Top 5 Singapore penny stocks to watch in 2026
Singapore penny stocks offer opportunities for CFD traders seeking high volatility and potential returns. These low-priced securities, typically trading under S$2, can be accessed through CFD trading platforms like IG Singapore, allowing you to trade price movements without owning the underlying shares directly.
Important to know
This article is intended for educational and informational purposes only and does not constitute any form of investment advice. Please ensure that you understand the risks and consider your specific investment objectives, financial situation or particular needs before making a commitment to trade.
Key takeaways
- Singapore penny stocks are shares priced around S$2 or below that offer high volatility and potential returns through CFD trading, without requiring direct share ownership.
- CFD trading provides advantages including leverage, short selling capabilities and lower capital requirements, but amplifies both potential profits and losses. Investing is possible with the IG Markets mobile app, though less recommended due to the volatile nature of these stocks.
- Proper risk management is essential when trading penny stock CFDs due to their high volatility, limited liquidity and leverage effects.
What are Singapore penny stocks?
Singapore penny stocks refer to shares of publicly traded companies listed on the Singapore Exchange (SGX) that trade at around S$2 or below per share. These securities are particularly popular among CFD traders due to their high volatility and potential for significant price movements.
When trading Singapore penny stocks through CFDs (contracts for difference), you're trading the price movements of these stocks without actually owning the underlying shares. This approach offers several advantages including leverage, the ability to profit from both rising and falling markets, and lower capital requirements.
Many Singapore penny stocks are listed on both the SGX Mainboard and the Catalist board, covering various sectors from retail to precision engineering. These companies have experienced significant price fluctuations that create opportunities for active CFD traders.
The appeal of trading Singapore penny stocks via CFDs lies in the combination of high volatility and flexible trading capabilities. CFD traders can use leverage to amplify their exposure while maintaining the ability to enter and exit positions quickly as market conditions change.
For investors, penny stocks are less recommended as part of a longer-term strategy. However, should a stock be on your watch list, do ensure that maximum due diligence (ie. fundamental analysis) and risk mitigation are conducted before taking on any such shares.
Singapore penny stocks: opportunities and risks for traders and investors
Singapore penny stocks — typically super low-priced shares of smaller companies — attract both CFD traders and long-term investors seeking high-risk, high-reward opportunities. While they offer unique advantages, they also carry significant risks that demand careful consideration and strategies.
[For CFD traders: short-term opportunities and risks]
➤ Key trading opportunities
Lower capital requirements with leverage
Share CFD trading enables exposure to penny stocks with a smaller initial outlay compared to direct share purchases. Leverage allows traders to control larger positions while committing only a fraction of the total value as margin.
High volatility creates trading opportunities
Penny stocks are known for sharp price swings. This volatility is particularly attractive for active strategies such as day trading and swing trading, where short-term movements can be exploited for profit.
Ability to profit in falling markets
CFDs allow short-selling, meaning traders can potentially profit when penny stock prices decline — a flexibility unavailable in traditional share ownership.
➤ Key trading risks
Leverage amplifies losses: Small adverse moves can wipe out margin deposits.
Volatility cuts both ways: Rapid swings can quickly erode profits.
Liquidity challenges: Thin trading volumes may cause wide spreads and difficulty exiting positions.
Company fragility: Many penny stock firms face weaker fundamentals, raising risks of delisting or bankruptcy.
👉 Takeaway for traders: Success requires high risk tolerance and disciplined risk management — stop-loss orders, position sizing, and diversification are essential.
[For long-term investors: growth potential and caution]
➤ Key investment benefits
Accessible entry point
Penny stocks often trade at low prices, making them appealing for investors seeking exposure to growth companies without large capital commitments.
Potential for outsized return
Smaller companies can deliver significant upside if they succeed, offering investors early-stage growth opportunities.
Portfolio diversification
Penny stocks may provide exposure to niche sectors or emerging industries not represented by large-cap equities.
➤ Key risks for investors
Extreme volatility: Long-term holdings may suffer prolonged underperformance.
Liquidity constraints: Exiting positions during downturns can be difficult.
Higher risk of company failure: Weak financials increase the likelihood of delisting or bankruptcy.
👉 Takeaway for investors: Penny stocks should remain a speculative allocation within a diversified portfolio, balanced against more stable assets.
Top 5 Singapore penny stocks to watch
Company
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52-week low share price*
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52-week high share price*
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Available for CFD trading with IG?
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Available for investing with IG Markets SG app?
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S$1.35
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S$1.64
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✔
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✔
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S$1.09
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S$1.27
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✔
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✔
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S$0.38
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S$1.29
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✔
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✔
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S$1.00
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S$2.08
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✔
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✔
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S$1.57
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S$2.97
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✔
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✔
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*As of 18 February 2026
1. ComfortDelGro Corporation (SGX: C52)
Industry: Land transportation
Market cap: S$3.3 billion
Latest earnings: ComfortDelGro announced FY2025 results release scheduled for February 2026. Recent updates include Silchester International Investors LLP increasing its stake in the company to 6.06% from 5.89%. Third-quarter (Q3) 2025 revenue stood at S$1.3 billion, up 12.9% year-on-year (YoY), with profit after tax and minority interests (PATMI) up 22.4% YoY.
