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Macquarie Names Top Singapore SMID-Cap Picks, Favoring Tech and Industrials
Summary
A quantitative model from Macquarie has identified its top small and mid-cap stock selections in Singapore, highlighting companies with exposure to industrial automation, AI, and commodities while underweighting rate-sensitive sectors.
Macquarie has identified its top small and mid-cap (SMID-cap) stock selections on the Singapore Exchange, utilizing a factor-based quantitative model that currently favors food-related, capital goods, and information technology companies.
Quantitative Model Focuses on Growth
According to a note from the investment bank, its Singapore Alpha Model analyzed 104 companies across several benchmarks, including the BMI S&P Singapore, MSCI Singapore, iEdge Next 50, and FTSE STI indices. The resulting portfolio is systematically constructed based on alpha scores, leading to a distinct set of preferences.
The model is currently underweight rate-sensitive sectors such as Real Estate and Financials. Instead, it shows a preference for companies in the capital goods and food-related industries, with four selections each, followed by three names in information technology.
Top Selections Span Tech, Finance, and Commodities
AdMacquarie's analysis highlighted five top-ranked SMID-cap companies, citing specific growth drivers for each:
- Frencken Group: An industrial company positioned to benefit from upside potential in the industrial automation and automotive sectors.
- UMS Integration: A semiconductor contract manufacturer with favorable exposure to the artificial intelligence supply chain.
- UOB-Kay Hian Holdings: A brokerage firm that offers leverage to increased stock market liquidity and retail investor participation.
- Moneymax Financial Services: A pawnbroking business with growth prospects driven by store expansion. Macquarie noted its recent transition from the Catalist to the Mainboard could improve liquidity and price action.
- Bumitama Agri: An agricultural firm providing exposure to a potential recovery in crude palm oil prices in 2026 and offering a high dividend yield.
Market Context
Macquarie's report also observed that Singapore's market for initial public offerings has seen a pickup in activity. According to the firm, there have been four IPOs raising over $10 million year-to-date in 2026, compared to a total of six for the entirety of 2025. This suggests a potentially improving environment for capital markets and new listings.
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