Singapore Stock Market Today, 8 December 2025: STI Slips From Record Highs as Banks Cool and REITs Catch Up

Singapore’s stock market started the week on a softer note, with the Straits Times Index (STI) easing back from record territory as investors weighed an upgraded domestic growth outlook against global jitters over US interest rates and geopolitics.

STI today: gentle pullback near record territory

At the opening bell on Monday, the STI dipped 4.52 points, or about 0.1%, to 4,526.84 at 9.11am. Market breadth was actually positive, with 86 gainers versus 76 losers on turnover of about 89.4 million shares worth S$107.5 million. ^[1]

By late morning, real‑time data from international platforms showed the index hovering around 4,520, roughly 0.2–0.3% below Friday’s close of 4,531.36. ^[2] The move extends last week’s slight decline, when the STI slipped by less than 0.1% to 4,531.36 on 5 December amid worries over a slowing US economy. ^[3]

Even so, the pullback comes from elevated levels. The STI briefly traded above 4,560 on 4 December, ^[4] and commentary from local research houses notes that the benchmark hit an all‑time high in November, powered by gains in banks, property developers and high‑yielding REITs. ^[5]

On a total‑return basis, the STI has delivered more than 25% year‑to‑date, outpacing Singapore REITs and many regional peers. ^[6]

Global backdrop: Asia drifts as traders wait on the Fed

The mild weakness in Singapore mirrors a broader cautious tone across Asia. A Monday morning market wrap from The Business Times described regional equities as “drifting” as investors brace for an expected US Federal Reserve rate cutlater this week. ^[7]

Key points from that regional context:

The Fed is widely expected to cut again, but sticky inflation and softer consumer sentiment have raised the risk of a “hawkish cut” that signals a slower easing path in 2026. ^[8]
Recent US data showed a deteriorating labour market and inflation readings still above target, muddying the macro picture. ^[9]
China‑Japan tensions in the East China Sea have also crept onto investors’ radar after Tokyo protested radar “lock‑on” incidents involving Chinese jets. ^[10]

In this environment, Hong Kong, Sydney and Singapore all traded in the red intraday, even as Wall Street ended last week on a positive note. ^[11]

Domestic macro tailwind: GDP upgraded to “around 4%” for 2025

If global cues are cautious, Singapore’s domestic fundamentals look increasingly supportive.

On 21 November, the Ministry of Trade and Industry (MTI) upgraded Singapore’s 2025 GDP growth forecast from 1.5–2.5% to “around 4.0%”, after the economy expanded 4.2% year‑on‑year in the third quarter, beating both the earlier 2.9% estimate and market expectations. ^[12]

MTI highlighted:

Strong performance in manufacturing, wholesale trade and transport, helped by robust global trade. ^[13]
A powerful AI‑related semiconductor boom, lifting electronics exports and related services. ^[14]
A still‑positive but more modest 2026 outlook, with GDP expected to slow to 1–3% as US sectoral tariffs and a cooling AI capex cycle begin to bite. ^[15]

The Monetary Authority of Singapore has kept monetary policy settings unchanged, noting that the output gap remains positive even as downside global risks persist. ^[16]

For equity investors, this macro backdrop supports a constructive medium‑term view on cyclical exporters, financials and selected services, even if short‑term price action is choppy.

Banks: still powering the STI, but valuations look rich

Mixed trading today

In early trade, the three local banks—which together make up a hefty slice of the STI—traded mixed:

DBS slipped about 0.2% to S$54.06
OCBC held around S$18.83
UOB hovered near S$34.61 ^[17]

The modest moves mirror a market that is pausing rather than capitulating.

Dividends strong, but price‑to‑book ratios elevated

A fresh analysis from dividend‑focused blog Dividend Titan, published today, notes that DBS, OCBC and UOB have all climbed sharply, with DBS and OCBC setting record highs in recent months. ^[18]

Key takeaways from that piece:

Dividend yields for the three banks are clustered around 4–5%, in line with recent years. ^[19]
Wealth management has become a major earnings engine, offsetting pressure on net interest margins as interest rates fall. DBS, for instance, reported record wealth management assets and robust fee income in 3Q25. ^[20]
Valuations have stretched: the article cites DBS trading around 2x price‑to‑book and OCBC around 1.6x, materially above their long‑term 1.0–1.5x range. ^[21]

The author’s view is that while the banks remain high‑quality “flying elephants” with durable moats, overpaying for them leaves investors vulnerable to a valuation reset, even if earnings stay solid. ^[22]

In short: Singapore bank stocks continue to underpin the STI with generous dividends and strong franchises—but they are no longer the bargain they were a few years ago.

REITs: best year since 2019 and still playing catch‑up

If banks were the heroes of the post‑pandemic recovery, Singapore REITs (S‑REITs) are shaping up to be the comeback story of 2025.

