Top small cap stocks to watch in Singapore in 2026
Small cap stocks offer exciting growth potential that large companies simply can't match. But they come with risks you need to understand. Here's your complete guide to Singapore's small cap market, including our top five picks this year.
Key takeaways
- Small cap stocks offer higher growth potential but are extremely volatile with daily price swings of 10-20%.
- Less analyst coverage means potential bargains but also less reliable information for research.
- Requires strict risk management - only trade with money you can afford to lose completely.
What are small cap stocks?
Small cap stocks are shares in smaller publicly traded companies. In Singapore, these companies typically have a market capitalisation of less than S$1 billion1. Market capitalisation is the total value of a company's outstanding shares – calculated by multiplying the share price by the number of shares available.
These companies are usually in their growth phase, offering more potential for rapid expansion compared to established large cap stocks. While large cap companies like DBS or Singapore Airlines are household names, small cap stocks represent the up-and-coming businesses that could be tomorrow's market leaders.
How Singapore categorises its stocks
Singapore's stock market is divided into different segments:
Small cap stocks (Under S$1B)
- Tracked by the FTSE ST Small Cap Index2
- Higher growth potential
- More volatile pricing
- Less institutional investor coverage
Mid cap stocks (S$1B - S$10B)
- Balance between growth and stability
- Moderate risk profile
- Developing market presence
Large cap stocks (Over S$10B)
- Featured in the Straits Times Index
- Established market leaders3
- Lower volatility
- Consistent dividend payments
Pros and cons of trading/ investing in small cap stocks
Why traders/ investors choose small caps
Higher growth potential
Small companies can double or triple in size when they execute well. A major contract win that might add 1% to a large company's revenue could boost a small cap's earnings by 50%.
Hidden opportunities
Less analyst coverage means potential bargains. You might spot undervalued companies before institutional investors catch on.
Takeover targets
Large companies often acquire successful small caps, typically paying premiums of 20-40% above market price.
The risks you need to know
Wild price swings
Daily moves of 10-20% are normal. Earnings surprises can trigger 30%+ moves in either direction.
Harder to trade
Lower volumes mean wider spreads and difficulty executing large orders quickly.
Higher failure rate
Small companies have less financial cushion during tough times. Some may not survive economic downturns.
Limited information
Fewer research reports and less comprehensive financial disclosure make due diligence challenging.
Top 5 Singapore small cap stocks to watch
Singapore’s small cap sector continues to attract traders and investors seeking growth beyond the STI blue chips. Based on the latest earnings and trading data up to 18 November 2025, here are five Singapore small cap stocks worth watching.
Company
|
Share price (three-month average)*
|
Year-to-date (YTD) share price return*
|
Available for CFD trading with IG?
|
Available for investing with IG Markets Singapore app?
|
|
S$0.42
|
-23.2%
|
✔
|
✔
|
|
S$1.47
|
+35.0%
|
✔
|
✔
|
|
S$0.78
|
-2.6%
|
✔
|
✔
|
|
S$2.63
|
+66.9%
|
✔
|
✔
|
|
S$1.87
|
+18.8%
|
✔
|
✔
|
*As of November 2025
1. Singapore Post Limited (SGX: S08)
What it does: Singapore Post is transforming into a regional e-commerce logistics provider, expanding its last-mile delivery network and automating sorting facilities across Southeast Asia.
Latest earnings (H1 FY2025/2026):
- Revenue: S$188.04 million (-27% YoY)
- Net profit: S$18.4 million (-17.1% YoY)
- Cash and cash equivalents: S$594.09 million (30 September 2025)
Trading data (November 2025):
- Three-month average share price: S$0.42
- Three-month average daily volume: ~2.4 million shares
- Volatility: Moderate (±2.1% daily average)
- Liquidity: High
Stock outlook: Maybank analyst Jarick Seet noted on 11 November 2025 that SingPost is 'still awaiting a revised strategy', but highlighted its logistics transformation as a long-term growth driver. SGinvestors and Growbeansprout also flagged its property divestments and digital logistics ambitions.
2. UMS Holdings Limited (SGX: 558)
What it does: UMS Holdings manufactures high-precision components for semiconductor equipment, with operations in Singapore, Malaysia, Taiwan, and the US.
Latest earnings (Q3 FY2025):
- Revenue: S$59.3 million (-9% YoY)
- Net profit: S$11.4 million (+11% YoY)
- Cash and cash equivalents: S$59.1 million (30 June 2025)
Trading data (November 2025):
- Three-month average share price: S$1.47
- Three-month average daily volume: ~1.1 million shares
- Volatility: Moderate (±1.8% daily average)
- Liquidity: Medium
Stock outlook: UOB analysts John Cheong and Heidi Mo stated on 11 November 2025 that Q3 results were “below expectations” but forecast “gradual improvement” driven by semiconductor recovery and stable dividend support.
