Singapore Stock Market Weekly Review (1–6 Dec 2025): STI Holds Above 4,500 as UltraGreen.ai IPO, DFI Dividend Boost and Fed Cut Bets Drive Trade

The Singapore stock market ended the week of 1–6 December 2025 on a cautious but resilient note. The Straits Times Index (STI) finished Friday at 4,531.36, a modest gain of around 0.2% from last Friday’s 4,523.96, and roughly 0.1% higher than Monday’s close, despite a late-week pullback. ^[1]

Behind the steady headline number, the week was packed with catalysts: a record year for SGX IPOs highlighted by UltraGreen.ai’s strong debut, a three‑year growth and dividend plan from DFI Retail Group, a reshuffle of the STI reserve list, and rising expectations that the US Federal Reserve will cut rates by 25 basis points at its meeting on 10 December. ^[2]

1. STI at a glance: small weekly gain, big rotation

From Monday 1 December to Friday 5 December, the STI:

Opened the week at 4,526.22
Hit an intra-week high of 4,554.52 on Wednesday after a six‑day winning streak
Closed the week at 4,531.36 on Friday after two consecutive down days ^[3]

That translates to:

+7.4 points (+0.16%) versus last Friday (28 Nov)
+5.1 points (+0.11%) versus Monday’s close

In other words, Singapore stocks inched higher, but the market’s tone shifted dramatically mid‑week: from a clean risk‑on rally to a more defensive, Fed‑watching posture.

Breadth and liquidity were healthy but not euphoric. Turnover hovered around S$1.2–1.4 billion a day, with decliners often narrowly outnumbering gainers, even on up days—sign that investors were selective rather than broadly bullish. ^[4]

2. Day‑by‑day: how Singapore stocks traded

Monday, 1 December – Cautious rise ahead of Fed decision

On Monday, Singapore shares “barely budged”, with the STI adding 2.26 points (about 0.05%) to 4,526.22. The broader iEdge Singapore Next 50 Index actually outperformed, up 0.1% to 1,448.63. ^[5]

Key details:

Market breadth: 271 gainers vs 279 decliners across 1.3 billion securities worth S$1.4 billion
Laggard: Yangzijiang Shipbuilding fell about 2.1%, making it the worst STI performer
Leader: Hongkong Land climbed roughly 3.5%, buoyed by ongoing share buy-backs
Most active: Penny stock Disa traded nearly 118.6 million shares at a flat price of 0.1 cent ^[6]

Analysts at Phillip Securities flagged “cautious” equity sentiment and “fragile” US technicals, expecting the STI to trade sideways until the US Federal Reserve’s 10 December meeting, with futures pricing in an around 83% chance of a 25 bp cut. ^[7]

Takeaway: The market was already in “wait-and-see” mode, with investors reluctant to make big bets before clearer Fed guidance.

Tuesday, 2 December – STI up 0.3% on mixed session

Tuesday saw the STI gain more traction, rising 11.74 points (0.3%) to 4,537.96, while the Next 50 Index slipped 0.5%to 1,441.16—another sign of selectivity. ^[8]

Highlights from The Business Times:

Breadth: 288 gainers vs 236 decliners; 1.3 billion shares traded for almost S$1.3 billion
Worst STI performer: Wilmar International fell about 1.5% to S$3.20, after it reshuffled its risk management and sustainability committees and as Aletheia Capital downgraded the stock from “buy” to “sell” over concerns about legal issues and balance-sheet flexibility ^[9]
Most active: Hoe Leong, an undercarriage components maker, traded roughly 136.5 million shares at S$0.001

Private bank LGT noted that higher odds of a Fed rate cut were supporting Asian indices, including the STI, as markets extended a rally from late November. ^[10]

Takeaway: Blue‑chip strength carried the index, but the underperformance of the Next 50 hinted at some fatigue in smaller names.

Wednesday, 3 December – Sixth straight gain and a blockbuster IPO

Wednesday was the stand‑out day of the week.

