As Singapore investors wake up for Thursday’s session on 4 December 2025, the Straits Times Index (STI) is coming off a six‑day winning streak, Wall Street has closed higher again, and a rare blockbuster tech‑healthcare IPO has just lit up the SGX board. Here’s a comprehensive look at what’s driving sentiment and which themes may matter when the opening bell rings.
1. STI closes at six‑day high ahead of Thursday’s open
Singapore’s benchmark STI finished Wednesday, 3 December, up 16.56 points, or almost 0.4%, at 4,554.52, marking its sixth consecutive gain. The iEdge Singapore Next 50 Index also rose by just over 0.4%, signalling modest broadening beyond the 30 blue chips. [1]
Market breadth, however, was less convincing: decliners (297) narrowly outnumbered gainers (275) on around S$1.4 billion in turnover, suggesting that large caps – particularly banks and selected consumer counters – did most of the heavy lifting. [2]
Over the past week, the STI has gained roughly 1.2%, or just over 50 points, according to commentary from RTTNews, which highlighted five straight up sessions into Tuesday before Wednesday’s additional advance. [3]
2. Banks lead the rally as OCBC hits a record high
Local banks remained at the centre of Wednesday’s move:
- OCBC rose 1% to S$18.95, a record closing high, after previously beating consensus estimates with its third‑quarter earnings.
- DBS added 0.5% to S$54.43.
- UOB climbed 0.6% to S$34.55. [4]
Analysts at Phillip Securities described the STI’s recent strength as being “driven by an extended recovery in Wall Street” alongside elevated expectations of a US Federal Reserve rate cut next week. TS2 Tech+1
For Thursday’s open, traders will be watching whether bank stocks can sustain momentum or start to see some rotation into high‑yield REITs and mid‑caps, now that rate‑cut bets are largely priced in.
3. Wall Street closes higher again – supportive cue for SGX
Overnight, US stocks extended their rally, giving Asia – and Singapore – a generally positive handover:
- The S&P 500 rose about 0.30% to 6,849.76.
- The Dow Jones Industrial Average jumped 0.88% (around 416 points) to 47,890.31.
- The Nasdaq Composite gained 0.18% to 23,454.09. [5]
The move came after a flurry of economic data:
- The ISM services index held steady around 52.6 in November, signalling ongoing expansion in US services activity.
- The ADP private payrolls report showed an unexpected drop in November employment, reinforcing the view that the labour market is cooling. [6]
Together, the numbers prompted traders to raise the implied probability of a 25‑basis‑point Fed cut next week to about 89%, according to the CME FedWatch tool – up from around 87% earlier in the day. [7]
Tech sentiment was mixed: Microsoft slid intraday on concerns about AI software sales quotas before paring losses, leaving the tech sector slightly in the red, while small caps and energy shares outperformed. [8]
For Singapore, the key takeaway is that US equities remain close to record highs with growing rate‑cut conviction – generally a constructive backdrop for risk assets at Thursday’s SGX open.
4. Fed rate‑cut bets and US data loom large
Across Asia, markets on Wednesday largely tracked Wall Street higher as traders waited for the final US data releases before the Federal Reserve’s 10 December meeting. [9]
Business Times noted that:
- Money markets now put the chance of a 25‑bp cut on 10 December at around 90%, with another three cuts priced in by end‑2026. [10]
- The upcoming core PCE inflation print and personal income/spending data later this week remain “make‑or‑break” for expectations of how dovish the Fed can be next year. [11]
Strategists warn that a “hawkish cut” is possible if the Fed lowers rates but maintains a firm message on inflation, which could cap upside for growth stocks even as lower yields support income plays like REITs. [12]
Short term, though, rate‑cut optimism is clearly one of the main pillars supporting the STI’s year‑end rally going into Thursday’s session.
5. Singapore’s macro backdrop: upgraded GDP and resilient growth
Singapore enters Thursday’s trade on a considerably stronger macro footing than just a few months ago:
- After a stronger‑than‑expected Q3 2025 GDP growth of 4.2% year‑on‑year, the Ministry of Trade and Industry raised its 2025 growth forecast to “around 4.0%” from a previous 1.5–2.5% range. [13]
- MTI expects growth to cool to 1–3% in 2026, partly reflecting the drag from US tariffs and a normalisation of the post‑AI boom upswing. [14]
This macro upgrade supports the constructive tone seen in recent Singapore market strategy notes:
- RHB recently raised its end‑2025 STI target to 4,690, based on 13.5x 2026 earnings, and projects Singapore corporate profits to grow about 7–8% annually into 2027. TS2 Tech
- OCBC’s 2026 outlook keeps an “Overweight” stance on Singapore equities, highlighting the combination of steady growth, high dividend yields and a deep REIT universe. TS2 Tech
For Thursday’s open, that macro cushion helps dampen downside risk should Wall Street wobble, while also reinforcing the broader “buy‑the‑dip” narrative for quality Singapore names.
