SINGAPORE — Singapore stocks head into Thursday’s (Dec 18) session with a split set of signals: domestic data and economist forecasts have turned more constructive, but overnight risk appetite was rattled by another bout of “AI trade” jitters that dragged Wall Street lower.
Ahead of the SGX cash market open, here’s what matters most—from the Straits Times Index (STI) handover, to the latest Singapore exports print, to the global calendar that could move rates-sensitive names like banks and S-REITs.
1) Where Singapore markets left off: STI dipped, but breadth stayed positive
The STI ended Wednesday (Dec 17) marginally lower, slipping 0.1% to 4,575.48. In the broader market, gainers outnumbered losers 326 to 204, with about 1.1 billion securities worth roughly S$1.2 billion changing hands. [1]
A few notable STI takeaways going into the Dec 18 open:
- SATS was the top STI gainer, rising 1.9% to S$3.72. [2]
- Thai Beverage was the weakest STI name, down 1.1% to 46.5 cents. [3]
- The local banks were mixed-to-lower: OCBC flat at S$19.44, DBS -0.5% to S$55.24, and UOB -0.3% to S$34.66. [4]
Regionally, Hong Kong, Japan and South Korea were up on Dec 17, while Malaysia’s KLCI slipped—setting up a “mixed Asia” backdrop even before the U.S. tech-led sell-off hit overnight. [5]
Why this matters for today: The STI didn’t fall on broad capitulation—market breadth stayed positive—so the opening tone on Dec 18 may hinge less on “local panic” and more on whether global risk sentiment stabilises after the overnight tech pullback.
2) Overnight global cue: Wall Street fell again as “AI funding jitters” hit tech
Overnight, U.S. equities closed lower on Wednesday, with investors once again questioning whether the AI buildout is becoming too debt- and capex-heavy.
According to Reuters reporting carried by The Business Times, the major U.S. moves were: S&P 500 -1.15% to 6,722.22, Nasdaq -1.80% to 22,695.50, and Dow -0.47% to 47,888.41. [6]
Key drivers highlighted in the report:
- Oracle fell after a report said its data-centre partner Blue Owl Capital won’t back a US$10 billion deal for Oracle’s next facility. [7]
- Broader concern is building about the “circular” nature of AI spending and the sheer scale of capex, which is discouraging risk-taking into year-end. [8]
- Chip and AI bellwether names (including Nvidia-related complex) also weighed on sentiment. [9]
How this filters into Singapore: SGX has fewer pure-play mega-cap AI names than the U.S., but the “AI capex” theme matters for Singapore through:
- Electronics exports momentum (good when the cycle is strong),
- Data-centre/infra and financing appetite (sensitive to rate expectations and credit sentiment),
- Risk-on flows that often lift or fade in tandem across Asian equities.
3) Commodities and rates: oil rebounded; Japan yields rose ahead of a BOJ decision
A separate Reuters global markets wrap (“Trading Day”) flagged three macro undercurrents that can bleed into Asia at the open:
- Oil bounced after Washington ordered a “blockade” of sanctioned oil tankers entering and leaving Venezuela, lifting crude off multi-year lows. [10]
- The U.S. dollar strengthened broadly in that session’s moves. [11]
- Japan’s 10-year JGB yield hit its highest level since 2007 (1.98%) ahead of a Bank of Japan decision, keeping global rates traders attentive. [12]
Singapore angle:
- A firmer USD and higher global yields can be a headwind for rate-sensitive REITs, even when local fundamentals are intact.
- Oil volatility can influence sentiment in energy-related and transport-linked counters, as well as broader inflation expectations.
4) Singapore macro update: exports surprised to the upside—pharma and electronics led
The biggest local macro catalyst hitting screens on Dec 17 was Singapore’s November non-oil domestic exports (NODX).
