Singapore Stocks Signal Investor Optimism Amid Global Uncertainty

The latest Retail Investor Sentiment Survey released by Moomoo Singapore reveals a robust confidence in local stocks among retail investors. Conducted in April 2025 with almost 1,500 participants, the survey highlights that over 70% of Singaporean investors rely on local stocks as a critical part of their portfolios. This survey comes at a time when the global market is fraught with volatility, inflation, and geopolitical tensions.

Local Confidence Amidst Global Uncertainty

According to Gavin Chia, CEO of Moomoo Singapore, the results signify that investors are adopting a strategic and cautious approach amidst persistent macroeconomic challenges. Investors are not just maintaining their investments in Singapore stocks; many express intentions to increase their exposure in the upcoming months. Chia emphasizes that Singapore's stock market serves as a 'pillar of stability,' reflecting the strong fundamentals of the local economy.

Investors Seeking Stability

Interestingly, conservative investors show an increased preference for keeping their investments within Singapore. This demographic is more focused on wealth preservation rather than aggressive growth. Chia explains that for these investors, local markets act as a defensive anchor during times of global uncertainty. They prioritize capital preservation and consistent income streams over high-risk investment opportunities, showcasing a mix of caution and confidence in Singapore's economic health.

Moreover, the sentiment appears to differ amongst various investor classes. While conservative investors are inclined to minimize exposure and focus on defensive sectors, higher-risk investors are beginning to explore markets perceived to offer a greater upside, such as Hong Kong. About 40% of respondents are shifting their focus toward regions they perceive as undervalued, indicating an inclination to capitalize on potential policy-driven rebounds.

Global Market Outlook Remains Cautious

Despite the optimism surrounding Singapore, wider global investor sentiment appears cautious. Only 30% of the survey respondents expressed positivity regarding the global market outlook for the latter half of 2025. Many investors anticipate a phase of continued volatility, which has prompted a reevaluation of their portfolios. This cautiousness suggests that while Singapore remains a local haven, investors globally are bracing for uncertain times ahead.

Additionally, this cautious sentiment has driven a growing trend among conservative investors to diversify their investments further, highlighting the importance of prudence over aggressive portfolio positioning.

The Rise of AI in Investment Strategy

A key finding is the growing influence of artificial intelligence (AI) on investment decisions. Over 70% of affluent investors, particularly those managing portfolios exceeding S$200,000, are integrating AI tools for various investment management tasks, ranging from market analysis to portfolio rebalancing. In fact, half of high-net-worth individuals with portfolios surpassing S$1 million are confident enough to rely on AI-generated recommendations—a stark contrast to the lesser adoption among more conservative investors.

These affluent investors are increasingly utilizing AI to automate processes and make informed decisions, which is reshaping their investment strategies significantly. Chia highlights that conservative investors, although more reserved in their adoption, are leveraging AI primarily for market updates and alerts, enhancing their investment approach while still relying on human judgment.

Conclusion

Overall, the Moomoo Singapore Investor Sentiment Survey underscores the resilience of Singapore's stock market amid global turbulence. Singaporean investors are adapting their strategies, blending traditional investment practices with modern technology like AI to navigate the complex landscape ahead. With sustained local confidence, many continue to see Singapore stocks as a stable foundation for their portfolios even as they eye potential opportunities globally.

As retail investors increasingly embrace technology and innovative tools, platforms like Moomoo aim to support this shift, enhancing investor confidence and adaptability in an ever-evolving market landscape.