6. UltraGreen.ai’s hot IPO keeps SGX in the global spotlight
One of the biggest talking points ahead of Thursday’s open is UltraGreen.ai, the medical‑imaging and AI‑driven surgical‑tech company that debuted on SGX on Wednesday:
- The stock jumped about 8% above its IPO price of US$1.45, trading around US$1.56 in morning dealings.
- The IPO raised roughly US$400 million, valuing the company at around US$1.7 billion.
- It is Singapore’s largest non‑REIT IPO in eight years and the third‑largest listing on SGX in 2025, behind NTT DC REIT and Centurion Accommodation REIT. [15]
UltraGreen.ai develops fluorescence‑guided surgery technology, supplies ICG dyes and is building an AI‑powered surgical intelligence platform, positioning it squarely in the intersection of healthcare, AI and advanced imaging. [16]
Reuters notes that its successful listing is seen as a vote of confidence in Singapore’s capital‑market reforms, which include:
- Easing dual listing processes between SGX and Nasdaq.
- Plans to cut minimum board lot sizes.
- Modernising post‑trade custody and enhancing market‑making incentives. [17]
With trading interest likely to stay elevated, UltraGreen.ai will be a key stock to watch at Thursday’s open – both for price action and for what it signals about investor appetite for “new‑economy” listings on SGX.
7. MAS reforms and SGX’s regional ambitions
Regulatory reform is another important medium‑term driver supporting sentiment towards Singapore equities:
- In November, the Monetary Authority of Singapore (MAS) unveiled a “dual‑listing bridge” that will allow companies with a market cap of at least S$2 billion to list on both SGX and Nasdaq using a single set of listing documents, potentially reducing friction for large global issuers. [18]
- Separately, the Australian Financial Review reported that Singapore Exchange is considering another attempt to acquire Cboe Australia, rival to the ASX, which would bolster SGX’s footprint in the Asia‑Pacific trading ecosystem if it materialises. [19]
While SGX shares actually dipped slightly on the day of the MAS announcement, analysts broadly view these measures as long‑term positives for liquidity, listings and valuation. [20]
For Thursday’s session, any headlines about further market‑development initiatives – such as a new tranche of equity‑market development funds – could spark renewed interest in SGX, selected REITs and brokers.
8. Sectors and stocks to watch at the 4 December open
a) Banks and financials
With OCBC at a record high and DBS/UOB also trending up, the local banks remain the STI’s main swing factor. [21]
Key questions for Thursday:
- Do investors continue to reward banks for resilient earnings, or does the market start to rotate into rate‑sensitive REITs as the Fed easing cycle approaches? TS2 Tech+1
- Any fresh commentary on net‑interest‑margin pressure could weigh on valuations, especially after strong YTD performance. TS2 Tech
b) REITs and dividend plays
Singapore’s yield names are increasingly back in favour:
- A Smart Investor piece highlights December dividends from ST Engineering (S63) and SATS (S58), both paying on 5 December 2025, and Singapore Airlines (SIA) paying on 23 December, underlining the month’s appeal for income investors. [22]
- Another feature, “Beyond STI: 3 Singapore Dividend Stocks to Watch in December 2025”, points to counters like Elite UK REIT, which has over 99% of rental income backed by UK government tenants – a reminder that defensive yield plays remain plentiful beyond the headline index. [23]
If bond yields continue to drift lower on Fed‑cut hopes, expect select REITs, infrastructure names and transport plays to draw buying interest at the open.
c) Industrials & transport: quiet winners
The FTSE ST Industrials Index has delivered around 36% total return year‑to‑date, according to SGX research, significantly outperforming the broader market. [24]
Names often highlighted in this space include ST Engineering, Sembcorp Industries and transport operators, which benefit from both structural demand and Singapore’s stable policy environment. [25]
With industrials already pricing in a strong 2025, traders on Thursday will be alert to any signs of profit‑taking or, conversely, renewed momentum if global growth upgrades continue.
d) Under‑the‑radar mid‑caps
A Smart Investor article flagged three under‑the‑radar Singapore stocks that beat the STI in November 2025:
- CSE Global – systems integrator with data‑centre exposure, delivering about 14.5% total return for the month on the back of 20.5% year‑on‑year revenue growth in Q3 and a strategic deal giving Amazon the right to acquire a sizeable stake. [26]
- The Hour Glass – luxury watch retailer whose strong free‑cash‑flow generation and robust H1 FY2026 earnings underpinned a 7.7% monthly gain. [27]
- Delfi – confectionery group with solid cash generation despite currency headwinds, delivering a 3.1% return in November. [28]
These stories highlight investors’ growing interest in small and mid‑caps (SMIDs) with strong execution and niche growth angles. If Thursday’s open sees continued broadening beyond banks, these names – and the wider iEdge SG Next 50 cohort – could stay on traders’ radars. TS2 Tech+1
e) Consumer and defensive names
On Wednesday, DFI Retail Group hit a 52‑week high at US$3.67 after rising 4.9%, despite no fresh market‑sensitive news – a sign that investors are quietly rotating into defensive consumer names alongside cyclicals. [29]
With year‑end holiday spending in focus regionally, consumer staples and retail‑linked counters could see follow‑through interest at Thursday’s open.