The headline number
Singapore’s NODX rose 11.6% year-on-year in November, beating expectations and following a revised 21.7% jump in October, according to Reuters. [13]
CNA’s coverage added more colour on composition:
- Electronic NODX +13.1%, with integrated circuits, PCs and printed circuit boards among key contributors. [14]
- Non-electronic NODX +11.1%, with a very large move in pharmaceuticals (noted as volatile), plus strength in pumps and non-electric engines/motors. [15]
The forecast revisions investors will notice
Enterprise Singapore narrowed its full-year 2025 NODX growth forecast to “around 2.5%” (from a prior 1%–3% range), citing AI-related demand and high gold prices as supports into Q4. [16]
CNA also cited OCBC’s chief economist Selena Ling noting that the November result was a second straight month of double-digit NODX growth, and that while pharma is volatile, the upside surprise could pull full-year momentum higher. [17]
What to watch at the open: The export beat is supportive for “Singapore-as-a-trade-hub” narratives and can firm sentiment around cyclical manufacturing and electronics exposure—but if markets treat pharma as a one-off volatility driver, price reactions may be selective rather than broad-based.
5) Singapore growth forecasts: economists lifted 2025 outlook, but expect slower 2026
Alongside exports, the other major “macro mood” input from Dec 17 was the latest MAS Survey of Professional Forecasters.
The numbers
Economists lifted the median 2025 GDP growth forecast to 4.1%, up from 2.4% previously, while 2026 is seen moderating to 2.3%. [18]
The risks investors should not ignore
Both Reuters and CNA highlight that economists flagged:
- Geopolitical and trade tensions as key downside risks, and
- A growing concern that an AI bubble could burst, with potential spillovers into financial markets (a risk that wasn’t highlighted in the prior survey in the same way). [19]
Policy expectations: “steady hand” expected
The survey indicated economists largely expect no change to MAS monetary policy at the upcoming reviews (including January and April 2026), with a minority expecting tightening later. [20]
Market interpretation for Dec 18:
A “growth upgraded, policy steady” mix is often supportive for Singapore equities—especially domestically exposed names—unless global risk sentiment is deteriorating (which is the wildcard after the overnight U.S. tech move).
6) Stocks and sectors to watch on SGX today (Dec 18)
Several Singapore-listed names had corporate developments reported late Dec 16 into Dec 17 that can drive attention at the open.
A) Suntec REIT: manager acquisition reshapes the governance story
The Straits Times reported that Acrophyte Asset Management, controlled by property tycoon Gordon Tang, issued a disclosure of interest notification linked to the acquisition of ESR Trust Management (Suntec), the manager of Suntec REIT. [21]
Key points from the reporting:
- Tang (directly and via affiliates) owns 35.7% of Suntec REIT, while ESR holds 10.8%. [22]
- The Business Times reported the manager deal value as S$190 million (plus an adjustment for the manager’s assets less liabilities as at Dec 31, 2025) and noted it is subject to MAS approval. [23]
Why it matters for trading: When a REIT manager changes hands, the market often prices in:
- Potential shifts in capital management and asset rotation,
- Whether alignment with unitholders improves or becomes more concentrated, and
- How regulators view governance and conflicts (especially with a large unitholder involved).
B) Keppel and Keppel DC REIT: S$50.5m data-centre stake deal
Keppel announced its connectivity division agreed to sell stakes in two Singapore data centres to Keppel DC REIT for S$50.5 million, with completion expected by Q1 2026. [24]
Details investors may focus on:
- Stakes sold: 10% of Keppel DC Singapore 3 and 1% of Keppel DC Singapore 4. [25]
- The BT report said this is part of Keppel’s asset monetisation programme, bringing year-to-date announced monetisation to over S$2.4 billion. [26]
- Keppel DC REIT’s manager expects the REIT’s aggregate leverage to improve slightly (from 29.8% to 29.5%) and AUM to rise from S$5.7b to S$5.9b after completion. [27]
Open-market lens: Even though completion is in 2026, these announcements can move pricing immediately because they affect expectations for:
- Future distribution stability,
- Funding needs (placement/preferential offering context), and
- Singapore data-centre exposure concentration.