Trading data (February 2026):
- Three-month average price: ~S$1.50
- Three-month average daily volume: ~4.2 million shares
- Volatility: ±1.1% daily
- Liquidity: High
Other key stock information:
- Dividend yield (trailing twelve months - TTM): ~5.5%
- 52-week performance: +9.4%
- Price-to-earnings (P/E) ratio: 14.8 times
- Price-to-book (P/B) ratio: 1.25 times
- Price-to-sales (P/S) ratio: 0.68 times
Analyst stock ratings and share price targets: ComfortDelGro shares have a majority ‘buy’ rating and average 12-month stock price target of S$1.69 (equating to an upside potential of 12%), according to the latest FactSet data published on the IG Markets mobile app.
2. StarHub (SGX: CC3)
Industry: Telecommunications
Market cap: S$1.9 billion
Latest earnings: StarHub reported FY2025 results on 12 February 2026, with service revenue at S$2.0 billion (down by 1.3% YoY) and total revenue at S$2.35 billion (down by 0.6% YoY). Earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in 12.3% lower at S$403.6 million.
Free cash flow (FCF) was a deficit of S$24.7 million for FY2025, due to the one-off 700MHz spectrum rights payment of S$188.0 million made in June 2025. The company proposed a final dividend of S$0.03 per share, bringing FY2025 dividends to S$0.06.
Trading data (February 2026):
- Three-month average price: ~S$1.18
- Three-month average daily volume: ~3.5 million shares
- Volatility: ±1.2% daily
- Liquidity: Moderate
Other key stock information:
- Dividend yield (TTM): ~5.3%
- 52-week performance: −12.0%
- P/E ratio: 24.4 times
- P/B ratio: 3.8 times
- P/S ratio: 0.8 times
Analyst stock ratings and share price targets: StarHub shares have been rated ‘hold’ by 40% of analysts and ‘sell’ by 40% of analysts, according to FactSet data published on IG Markets. The stock has an average price target of S$1.10, which implies that the stock is currently trading around its fair value (18 February 2026).
3. CSE Global (SGX: 544)
Industry: Engineering and infrastructure solutions
Market cap: S$919.3 million
Latest earnings: CSE Global achieved a ‘record’ S$1.0 billion in new orders for the whole of FY2025 (up by 28.3% from FY2024), driven by demand in data centres, electrification, and infrastructure. The company secured S$514.7 million of new orders in the fourth quarter ended 31 December 2025, a 118.7% YoY growth.
Trading data (February 2026):
- Three-month average price: ~S$1.27
- Three-month average daily volume: ~1.1 million shares
- Volatility: ±2.5% daily
- Liquidity: Low
Other key stock information:
- Dividend yield (TTM): ~1.9%
- 52-week performance: +176.1%
- P/E ratio: 32.48 times
- P/B ratio: 3.65 times
- P/S ratio: 1.02 times
Analyst stock ratings and share price targets: CSE Global shares have a ‘buy’ consensus from analysts alongside an average 12-month price target of S$1.24, indicating that the stock is trading slightly above its market fair value. (18 February 2026)
4. AEM Holdings (SGX: AWX)
Industry: Semiconductor equipment (AI chips) and testing
Market cap: S$644.0 million
Latest earnings: AEM saw its nine months (9M) FY2025 revenue increase 16.0% YoY, driven mainly by a foray into ‘high-volume manufacturing at its major AI/HPC (high-performance computing) customer’. For 9M2025, the group’s profit before tax (PBT) was S$6.2 million, equating to a PBT margin of 2.2%, up 1.8 percentage points from a year ago.
Trading data (February 2026):
- Three-month average price: ~S$2.05
- Three-month average daily volume: ~2.0 million shares
- Volatility: ±2.0% daily
- Liquidity: Moderate
Other key stock information:
- Dividend yield (five-year average): 2.2%
- 52-week performance: +39%
- P/E ratio: 47.2 times
- P/B ratio: 1.3 times
- P/S ratio: 1.6 times
Analyst stock ratings and share price targets: A majority of analysts (50%) polled by FactSet rated AEM shares a ‘buy’, alongside an average stock price target of S$1.79. This equates to a downside potential of 11.6%. (18 February 2026)
5. Sheng Siong Group (SGX: OV8)
Industry: Supermarkets and retail
Market cap: S$4.0 billion
Latest earnings: Sheng Siong saw Q3 FY2025 net profit rise 12.0% YoY to S$43.8 million. Revenue rose 14.4% YoY to S$415.5 million, driven by new store openings and improved comparable same-store sales. Gross profit margin improved slightly to 31.5%, supported by a better product mix. The group opened a new store outlet at Leisure Park Kallang in Q4 FY2025.