STI logs sixth consecutive advance

The STI climbed another 16.56 points (nearly 0.4%) to 4,554.52, marking its sixth straight gain and its highest close of the week.
The iEdge Singapore Next 50 Index also rose over 0.4% to 1,447.52. ^[11]

Drivers:

Banks led the rally:
- OCBC closed at a record S$18.95 after strong Q3 results in early November
- DBS rose to S$54.43
- UOB finished at S$34.55 ^[12]
DFI Retail Group hit a 52-week high at US$3.67, jumping about 4.9%, making it the top STI performer for the day. The move followed the group’s 2025 investor day, where it rolled out a three‑year plan targeting 11–15% underlying profit CAGR and a new dividend policy paying out around 70% of underlying earnings, signalling a clearer commitment to returning capital to shareholders. ^[13]

Phillip Securities strategist Zane Aw attributed the strength to an “extended recovery in Wall Street” and firmly anchored expectations of a Fed rate cut next week, with futures markets pricing an about 87% probability. ^[14]

UltraGreen.ai’s IPO supercharges SGX sentiment

The day also belonged to UltraGreen.ai, the medtech and AI‑powered surgical imaging firm that listed on SGX’s mainboard:

Opened at US$1.51, climbed to an intraday high of US$1.62, up 11.7% from the IPO price of US$1.45
Closed at US$1.52, still 4.8% above the offer price, on 36.2 million shares traded ^[15]
Raised US$162.5 million in gross IPO proceeds, plus US$237.5 million from cornerstone investors, for a total of about US$400 million ^[16]

According to Reuters and The Straits Times, UltraGreen.ai’s listing:

Is Singapore’s largest non‑REIT IPO in eight years
Helps make 2025 SGX’s strongest IPO year since 2019, with over S$2 billion raised across nine deals, and about US$1.6 billion in proceeds across the region’s main listings ^[17]

Takeaway: Wednesday encapsulated what investors want to see from Singapore—strong banks, rising dividends, and credible new‑economy listings.

Thursday, 4 December – Rally breaks as US jobs data spook markets

The streak broke on Thursday. The STI fell 19.38 points (–0.4%) to 4,535.14, with only about one‑fifth of the 30 components finishing higher. ^[18]

Key drivers:

US private employment data showed an unexpected drop in November, stoking fears that the US economy might be slowing more sharply than anticipated. ^[19]
DBS and UOB both lost around 0.3–0.4%, while OCBC held flat at its record S$18.95, showing some resilience. ^[20]
Interestingly, the iEdge Singapore Next 50 Index edged slightly higher, suggesting a degree of bargain‑hunting outside the main blue‑chips. ^[21]

Notable movers:

Tuan Sing rose after getting planning approval to redevelop its Melbourne flagship property, which houses the 550‑room Grand Hyatt hotel.
YHI International slid to a 52‑week low without fresh news, underscoring how quickly investors were punishing anything perceived as cyclical. ^[22]

CapAllianz again emerged as the most traded name, with 470 million shares changing hands, more than triple the previous day’s volume. The stock, however, remained flat at 0.2 cent. ^[23]

External commentary from RTTNews suggested that, after gaining more than 65 points (around 1.6%) over six sessions, the STI—now hovering just above the 4,535 level—was likely to “spin its wheels” on Friday amid a murky global backdrop and lack of fresh catalysts. ^[24]

Friday, 5 December – Mild pullback as investors stay wary

Friday saw a third straight cautious session:

The STI slipped 3.78 points (–0.1%) to 4,531.36
The Next 50 Index fell 0.5% to 1,440.75 ^[25]

Yet market breadth was actually positive: 301 gainers vs 236 decliners, on about 977 million securities worth nearly S$1.2 billion. ^[26]

FSMOne analyst Charmaine Tan said the modest decline reflected cautious trading driven by US economic concerns, particularly the unexpected decline in private‑sector employment, which raised worries of a sharper slowdown. That prompted Asian investors, including those in Singapore, to take some risk off the table. ^[27]

Stock‑specific highlights:

Frasers Property hit a 52‑week high of S$1.10 after recent news that it was redeeming S$300 million of perpetual securities, which investors read as a balance‑sheet and distribution positive.
Wee Hur firmed on news of a seven‑party joint venture to develop its Upper Thomson Road land parcel, with the group taking a 50% stake.
Nordic Group dipped despite announcing around S$70.3 million of new contracts, a textbook example of “good news already priced in.” ^[28]

Takeaway: The week ended with risk appetite intact but more discerning, as investors waited for the Fed’s decision and digested signs of softer US growth.

