Dear all,

With reference to The Edge article HERE, their technical analysis suggests that the STI may have the potential to trend towards 5,740.

Many investors hold quality blue-chip stocks with a long-term investment horizon. If market conditions remain supportive, some may prefer to continue holding these positions to participate in any further upside, rather than taking profits prematurely. Investors with available cash and hold similar bullish view may also consider accumulating additional positions over time.

For investors who are fully invested, or who prefer not to inject fresh funds into the market, one alternative may be to leverage on CGSI’s margin financing facilities. Instead of liquidating existing holdings to raise cash, margin financing can help unlock liquidity from a portfolio while allowing investors to continue participating in potential dividend income and capital appreciation.

That said, margin financing is not suitable for everyone and involves additional risks. Borrowing to invest can magnify both gains and losses, and investors should carefully assess their financial situation, investment objectives and risk tolerance before utilising such facilities.

For those who would like to find out more, please read on below.

1) Why consider margin financing now?

• Attractive financing rates: For Grade A SGX listed securities, SGD financing is currently at 3M SORA + 1.25% p.a., which remains low and manageable. (Indicative net 2.33%)
• Positive carry opportunities: Dividend yields from select REITs and stocks (e.g., FY27F div yields >8% for UI Boustead REIT, >4.5% for Singtel) can exceed financing costs, creating potential net gains.
• Flexibility: Use your portfolio as collateral to diversify, seize new opportunities, or meet short-term liquidity needs—without giving up long-term holdings.
• Wide eligibility: CGSI offers one of the broadest ranges of marginable SGX-listed securities.

Even with possible rate hikes later this year, most experts believe SORA is unlikely to spike significantly, making this still an opportune time to explore margin financing.

Clients can refer to more information on the margin account HERE.

2. To open a margin account

You can apply HERE by clicking “Sign up to trade instantly”.

• Choose Cash & Margin account.

• Input my trading representative TR code “WT”.

• Login via Singpass and the process should be easy.

• If you want only a margin account and not a cash acct, please inform my client services by dropping them an email clientservices.sg@cgsi.com that you want only a margin account. 

• Alternatively, u can call in to my helpful client services colleagues at 18005389889 for any queries and fix an appointment to come down to open.

Have a great week ahead!

P.S: Please refer to the disclaimer HERE