Capital Inflows Spark Hunt for Value in Singapore’s Stock Market

Singapore’s S$5 billion ($3.9 billion) push to revive its stock market is prompting investors to look beyond pricey bank shares and find value in overlooked sectors as capital starts flowing in.

Small and mid-cap stocks should draw investor attention through year end as disbursements from the city-state’s Equity Market Development Program start, according to JPMorgan Chase & Co. A nascent rotation into sectors like industrials, property and communications could also gain momentum, with money managers betting such firms will benefit from lower interest rates.

On Monday, the Monetary Authority of Singapore announced an initial S$1.1 billion allocation to three asset ...