Singapore Stock Market Today (Dec 5, 2025): STI Edges Lower as Caution Returns, While REITs and Tech Stay in Focus

Singapore’s stock market ended a touch weaker on Friday, 5 December 2025, as investors locked in profits after a strong run and digested mixed global economic signals, especially from the US labour market.

Market Close: STI Slips, Breadth Turns Negative

The Straits Times Index (STI) dipped just under 0.1%, losing 3.78 points to close at 4,531.36. The iEdge Singapore Next 50 Index – which tracks the “next wave” of mid-cap and emerging blue-chip counters – fell about 0.5% to 1,440.75. Market breadth was negative, with decliners outpacing gainers 301 to 236, on turnover of roughly 976.9 million securities worth nearly S$1.2 billion. ^[1]

The mild pullback came after:

A multi-session rally that had pushed the STI near record territory.
A softer-close on Thursday, when the index dropped 0.43% to 4,535.14 following weakness in financials and REITs. ^[2]

For now, the takeaway is that momentum is slowing at elevated levels, but there is no sign of a sharp reversal. The market is consolidating rather than capitulating.

Global Backdrop: Fed-Cut Hopes vs Growth Jitters

Overnight, US markets finished almost flat, as traders weighed mixed labour data against rising expectations of a Federal Reserve rate cut next week. Initial jobless claims fell to a more-than-three-year low, but analysts cautioned that the reading may be distorted by the Thanksgiving calendar. ^[3]

Futures markets now price in roughly an 87% chance of a 25-basis-point cut in December, reinforcing the idea that the Fed is in easing mode even though Chair Jerome Powell has sounded wary on inflation. ^[4]

At the same time:

Singapore’s Ministry of Trade and Industry (MTI) recently raised its 2025 GDP growth forecast to “around 4%”, from a previous range of 1.5–2.5%, after strong third-quarter data.
MTI expects growth to slow to 1–3% in 2026, citing the lagged impact of US tariffs and external uncertainties. ^[5]

So while the macro picture is supportive – solid domestic growth and falling global rates – investors are increasingly sensitive to any hint that US or global demand could soften, which explains today’s cautious tone.

Today’s Singapore Movers: Property Names Pop, Engineering Slips

Blue-chip and property highlights

According to local market reports, the STI’s modest decline masked more interesting stock-level moves:

Frasers Property hit a 52‑week high at S$1.10, up around 2.8%, supported by news that it recently redeemed S$300 million in perpetual securities, improving its balance sheet profile. ^[6]
Wee Hur added about 0.7% to S$0.715, as investors continued to respond to its Upper Thomson land joint venture and broader development pipeline. ^[7]
Nordic Group slipped about 1.2% to S$0.41, even after announcing roughly S$70.3 million worth of new contracts across marine, offshore oil and gas, petrochemical, semiconductor, infrastructure and security sectors – suggesting that some good news was already in the price. ^[8]

Overall, local analysts characterised Friday as “a cautious trading day driven mainly by global worries”, particularly the surprise slowdown in US private-sector employment that rattled risk sentiment across Asia. ^[9]

“Next 30” activity: Tech and S‑REITs dominate turnover

Fresh data from the Singapore Exchange (SGX) highlighted how much of the liquidity action is happening outside the STI:

The 30 most-traded non‑STI stocks in the second half of 2025 (to 3 December) generated a combined average daily turnover (ADT) of S$214 million.
These “next 30” names delivered a median total return of about 25% over the period and represent all 12 SGX sectors. ^[10]

Within that cohort:

S‑REITs had the strongest presence, boasting the largest combined market capitalisation (about S$19.5 billion) and the highest combined ADT (around S$53.1 million). Seven REITs – including Suntec REIT, Keppel REIT, CapitaLand Ascott Trust, Lendlease Global Commercial REIT, Parkway Life REIT, NTT DC REIT and CAReit – made the list. ^[11]
Technology counters like CSE Global, iFast Corporation and Frencken Group saw liquidity surge; the five tech stocks in the group recorded combined ADT of S$44.4 million in H2 2025, more than double H1’s level. ^[12]

This reinforces a key theme: investors are gradually broadening out from the big banks and industrials into REITs and growthy mid‑caps, aided by SGX’s new iEdge Singapore Next 50 Index and related market-reform initiatives. ^[13]

Index Review and Corporate Developments to Watch

STI reserve list shake‑up

Ahead of trading today, SGX’s December quarterly index review produced notable changes on the STI reserve list (the pool of counters first in line to join the STI if a constituent drops out):

CapitaLand Ascott Trust (CLAS) and Sheng Siong Group will join the reserve list.
They replace Olam Group and Yangzijiang Financial, which drop off.
No changes were made to the 30‑stock STI itself. ^[14]

On Thursday’s close, CLAS ended flat at S$0.94, while Sheng Siong eased 0.8% to S$2.62. ^[15]

The move effectively upgrades Sheng Siong and CLAS in the market’s pecking order, signalling that both are now closer to blue-chip status, which could have positive implications for institutional demand if they eventually enter the index.

