Should I buy Straits Trading stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of Straits Trading for over three years. Every month, hundreds of thousands of users in Singapore rely on us to interpret market trends and identify the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, paid by Straits Trading.

What is Straits Trading?

How much is Straits Trading stock?

The price of Straits Trading stock is unchanged this week. As of the latest close, the share price stands at SGD 1.39, showing a 0.00% change in the past 24 hours and a -4.83% decline over the week.

The company’s market capitalisation is SGD 627 million, with an average daily trading volume of 89,034 shares over the past three months.

The current P/E ratio is negative as the company is still reporting net losses, while its attractive dividend yield remains high at 5.76%.

Straits Trading’s low beta of 0.56 indicates lower volatility than the broader market, offering a more defensive profile for investors in Singapore.

Our full analysis on Straits Trading stock

We have conducted a thorough review of Straits Trading Company’s latest FY2024 financials, incorporating the stock’s performance trend across the past three years. Deploying an integrated analytical model—balancing financial indicators, technical readings, market dynamics, and a comparative landscape—we have sought to distill the essence of this SGX-listed conglomerate’s current and future value proposition. Given this rigorous evaluation, the question arises: Why might Straits Trading once again offer a strategic entry point into the diversified Singaporean real asset sector as we approach 2025?

Recent Performance and Market Context

Steady Asset-Based Growth, Share Price at Compelling Levels

Straits Trading (SGX: S20) has maintained a resilient posture in a shifting macroeconomic landscape, with its share price closing at SGD 1.39 as of May 9, 2025. The stock fits firmly within its 52-week range of SGD 1.25–1.55, avoiding the volatility seen in many of its domestic and regional peers. While the stock has experienced a marginal decline on a six-month basis (-4.17%), its modest annual gain (+1.47%) signals durability, especially considering recent macro headwinds and sector-wide re-ratings.

Dividend Strength and Institutional Confidence

A dividend yield of 5.76%—far surpassing the sector average of 1.81%—positions Straits Trading at the upper echelon of income-generating equities within the Singapore exchange. Reinforced by four consecutive years of dividend growth, this trend signals strong management intent, a commitment to shareholder returns, and potential income stability for investors even amid modest net losses.

Sector Tailwinds and Economic Support

Straits Trading's strategic focus on property, resources, and hospitality provides inherent diversification. As Southeast Asia’s economic engines (Malaysia, Singapore, Australia) move into an infrastructure-led growth phase—backed by Malaysia’s 2025 federal budget priorities and robust Singaporean economic stewardship—the company is positioned to benefit from upcoming property and hospitality cycles, as well as the ongoing global demand for specialty metals like tin. This backdrop underpins the company’s stability and offers a favorable base for prospective gains, especially as regional capital flows rotate toward tangible, asset-rich businesses.

Technical Analysis

Balanced Technical Structure Suggests Upside Potential at Current Levels

A review of Straits Trading’s price chart and technical oscillators reveals a market in consolidation, yet poised for a potential positive inflection.

• Momentum & Oscillator Signals:
• RSI (14-day) at 42.54: Approaching oversold territory, indicating limited downside and rising chance of technical rebound.
• MACD (-0.011): Bearish but stabilizing, which often precedes reversal when matched with improving fundamentals.
• CCI (68.9): Returns a buy signal—evidence of emerging upward momentum.
• Moving Averages Context:
• Short-term (5- and 10-day) moving averages show renewed buying pressure, sitting just below spot price—classic precursors to a turnaround.
• Mid-/long-term MAs (20, 50, 100-day) still trade above current price, but with narrowing gaps, indicating a shallow consolidation base.
• The 200-day simple MA at 1.386 acts as a critical inflection level: the current spot price’s proximity to this trendline increases the visibility of an imminent bullish crossover if short-term gains persist.
• Support and Resistance:
• Strong support at SGD 1.38 and SGD 1.35, with historical bounces limiting further downside; next resistance tests are well-defined at SGD 1.40, SGD 1.46, and the annual high of SGD 1.55.

