATS and Sembcorp Marine.

And a few of the better-performing companies are Keppel DC REIT, Parkway Life REIT, and Sheng Siong.

Of course, Temasek could look to invest in other mid-cap companies that are not part of the index (provided the investment company is indeed planning to boost the local stock market as per the Bloomberg report).

We will never know for sure until things are confirmed.

As always, remember to do your own research before investing in any company and that stocks are not mere pieces of paper to be traded; they represent part-ownership in businesses.

We will be updating this article as more details emerge so do bookmark it for future reference!

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We’ve released stock deep dive reports on a couple of companies, including Keppel DC REIT. Grab hold of them at Seedly Rewards right now!

Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any stock. The writer owns shares in Raffles Medical and SATS. 

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About Sudhan P
It isn't fair competition when only one company in the world makes Monopoly. But I love investing in monopolies. Before joining the Seedly hood, I had the chance to co-author a Singapore-themed investment book – "Invest Lah! The Average Joe's Guide To Investing" – and work at The Motley Fool Singapore as an analyst.
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