Singapore’s stock market opened Tuesday on a cautiously positive note, with the Straits Times Index (STI) inching higher after a weak start to the week, as investors balanced strong GDP growth, softer hiring data and expectations of a closely watched US Federal Reserve rate cut.
STI today: modest rebound after Monday’s 0.5% slide
After falling 0.5% on Monday to close at 4,507.08, the STI started Tuesday’s session slightly in the green, up 2.69 points (0.06%) to 4,509.77 at the open. Market breadth improved, with 94 gainers outpacing 54 decliners on early turnover of about 59.3 million shares worth S$83 million, as traders cautiously added exposure ahead of the Fed decision. [1]
By late morning, regional live data showed the Straits Times Index hovering around 4,518 points, up roughly 0.24% intraday, suggesting a tentative rebound but still well below its recent record territory. [2]
Monday’s weakness sets the backdrop for today’s cautious bounce. In the previous session, Singapore stocks “ended lower amid mixed trading in the region,” with the STI losing 24.28 points to 4,507.08. Market breadth was soft – 222 stocks advanced versus 290 decliners, on S$1.1 billion in turnover – and all three local banks finished lower, while Venture Corp was the top STI gainer and DFI Retail Group the largest loser. [3]
Other key Singapore indices underscore the slightly risk‑off tone:
- iEdge Singapore Next 50 Index: up 0.3% on Monday to 1,444.66, signalling interest in mid‑cap names. [4]
- iEdge S‑REIT Index: fell 0.62% yesterday to about 1,099, continuing a multi‑day slide in REITs on rate‑sensitive worries. [5]
Even after this pullback, recent data show the STI still up in the high‑teens percentage range year‑on‑year, supported by stronger earnings and a global equity rally, though the index has eased off record highs set earlier in the year. [6]
Global backdrop: Fed cut widely priced, but guidance is key
The tone for the Singapore stock market today is set primarily by the US Federal Reserve’s December policy meeting. Overnight, US indices pulled back modestly from record levels as investors locked in gains and shifted to “wait‑and‑see” mode ahead of the decision. TechStock²+1
Futures and bond markets are now heavily pricing in a 25‑basis‑point Fed rate cut this week, with implied odds in the mid‑80s to high‑80s percent range on CME’s FedWatch tool. What remains highly uncertain, and more important for equity valuations, is how fast the Fed will ease through 2026. TechStock²+1
In Europe, the Stoxx 600 slipped about 0.1%, led by a retreat in real‑estate stocks as long‑dated bond yields nudged higher – another reminder that, even as central banks tilt dovish, tighter financial conditions can re‑emerge if markets fear policy error.
Commodities are adding their own twist. Brent crude recently fell around 2% after Iraq restored production at the giant West Qurna‑2 oilfield and traders reassessed the impact of Ukraine‑related supply risks. For Singapore equities, cheaper oil is typically:
- A marginal positive for airlines, transport and consumer plays
- A potential headwind for upstream and services names such as Rex International, now in focus after a high‑coupon bond issue to fund new drilling.
Closer to home, the Reserve Bank of Australia is expected to keep rates unchanged at 3.60%, reinforcing a narrative of slower but resilient global growth – usually supportive of yield plays and quality blue‑chip stocks on the SGX.
Local macro picture: strong GDP vs hiring slowdown
Beneath the day‑to‑day volatility in the Singapore stock market, investors are digesting two powerful, and somewhat conflicting, macro stories.
1. Growth upgrade
In late November, the Ministry of Trade and Industry sharply raised its 2025 GDP growth forecast to “around 4%”, from an earlier range of 1.5–2.5%, after Q3 GDP surprised on the upside at 4.2% year‑on‑year. At the same time, the first forecast for 2026 was cut to a slower 1–3%, reflecting expected drags from new US tariffs and global trade tensions.
