Singapore consumer staples surge on biodiesel boost, net institutional inflows top S$327m

KUALA LUMPUR, 30 AUGUST 2026 —

Singapore’s consumer‑staples sector posted a 26.7 per cent year‑to‑date total return as of 26 August, driven by firm crude palm oil (CPO) prices and resilient retail demand, while net institutional inflows into the ten most‑traded non‑cyclical consumer stocks reached S$327.4 million for the same period.

The performance stands out against net outflows from the broader Singapore market, underscoring the defensive appeal of consumer‑staples equities amid lingering macro‑economic uncertainty. The rally was led by palm‑oil producers First Resources and Bumitama Agri, both of which benefited from Indonesia’s push to raise biodiesel content in diesel from 40 per cent to 50 per cent, a policy shift that is expected to sustain palm‑oil prices into the second half of 2026.

First Resources more than doubled its share price, delivering a 116.7 per cent total return YTD. The group’s net profit for the first half of 2026 rose 57.4 per cent year‑on‑year, reflecting higher production volumes and improved processing margins. DBS Group Research kept its “buy” recommendation on the stock, citing scope for a further re‑rating supported by strong CPO prices and First Resources’ track record of enhancing Austindo Nusantara Jaya’s performance after the acquisition.

Bumitama Agri posted a 59.5 per cent YTD total return. Its first‑half revenue and net profit increased 24 per cent and 44.3 per cent respectively, driven by higher sales volumes and better average selling prices for palm products. The company expects palm‑oil prices in the latter half of 2026 to be bolstered by Indonesia’s B50 biodiesel mandate and global energy dynamics linked to ongoing Middle‑East geopolitical tensions.

In April 2026, Bumitama announced an expansion of its dividend payout range to 60‑75 per cent of distributable income.

Other palm‑oil‑linked stocks also reported stronger earnings. Wilmar International recorded a 12.8 per cent rise in pre‑tax profit for H1 2026, attributing the gain to stronger contributions from its feed and industrial products businesses, which include tropical oils, oilseeds, grains and sugar, as well as its food‑products segment. Higher selling prices across most product lines were also cited. Wilmar attracted S$276.7 million of net institutional buying YTD, ranking third across the broader Singapore market.

DBS Group Research maintained a “hold” stance on Wilmar, setting a target price of S$3.60 and noting that the company would need a stronger second‑half performance to sustain its share‑price momentum.

Sheng Siong Group delivered a 24 per cent YTD total return, underpinned by an expanded store network and an improved sales mix. Revenue and net profit grew 11.9 per cent year‑on‑year in the first half, while gross profit margin rose to 31.8 per cent from 30.8 per cent.

The retailer flagged the upcoming Johor Bahru‑Singapore Rapid Transit System Link as a potential source of price competition, but said it is ready to adjust pricing, promotions and product mix to stay competitive. It also expects longer‑term operating‑system optimisation and cost efficiencies from its Sungei Kadat distribution centre, slated for completion in 2029.

Food Empire Holdings posted record first‑half results, with revenue up 15 per cent and net profit up 12.2 per cent, driven by growth across all segments, notably in Russia and Central Asia. The company declared an interim dividend of S$0.04 per share, a one‑third increase from the previous year, and said it remains on track to deliver a sixth consecutive record full‑year performance, barring unforeseen circumstances.

CGS International reiterated an “add” call on Food Empire, pointing to FY27‑28 capacity‑expansion projects—including a new coffee‑mix manufacturing facility in Khorgos, Kazakhstan, an expansion of its spray‑dried soluble coffee plant in India, and a new freeze‑dried soluble coffee facility in Vietnam—as earnings catalysts.

Golden Agri‑Resources, another palm‑oil heavyweight, also reported stronger first‑half profits, though specific figures were not disclosed in the source. Its performance contributed to the sector‑wide inflows and reinforced the link between biodiesel policy and consumer‑staples earnings.

The institutional inflows into the consumer‑staples segment highlight investor confidence in the sector’s defensive characteristics and its exposure to commodity‑driven price dynamics. Chan Rui Qi, director, and Raphael Lim, associate director of capital‑market development at SGX, are listed as contacts for further research on Singapore’s REIT sector, though no direct commentary from them appears in the source.

Overall, the combination of robust palm‑oil fundamentals, supportive biodiesel mandates, and solid retail demand has propelled Singapore’s consumer‑staples stocks ahead of the broader market. With Indonesia’s B50 policy set to take effect and global energy markets remaining volatile, the sector’s momentum is likely to continue, pending the delivery of second‑half earnings from key players such as Wilmar International and the sustained performance of dividend‑paying growers like First Resources and Bumitama Agri.