YTD performance and sector view

A Business Times “Reit Watch” feature in today’s print edition notes that S‑REITs have logged year‑to‑date total returns of about 14.7%, their best performance since 2019. Over the same period, the STI delivered more than 25% total returns, meaning REITs are recovering but still lagging the broader market. ^[23]

The article highlights several drivers:

Falling domestic interest rates have eased refinancing costs.
REITs with quality assets and long leases have delivered steady distributable income despite macro uncertainty.
Brokerage UOB Kay Hian maintains an “overweight” call on the sector, arguing that S‑REITs are likely to gradually catch up with the broader market but are “unlikely to lead the decline” in any correction. ^[24]

Where income investors are looking

Retail‑oriented blog My Sweet Retirement published a December screen of Singapore REITs yielding 5–10% with market caps above S$1 billion and price‑to‑book ratios below 3. ^[25] Its shortlist includes names such as:

Lendlease Global Commercial REIT (JYEU) – yield ~7.96%, P/B ~0.70
Far East Hospitality Trust (Q5T) – yield ~7.2%, P/B ~0.66
Keppel REIT (K71U) – yield ~6.8%, P/B ~0.8
CapitaLand Ascott Trust (HMN) and CapitaLand China Trust (AU8U) – both trading below book with yields above 6%
Large‑cap industrial and logistics plays like Ascendas REIT and Mapletree Logistics Trust, with yields between 5–6.5% and P/B around or slightly below 1. ^[26]

These data points underline why income‑seeking investors are again warming to the sector: mid‑single to high‑single‑digit yields plus discounted valuations in many names.

Hotels, tourism and storage: sector nuances

A DBS sector update on Singapore hotel REITs (summarised on an investor portal today) flags new hotel room supply as a key headwind into 2026, but still sees room for growth as tourism stabilises and new attractions come online. ^[27]

Meanwhile, cross‑border deal‑making underscores institutional appetite for property assets:

Singapore’s sovereign wealth fund GIC and Brookfield Asset Management have agreed to acquire Australia‑listed National Storage REIT in a A$4 billion (S$3.4 billion) deal, a 26.5% premium to its pre‑bid price. ^[28]

That transaction is likely to keep investors’ attention on self‑storage and logistics themes, both in Singapore and abroad.

Beyond the STI: tech upstarts, REIT heavyweights and the “Next 30”

One of 2025’s under‑reported stories has been the broadening of liquidity beyond the traditional blue chips.

SGX’s “Next‑30” cohort keeps pace with the STI

Singapore Exchange data highlighted by Business Today shows that the 30 most‑traded stocks outside the STI—often dubbed the “Next 30”—spanned all 12 industry sectors with a combined market capitalisation of S$74.4 billion as of the second half of 2025. ^[29]

Key stats from that cohort:

Average daily turnover doubled from S$115 million in 1H25 to S$214 million in 2H25 for stocks listed across both periods, signalling a sharp pickup in liquidity outside the index heavyweights. ^[30]
The group posted a median total return of ~25% for the year to 3 December, roughly matching the STI. ^[31]
Seven REITs—including Suntec REIT and Keppel REIT—featured prominently, with a combined market value of S$19.5 billion and 2H25 average daily turnover of S$53.1 million. ^[32]
Tech‑levered names like CSE Global, iFAST and Frencken saw big jumps in turnover and institutional inflows, helped by contract wins and partnerships (for example, CSE Global’s strategic tie‑up with Amazon that could deliver up to US$1.5 billion of contracts over five years). ^[33]

This suggests that investor interest is broadening beyond banks and telcos, with REITs and tech‑adjacent industrials capturing growing mindshare.

IPOs and high‑beta plays: UltraGreen.ai and MetaOptics

On the primary‑market front, UltraGreen.ai, a fluorescence‑guided surgery and AI medical imaging company, raised US$400 million in a Singapore IPO—the city‑state’s largest non‑REIT listing in eight years—and surged about 8% on its 3 December debut. ^[34] The deal is part of nine IPOs that have raised around US$1.6 billion on SGX this year, reinforcing Singapore’s push to attract more diverse listings. ^[35]

Another new‑economy story is MetaOptics, a semiconductor optics player whose shares have rocketed from an IPO price of S$0.20 in September to an all‑time high of S$1.33—about 6.6 times its listing price. ^[36] On Monday morning, however, the stock dropped as much as 18% intraday on heavy profit‑taking before trimming losses to about 7.9% by mid‑morning. ^[37]

The message for traders: SGX’s growth names can deliver multi‑bagger returns—but also sharp volatility once momentum cools.

