Dear readers, the Singapore stock market recently achieved a significant milestone as the benchmark indicator, the Straits Times Index (STI), soared past the 4,000 mark for the first time in its history last week. This notable rally has been largely fueled by the performance of large-cap banking stocks, particularly DBS, OCBC, and UOB, which have shown robust growth and contributed significantly to the overall index rise.
However, while the STI has reached new heights, it is essential to note that not all stocks within the index share the same fortune. In fact, several STI stocks have experienced pronounced declines, prompting a closer examination of their current status and performance.
Let’s delve into four specific STI stocks that have been trading at significantly low levels, as indicated by their closing prices on March 28, 2025. These stocks have not only underperformed the market but have also raised questions for potential investors about their viability.
City Development (CDL): Over the past year, CDL has witnessed a decline of approximately 14.36%. As a prominent player in Singapore’s real estate sector, the company has faced challenges stemming from various market dynamics, including rising interest rates and a shifting property landscape. The slowing demand for residential properties has put pressure on its financial performance, leading to skepticism among investors about its growth potential in the near future.
SATS Ltd.: Year-to-date, SATS has seen a drop of about 15.38%. As a leading provider of food solutions and gateway services, SATS’s fortunes are closely tied to the aviation and travel industries. The lingering effects of the pandemic and ongoing geopolitical tensions have adversely affected air travel demand, which, in turn, has impacted SATS’s operational performance. Investors are understandably cautious, as the recovery of international travel remains uncertain.
Yangzijiang Shipbuilding: This company has experienced a staggering decline of 19.93% year-to-date. As one of the largest shipbuilders in China, Yangzijiang has encountered numerous headwinds, including supply chain disruptions and fluctuating demand for new vessels. The cyclical nature of the shipbuilding industry adds an additional layer of risk, making it essential for potential investors to conduct thorough research before considering any investments in this stock.
Venture Corporation: With a decline of about 12.6% over the past year, Venture Corporation, a technology services provider, has faced challenges in maintaining its growth trajectory. The ongoing semiconductor shortage and increasing competition in the tech sector have led to concerns regarding its ability to sustain profitability. As a result, the stock’s performance has been lackluster, prompting investors to reassess its potential in a rapidly evolving market.
While the aforementioned four STI stocks are currently trading at their lows, it is crucial to understand that this post is not intended as a recommendation to invest in them at this moment. Typically, stocks that are trading at low levels are doing so for a reason; whether it be due to sector-wide challenges, company-specific issues, or broader economic factors. Investors must exercise caution and conduct their own due diligence before making any investment decisions.