Top 5 Singapore penny stocks to watch in 2025

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.

Singapore penny stocks: advantages and risks

Why CFD traders choose Singapore penny stocks

Lower capital requirements

CFD trading allows you to gain exposure to penny stocks with a smaller initial outlay compared to buying shares directly. With leverage, you can control a larger position size while only putting down a fraction of the total value as margin.

High volatility creates opportunities

Penny stocks are known for their significant price swings, which can create numerous trading opportunities for active CFD traders. This volatility is particularly attractive for short-term trading strategies like day trading and swing trading.

Ability to profit from falling markets

Unlike traditional share ownership, CFD trading allows you to short sell penny stocks, potentially profiting when prices decline. This flexibility is especially valuable in volatile penny stock markets.

Key risks to consider

Leverage amplifies losses

While leverage can increase potential profits, it equally amplifies potential losses. A small adverse price movement can result in significant losses relative to your initial margin deposit.

High volatility cuts both ways

The same volatility that creates opportunities can also result in rapid, unpredictable losses. Penny stocks can experience dramatic price swings that may quickly move against your position.

Limited liquidity

Many penny stocks suffer from low trading volumes, which can result in wider bid-ask spreads and difficulty exiting positions quickly, particularly during volatile market conditions.

Higher risk of company failure

Penny stock companies often have weaker financial positions and may be more susceptible to business challenges, delisting or bankruptcy, which can result in total position loss.

Traders considering Singapore penny stock CFDs must have a high risk tolerance and employ robust risk management strategies including stop-loss orders, position sizing and diversification.

Top 5 Singapore penny stocks for CFD trading
 

1. ComfortDelGro

2. Starhub

3. CSE Global

4. AEM

5. Sheng Shiong

1. ComfortDelGro Corporation (SGX: C52)

Current price: S$1.42¹ | Target price: S$1.75² | Upside potential: 19.5%³ Dividend yield: 5.4%⁴ | 52-week performance: +6.7%⁵

What stands out: ComfortDelGro operates Singapore's largest taxi fleet with diversified bus and rail operations across multiple countries. The transport giant reported strong Q1 2025 results with 16.4% revenue growth to S$1.17 billion⁶ and 45.5% operating profit increase⁷. Four analysts maintain bullish outlook with consensus target of S$1.75⁸.

Technical levels: Support at S$1.40, resistance at S$1.48⁹. Trading above 200-day moving average with moderate 2% weekly volatility¹⁰.

2. StarHub (SGX: CC3)

Current price: S$1.15¹¹ | Target price: S$1.28¹² | Upside potential: 9.1%¹³ Dividend yield: 5.1%¹⁴ | 52-week performance: -8.0%¹⁵

What stands out: Singapore's second-largest telecommunications provider with comprehensive mobile, broadband and TV services. StarHub has been identified as a potential beneficiary of MAS's S$5 billion Equity Market Development Programme¹⁶. The company maintains robust cash generation with dividend guidance of S$0.06 or 80% of net profit¹⁷.

Technical levels: 52-week range S$1.10-1.29¹⁸, currently trading near support levels. Higher volatility provides CFD trading opportunities.

3. CSE Global (SGX: 544)

Current price: S$0.48¹⁹ | Target price: S$0.70²⁰ | Upside potential: 45.8%²¹ Dividend yield: 5.4%²² | 52-week performance: +9.9%²³

What stands out: Systems integrator providing electrification and automation solutions globally. Maybank Securities raised the CSE Global share price target to S$0.70 (from S$0.58)²⁴, citing growing US data centre projects and MAS EQDP benefits. The company reported 63.2% net profit growth in 2024²⁵ with healthy S$673 million orderbook²⁶.

Technical levels: 52-week range S$0.39-0.50²⁷, showing horizontal trend with 5% weekly volatility²⁸. Recent breakout from consolidation pattern.

4. AEM Holdings (SGX: AWX)

Current price: S$1.24²⁹ | Target price: S$1.72³⁰ | Upside potential: 38.7%³¹ Dividend yield: No dividend³² | 52-week performance: -32.7%³³

What stands out: Semiconductor test equipment provider with global AI hardware supply chain exposure. Despite challenging 2024 performance, analysts forecast 36.6% earnings growth and 12.7% revenue CAGR over next 3 years³⁴ for AEM Holdings. Nine analysts cover the stock³⁵ with varying outlooks reflecting recovery uncertainty.

Technical levels: High volatility (8% weekly)³⁶ creates CFD opportunities. Currently in recovery phase from 2024 lows.

5. Sheng Siong Group (SGX: OV8)

Current price: S$2.01³⁷ | Target price: S$1.93³⁸ | Upside potential: -4.0%³⁹ Dividend yield: 3.4%⁴⁰ | 52-week performance: +25.5%⁴¹

What stands out: Leading supermarket chain with 70+ outlets across Singapore⁴², Sheng Shiong offers potentially recession-resistant consumer staples exposure. Strong 2024 performance with 25.5% share price gain and consistent dividend payments. Multiple analysts maintain positive outlook despite current premium valuation⁴³.

