MAS’ S$5 billion investment fund to lift undervalued, small-cap stocks: analysts

[SINGAPORE] Market reaction to the appointment of the first three asset managers to tap Singapore’s S$5 billion Equity Market Development Programme (EQDP) on Monday (Jul 21) has been largely optimistic, with investors starting to plough into undervalued, small-cap stocks and driving up their value.

Luke Lim, managing director at brokerage Phillip Securities, said even before the deployment of EQDP, the market has have seen a major re-rating of SGX-listed small to mid-cap stocks.

“There is now a pool of liquidity that will invest in undervalued small to mid-cap stocks, thereby improv(ing) the price discovery of the entire sector,” he said.