3. Key sector themes: banks, REITs and defensives

Banks: still the anchor for the STI

Singapore’s three local banks—DBS, OCBC and UOB—remained central to the STI’s movements:

OCBC hitting a record closing high on Wednesday underscored continuing optimism post its better‑than‑expected Q3 earnings. ^[29]
DBS and UOB rose mid‑week but slipped later as rate‑cut expectations increased and US data appeared softer. ^[30]

Analysts broadly see near‑term margin pressure if the Fed embarks on a series of cuts in 2026, but also highlight improved credit quality and fee income as buffers. With the STI heavily bank‑weighted, any surprise from the Fed meeting next week will likely show up here first. ^[31]

REITs: restructuring and repositioning

REITs had a quieter price week but important structural news:

Manulife US REIT’s strategic pivot
- The US office‑focused REIT is seeking unitholder approval to expand its mandate into industrial, living and retail assets in the US and Canada, authorise the sale of up to three properties (up to US$350 million) and potential new acquisitions of up to US$600 million. ^[32]
- The pivot is key to avoiding potential foreclosure, given a prior covenant breach and the need to meet restructuring targets; lenders have granted conditional concessions—including a temporary gearing cap of 80%—on the condition that the growth plan is approved. ^[33]
This episode matters beyond one counter: it highlights lingering stress in the US office segment and underscores why many Singapore investors have rotated toward logistics, data‑centre and diversified REITs.
Reserve‑list power: CapitaLand Ascott Trust & Sheng Siong join the queueThe December STI quarterly review brought no changes to the main index, but did tweak the five‑stock reserve list: ^[34]
- Joining:
  - CapitaLand Ascott Trust (CLAS) – a hospitality REIT with a global serviced‑residence and hotel portfolio
  - Sheng Siong Group – a domestic supermarket chain often seen as a defensive play
- Exiting:
  - Olam Group
  - Yangzijiang Financial
- Remaining reserve stocks: Keppel REIT, NetLink NBN Trust and Suntec REIT
Changes take effect from 22 December 2025. While the STI constituents are unchanged, the higher representation of consumer‑staples and lodging REITs in the reserve list suggests market participants see resilient domestic consumption and travel recovery as important themes heading into 2026.
Yield narratives from local research housesArticles from The Smart Investor during the week highlighted REITs with potential DPU growth in 2026 and REITs yielding more than 6%, focusing on names such as Lendlease Global Commercial REIT and Mapletree Industrial Trust with improving fundamentals and strong sponsors. ^[35]The tone across these pieces is selectively optimistic: rising rate‑cut odds improve the refinancing outlook, but investors still need to discriminate based on balance sheet strength, tenant profiles and sector exposure.

Defensives and consumer: DFI and Sheng Siong in the spotlight

Two consumer names framed the defensive narrative:

DFI Retail Group
- At its 2025 investor day, DFI set a target of 11–15% underlying profit CAGR between 2025 and 2028 and outlined a new dividend policy with a target payout of about 70% of underlying earnings. ^[36]
- That plan, combined with earlier special and interim dividends, drove its shares to a fresh 52‑week high and made it the top STI performer on Wednesday. ^[37]
Sheng Siong Group
- While the stock ended slightly lower on Thursday, news that it will enter the STI reserve list reinforced its status as a core defensive consumer staple, with investors valuing predictable cash flow and dividend visibility. ^[38]

Takeaway: Income‑seekers are gravitating toward quality defensives with credible growth and dividend roadmaps, rather than simply chasing the highest headline yields.

4. Market structure & IPO landscape: SGX regains momentum

Beyond daily moves, this week underscored structural positives for the Singapore market.

