Top 5 Singapore penny stocks to watch in 2026

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$5 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

1. ComfortDelGro Corporation (SGX: C52)

Industry: Land transportation
Market cap: S$3.3 billion

Overview: ComfortDelGro is Singapore’s leading land transport company, operating buses, taxis, rail, and overseas ventures, with a strong focus on sustainable mobility and integrated urban transport solutions. 

Latest earnings (Q1 FY2026):

• Group net profit (PATMI): S$40.5 million, down 16.1% YoY (from S$48.3 million).
• Profit before tax (PBT): S$59.9 million, down 18.3% YoY (from S$73.3 million).
• Total revenue: S$1.23 billion, up 5.0% YoY (from S$1.17 billion).
• Operating profit: S$66.5 million, down 18.4% YoY.
• Net interest expense: S$4.5 million, improved from S$5.8 million.
• Earnings per share (EPS): Not explicitly disclosed in the release, but PATMI decline implies lower EPS YoY.
• Return on equity (ROE): Not provided in the Q1 update; implied lower than FY2025 due to profit contraction.

Trading information (20 June 2026):

• Price-to-earnings (P/E) ratio: 12.2 times
• Price-to-book (P/B) ratio: 1.1 times
• Price-to-sales (P/S) ratio: 0.56 times
• 52‑week share price range: S$1.26 to S$1.64
• 50‑day moving average share price: S$1.38
• 200‑day moving average share price: S$1.45
• Average daily trading volume (three‑month): ~12.8 million shares
• Dividend yield (trailing twelve months): 6.5%
• Dividend yield (five-year average): 4.1%

Analyst stock ratings and share price targets: ComfortDelGro shares have a majority ‘hold’ rating and average 12-month stock price target of S$1.47 (equating to an upside potential of 13%), according to the latest FactSet data published on the IG Markets mobile app.

Key trading/ investment risks:

• ComfortDelGro’s trading risks center on shrinking taxi fleets, overseas margin compression, and rising capex. 
• DBS analyst Zheng Feng Chee cautioned that earnings will likely decline from 2Q26 due to intensifying competition in Singapore’s point‑to‑point business, London bus cost indexation lags, and weaker UK/Australia contracts, creating volatility for traders and investors.

2. StarHub (SGX: CC3)

Industry: Telecommunications
Market cap: S$1.81 billion

Overview: StarHub is Singapore’s second‑largest telecom operator, offering mobile, broadband, pay TV, enterprise connectivity, and cybersecurity services. 

Latest earnings (Q1 FY2026):

• Total revenue: S$507.3 million (−6.1% YoY).
• Service revenue: S$445.7 million (−3.9% YoY), impacted by lower consumer segment contributions.
• Operating expenses: S$499.9 million (flat YoY).
• EBITDA: S$77.7 million (−22.5% YoY).
• Service EBITDA margin: 16.5% (down 4.1 percentage points YoY).
• Net profit attributable to shareholders (PATMI): S$5.9 million (−81.3% YoY).
• Free cash flow: S$26.6 million (down from S$32.0 million in Q1 FY2025).

Trading information (22 June 2026):

• P/E ratio: 23.3 times
• P/B ratio: 3.6 times
• P/S ratio: 0.77 times
• 52‑week share price range: S$0.99 to S$1.26
• 50‑day moving average share price: S$1.03
• 200‑day moving average share price: S$1.09
• Average daily trading volume (three‑month): ~1.3 million shares
• Dividend yield (trailing twelve months): 5.7%
• Dividend yield (five‑year average): 5.2%

Analyst stock ratings and share price targets:

• StarHub shares have been rated ‘hold’ by 75% of analysts and ‘sell’ by 25% of analysts, according to FactSet data published on IG Markets.
• The stock has an average price target of S$0.95, which implies that the stock is currently trading above its fair value. (22 June 2026).

Key trading/ investment risks:

• Consumer weakness: Mobile, broadband, and entertainment revenues remain under pressure from competition and lower ARPU, limiting earnings visibility, according to Maybank analyst Thilan Wickramasinghe. 
• Margin compression: Higher operating costs and weaker consumer segments continue to squeeze EBITDA margins.
• Event‑linked upside only: World Cup‑related broadband/TV demand may provide a slight lift, but structural growth drivers remain limited.

3. CSE Global (SGX: 544)
 

Industry: Engineering and infrastructure solutions 
Market cap: S$1.1 billion

Overview: CSE Global is a Singapore‑based engineering services provider specialising in infrastructure, energy, and technology solutions. It delivers integrated systems in automation, communications, and security across Asia Pacific, the Americas, Europe, and the Middle East.

Latest earnings (Q1 FY2026):

• Total revenue: S$265.2 million (+29.1% YoY), y stronger contribution from the Electrification business segment in the Americas region.
• Electrification segment revenue: S$146.3 million (+50.1% YoY).
• Communications segment revenue: S$68.6 million (+18.5% YoY).
• Automation segment revenue: S$50.3 million (+0.5% YoY).
• Group order intake: S$271.17 million (+74.6% YoY).
• Group ending order book: S$716.0 million (+16.2% YoY).