Summary: While the technicals present a slightly bearish snapshot, the indicators collectively show that Straits Trading is entering technically attractive, historically-backed support territory. The setup appears favorable for accumulation ahead of potential catalysts and reversals—an opportunity seldom present at this valuation.

Fundamental Analysis

Solid Revenue, EBITDA Growth & Asset-Backed Profile

Straits Trading demonstrates an accelerating operational performance trajectory:

• Revenue Growth: FY2024 revenues were up 6.2% YoY to SGD 595.23 million—highlighting sustained growth across cyclical sectors.
• EBITDA Surge (+56.6% YoY): The dramatic improvement, especially within the property segment (from segment loss to SGD 64.9 million EBITDA), attests to successful asset optimization and operational leverage.
• Narrowing Losses: While the company posted a net loss of SGD 7.23 million (improving 75% YoY), the loss per share has virtually halved, suggesting a clear path toward bottom-line recovery, underpinned by enhanced operational discipline and cost rationalization.

Valuation Discount and Defensive Qualities

• Price-to-Book (P/B): Trading at just 0.44x book value, Straits Trading is available at a substantial asset discount—providing natural downside support and an attractive margin of safety compared to both Singapore-listed and global peers.
• Low Beta (0.56): Defensively structured with less than market-average volatility, it provides a compelling risk-adjusted value proposition for institutional mandates and conservative allocators.
• Dividend Dynamics: The headline 5.76% dividend yield (albeit with a currently high payout ratio) is underpinned by healthy cash reserves (SGD 448.8 million), offering investors current income through market cycles while management navigates to sustainable profitability.

Structural Strengths and Competitive Edge

• Diversified Business Platform: Multi-segment operations (resources, property, hospitality) reduce cyclical risk and provide multiple growth levers.
• Prestige Assets & Key Holdings: Majority, minority, and strategic stakes (e.g., 52% of Malaysia Smelting Corporation—one of the world's top tin producers; 3.9% of ESR Group—the APAC’s real assets behemoth; and 30% of Far East Hospitality Holdings) amplify exposure to key growth drivers within the Asia Pacific region.
• Impressive Recent Execution: FY2024 saw asset monetization, cost reductions, and new project launches (notably the Straits City mixed-use development in Penang and digital securities programs) that have begun to bear fruit financially and reputationally.

Volume and Liquidity

Stable and Sufficient Volume for Institutional Entry

• Average Daily Volume: Trading at 89,000 shares/day over three months, Straits Trading’s liquidity profile comfortably accommodates mid- to large-scale entry, without significant market impact.
• Float Dynamics: With a free float of 32.06%, the stock’s ownership profile blends institutional stability with enough public participation to allow for incremental re-ratings as positive catalysts unfold.
• Liquidity Confidence: Sustained turnover at or above historic averages projects market confidence and positions the stock for dynamic valuation upgrades when key earnings or corporate catalysts materialize.

Catalysts and Positive Outlook

Multi-Year, Multi-Segment Growth Visibility

• Straits City (Penang) & Property Re-Rating:
• The opening of the Crowne Plaza Penang Straits City in August 2024 is a forward-looking asset play, benefiting from Penang’s emergence as a semiconductor production and tech hub—a tailwind supercharged by Malaysia’s infrastructure spend and incoming major transit projects (airport expansion, LRT, etc.).
• Anticipated rental, cap-rate, and valuation uplift, both directly and via portfolio repricing, offers tangible NAV accretion in the coming cycles.
• Resources Optimization & Net-Zero Leadership:
• Full ramp-up of the Pulau Indah smelter and closure of the legacy Butterworth plant in 2025 unlock not only cost reduction but also ESG-driven benefits (lower emissions, improved safety). Further, exposure to elevated tin prices and cost-efficient mining methodologies are expected to strengthen segment EBITDA and competitive positioning.
• Hospitality Bounce-Back and Portfolio Optimisation:
• The pronounced rebound in international travel, coupled with strategic expansions and refurbishments by Far East Hospitality, are poised to deliver further EBITDA growth and capital recycling opportunities going into 2025.
• Digital and Capital Market Innovation:
• Partnerships with tech-forward platforms (SDAX, Straits 5.0) are positioning the Group for enhanced capital-raising agility and digital transformation, setting the stage for further balance sheet strengthening and differentiated market visibility.