For the equity market, that combination – strong current growth but softer 2026 – tends to favour:
- Export‑oriented tech, logistics and manufacturing names in the near term
- Defensive yield plays like REITs and high‑dividend blue‑chips as the cycle matures
2. Hiring outlook hits a four‑year low
Early this morning, a new ManpowerGroup Employment Outlook Survey painted a more cautious picture for the labour market. According to the Business Times, Singapore’s net employment outlook for Q1 2026 stands at +15%,
- Down 5 points from the previous quarter
- Down 11 points from a year earlier
- And at its lowest level since Q1 2022, well below the global average of +24%.
The survey of 504 employers shows:
- 46% intend to keep staffing levels unchanged
- 32% plan to increase headcount
- 18% expect to cut staff, and
- 4% remain unsure
The strongest hiring intentions come from finance and insurance, with a net outlook of +33%, while manufacturing lags at +10%, underscoring the sectoral divergence within the economy.
For the Singapore stock market, this mix suggests:
- Financials may remain relatively resilient, supported by ongoing demand for talent and services.
- Cyclical industrials and exporters could face more cautious corporate spending in early 2026.
- A softer hiring outlook may ease wage‑driven inflation pressures over time, which is mildly supportive for REITs and other rate‑sensitive plays.
Sectors and stocks in focus on SGX today
Banks and yield plays: still the backbone of the STI
Local banks were among the main drags on Monday – DBS, OCBC and UOB all finished lower – but are showing modest gains or stability this morning.
Strategists at DBS Bank emphasise that dividend‑paying assets in Asia remain attractive, highlighting yields of around 5–6% in Singapore and China, with Singapore bank and REIT yields near 6%, supported by a strong currency.
At DBS’s “Market Outlook 2026: Empowering Businesses for Global Shifts” forum, senior investment strategist Daryl Ho argued that Asia remains “under‑invested” despite improving profits and relatively low valuations. Early FY2026 estimates point to mid‑20% earnings growth for Asian tech companies (ex‑Japan), yet similar stocks trade at less than 20 times earnings in Asia, compared with about 36 times for US tech – a valuation gap he describes as a “clear and present” opportunity.
For the STI, this reinforces the case for barbell positioning between:
- High‑quality banks and REITs for income and defensiveness
- Select Asian technology and growth names for earnings leverage
REITs: under pressure, but yield still draws interest
The iEdge S‑REIT Index has been on a four‑day losing streak, and closed Monday down 0.62% at 1,099.34, with early Tuesday levels around 1,098.
Higher‑for‑longer rate fears and concerns about US commercial property – particularly for SGX‑listed, US‑focused trusts such as Manulife US REIT, which is seeking to widen its mandate beyond US offices – continue to weigh on sentiment. An important EGM on 16 December will determine whether that trust can pivot into more diversified asset classes such as industrial, housing and retail.
Even so, mid‑single‑digit to high‑single‑digit yields and the prospect of eventual global rate cuts keep Singapore REITs firmly on the radar of income‑oriented investors.
Growth & tech: UltraGreen.ai, MetaOptics and non‑STI momentum
Away from the blue‑chip index, growth and tech‑adjacent names remain an important story on SGX:
- UltraGreen.ai, a surgical‑imaging specialist that listed on 3 December after raising about US$400 million, has seen choppy trading and recently slipped just below its US$1.45 IPO price.
- MetaOptics, a Catalist‑listed semiconductor optics firm, has surged roughly 530% above its 20‑cent IPO price, helped by a new share placement and plans for a Nasdaq listing.
SGX and broker data suggest that non‑STI stocks – especially S‑REITs and tech names – have delivered median total returns in the mid‑20% range year‑to‑date, underscoring that risk appetite remains healthy in selected pockets of the Singapore stock market.
Corporate catalysts: OCBC, Sembcorp, Genting Singapore, Rex, SingPost & more
Several stock‑specific developments are shaping today’s trade:
- OCBC: Its mezzanine capital unit has invested in a planned US$1.5 billion low‑carbon steel plant in Sabah, Malaysia, developed by Green Esteel. The move aligns with decarbonisation and green‑steel themes; OCBC shares last closed at S$18.73 after falling 1% on Monday.