Technical levels: Recently hit 52-week highs, trading above S$2.00⁴⁴. Moderate volatility (2% weekly)⁴⁵ suits defensive strategies.

Singapore 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

How to trade penny stocks with IG Singapore

1. Create a live or demo account
2. Find an opportunity among 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

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.

How can I start trading Singapore penny stocks via CFDs 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.

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.

Footnotes: 

_{ComfortDelGro Corporation (SGX: C52) ¹ Current price S$1.42 - Yahoo Finance Singapore, July 10, 2025 ² Target price S$1.75 - TipRanks analyst consensus, 4 Wall Street analysts, July 2025 ³ Upside potential 19.5% - Calculated from current price vs target price ⁴ Dividend yield 5.4% - Stockopedia, trailing twelve month period, July 2025 ⁵ 52-week performance +6.7% - Stockopedia, July 2025 ⁶ Q1 2025 revenue growth 16.4% to S$1.17 billion - TipRanks company earnings, February 2025 ⁷ Operating profit increase 45.5% - TipRanks Q1 2025 financial results ⁸ Four analysts consensus target S$1.75 - TipRanks analyst coverage, July 2025 ⁹ Technical levels support S$1.40, resistance S$1.48 - TipRanks technical analysis ¹⁰ Weekly volatility 2% - Simply Wall St, July 2025}

_{StarHub (SGX: CC3) ¹¹ Current price S$1.15 - Growbeansprout, July 10, 2025 ¹² Target price S$1.28 - TipRanks analyst consensus, 4 Wall Street analysts, July 2025 ¹³ Upside potential 9.1% - TipRanks calculation, July 2025 ¹⁴ Dividend yield 5.1% - TradingView, 2024 annual yield ¹⁵ 52-week performance -8.0% - TradingView, July 2025 ¹⁶ MAS S$5 billion EMDP beneficiary - Dr Wealth research report, June 2025 ¹⁷ Dividend guidance S$0.06 or 80% of net profit - The Smart Investor, July 2025 ¹⁸ 52-week range S$1.10-1.29 - TradingView, July 2025}

_{CSE Global (SGX: 544) ¹⁹ Current price S$0.48 - TipRanks, July 2025 ²⁰ Target price S$0.70 - Maybank Securities, analyst Jarick Seet, July 2025 ²¹ Upside potential 45.8% - TipRanks calculation, July 2025 ²² Dividend yield 5.4% - Stockopedia, trailing twelve months, July 2025 ²³ 52-week performance +9.9% - Stockopedia, July 2025 ²⁴ Maybank target price raised to S$0.70 from S$0.58 - The Edge Singapore, July 2025 ²⁵ Net profit growth 63.2% in 2024 - The Smart Investor, July 2025 ²⁶ Orderbook S$673 million - TipRanks company financials, 2025 ²⁷ 52-week range S$0.39-0.50 - Stockopedia, July 2025 ²⁸ Weekly volatility 5% - Simply Wall St, July 2025}

_{AEM Holdings (SGX: AWX) ²⁹ Current price S$1.24 - Stockopedia, July 2025 ³⁰ Target price S$1.72 - TipRanks analyst consensus, May 2025 ³¹ Upside potential 38.7% - TipRanks calculation, May 2025 ³² No dividend - Stockopedia, July 2025 ³³ 52-week performance -32.7% - Stockopedia, July 2025 ³⁴ Earnings growth 36.6% and revenue CAGR 12.7% forecast - Simply Wall St, July 2025 ³⁵ Nine analysts coverage - Simply Wall St, July 2025 ³⁶ Weekly volatility 8% - Simply Wall St, July 2025}

_{Sheng Siong Group (SGX: OV8) ³⁷ Current price S$2.01 - Growbeansprout, July 9, 2025 ³⁸ Target price S$1.93 - TipRanks analyst consensus, 4 Wall Street analysts, July 2025 ³⁹ Upside potential -4.0% - TipRanks calculation, July 2025 ⁴⁰ Dividend yield 3.4% - Stockopedia, trailing twelve months, July 2025 ⁴¹ 52-week performance +25.5% - Stockopedia, July 2025 ⁴² 70+ outlets across Singapore - Stockopedia company description, July 2025 ⁴³ Analysts positive outlook - TipRanks, 4 analysts coverage, July 2025 ⁴⁴ Trading above S$2.00 - TradingView, July 2025 ⁴⁵ Weekly volatility 2% - TradingView, July 2025}

_{Additional data sources: TipRanks, Simply Wall St, Yahoo Finance Singapore, TradingView, Stockopedia, Growbeansprout, The Edge Singapore, Dr Wealth, The Smart Investor. All data as of July 2025 unless otherwise specified.}