Sunpower’s China expansion

Sunpower Group also made it onto traders’ watchlists:

It announced plans to acquire stakes in two Chinese thermal power projects, including a 15% interest in Jining Xinneng Thermal Power for about 30.2 million yuan (S$5.5 million), plus the remaining 10% stake in another project for 16.8 million yuan. ^[16]
The stock nonetheless ended slightly weaker on Thursday at S$0.525, suggesting that investors are still assessing execution and funding risks around the deals. ^[17]

What Analysts Are Saying Today (5 Dec)

A daily roundup of broker calls published by NextInsight gives a snapshot of how research houses are positioning around some key Singapore names. ^[18]

1. Sheng Siong: Good story, fully priced?

DBS Researchdowngraded Sheng Siong to HOLD, arguing that the stock’s strong run has already priced in the boost from the government’s SG60 voucher scheme.
DBS remains constructive on the supermarket sector, expecting SG60 vouchers to underpin roughly 4% year‑on‑year industry growth in 2025, and estimates that the scheme could generate about S$500 million in additional annualised sales uplift for the sector in 2026. ^[19]

Implication: Sheng Siong remains a high‑quality defensive name, but at current levels analysts see limited upside without fresh catalysts.

2. BRC Asia: Riding the construction upcycle

UOB Kay Hian highlighted that BRC Asia’s FY25 core earnings came in at about US$94 million, up 22% year on year and slightly ahead of forecasts (108% of its FY25 estimate).
The company announced a total dividend of 20 Singapore cents for FY25 (including final and special payouts), implying a yield of around 4.9%, backed by a S$1.9 billion order book.
UOB Kay Hian maintains a BUY rating with a higher target price of S$4.90. ^[20]

Implication: The construction cycle remains a tailwind for building-materials and infrastructure plays, with BRC seen as a key beneficiary.

3. Retail & malls: 2026 may be tougher

A separate DBS piece flagged a “softer retail pulse” ahead:

DBS expects retail sales growth of about 1% in 2026, broadly in line with inflation.
While SG60 vouchers and higher tourist spending should help supermarkets and centrally located malls, this is likely to be offset by weaker discretionary spending and potential 3–4% annualised retail leakage from 2027 as the Johor Bahru–Singapore Rapid Transit System (RTS) encourages cross‑border shopping.
DBS highlights DFI Retail Group on the consumer side and CICT plus Lendlease Global Commercial REIT (LREIT) among retail S‑REITs. ^[21]

Implication:Yield-focused mall REITs and staple-heavy retailers may still fare reasonably well, but pure discretionary names could face a more challenging environment.

4. LHN: High-yield small cap on brokers’ radar

A joint note from UOB Kay Hian and Lim & Tan put the spotlight on LHN, a diversified property and co‑living operator.
LHN’s market cap stands around S$286 million and it trades at roughly 7x forward P/E, 1.1x P/B, with an estimated dividend yield of about 6%.
Consensus target price of about S$1.15 implies around 72% upside from current levels, and the stock carries an “Accumulate” recommendation. ^[22]

Implication: Select small-cap yield plays remain attractive for investors willing to stomach lower liquidity.

Big-Picture Views: How Strategists See Singapore Equities

Beyond day-to-day price action, several major houses have set out their 2025–2027 roadmaps for Singapore stocks.

LionGlobal Investors: Positive on Singapore at reasonable valuations

In its 4Q 2025 Market Outlook, LionGlobal Investors says it is “positive on Singapore equities”, highlighting: ^[23]

MTI’s upgrade to 2025 GDP growth and easing inflation pressures.
Policy moves such as SGX’s iEdge Singapore Next 50 Index and MAS’s equity-market reforms that aim to unlock corporate value and deepen liquidity. ^[24]
Despite substantial gains this year, the STI is still trading around 13.4x price-to-earnings with an attractive c.5.1% dividend yield, which the firm views as “reasonable” given the macro backdrop. ^[25]

RHB: End‑2025 STI target at 4,690

RHB Securities Research recently raised its end‑2025 STI target to 4,690 (from 4,300), using around 13.5x 2026 forecast earnings as its valuation anchor. ^[26]

Key points from RHB’s Singapore Market Strategy:

Market earnings growth is projected at >7% per year in 2026–2027, led by industrials, telecommunications and real estate. ^[27]
RHB continues to favour S‑REITs as falling rates support refinancing and distribution-per-unit (DPU) growth, while banks function more as steady-yield instruments until growth visibility improves. ^[28]
The broker sees pullbacks similar to today’s minor dip as buying opportunities, especially in REITs, high‑yield plays (ComfortDelGro, StarHub, Bumitama, Thai Beverage) and beneficiaries of MAS’s Equity Market Development Programme and “Value Unlock” initiatives. ^[29]

DBS: S‑REITs entering a tailwind phase

In a November sector piece titled “Singapore REITs: Declining Benchmark Rates a Tailwind for S‑REITs”, the DBS Chief Investment Office notes that: ^[30]

S‑REITs had already risen about 12.5% year-to-date by early November, supported by easing cost pressures and better fundamentals.
Yet, the group still trades at roughly 0.9x price-to-book with forward FY26 yields around 5.7%, levels DBS sees as “undemanding”.
With the Fed already cutting rates and Singapore’s SORA benchmark back near pre-hike levels, DBS expects refinancing in 2026–2027 to deliver up to 200 basis points in interest savings, potentially lifting sector yields back towards 6%, with a spread of more than 4 percentage points over risk‑free rates.

