SINGAPORE — The Singapore Exchange (SGX) is closed today (Sunday, Dec 21), leaving investors to digest a tight, range-bound finish to last week and prepare for the final trading stretch of 2025. The Straits Times Index (STI) ended Friday (Dec 19) essentially flat, slipping 0.02% to 4,569.78, signalling consolidation after a strong run this year and into a holiday period where liquidity typically thins out and stock-specific moves can dominate. [1]
Singapore stocks: what happened at the last close
Friday’s session was a microcosm of how Singapore stocks have been trading lately: steady at the index level, but active under the surface.
- STI: down 0.02% to 4,569.78
- iEdge Singapore Next 50: down 0.1% to 1,434.85
- Market breadth: advancers 329 vs decliners 177
- Turnover: about 1.3 billion securities worth roughly S$2.1 billion [2]
Among blue chips, City Developments led gains, rising 4% to S$7.98, while Yangzijiang Shipbuilding was the biggest STI decliner, down 2.9% to S$3.37. Banks were mixed — OCBC finished higher at S$19.55, while DBS and UOB closed lower at S$54.87 and S$34.70, respectively. [3]
On activity, CapitaLand Integrated Commercial Trust (CICT) was the most actively traded STI counter by volume, with about 58.7 million units traded (around S$137.5 million in value), closing 0.4% higher at S$2.34. [4]
The week’s tone: muted index, selective stock moves
While Singapore’s benchmark has stayed near the 4,570 zone, trading through the week showed frequent shifts between global macro cues and company-specific catalysts. On Dec 18, the STI fell 0.1% to 4,570.61, with sentiment weighed by declines on Wall Street and ongoing debate over the pace of future US rate cuts and the fallout from tech/AI volatility. [5]
By Dec 21, market commentary framed the week as a consolidation phase: the STI “ended flat” around 4,570 and analysts expected a narrow trading band into the year’s final week as investors watch for catalysts that can break the holiday lull. [6]
2025 performance check: STI and S-REITs are heading into year-end with strong total returns
A key reason Singapore stocks can “go quiet” without turning bearish is that 2025 has already delivered substantial gains — especially when dividends are included.
With seven trading days remaining in 2025, The Business Times reported that the STI posted a year-to-date price return of 20.7% (as at Dec 18), while S-REITs gained 9% on a price basis. Including dividends, total returns reached 26.7% for the STI and 14.4% for S-REITs, putting the REIT sector on track for its strongest annual performance since 2019. [7]
This matters for “Singapore stock market today” readers because it explains the market’s current posture: after a year of strong re-rating and dividend-heavy returns, investors often shift from chasing beta to protecting gains, rebalancing, and window-dressing portfolios into December.
S-REITs are a major 2025 narrative — and retail investors are leaning in
One of the most Singapore-specific themes right now is the revival in Singapore-listed REITs and property trusts (S-REITs), driven by a more supportive rate backdrop and stable operational performance.
According to The Business Times (Dec 21), investor flows show continued retail participation:
- Retail net inflows into S-REITs:S$961 million
- Institutional net outflows:S$1.3 billion [8]
It also highlighted valuation support: the iEdge S-REIT Index was trading around 0.95 price-to-book, below its historical average (about 1.0–1.1), with an average distribution yield around 5%. [9]
The top S-REITs attracting the largest retail net inflows included Mapletree Industrial Trust, Mapletree Logistics Trust, NTT DC REIT, CapitaLand Ascendas REIT, CapitaLand Ascott Trust, Keppel DC REIT, ParkwayLife REIT, Frasers Centrepoint Trust, Frasers Logistics & Commercial Trust, and Digital Core REIT. [10]
Why this matters for the STI
Even when the STI is flat on a given day, strong flows into REITs can support index heavyweights and keep the broader market resilient — particularly during periods when global growth stocks are volatile and investors re-emphasise income and balance-sheet quality.
Interest rates, yields and property deals: the tailwinds behind Singapore’s income trade
REIT performance has also been reinforced by a pick-up in deal activity and improving financing conditions.
- On rates and spreads, analysts cited by The Edge pointed to a decline in the SGD base rate (three-month SORA) to about 1.24%, with expectations trending toward 1.1% by year-end (per Maybank’s forecast), while the 10-year yield was described as relatively stable around 1.9% — supporting the sector’s yield premium. [11]
- On the asset market backdrop, The Business Times reported that Singapore commercial real estate activity in 2025 was buoyed by major office and industrial deals. It cited the sale of a one-third stake in MBFC Tower 3 to Keppel REIT for S$1.45 billion, and said investment sales for the first three quarters totalled US$9.1 billion, up 11% year-on-year (JLL data). [12]
Together, these support a “Singapore yield” narrative that has become central to the SGX story in 2025: when funding costs are stable-to-lower and rental fundamentals hold, income sectors (REITs, banks, infrastructure-like names) can attract consistent allocations.
Banks remain the STI anchor — and Singapore’s financial hub strategy is back in focus
Singapore bank stocks are still the benchmark’s spine, and they remain in the spotlight for both market and policy reasons.
Earlier in the week, DBS briefly hit an intraday record of S$56 before closing at S$55.49 on Dec 16, while OCBC also set fresh highs around the same period — underscoring how banks have continued to attract buying even during sessions when the index drifts lower. [13]
Beyond price action, there is also major financial-hub news: DBS was appointed as Singapore’s second renminbi (RMB) clearing bank, a move MAS said will support further growth of the offshore RMB market in Singapore and facilitate RMB use for trade and investment activities. [14]
This kind of infrastructure matters for the stock market because it strengthens Singapore’s positioning as a regional capital-and-liquidity centre — a theme that can benefit banks, brokers, and market infrastructure players when global investors want “neutral” hubs.
