As several Singapore blue-chip stocks are hitting 52-week highs, those chasing greens in stock charts are probably grinning ear to ear.
But investors still face a key question: should they ride the momentum or wait for a pullback?
Three Singapore stocks are shining bright right today. Let’s get into the nitty gritty to find out more about their business and whether these highs can go even higher.
DBS Group (SGX: D05)
DBS is Singapore’s largest bank, and a dominant player in key markets like Hong Kong, Greater China, and India, providing a full suite of banking, insurance, and investment services.
With a market cap of approximately S$143 billion, the bank has a particularly strong presence in wealth management.
DBS’s shares are up 14.9% year-to-date and recently hit a 52-week high of S$51.45.
For 2025’s second quarter (2Q2025), the bank announced a net profit of S$2.8 billion.
Net interest income rose 2% year-on-year to S$3.65 billion despite net interest margin compression, with proactive balance sheet management and tactical hedging helping to offset rate pressures.
Strong fee income growth especially from wealth management (up 25% year on year in the latest quarter), helped DBS outperform its rivals.
Backed by the solid results, the bank continued to pay a capital return dividend of S$0.15 per share in 2Q2025 on top of its S$0.60 per-share ordinary quarterly dividend.
DBS’s key growth drivers include its wealth management division, which continues to attract strong client demand, and its investments in technology that lower costs while enhancing customer experience.
Regulatory pressures remain a risk, particularly after the 2023 system failures, with potential implications for DBS’s operations.
Hong Kong’s struggling property market also poses a macro risk, and competition in the banking sector is a major concern.
DBS has demonstrated strong performance and resilience, but at S$50.52, the stock is trading at a premium relative to its peers.
Singapore Exchange, or SGX (SGX: S68)
A key player in Southeast Asia’s financial market, SGX is a leading securities and derivatives hub based in Singapore.
Beyond equities, it has established leadership in areas such as FX, commodities. and fixed income, providing critical market infrastructure and liquidity that connect global investors to Asia’s growth.
Over the past year, SGX shares have risen by 32.5%, reaching a 52-week high of S$16.57.
The bourse operator’s recent FY2025 earnings, for the year ended 30 June 2025, showed an 8.4% year-on-year increase in net profit to S$648 million, or a 15.9% growth on an adjusted basis to just under S$610 million.
The company’s strong cost discipline has contributed to its profitability.
SGX sports a dividend yield of approximately 2.3% with FY2025 dividends totaling 37.5 cents per share (up 8.7% from FY2024).
Furthermore, the firm has outlined a plan to increase its dividend by S$0.0025 per quarter between FY2026 and FY2028, a plan which is sure to excite investors looking for income.
SGX’s growth is largely driven by strong derivatives trading, particularly in currencies and commodities.
With a focus on regional products, SGX is well-positioned amid de-globalisation and geopolitical tensions.
Like many others, the company faces growing competition from other regional exchanges and alternative trading platforms, though its derivatives volumes actually benefit from market volatility.
Key risks include regulatory changes, dependence on market activity levels, and potential margin pressure from fee competition.
Trading at S$16.57, after a 32.5% year-to-date gain, SGX’s valuation reflects its record earnings performance, and the promise of higher dividends over the next three fiscal years.
While the exchange continues to build momentum in derivatives and FX trading, investors should also be mindful of potential headwinds intensifying competition when deciding when to buy.
Singapore Telecommunications, or Singtel (SGX: Z74)
Singtel, with a market cap of approximately S$71 billion, is Singapore’s largest telecom operator.
The telco also owns Australia’s second-largest telco, Optus.
The company extends its reach across Asia through significant stakes in leading regional operators, collectively serving 788 million mobile customers.
With Singtel trading at S$4.31 (near its 52-week high of S$4.35),the telco’s dividend support and growth initiatives in data centres and 5G provide upside, though investors should remain mindful of regional competition and regulatory risks.
In its core business, Singtel has seen modest growth, with a 9.3% increase in underlying net profit to S$2.47 billion for the fiscal year ended 31 March 2025 (FY2025), driven by strong performance from Optus and its NCS division.
The same cannot be said of its Singapore business, which has seen intense price competition and regulatory pressure.
The company has been working to cut costs, targeting approximately S$200 million savings in SIngtel Singapore and Optus in the current fiscal year.
Despite being a solid free cash flow generator, Singtel will have to prove that it can sustain the recovery in Optus’ profitability and hold its own increased competition in its home market.
If investors believe in Singtel’s ability to cut costs and grow its data infrastructure business, the stock remains attractive.
Others may consider waiting for a dip given the challenges faced by Optus and the saturated telecom market in Singapore.
Get Smart
It’s always nice to see 52-week highs.
They reflect market confidence, sure.
But they don’t necessarily mean it’s “too late” to invest.
DBS shows strong profits and dividends, but it remains sensitive to interest rates.
SGX is benefiting from market volatility and expanding its product range, but its growth isn’t explosive; it’s steady.
Singtel is tapping into digital and regional growth, but it has to work doubly hard to maintain healthy margins amidst competition.
So, rather than zoning in on price momentum, why not focus on fundamentals and long-term growth potential?
This is how you can invest with greater confidence.
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Disclosure: Joanne owns shares of DBS.
Share prices are as of 21 August 2025