Favorable Macro Updrafts

• Regional governments remain committed to infrastructure stimulus, tourism recovery, and resource sector investments, establishing a supportive backdrop for Straits Trading's growth pillars.
• As global investors seek hard assets, tangible yield, and value in Asia, Straits Trading is ideally positioned to benefit from portfolio rotations and increased capital inflow to the region.

Investment Strategies

Compelling Arguments for Short-, Medium-, and Long-Term Entry

• Short-Term Setup:
• The technical support base at SGD 1.38, convergence near the 200-day MA, and rebound potential from cyclical oversold readings collectively set the stage for tactical accumulation ahead of positive newsflow (dividend payments, upcoming property launches, plant ramp-up milestones).
• Medium-Term Thesis:
• Operational efficiencies (especially in resources), combined with ongoing digital initiatives, support sequential EBITDA growth, margin improvement, and probable technical breakout upon delivery of key milestones.
• Long-Term Positioning:
• Participation in transformative Asian urbanization (Straits City, regional property, and hospitality), together with a deep asset discount and strengthening segment fundamentals, argue forcefully for multi-year total return potential well-supported by asset re-pricing.
• Ideal Timing:
• With the stock trading just above support, below book, and near multi-year lows despite visibly improving fundamentals and tailwinds, the case for phased entry appears well-justified—particularly before market consensus fully prices in the Group’s transformation benefits.

Is it the Right Time to Buy Straits Trading?

Key Strengths Recap

• Asset-rich balance sheet trading at a deep discount
• Sustainable cash flows and improving EBITDA from all core segments
• High dividend yield and clear management commitment to shareholder returns
• Exposure to growth catalysts across property, resources, and hospitality
• Positive macro and sectoral tailwinds with significant infrastructure-led growth ahead

Optimistic Projection and Encouragement

Straits Trading’s fundamentals, forward-looking asset initiatives, and demonstrable cost discipline collectively justify renewed interest in this venerable conglomerate at current valuations. As regional economies unlock new growth, Straits Trading appears set to transition into a new bullish phase—with near-term re-rating potential amplified by healthy dividend streams and multi-segment growth visibility.

Given the confluence of historical value, strategic catalysts, and improving financials, Straits Trading seems to represent an excellent opportunity for patient investors seeking both income and capital appreciation in the Singapore market. This unique blend of defensive characteristics and latent upside could mark 2025 as the year Straits Trading regains its stature as a key entry point for those seeking diversified, asset-backed growth exposure in the region.

In sum, as market sentiment gradually realigns to these improving fundamentals and as catalysts materialize, discerning investors are increasingly likely to find Straits Trading’s current share price and structure an appealing and timely proposition for robust portfolio inclusion.

How to buy Straits Trading stock in Singapore?

Buying Straits Trading (SGX:S20) shares online has never been simpler or more secure—especially when you use a MAS-licensed broker in Singapore. You have two main ways to invest: purchasing the shares outright via your brokerage account (“spot” or “cash” buying), or trading Contracts for Difference (CFDs) which let you speculate on price movements without owning the stock. Each method suits different investment styles and objectives. To help you choose, a broker comparison is available further down the page.

Spot Buying

A cash purchase means you buy Straits Trading shares directly through a Singaporean broker, becoming a shareholder eligible for dividends and voting rights. Typical fees include a fixed commission per trade, often between SGD 2 and SGD 10, depending on the broker.

Example: Spot Buying

If Straits Trading is trading at SGD 1.39 per share, a SGD 1,000 investment allows you to buy approximately 715 shares after accounting for a commission of around SGD 5.