C) F&N and Jardine Cycle & Carriage: Vinamilk stake transaction
F&N disclosed that its subsidiary F&N Dairy Investments will acquire an additional up to 4.6% stake in Vinamilk from a unit of Jardine Cycle & Carriage, involving about 96.1 million shares and consideration of around six trillion Vietnamese dong (about S$294 million). [28]
After the transaction, F&N’s effective interest in Vinamilk would rise to 25%, and the report noted JC&C indicated proceeds would be used for internal funding needs. [29]
What traders may watch:
- Whether investors view this as a value-accretive consolidation move for F&N’s regional dairy exposure, and
- What the divestment signals for JC&C’s capital allocation.
D) Property and development theme: Hougang Central mega project (CICT / SingLand / UOL in focus)
A Business Times report said a consortium led by a subsidiary of CapitaLand Integrated Commercial Trust (CICT)—including Singapore Land and UOL—submitted the top bid of S$1.5 billion for the Hougang Central mega project, described as comprising commercial, residential and community uses. [30]
The same report cited analyst expectations around what pricing could look like for the residential component. [31]
Why it matters into Dec 18: Property-linked counters often trade on land cost signals and the implied confidence (or caution) embedded in winning bids—especially for large integrated projects.
7) The “today” calendar: central banks and U.S. inflation are the next volatility triggers
Even if Singapore’s opening tone is set by last night’s U.S. tech drop, intraday direction can still be redirected by macro events scheduled over the next 24 hours.
Reuters’ “Trading Day” highlighted several events that could move markets “tomorrow”, including:
- Bank of England rate decision, European Central Bank rate decision, and other central banks,
- U.S. CPI inflation (November), plus U.S. jobless claims and the Philadelphia Fed index. [32]
Reuters noted the CPI expectation set (in that wrap) as core inflation holding near 3% with headline inflation edging up—a setup that can matter for global yields and, by extension, Asia’s rate-sensitive equities. [33]
Singapore-specific translation:
- If global yields jump on CPI surprises, S-REITs and other yield plays can wobble.
- If yields fall on softer inflation, that can support REITs and high-dividend sectors, and often improves broader equity risk appetite.
8) What to watch in the first hour after SGX opens
If you’re tracking the Singapore stock market open in real time, these are the early tells that often decide whether the STI “follows Wall Street down” or “looks through it”:
- Bank/REIT leadership
- Banks can outperform if the tape is risk-on and credit conditions look stable; REITs can outperform if global yields ease. (Watch whether leadership is rotating or concentrated.)
- On Dec 17, banks were mostly softer despite improved macro expectations. [34]
- Data-centre and property narratives
- Corporate actions (Keppel / Keppel DC REIT) and manager changes (Suntec REIT) can pull the REIT space in different directions—funding discipline vs governance uncertainty. [35]
- Export-sensitive sentiment
- The NODX beat is fundamentally supportive, but markets may debate how “repeatable” the pharma contribution is versus the electronics upcycle. [36]
- Tech sentiment spillover
- With Wall Street’s overnight decline tied to AI capex/debt concerns, investors may initially de-risk high-beta exposures globally—then selectively buy “cash-flow” and “dividend” names in Singapore. [37]
Bottom line for the Singapore stock market open on 18 Dec 2025
Singapore goes into the Dec 18 session with stronger macro signals at home—notably the 11.6% NODX rise and a higher 2025 GDP forecast—but with fragile global risk appetite after another sharp U.S. tech-led pullback driven by AI capex and funding worries. [38]
At the same time, company-specific catalysts—including Suntec REIT’s manager acquisition, Keppel’s data-centre stake sale to Keppel DC REIT, and the F&N–JC&C Vinamilk transaction—give local investors concrete, stock-level stories to trade even if the index direction is choppy. [39]
This article is for informational purposes only and is not financial advice. Markets can move quickly, especially around inflation data and central bank decisions. [40]
References
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