Trading information (22 June 2026):

• P/E ratio: 28.9 times
• P/B ratio: 4.0 times
• P/S ratio: 1.1 times
• 52‑week share price range: S$0.51 to S$1.91
• 50‑day moving average share price: S$1.47
• 200‑day moving average share price: S$1.11
• Average daily trading volume (three‑month): ~13.3 million shares
• Dividend yield (trailing twelve months): 1.8%
• Dividend yield (five‑year average): 5.6%

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$1.99, suggesting a potential 31.3% upside. (22 June 2026)

Key trading/ investment risks:

• Margin pressure: RHB Research highlights rising staff and project costs could erode profitability despite strong order book growth.
• Execution risk: UOB notes delays in large infrastructure projects may affect revenue recognition and cashflow timing.
• Sector exposure: Heavy reliance on cyclical energy and infrastructure spending makes earnings sensitive to macroeconomic conditions and government budgets.

4. AEM Holdings (SGX: AWX)

Industry: Semiconductor equipment (AI chips) and testing 
Market cap: S$3.4 billion

Latest earnings: AEM is a Singapore‑based global leader in semiconductor and electronics test innovation, providing proprietary high‑parallel test and advanced thermal management solutions. Its customers include major fabless AI/HPC chipmakers, foundries, and OSATs.

Latest earnings (Q1 FY2026):

• Total revenue: S$116.9 million (+35.8% YoY).
• Profit before tax (PBT): S$17.8 million (+370% YoY).
• PBT margin: 15.2% (+10.8% YoY).
• Net profit: S$14.3 million (+329% YoY)
• Net profit margin: 12.3% (+8.4% YoY).
• Diluted EPS: 4.59 Singapore cents (+337% YoY).
• Test Cell Solutions revenue: S$88.1 million (+72% YoY), forming 75% of total group revenue.
• Contract Manufacturing revenue: S$27.3 million (−15.7% YoY).
• FY2026 revenue guidance: Raised to S$550–600 million (+20%).

Trading information (22 June 2026): 

• P/E ratio: 200.0 times
• P/B ratio: 6.9 times
• P/S ratio: 8.5 times
• 52‑week share price range: S$1.19 to S$11.02
• 50‑day moving average share price: S$8.07
• 200‑day moving average share price: S$3.64
• Average daily trading volume (three‑month): ~7.4 million shares
• Dividend yield (five‑year average): ~2.2%

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$13.16.
• This equates to an upside potential of 23% over the next 12 months. (22 June 2026). 

Key trading/ investment risks (DBS Research, 2 June 2026):

• Competitive disruption: Nvidia’s RTX Spark AI PC platform could shift market share away from incumbent x86 CPU players, indirectly affecting AEM’s client ecosystem.
• Customer concentration: Heavy reliance on a few major semiconductor clients means earnings are vulnerable to order fluctuations.
• Execution risk: Rapid ramp‑up of new test solutions requires flawless delivery; delays or technical issues could erode margins.
• Cyclical exposure: Despite structural AI/HPC demand, semiconductor cycles remain volatile, creating valuation risks.

5. Sheng Siong Group (SGX: OV8)

Industry: Supermarkets and retail
Market cap: S$4.9 billion

Overview: Sheng Siong is one of Singapore’s largest supermarket chains, operating 87 outlets locally and six in China. The group continues to expand its footprint through disciplined store openings and a growing house‑brand portfolio.

Latest earnings (Q1 FY2026): 

• Total revenue: S$452.8 million (+12.4% YoY), driven by 12 new store openings in FY2025 and festive sales (Lunar New Year, Hari Raya Puasa).
• Gross profit: S$140.3 million (+15.0% YoY).
• Gross margin: 31.0% (+0.7 percentage points YoY).
• Net profit (PATMI): S$43.4 million (+12.6% YoY).
• Other income: S$6.0 million (+26.6% YoY), boosted by government grants under the Progressive Wage Credit Scheme.
• Cash & equivalents: S$461.1 million (+5.9% YoY).
• Store pipeline: Three new stores secured for FY2026 (Q2: Smith Street, Canberra Crescent; Q3: Rivervale Crescent).

Trading information (22 June 2026):

• P/E ratio: 32.8 times
• P/B ratio: 8.4 times
• P/S ratio: 3.1 times
• 52‑week share price range: S$1.86 to S$3.28
• 50‑day moving average: S$3.09
• 200‑day moving average: S$2.67
• Average daily trading volume (three‑month): ~3.7 million shares
• Dividend yield (trailing twelve months): 2.2%
• Dividend yield (five‑year average): 3.7%

Analyst stock ratings and share price targets: 

• OCBC Research (5 May 2026): Maintained ‘hold’ call and fair value estimate of S$3.26.
• RHB Research (4 May 2026): Maintained ‘buy’ alongside stock price target of S$3.45; highlighted long‑term outlet target of 120 stores supported by new distribution centre.

Key trading/ investment risks:

• Valuation risk: Shares trade at elevated multiples (forward P/E of 29 times), well above historical averages, hence limiting potential upsides(OCBC).
• Expansion risk: Slower‑than‑expected store openings or delays in HDB tenders could dampen growth momentum (RHB).
• Margin sustainability: Rising staff costs, energy prices, and supplier price pressures could erode gross margins if not offset by sales mix improvements (OCBC & RHB).

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

[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]
 

1. Create a live or demo account
2. Find an opportunity from one of our 10,000+ stocks with our  stock screener
3. Click ‘buy’ to go long or ‘sell’ to short
4. Set your position size
5. Take steps to manage your risk
6. Open and monitor your position

[Investing]
 

1. Open an account via IG Markets Singapore app
2. Search for Singapore penny stocks on the app
3. Choose the shares you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about Singapore penny stocks