STI review: no constituent changes, but a telling reserve list

Index provider FTSE Russell released its December 2025 quarterly review of the STI last week and announced no changes to the 30 index constituents. ^[38]

However, there were notable tweaks to the STI reserve list, which identifies the next in line should a current component be removed:

Entering reserve list: CapitaLand Ascott Trust, Sheng Siong Group
Exiting: Olam Group, Yangzijiang Financial Holding ^[39]

The updated five‑stock reserve list now comprises:

CapitaLand Ascott Trust (hospitality REIT)
Keppel REIT (office)
NetLink NBN Trust (infrastructure)
Sheng Siong Group (grocery retail)
Suntec REIT (mixed‑use commercial) ^[40]

Taken together with the performance numbers, the reserve list reinforces a few themes:

REITs remain central to the Singapore equity story, with three of five reserve names coming from the sector.
Defensive consumer plays like Sheng Siong are increasingly viewed as core holdings.
Infrastructure assets such as NetLink NBN Trust continue to appeal as quasi‑bond proxies in a world of uncertain rates.

How professional and retail investors are reading the rally

Long‑term bulls: buy‑and‑hold is “alive and well”

In a widely shared essay cross‑published with The Business Times, Smart Investor co‑founder David Kuo argues that the STI’s new highs vindicate a patient buy‑and‑hold strategy. He notes that while the index’s price‑only gain over the last 24 years looks modest, total return including dividends is around 463%, or roughly 8% annually—a compelling reward for investors who stuck with income‑generating Singapore shares through multiple crises. ^[41]

The same platform is promoting a webinar titled “STI at New Highs: Can the index soar higher?” focusing on where interest rates, blue‑chip earnings and dividends might go next—an indication that the sustainability of the rally is now top of mind for many. ^[42]

Valuation worriers: “don’t be so sure”

On the other side of the debate, Dividend Titan cautions that bank valuations in particular have run ahead of earnings, with DBS and OCBC trading well above historical price‑to‑book ranges. The piece suggests that even top‑tier franchises are not immune to “self‑correction” if investor exuberance overshoots. ^[43]

The takeaway is not bearishness on banks per se, but an emphasis on price discipline and margin of safety—themes that resonate strongly with income‑oriented investors.

Long‑term projections: the 10,000‑point STI?

A Reuters feature earlier this year highlighted a DBS Group Research scenario in which Singapore’s GDP could double by 2040, with the STI potentially approaching 10,000 points and the Singapore dollar reaching parity with the US dollar if productivity reforms and capital inflows stay on track. ^[44]

That is clearly a stretch long‑term projection, not a forecast, but it underscores how structural bulls view Singapore: as a stable, high‑income financial hub that can compound earnings and dividends over decades.

Singapore stock market today: key themes to watch

For investors tracking the Singapore stock market on 8 December 2025, a few themes stand out:

Pause, not panic: The STI’s 0.2–0.3% dip today looks like a routine consolidation after a powerful run that pushed the index to record highs, rather than the start of a structural downturn. ^[45]
Macro tailwinds vs global uncertainty: Upgraded GDP growth of around 4% in 2025 and strong AI‑driven exports support the bullish case, but Fed policy, tariffs and regional tensions keep volatility elevated. ^[46]
Banks vs REITs: Banks continue to anchor the index but trade at rich valuations; REITs are enjoying their best year since 2019 yet still offer relatively high yields and, in many cases, discounted P/B ratios. ^[47]
Broadening market leadership: Liquidity and performance in non‑STI names—from REITs in the “Next 30” to tech‑adjacent industrials and growth IPOs like UltraGreen.ai—suggest the market is no longer just a “banks‑and‑telcos” story. ^[48]
Index mechanics favour yield plays: The STI’s unchanged constituent list and a reserve bench dominated by REITs and defensive consumer names reinforce the structural importance of dividends and income stability in Singapore’s equity universe. ^[49]

What this means for individual investors

Nothing in today’s trading fundamentally changes the character of the Singapore market, but it does sharpen the questions investors should be asking themselves:

Am I over‑concentrated in the big three banks at elevated valuations?
Do I have a balanced mix of income (REITs, infrastructure) and growth (exporters, tech‑related industrials) exposures?
Can I tolerate the volatility that comes with small caps and hot IPOs like MetaOptics, or should I stick to diversified vehicles such as the SPDR STI ETF, which currently yields about 3.9%? ^[50]

For many investors—especially those eyeing retirement income—the combination of STI‑tracking ETFs, select high‑quality REITs, and a handful of resilient blue chips may prove more durable than chasing whichever stock has just rallied 500%.

Final word

As of 8 December 2025, the Singapore stock market today looks less like a market on the brink and more like one catching its breath near record highs. Macro data are improving, new‑economy listings are emerging, and income‑generating REITs are finally clawing back lost ground.

Whether the STI’s next big move is higher or lower will hinge on how the Fed navigates rate cuts, how AI‑driven growth evolves, and whether investors stay disciplined about valuation. What’s clear from today’s action is that Singapore remains firmly on the radar of both yield‑hungry and growth‑oriented investors worldwide.

This article is for information and general discussion only and does not constitute financial advice or a recommendation to buy or sell any security. Always consider your own financial situation and, where appropriate, consult a licensed adviser before making investment decisions.