✔️ Gain scenario: If the share price rises by 10%, your 715 shares would now be worth about SGD 1,100.

Result: That’s a gross gain of SGD 100, or +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on Straits Trading’s price movements without owning the actual shares. With CFDs, you trade on margin—meaning you deposit a fraction of the exposure size (your stake), and the broker lends you the rest. Fees usually include a spread (the buy/sell price difference) and overnight financing if you hold the position beyond one day.

Example: Trading via CFD

Suppose you open a CFD position on Straits Trading with a SGD 1,000 stake and use 5x leverage. This gives you market exposure of SGD 5,000 (1,000 × 5).

✔️ Gain scenario: If Straits Trading’s share price rises by 8%, your position would show a 40% gain (8% × 5).

Result: That’s a profit of SGD 400 on your SGD 1,000 stake (excluding fees), showcasing the power—but also the risk—of leverage.

Final Advice

Before investing, it’s wise to compare brokers’ fees, platforms, and access to Singapore stocks like Straits Trading, as costs and features can vary. Whether you choose to buy shares directly or trade CFDs ultimately depends on your risk appetite, investment timeframe, and objectives. Take advantage of the comprehensive broker comparison further down this page to make an informed decision—and happy investing!

Our 7 tips for buying Straits Trading stock

The latest news about Straits Trading

Straits Trading narrows net loss by 75% in FY2024, driven by strong EBITDA growth across all segments.
For the financial year ending 2024, Straits Trading reported revenue of SGD 595.23 million, marking a 6.2% rise from the previous year, and achieved EBITDA of SGD 124.4 million, up a robust 56.6%. While the company continues to report a net loss (SGD 7.23 million), the deficit has narrowed sharply from FY2023 and earnings per share have improved significantly. The improvement reflects positive operational momentum across its resources, property, and hospitality businesses—of particular note to Singaporean investors given Straits Trading’s headquarters and primary listing on the Singapore Exchange.

Dividend yield stands at 5.76%, outpacing sector average, with four years of uninterrupted dividend growth.
Straits Trading's annual dividend per share is SGD 0.08, resulting in a yield of 5.76%, far exceeding the sector average of 1.81%. This consistent payout over four years is a cornerstone for income-focused investors in Singapore, despite the caveat of an unsustainably high payout ratio due to current earnings shortfalls. The next ex-dividend date was May 7, 2025, and payment is scheduled for June 29, reaffirming near-term income visibility for shareholders.

Digital transformation advances with successful SGD 13.41 million digital securities issuance on SDAX platform.
In April 2025, Straits Trading advanced its digitalization strategy by raising SGD 13.41 million through digital securities on SDAX, Singapore’s Digital Assets Exchange. This initiative followed the earlier launch of a SGD 55 million multicurrency commercial paper facility in partnership with SDAX, positioning Straits Trading at the forefront of capital markets innovation in Singapore and aligning with broader national agendas toward digital finance.

Property and resources segments show operational gains, especially from Malaysia and Penang developments.
The property segment turned around to post EBITDA of SGD 64.9 million (reversing a loss the prior year), buoyed by net fair value gains in key international markets and progress on landmark projects such as the Straits City development in Penang. The resources segment (through Malaysia Smelting Corporation) maintained margin strength, benefiting from higher tin prices and operational efficiency at the now fully operational Pulau Indah smelter. These positive developments have direct relevance for Singaporean analysts, given the cross-border investment flows and Straits Trading’s integration in regional growth corridors.

Stock trades at 0.44x book value with low volatility and an improving technical outlook for the short-term.
Currently priced at SGD 1.39, Straits Trading’s shares trade at just 0.44 times book value, suggesting asset-backed downside protection—a notable point within Singapore’s value investing community. The beta of 0.56 indicates relative stability versus the broader market, while technical indicators are mixed but feature recent buy signals on short-term moving averages. While the one-week price change is marginally negative, the long-term view is bolstered by ongoing operational recovery and the prospect of further structural improvements.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.