DBS remains a “buyer on weakness”, favouring quality REITs with strong balance sheets and visible growth drivers. ^[31]

Nomura: Neutral on Singapore after strong run

In contrast, a fresh note from Nomura, reported by regional media, keeps Singapore equities at “neutral” for the next year:

Nomura argues that Singapore shares are now trading at multiples above historical averages, reflecting both strong price gains and abundant liquidity. ^[32]
The bank expects valuations to stay “elevated” into 2026, which could cap upside unless earnings surprise positively or growth accelerates. ^[33]

This doesn’t translate into a bearish call; rather, Nomura is signalling that future returns may be more modest and stock‑specific, especially after a double‑digit rally in the index this year. ^[34]

Long-term horizon: DBS sees STI at 10,000 by 2040

Looking much further ahead, a DBS “Singapore 2040” report – highlighted by The Straits Times in October – laid out a bold scenario: ^[35]

Singapore’s economy could expand to US$1.2–1.4 trillion (about S$1.56 trillion) by 2040, up from roughly US$547 billion in 2024.
Under that trajectory, the STI could climb to 10,000 points by 2040, implying about 126% upside from current levels.
Achieving this would require more risk‑taking, deeper liquidity, and a stronger pipeline of high‑growth tech and new‑economy listings, aided by MAS’s Value Unlock programme and the Equity Market Development Programme. ^[36]

It’s an ambitious roadmap, but it underlines why policymakers are so focused on revitalising SGX’s role as a capital-raising hub.

Quant Models and External Forecasts

Beyond broker research, quantitative models and macro forecasters provide additional reference points:

Forecasts.org, which uses historical data and time‑series models, projects the average level of the STI in December 2025 around 4,544, with modest further gains into mid‑2026 (roughly 4,567 in March and 4,619 by April 2026, subject to wide error bands). ^[37]
Independent market letters, such as a December newsletter by local strategist Joey Choy, emphasise that 2025 has been a strong year for “quality” Singapore equities with robust earnings and cash flow, even as global markets turned choppier into year‑end. ^[38]

These models and commentaries should be treated as scenarios, not guarantees, but they do broadly align with house views that Singapore’s equity market may still have upside, albeit at a slower pace than 2025’s surge.

How to Read Today’s Pullback

Putting it all together, here’s how Friday’s trading session fits into the bigger picture:

Short term (days–weeks)
- The STI is consolidating just above 4,530 after a strong multi‑session run.
- Global cues – especially US jobs data and the Fed decision next week – are likely to drive day‑to‑day swings. ^[39]
Medium term (2025–2027)
- Macro fundamentals are supportive: stronger‑than‑expected 2025 GDP, easing inflation, and a global rate‑cut cycle. ^[40]
- Strategists from LionGlobal, RHB and DBS are broadly positive on Singapore equities, especially S‑REITs, high‑yield names and mid‑caps tied to MAS market reforms. ^[41]
- Nomura’s neutral stance is a reminder that valuations are no longer cheap, so stock selection matters more than index timing. ^[42]
Key themes to watch
- Interest-rate sensitivity: Rate cuts turn from a headwind into a tailwind for S‑REITs and other leveraged income plays. ^[43]
- Policy reforms & liquidity: MAS’s Value Unlock and the Equity Market Development Programme, plus SGX’s Next 50 index, are already showing up in turnover data for non‑STI stocks. ^[44]
- Defensives vs growth: Supermarkets, infrastructure and healthcare remain favoured defensives; select tech, data-centre and industrial names provide higher‑beta upside where fundamentals and liquidity are improving. ^[45]

Bottom Line

Singapore’s stock market today is pausing, not panicking.

The STI’s 0.1% dip reflects profit-taking and macro caution, not a change in the underlying story. ^[46]
Beneath the index, REITs and tech‑adjacent mid‑caps are absorbing more trading volume, consistent with strategists’ calls to look beyond the traditional blue-chip banks. ^[47]
Forward-looking research still points to modest upside into 2026, strong income potential from dividends and REIT distributions, and structural tailwinds from policy reforms and AI‑driven growth – offset by elevated valuations and geopolitical risks. ^[48]

For readers following the market via Google News or Discover, the message is clear: Singapore remains a yield‑rich, policy‑supported market, but the phase of easy index gains looks to be behind us. From here, returns are likely to be more selective, sector‑driven and sensitive to global data, starting with the Fed’s decision in the coming week.