Strongest IPO year since 2019

With UltraGreen.ai’s listing, Singapore has now recorded:

Nine IPO deals in the first 10½ months of 2025
Over S$2 billion in proceeds, the strongest year since 2019
Around US$1.6 billion raised across SGX IPOs, making Singapore a regional leader in Southeast Asia’s IPO market this year ^[39]

Regulators and the exchange credit recent reforms, including easier dual‑listing rules and improved market‑making incentives, for the resurgence. ^[40]

STI methodology and reserve‑list changes

The FTSE Russell / SGX / SPH Media partnership that governs the STI reiterated this week that:

The index is reviewed quarterly to ensure it remains investable and representative of Singapore’s equity universe
The reserve list exists specifically to facilitate swift replacement when corporate actions (such as takeovers or delistings) render a constituent ineligible between reviews ^[41]

For investors tracking the SPDR STI ETF or STI futures, the new reserve line‑up—CLAS, Sheng Siong, Keppel REIT, NetLink NBN Trust, Suntec REIT—is the shortlist of names most likely to graduate into the benchmark over the medium term.

5. Global backdrop: Fed cut bets dominate the narrative

This week’s trading in Singapore can’t be separated from the macro story in the US:

Data from ADP and other indicators showed surprisingly weak private‑sector job growth, fuelling fears of a cooling US economy. ^[42]
Markets now price in roughly an 84–87% chance that the Fed will cut rates by 25 basis points at its 10 December meeting, according to futures and CME’s FedWatch tool. ^[43]
A Reuters poll of economists published on 4 December also found a majority expecting a cut despite visible disagreements inside the Fed’s policy committee. ^[44]

For Singapore:

Higher rate‑cut odds support banks’ fee and loan growth prospects but pressure net interest margins over time.
REITs and high‑yield stocks stand to benefit from lower discount rates, provided earnings remain stable.
Persistent concerns over US growth, however, cap upside for cyclical names and help explain why defensives like DFI, Sheng Siong and certain REITs remain in focus.

6. Outlook: what to watch in the coming week

Based on this week’s news flow and published commentary, several themes are likely to guide the Singapore stock market in the near term:

Fed decision and guidance
- A widely expected 25 bp cut is largely priced in; markets will react more to the tone of Chair Jerome Powell’s press conference and the dot plot for 2026. A more dovish outlook could extend gains in REITs and growth stocks, while any hawkish surprise may hit banks and cyclicals first. ^[45]
US data and global sentiment
- After the shock in private employment, investors will closely watch non‑farm payrolls, unemployment and inflation data. Persistent weakness could support further Fed easing but may also undermine risk appetite if recession fears intensify. ^[46]
Local restructuring stories
- Manulife US REIT’s 16 December EGM will be a key gauge of investor appetite for turnaround stories in the office segment.
- Follow‑through on DFI’s new dividend policy and any additional updates from UltraGreen.ai could sustain interest in consumer and healthcare‑tech plays. ^[47]
Index & ETF flows
- With the STI holding comfortably above 4,500 and reserve‑list changes effective from 22 December, passive and semi‑passive investors may begin positioning in potential future entrants such as CLAS and Sheng Siong. ^[48]

7. Bottom line

For the week of 1–6 December 2025, the Singapore stock market delivered:

A small but positive STI return, consolidating strong gains from late November
Clear evidence that quality banks, well‑run REITs and defensive consumer names remain the preferred plays
Encouraging signs of capital‑markets vitality, with UltraGreen.ai’s IPO and DFI’s dividend‑focused growth plan reinforcing Singapore’s appeal as a hub for both yield and growth

With the Fed’s December meeting now directly ahead, the STI looks set to trade in a tight range around 4,500–4,550in the short term, with direction likely dictated by US monetary policy and incoming data rather than domestic news.

This article is based on information available up to 6 December 2025 from The Straits Times, The Business Times, FTSE Russell/LSEG, DFI Retail Group, Reuters, RTTNews and other public sources. It is for general information only and does not constitute investment advice.