UOB Kay Hian’s Alpha Picks portfolio has outperformed the Straits Times Index (STI) in the second quarter of 2025, achieving a 5% quarter-on-quarter increase on an equal-weighted basis. This performance surpassed the STI’s 1.8% gain by 5.2 percentage points, according to the latest report from the financial services group.
The portfolio’s success was largely attributed to the strong performance of small to mid-cap stocks, with Centurion, Frencken, and Propnex leading the charge. Centurion saw a 15.1% month-on-month increase, buoyed by its upcoming REIT listing in the third quarter of 2025. Frencken and Propnex also experienced significant gains, benefiting from positive sentiment towards semiconductor-related companies and new residential launches, respectively.
Looking ahead to the second half of 2025, UOB Kay Hian has adjusted its Alpha Picks portfolio to include UMS Integration and CapitaLand Ascendas REIT. UMS Integration is expected to benefit from an upcoming dual listing, whilst CapitaLand Ascendas REIT is positioned as a prime beneficiary of preferential tariffs due to its substantial exposure to business parks and hi-tech buildings in Singapore.
The report also highlighted the impact of global investor sentiment, which was bolstered by cooling geopolitical tensions in the Middle East and optimism surrounding US trade deals. This positive outlook, coupled with stable inflation and soft economic data, has increased expectations for a potential interest rate cut by the US Federal Reserve.
As the second half of 2025 unfolds, UOB Kay Hian remains optimistic about the prospects of its Alpha Picks portfolio, particularly in light of the Monetary Authority of Singapore’s anticipated S$5b capital injection.
“`
