UOBKH ‘Alpha Picks’ lag STI on weakness in small and mid-caps in June; UIBREIT added for July

[SINGAPORE] The UOB Kay Hian (UOBKH) “Alpha Picks” portfolio for Singapore lagged its benchmark index in June 2026, while the Malaysia portfolio outperformed, said the brokerage on Friday (Jul 3).

The Singapore portfolio declined 8.2 per cent month on month on an equal-weighted basis and 2.7 per cent on a price-weighted basis. This underperformed the Straits Times Index (STI), which saw a 2.6 per cent increase in June, reflecting the market’s narrow leadership concentrated in heavyweight constituents.

On a market cap-weighted basis, the portfolio saw a 1.5 per cent gain.

The broader market was aided by Singapore’s safe-haven appeal amid the prolonged war in the Middle East. Gains in the Singapore market were led by financials, which rose 5.3 per cent, and land transport, which was up 3.9 per cent, while healthcare led declines at -5.2 per cent.

The Singapore portfolio’s performance was driven by gains in OCBC , which jumped 5.9 per cent; and Keppel , which rose 1.7 per cent.

Conversely, underperformers included Oiltek with a 23.2 per cent decline; Hong Leong Asia , which fell 18.8 per cent; and Huationg Global , which was down 15 per cent.

New Singapore picks for July

One new counter – UI Boustead REIT (UIBREIT) – was added to the Singapore Alpha Picks portfolio for July. The real estate investment trust comprises 23 properties in Singapore and Japan, with a portfolio valued at S$1.9 billion.

UIBREIT was added for its healthy leasing momentum and its strong growth pipeline which expands its aerospace exposure. No names were removed from the portfolio.

UOBKH’s Singapore Alpha Picks portfolio for July thus comprises Beng Kuang, China Aviation Oil, CityDev, Food Empire, Hong Leong Asia, Huationg Global, Keppel, NTT DC REIT, OCBC, Oiltek, Riverstone, UltraGreen.ai, UIBREIT, Valuetronics and Venture Corp.

Malaysia portfolio outperforms

The Malaysia alpha picks outperformed the Kuala Lumpur Composite Index, posting an average return of 1.8 per cent in June compared with the index’s 1.1 per cent decline.

The broader Malaysian market saw a volatile “M”-shaped trading pattern driven by shifting developments surrounding the US-Israel-Iran conflict, concerns over persistent inflation, and a broader risk-off sentiment amid geopolitical uncertainties.

Petronas Dagangan gained 6.5 per cent, Solarvest was up 4.9 per cent and Northeast Group rose 4.5 per cent, anchoring gains for the portfolio. On the other hand, Oxford Innotech fell 4.1 per cent, Yinson contracted 4 per cent and CIMB Group dropped 0.9 per cent as the only losers in June.

New Malaysia picks for July

For July, UOBKH said it is continuing to advocate a barbell strategy for Malaysia, balancing resilient defensive names that can weather a higher-for-longer cost environment and ongoing geopolitical uncertainties, while selectively maintaining exposure to cyclical opportunities.

Coraza Integrated Technology was a new addition to the portfolio.

Coraza’s appeal lies in growth driven by AI-led semiconductor demand, contributions from its new P3 facility, and a record orderbook of RM110 million. Meanwhile, Northeast Group was dropped from the alpha picks after delivering a 40.2 per cent return since its inclusion.

UOBKH’s July Malaysia Alpha Picks portfolio is made up of CIMB Group, Coraza Integrated Technology, Gamuda, Mr DIY, Oxford Innotech, Petronas Dagangan, SD Guthrie, Solarvest Holdings, Tenaga Nasional and Yinson.