9. Valuations and strategy views heading into year‑end
Beyond the day‑to‑day moves, several strategy pieces published in late November and early December frame how global funds are approaching Singapore:
- RHB expects further Fed easing in December and 2026, and has increased its STI target to 4,690, while emphasising themes such as:
- Adding exposure to S‑REITs as funding costs fall.
- Rotating gradually from banks into yield and growth SMIDs that benefit from MAS’ equity‑market development programme. TS2 Tech
- OCBC and other houses remain constructive on Singapore for 2026, citing moderate but steady earnings growth, attractive dividend yields and policy support. TS2 Tech+1
- At the regional level, Lombard Odier’s Asia 2026 outlook projects around 4% GDP growth for Asia and mid‑to‑high single‑digit returns for MSCI Asia ex‑Japan, with valuations significantly cheaper than the S&P 500 – a backdrop in which Singapore is positioned as a “funding gateway” for the region. TS2 Tech+1
For investors looking at Thursday’s open, the broad message from strategists is that Singapore remains a defensive‑plus‑income market with selective growth, rather than a speculative, high‑beta play.
10. Key risks and data to monitor over the next 48 hours
Even with a constructive setup, traders heading into the 4 December session should keep an eye on several near‑term risks:
- US data surprises
- Any upside surprise in core PCE inflation or a sharp rebound in labour indicators could pull forward expectations of slower or fewer rate cuts, lifting yields and pressuring rate‑sensitive sectors like REITs. [30]
- Positioning fatigue after a six‑day STI rally
- With the index already near RHB’s 4,690 year‑end target, short‑term traders may choose to lock in profits, particularly in banks and high‑flyer industrials, leading to intraday volatility. [31]
- Global headlines
- Renewed geopolitical tensions, tariff announcements, or policy surprises around the Fed chair succession could quickly shift risk appetite, especially given how heavily current valuations lean on the “soft landing plus cuts” narrative. [32]
Pre‑open checklist for Thursday, 4 December 2025
Before the Singapore market opens, investors may want to run through a quick checklist:
- Index context: STI at 4,554.52, up six days in a row and within reach of strategists’ year‑end targets. [33]
- Global lead: Wall Street higher on strong Fed‑cut odds; US indices near record levels. [34]
- Macro backdrop: Singapore’s 2025 GDP forecast upgraded to around 4%, with 2026 cooling but still positive. [35]
- Reforms & listings: MAS dual‑listing bridge, SGX’s structural changes, and UltraGreen.ai’s successful debut reinforce Singapore’s role as a regional capital‑raising hub. [36]
- Themes: Banks vs REIT rotation, dividend plays into December payment dates, and ongoing broadening into mid‑caps and “new‑economy” IPOs. [37]
Important note: This article is for general information and news reporting only and does not constitute personalised investment advice. Always consider your own objectives and risk tolerance, and if needed, consult a licensed financial adviser before making investment decisions.
References
1. www.businesstimes.com.sg, 2. www.businesstimes.com.sg, 3. www.rttnews.com, 4. www.businesstimes.com.sg, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.businesstimes.com.sg, 10. www.businesstimes.com.sg, 11. www.businesstimes.com.sg, 12. www.businesstimes.com.sg, 13. www.indexbox.io, 14. www.indexbox.io, 15. www.reuters.com, 16. www.reuters.com, 17. www.reuters.com, 18. www.businesstimes.com.sg, 19. www.afr.com, 20. www.businesstimes.com.sg, 21. www.businesstimes.com.sg, 22. thesmartinvestor.com.sg, 23. thesmartinvestor.com.sg, 24. www.sgx.com, 25. www.sgx.com, 26. thesmartinvestor.com.sg, 27. thesmartinvestor.com.sg, 28. thesmartinvestor.com.sg, 29. www.businesstimes.com.sg, 30. www.businesstimes.com.sg, 31. www.businesstimes.com.sg, 32. www.reuters.com, 33. www.businesstimes.com.sg, 34. www.reuters.com, 35. www.indexbox.io, 36. www.businesstimes.com.sg, 37. thesmartinvestor.com.sg