- Jardine Matheson / Mandarin Oriental: Shareholders of Mandarin Oriental have approved Jardine Matheson’s cash takeover offer, paving the way for the luxury hotel chain to be taken private once remaining conditions, including an asset sale in Hong Kong, are met.
- SingPost: The postal operator will raise standard domestic mail rates by S$0.10 from 1 January 2026, citing structural cost pressures in domestic mail operations – a reminder of ongoing business model shifts in legacy postal services.
- Sembcorp Industries: The utility firm is under watch after confirming talks to acquire Australian utility Alinta Energy. Investors are weighing possible earnings accretion against leverage and execution risk.
- Genting Singapore: Moody’s has downgraded Genting Singapore’s rating from A3 to Baa1, still investment‑grade, citing higher debt linked to group‑level acquisitions and future capex, including a potential New York City casino licence. The outlook is stable, and Moody’s expects earnings from Singapore, Las Vegas and New York (from H2 2026) to support deleveraging.
- Rex International: A subsidiary has raised US$25 million via three‑year senior secured bonds with a high 14% coupon to fund a three‑well drilling campaign and corporate purposes at Masirah Oil. With crude prices softening, the market is scrutinising whether the return justifies the funding cost.
- Singapore Paincare: The collapse of a privatisation offer at S$0.16 per share has put the counter back in play as trading resumes, with investors reassessing its standalone prospects after the failed buyout.
These corporate stories are providing stock‑picking opportunities on a day when the headline STI move is relatively small.
Valuations and outlook: Asia seen as “under‑invested”
Beyond the immediate Fed decision, several medium‑term themes are shaping how analysts view the Singapore stock market:
- Attractive dividends – Singapore and China continue to offer 5–6% dividend yields, with Singapore’s banks and REITs at the upper end of that range.
- Tech earnings growth – Early FY2026 forecasts point to mid‑20% earnings growth for Asian tech, ex‑Japan, driven by AI‑related semiconductors, cloud infrastructure and digital‑economy spending.
- Valuation discount vs the US – While US mega‑cap tech names trade on lofty multiples (around 36x earnings), comparable Asian peers often trade at under 20x, even with strong growth profiles.
DBS strategists argue that this combination – solid income, improving growth, and cheaper valuations – makes Asia, and Singapore in particular, a “clear and present” opportunity for global investors, even as they warn that US‑centred risks and tariffs could weigh on sentiment into 2026.
For the STI, that likely translates into:
- A bumpier path in 2026 compared with 2025’s double‑digit returns
- Ongoing leadership from banks, select REITs, and quality industrials
- Periodic bursts of momentum in new‑economy and tech listings as Singapore works to deepen capital‑market liquidity
What to watch next for Singapore stocks
As trading continues on Tuesday, 9 December 2025, investors in the Singapore stock market are focused on a few key catalysts:
- Fed decision and guidance – A 25‑bp cut is largely priced in; markets will react more strongly to the dot plot, 2026 guidance and Powell’s tone. Hawkish‑sounding commentary could pressure banks and REITs again, while a dovish pivot would likely support risk assets broadly.
- Global data and yields – Any sharp move in US Treasury yields, or surprises in upcoming US inflation and jobs data, could trigger renewed rotation between defensives and growth within the STI.
- Local corporate and policy events –
- Manulife US REIT’s 16 December EGM
- Implementation of FTSE Russell’s December review, which leaves the STI basket unchanged but refreshes the reserve list from 22 December
- Further news on Sembcorp’s Alinta Energy talks and Genting Singapore’s funding plans
Overall, sentiment in the Singapore stock market today can best be described as “cautious but opportunity‑rich”: investors are nervous about central‑bank missteps and a cooling labour market, yet they continue to find attractive yield and growth stories across banks, REITs and selectively high‑growth counters.
References
1. cassette.sphdigital.com.sg, 2. sg.finance.yahoo.com, 3. cassette.sphdigital.com.sg, 4. cassette.sphdigital.com.sg, 5. cassette.sphdigital.com.sg, 6. tradingeconomics.com