Macro backdrop: stronger exports, upgraded growth forecasts — and a clearer “risk list”
Singapore’s macro story has improved into year-end, but not without important risks that investors are watching closely.
- Singapore’s non-oil domestic exports rose 11.6% year-on-year in November, beating forecasts in a Reuters poll and led by pharmaceuticals while being supported by electronics such as integrated circuits and PCs, Reuters reported. [15]
- A MAS survey cited by Reuters showed economists raising 2025 growth forecasts (median at 4.1%) while expecting growth to moderate in 2026 (median 2.3%). It also reported that respondents broadly expected no change to monetary policy at upcoming reviews and highlighted downside risks including geopolitical tensions and the possibility of an AI bubble unwinding. [16]
Those risks matter directly for Singapore stocks because the STI’s strongest sectors — banks, REITs, trade-linked industrials — are sensitive to global growth expectations, cross-border capital flows, and US rate trajectories.
Regional and global cues: BOJ surprise, Fed watch, China caution — all feed into SGX sentiment
Singapore is a regional market with global beta, and the past week offered several reminders of that connection.
- Japan’s central bank hiked benchmark rates to 0.75% (its highest in three decades), a move cited in local market coverage as regional equities ended mostly higher. [17]
- S&P Global’s week-ahead preview said the upcoming holiday period includes key US releases and the publication of FOMC minutes, noting that the Fed funds rate had been lowered for the third time in a row at the latest meeting to 3.5%–3.75%. [18]
- Market strategists also continued to debate whether global equities will be capped by AI valuation concerns into year-end — a theme highlighted in IG’s week-ahead outlook. [19]
- Meanwhile, broader Asia sentiment has been affected by caution around China’s data pulse and market momentum, with the Financial Times reporting Chinese stocks cooled over recent months amid weak economic indicators and concerns around the earnings recovery. [20]
For Singapore investors, these crosscurrents usually translate into a familiar pattern: quality dividends and defensives hold up, while cyclicals and regional plays swing with headlines.
Index event risk: STI quarterly review changes take effect on Dec 22
A practical, near-term catalyst for SGX flows is index mechanics.
FTSE Russell announced no changes to STI constituents in the December 2025 quarterly review, but noted updates to the STI reserve list. Importantly, it said changes from the review take effect at the start of business on 22 December 2025 (Monday). [21]
Even without constituent changes, reserve-list updates can matter for positioning and narrative, especially around names that investors view as potential “next in line” for inclusion.
Singapore stock market forecast: what analysts are saying into year-end and 2026
Near-term (final week of 2025): expect range-bound trading
Market commentary published today (Dec 21) expects the STI to stay in a narrow trading band into the year’s final week, with investors watching for regional macro data and corporate cues to break the holiday lull. [22]
That aligns with what the tape is already showing: stable index levels, active single-stock rotation, and the potential for abrupt moves if liquidity dries up.
2026 outlook: a more moderate climb after 2025’s re-rating
A notable Singapore-specific forecast comes from DBS Group Research, which set an end-2026 STI target of 4,880 and framed 2026 as a year of “more moderate gains” after 2025’s strong valuation re-rating. DBS also pointed to supportive factors (including attractive yields and Singapore’s safe-haven status) while flagging uncertainties such as slower GDP growth, tariff risks, US interest rate outlook, and potential US equity market volatility. [23]
DBS also highlighted the role of dividends, stating the STI’s forward dividend yield remains attractive (around the mid-4% range in its analysis) — reinforcing why Singapore stocks continue to be positioned as an income-plus-stability market. [24]
What to watch when SGX reopens
As investors search “Singapore stock market today,” the most actionable question is what could move prices next. Heading into Monday and the final trading days of 2025, attention is likely to cluster around:
- Any STI/SGX flow effects from the quarterly review effective date (Dec 22). [25]
- US data and Fed minutes, which can move global yields and feed directly into REIT and bank sentiment. [26]
- Rates and income themes — especially whether REIT yields and funding-cost expectations keep attracting retail inflows. [27]
- China and regional risk tone, which can impact Singapore’s trade-sensitive names and broader investor risk appetite. [28]
- Holiday liquidity and year-end positioning, where stock-specific news often dominates broad index direction. [29]
Bottom line
Singapore stocks are heading into the last stretch of 2025 in consolidation mode near 4,570 on the STI — not because the market lacks themes, but because much of the year’s upside has already been realised through a mix of price gains and dividends. The fresh story today is less about a single “STI rally day” and more about who is buying what: retail inflows into S-REITs, continued focus on banks and financial-hub positioning, and a watchful stance toward global rate and AI-driven volatility. [30]
References
1. www.straitstimes.com, 2. www.straitstimes.com, 3. www.straitstimes.com, 4. www.straitstimes.com, 5. www.straitstimes.com, 6. www.businesstoday.com.my, 7. www.businesstimes.com.sg, 8. www.businesstimes.com.sg, 9. www.businesstimes.com.sg, 10. www.businesstimes.com.sg, 11. www.theedgesingapore.com, 12. www.businesstimes.com.sg, 13. www.straitstimes.com, 14. www.reuters.com, 15. www.reuters.com, 16. www.reuters.com, 17. www.straitstimes.com, 18. www.spglobal.com, 19. www.ig.com, 20. www.ft.com, 21. www.lseg.com, 22. www.businesstoday.com.my, 23. www.dbs.com, 24. www.dbs.com, 25. www.lseg.com, 26. www.spglobal.com, 27. www.businesstimes.com.sg, 28. www.ft.com, 29. www.businesstoday.com.my, 30. www.straitstimes.com