Trading data (February 2026):
- Three-month average price: ~S$2.70
- Three-month average daily volume: ~5.5 million shares
- Volatility: ±1.0% daily
- Liquidity: High
Other key stock information:
- Dividend yield (TTM): ~2.4%
- 52-week performance: +62.8%
- P/E ratio: 27.8 times
- P/B ratio: 7.2 times
- P/S ratio: 2.6 times
Analyst stock ratings and share price targets: Sheng Siong shares have a majority ‘buy’ rating (63% of analysts), alongside an average 12-month stock price target of S$2.50. This equates to a downside potential of 6.0%. OCBC lowered its Sheng Siong rating from ‘buy’ to ‘hold’ in February 2026, stating that the stock is currently trading more than two standard deviations above its historical average of 19.6 times.
Singapore penny stocks CFD trading and investing strategies
[Penny stocks CFD trading strategies]
► Momentum trading approach
Momentum trading involves identifying penny stocks with strong price trends and entering CFD positions to capitalise on continued movement. Use technical indicators to identify momentum, set tight stop-loss orders, and monitor trading volumes to confirm trend strength.
► Swing trading method
Swing trading aims to capture price movements over several days to weeks, taking advantage of penny stocks' significant price swings. Identify support and resistance levels, use wider stop-losses, and consider both technical and fundamental factors.
► Risk management essentials
Regardless of strategy, effective risk management is crucial:
- Position sizing: Never risk more than 1-2% of your account on a single CFD trade
- Stop-loss orders: Always use stop-loss orders to limit potential losses
- Diversification: Spread risk across multiple positions and sectors
- Leverage control: Use conservative leverage ratios to manage risk
What are stock CFDs?
[Penny stocks investing strategies]
► Prioritise SGX fundamentals
When investing in Singapore penny stocks listed on the SGX, focus on companies with strong fundamentals: improving balance sheets, consistent revenue growth, and manageable debt.
Many small-cap firms in Singapore’s property, technology, and renewable energy sectors show potential if earnings momentum is strong. Screening for dividend-paying penny stocks can also add stability, as yield remains a key attraction for Singapore investors.
► Risk management for volatile small-caps
Penny stocks in Singapore are highly volatile, so disciplined risk control is essential. Limit exposure by allocating only a small portion of your portfolio to these trades. Diversify across industries rather than concentrating on one sector, and use stop-loss orders to protect against sharp downturns.
It would be prudent to treat penny stock investing as a speculative satellite strategy, not the core of your SGX portfolio.
► Spot catalysts in the Singapore market
Successful penny stock investing often depends on identifying local catalysts such as government infrastructure projects, regulatory approvals, or sector-specific growth drivers.
Monitor SGX announcements, quarterly earnings, and industry news closely, as small developments can also trigger outsized price movements. Pair fundamental analysis with technical charts to time entries and exits effectively.
How to trade and invest in penny stocks with IG Singapore
[CFD trading]
- Create a live or demo account
- Find an opportunity from one of our 10,000+ stocks with our stock screener
- Click ‘buy’ to go long or ‘sell’ to short
- Set your position size
- Take steps to manage your risk
- Open and monitor your position
[Investing]
- Open an account via IG Markets Singapore app
- Search for Singapore penny stocks on the app
- Choose the shares you want to buy
- Determine how many shares you want to purchase
- Place your order
- Monitor your investment and collect any dividends
FAQs about Singapore penny stocks
What should I research before trading Singapore penny stocks via CFDs?
Before trading any Singapore penny stock CFD, conduct thorough research including company fundamentals, management quality, industry dynamics, technical analysis and recent news developments.
How do CFDs differ from buying penny stocks directly?
CFD trading offers several key differences: no ownership of underlying shares, leverage capabilities, short selling opportunities, overnight financing costs, and different tax implications compared to direct share ownership.
Are Singapore penny stocks suitable for new CFD traders?
Singapore penny stocks are generally not recommended for new CFD traders due to high volatility, leverage risks, limited liquidity and the requirement for sophisticated risk management skills.
Are penny stocks suitable for long‑term investing?
While some penny stocks can evolve into strong growth companies, most are better suited for short‑term trading due to their speculative nature. Long‑term investors should focus on SGX penny stocks with improving fundamentals, consistent earnings, or dividend potential.
Do penny stocks in Singapore pay dividends?
Some do, especially in sectors like property or manufacturing. Dividend‑paying penny stocks can provide stability, but yields should be verified against the latest SGX filings.
How can I start trading and investing in Singapore penny stocks with IG?
To begin trading with IG Singapore: open a CFD trading account, complete verification, fund your account, research opportunities using IG's tools, start with small position sizes, and implement proper risk management.
To begin investing, download the IG Markets mobile app and follow the set-up instructions accordingly.
What's the minimum amount needed to start trading?
IG Singapore does not specify a minimum deposit requirement for CFD trading accounts. However, ensure you have sufficient capital to meet margin requirements, maintain positions through adverse movements and implement proper risk management.
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