3. Genting Singapore (SGX: G13)
What it does: Genting Singapore owns and operates Resorts World Sentosa, one of Asia’s premier integrated resorts featuring casinos, hotels, and attractions. It is a key beneficiary of Singapore’s tourism rebound.
Latest earnings (Q3 FY2025):
- Revenue: S$649.8 million (+16% YoY)
- Net profit: S$94.62 million (+19% YoY)
- Earnings before interest, taxes, depreciation, and amortisation: S$204.2 million (30 September 2025)
Trading data (November 2025):
- Three-month average share price: S$0.78
- Three-month average daily volume: ~12.5 million shares
- Volatility: Low to moderate (±1.4% daily average)
- Liquidity: Very high
Stock outlook: Genting Singapore has a consensus rating of ‘buy’. Maybank analysts noted in their 10 November 2025 report that the company is 'benefiting from a strong earnings recovery driven by tourism and gaming revenue', while Morningstar highlighted its 'resilient cash flows and dominant market position in Singapore’s integrated resort sector'.
4. Sheng Siong Group Ltd (SGX: OV8)
What it does: Sheng Siong operates one of Singapore’s largest supermarket chains, known for affordable pricing and efficient operations.
Latest earnings (Q3 FY2025):
- Revenue: S$415.5 million (+14% YoY)
- Net profit: S$43.8 million (+12% YoY)
- Cash and cash equivalents: S$393.7 million (30 September 2025)
Trading data (November 2025):
- Three-month average share price: S$2.63
- Three-month average daily volume: ~2.2 million shares
- Volatility: Low (±1.1% daily average)
- Liquidity: High
Stock outlook: Maybank analyst Hussaini Saifee rated Sheng Siong a ‘buy’ on 3 November 2025, citing ‘strong momentum’ and ‘sustainable growth’.
5. AEM Holdings Ltd (SGX: AWX)
What it does: AEM Holdings provides semiconductor and electronics test solutions, with facilities across Asia, Europe, and the US.
Latest earnings (9M2025):
- Revenue: S$287.5 million (+16% YoY)
- Net profit: S$4.02 million (up from a net loss in the previous year)
- Cash and cash equivalents: S$59.3 million (30 September 2025)
Trading data (November 2025):
- Three-month average share price: S$1.87
- Three-month average daily volume: ~1.8 million shares
- Volatility: High (±3.2% daily average)
- Liquidity: Medium
Stock outlook: DBS analyst Amanda Tan wrote on 13 November 2025 that AEM’s ‘AI customer becomes the new anchor’, while CGS International highlighted its ‘diversification efforts and robust demand from HPC clients’ despite near-term risks.
How to trade and invest in small cap stocks with IG Singapore
CFD share trading
- Create a live or demo account
- Find an opportunity among 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 small cap 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
Singapore small cap stocks FAQs
Can I trade Singapore small cap stocks from Singapore?
Yes. You can trade small cap CFD stocks like Singapore Post, UMS Holdings, AEM, Addvalue Technologies, and CapAllianz Holdings via SGX-approved brokers such as IG Singapore. These platforms offer real-time access, competitive fees, and advanced trading tools.
For investing, use the IG Markets app.
Are small cap stocks suitable for beginners?
Yes — with caution. Stocks like Sheng Siong and Singapore Post offer lower volatility and clearer fundamentals. Beginners should diversify, use dollar-cost averaging, and avoid overexposure to highly speculative counters.
What risks should I be aware of?
Small cap stocks can be more volatile and sensitive to market shifts. Risks include earnings fluctuations, regulatory changes, and limited liquidity. For tech and industrial names, global demand cycles and cost pressures may also impact margins.
Are dividends from Singapore small cap stocks taxable?
No. Dividends from SGX-listed companies are tax-exempt for individual investors under Singapore’s one-tier corporate tax system. They’re paid from post-tax profits and not subject to further taxation.
When is the best time to trade these stocks?
SGX trading hours run from 9:00 AM to 5:00 PM SGT. Activity tends to spike around earnings releases, sector news, and macroeconomic events. Small cap and penny stocks often see higher volume during speculative surges.
Are Singapore small cap stocks suitable for long-term investing?
Many are. Companies like Sheng Siong and AEM Holdings offer stable earnings, sector leadership, and long-term growth potential. As of November 2025, several have reported resilient performance, supported by structural trends in retail, semiconductors, and logistics.
Footnotes
1 NTU Investment Interactive Club - The Basics of Investing in Small, Mid, and Large-cap Stocks, 2020
2 Singapore Exchange (SGX) - FTSE ST Index Series
3 Singapore Exchange (SGX) - Straits Times Index Information
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