2023 Recap | Keppel Corp and Sembcorp Ind Lead the Way

The performance of the Singapore stock market in 2023 is lackluster. As of the close on December 20, $FTSE Singapore Straits Time Index(.STI.SG)$, which reflects the trend of local blue-chip stocks, fell about 4%. The three major U.S. stock indexes outperformed the STI, with the $Nasdaq Composite Index(.IXIC.US)$ leading the pack by rising strongly by 43.35% this year, hitting a new high in the past two years. The $S&P 500 Index(.SPX.US)$ also performed well, rising by 13.31% and approaching a record high. Similarly, the $Dow Jones Industrial Average(.DJI.US)$ saw a significant increase of 24.19%, hitting a record high.

$Keppel(BN4.SG)$ and $Sembcorp Ind(U96.SG)$ have surged by almost 60% this year, outpacing the sluggish performance of the broader market and leading the $FTSE Singapore Straits Time Index(.STI.SG)$. $SIA(C6L.SG)$ closely follows them.

$Keppel(BN4.SG)$ has recently announced its acquisition of Aeromont Capital, a significant player in the European real estate market. This transaction is expected to bring long-term benefits to the company and enable global investment and development. As a result, analysts have expressed optimism about the stock, with UOB Kay Hian analysts maintaining a buy rating and giving a target price of S$9.09. Similarly, CGS-CIMB analysts have reiterated an overweight rating and maintained a target price of S$8.70, which is more than a 20% increase from the current price.

$Sembcorp Ind(U96.SG)$'s recent acquisitions of wind, solar, and hydropower power assets in Vietnam, China, India, and other regions will increase its total global renewable energy installed capacity to 12.6GW. According to UOB Kay Hian analysts, these acquisitions in the green energy sector and the expansion of its total renewable energy capacity have the potential to catalyze the next stage of stock price growth. The agency maintains a buy rating and a target price of S$7.20.