Why the rally in Singapore's healthcare stocks may not be over

Firms continue to acquire clinics.

According to a report from Bloomberg Markets, healthcare stocks in Singapore have rewarded investors with an average 50% gain in the past year, a rally that may continue as companies acquire local clinics to expand in the region’s medical care market.

Singapore Medical Group Ltd. has more than doubled since August when it announced the purchase of a radiology center, while Singapore O&G Ltd., which runs gynecology centers, has surged 73 percent in the past 12 months. That’s helped an index of nine medical-services providers worth less than $1b climb three times as much the benchmark Straits Times Index.

As many as 19 transactions involving acquisitions of clinics by publicly-traded companies have been completed in the city state over the last 12 months, data compiled by Bloomberg show.

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