Singapore's Top Performing Blue-Chip Stocks: Are They Worth Your Investment?

TigerNews SG
Sep 16

The Straits Times Index has recently soared to new heights, maintaining a position above the 4,300 mark.

Singapore's blue-chip stocks are reaching unprecedented levels, with several hitting record highs almost on a weekly basis.

If you're observing the market from the sidelines as prices climb, you might be pondering whether it's too late to jump in. Or perhaps you're concerned about a potential market correction.

Consider this: not all market surges are equal. Some stocks benefit from mere market enthusiasm, while others rise due to genuine improvements in the companies themselves.

Let's focus on three Singapore blue-chip stocks currently making waves: CapitaLand Integrated Commercial Trust, Frasers Centrepoint Trust, and SATS Ltd.

Data is accurate as of 12 September 2025.

CapitaLand Integrated Commercial Trust [CICT] (SGX: C38U)

CICT manages a portfolio of prime office and retail properties both locally and internationally.

With renowned shopping havens like Raffles City and Plaza Singapura, it stands as one of Singapore's biggest REITs by market cap.

Why is it performing so well currently? The reason is straightforward.

CICT demonstrates real resilience.

As of June 2025, CICT boasts an impressive occupancy rate of 96.3%. Rents are on the rise, increasing by 7.7% in retail and 4.8% in office spaces, indicating robust demand for its properties.

Key considerations for investors?

First, monitor the gearing ratio at 37.9%. Though comfortable, investors should keep an eye on interest rates if they remain high.

The REIT has the capacity to manage borrowing costs, with an interest coverage ratio of 3.1 times.

Lastly, with a price-to-book ratio just under 1.1, CICT trades near its intrinsic asset value, potentially cushioning against market downturns if property prices remain stable.

Frasers Centrepoint Trust [FCT] (SGX: J69U)

FCT operates a portfolio of suburban malls, vital hubs for community shoppers. Establishments like Causeway Point and Northpoint City serve as key community hubs within transport nodes.

The figures depict resilience.

Retail occupancy stood at 99.5% by the end of June 2025, signaling near-full capacity.

Shopper traffic increased by 1% from the previous year, while tenant sales rose 3.3%, affirming the malls' importance.

The trust achieved high single-digit rental reversions for the quarter, with management expecting this to continue for the fiscal year.

Investor points of interest?

FCT's debt costs have fallen below 4%, alleviating pressure from 2023 highs.

The trust's gearing, at 38.6%, is higher than CICT’s but still below the 50% cap, allowing growth flexibility.

The Hougang Mall enhancement, due by September 2026 and 64% pre-leased, could drive forthcoming growth.

SATS Ltd (SGX: S58)

SATS has evolved from a Singapore-focused ground handler into an international aviation and food solutions leader following its acquisition of Worldwide Flight Services (WFS).

The integration is showing positive results.

First-quarter revenue for fiscal 2026 surged nearly 10% year-on-year to S$1.5 billion, with operating margins increasing from 8.2% to 8.3%.

Gateway Services (cargo and ground operations) were the primary growth drivers, achieving an 11.2% revenue increase year-on-year to S$1.2 billion, while Food Solutions posted a steady 5.6% growth.

What should investors consider about SATS?

The WFS integration is advancing ahead of schedule.

New contracts with Cathay Cargo and Emirates SkyCargo enhance SATS’s global reach to 225 stations in 27 countries.

Gross debt-to-equity has lessened to 1.5 times from post-acquisition peaks.

The fiscal 2025 dividend of S$0.05, more than tripling the previous year's, reflects management's confidence in cash flow.

Investor Perspectives on Blue-Chip Stocks at Record Highs

Not every market rally is a signal to buy impulsively.

Investors should ask: are the underlying fundamentals robust enough to support the current valuation?

CICT, FCT, and SATS offer distinct advantages at present prices.

CICT provides premium commercial real estate exposure with a 5% yield. FCT offers defensive suburban retail prospects with consistent distributions. SATS represents a transformation opportunity with growing global operations.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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