Singapore stocks traded with a firmer tone on Tuesday, December 23, 2025, as investors balanced a steady domestic inflation picture against a supportive global backdrop of year-end positioning, hopes for lower interest rates, and a continued “Santa rally” narrative in major markets.
The benchmark Straits Times Index (STI) finished up 0.39% at 4,628.33, after moving between 4,607.29 and 4,630.55 in the session, with reported volume of 66.56 million. [1]
While the move was not dramatic, it kept the STI pressing near the top of its recent range. On the same data set, the index’s 52-week range is shown as 3,372.38 to 4,632.47, underscoring how close Singapore equities are to a new annual high into the final stretch of the year. [2]
STI snapshot: Singapore shares hold near the highs into the festive break
Early indications were already constructive. A global market snapshot published during Asia hours reported the STI opened at 4,620.27, up 0.22%. [3] That “mildly higher open, steady climb” pattern largely held through the day, with price action reflecting a familiar year-end combination:
- lighter liquidity as many global desks head into holiday mode,
- sensitivity to interest-rate expectations (especially for REITs and yield-heavy blue chips),
- and a preference for quality/defensive cashflow names when macro uncertainty lingers.
Singapore’s market is also coming off a strong 2025 run overall, so late-December sessions often become more about protecting gains and repositioning for January than chasing big directional moves.
The key Singapore catalyst: Inflation stays at 1.2%, below expectations
The most important domestic macro input on Dec 23 was inflation.
Singapore’s core inflation (which excludes accommodation and private transport) was 1.2% year-on-year in November, unchanged from October, while headline inflation also printed 1.2%. [4]
Reuters noted both measures came in slightly below a Reuters poll median forecast of 1.3%, reinforcing the idea that price pressures are contained heading into 2026. [5]
Local reporting added important detail about what is happening under the hood:
- services inflation edged up to 1.9% (from 1.8% in October), attributed to larger increases in point-to-point transport costs and health insurance, [6]
- but that was offset by lower retail and other goods inflation and a steeper decline in electricity and gas costs. [7]
- Authorities also maintained their 2025 inflation forecasts (core 0.5%, headline 0.5% to 1%). [8]
Why this matters for SGX-listed stocks
For Singapore equities, “steady-to-lower-than-expected inflation” tends to be market-friendly in three ways:
- Rate expectations: Even though MAS runs monetary policy via the exchange rate rather than an interest-rate target, Singapore dollar interest rates still react to global rate cycles. A benign inflation profile supports the market’s belief that the global easing cycle has room to continue.
- Dividend valuations: Lower rates generally lift the relative appeal of Singapore’s high-dividend segments—banks, telcos, infrastructure, and (especially) REITs.
- Margin visibility: Cooling input-cost pressure can help sectors sensitive to wages, utilities, logistics, and consumer demand.
In short: the inflation print didn’t force anyone to rewrite a macro playbook—but it reduced the odds of nasty surprises at a time when investors are reluctant to take fresh risk.
The global backdrop: “Santa rally” mood, rate-cut hopes, and a watchful FX market
Singapore didn’t trade in isolation. Across the region, markets leaned into a broadly positive global tape:
- Reuters described Asia shares rising ahead of the festive holidays as momentum buying extended, with attention turning to key U.S. economic data (including an advanced reading on U.S. GDP). [9]
- The same report flagged the yen as a focal point, with traders alert to potential intervention risk after a BOJ hike and ongoing currency volatility. [10]
- U.S. growth expectations were framed as still solid, with forecasts cited around 3.3% annualised for third-quarter GDP in the upcoming reading, even as some economists warned of potential Q4 slowing effects. [11]
Market sentiment was also boosted by a “rates down, risk up” narrative:
- A Business Times global markets wrap said equities extended a rally on optimism for more U.S. rate cuts, while gold and silver hit fresh records. [12]
- Another Business Times report highlighted Wall Street’s positive start to the holiday-shortened week and similarly noted record highs in gold and silver, tied to a mix of rate expectations and geopolitical risk. [13]
For Singapore investors, the practical takeaway is that global yields, the U.S. dollar, and risk appetite continue to set the tone for the STI—especially because the index is dominated by globally exposed banks, industrials, and real estate names.
SGX corporate news today: REIT deal action and strategic expansion stories
Beyond macro, several company and sector headlines shaped watchlists on Dec 23.
1) Alpha Integrated REIT: Volare triggers mandatory cash offer at S$0.48
One of the day’s most notable SGX developments was in the REIT space.
A Volare Group subsidiary, Mindarie Investment, launched a mandatory conditional cash offer for Alpha Integrated Real Estate Investment Trust (AI-REIT) at S$0.48 per unit, after Volare’s stake crossed the takeover threshold under Singapore’s Code on Take-overs and Mergers. [14]
Key points disclosed include:
- Volare agreed to buy about 241.6 million units (around 21.47%) from ESR-related parties at S$0.40 per unit, [15]
- taking Volare and concert parties to roughly 41.27% ownership, [16]
- with AI-REIT units trading around S$0.475 in the morning after the announcement. [17]
The episode reinforces a theme that often resurfaces when rates are expected to ease: REIT consolidation and control transactions can re-emerge as financing conditions improve and sponsors reassess portfolios.
2) CapitaLand Investment: Johor–Singapore SEZ industrial acquisition via CLMT
CapitaLand Investment-related news also featured on the day’s trading radar.
Bursa-listed CapitaLand Malaysia Trust (managed under the CapitaLand Investment umbrella) agreed to buy five high-spec industrial facilities in the Johor–Singapore Special Economic Zone for RM220.8 million (about S$69.2 million), according to Business Times reporting. [18]
CapitaLand Investment shares had closed at S$2.67, down 0.7%, ahead of the news. [19]
For Singapore-market investors, the interest here is less about a single transaction and more about what it signals: continued capital deployment into industrial/logistics assets linked to cross-border growth corridors—an area increasingly marketed as a structural tailwind for the broader “Singapore plus region” strategy.
3) Ever Glory United: Catalist-to-mainboard transfer confirmed for Dec 29
In smaller-cap / growth segments, Ever Glory United announced it will transfer from Catalist to the SGX mainboard on Dec 29, after shareholder approval. Trading on the mainboard is scheduled to commence 9am on Dec 29, according to the same watchlist report. [20]
The stock closed up 1.4% at S$0.73 before the announcement. [21]
Mainboard moves can matter because they may broaden the potential investor base (including funds with mandate restrictions) and can affect liquidity dynamics—both important in a market where trading depth is a perennial theme.
4) Straits Trading: launching an AI-assisted senior living platform
Another headline tied to longer-term themes—ageing demographics and “tech-enabled services.”
The Straits Trading Company unveiled The Silver Movement, a pilot senior-living programme spanning Singapore and Malaysia. The initiative includes an AI-assisted app and is structured around four focus areas (accommodation/lifestyle, learning/enrichment, travel/experiences, and investing—subject to regulations), with up to 500 participants planned. [22]
Even when such news is not an immediate index mover, it contributes to the broader market narrative: Singapore-listed companies are increasingly pitching platform strategies and recurring-service models alongside traditional asset-heavy businesses.
Market analysis: What Singapore investors are watching next
With the STI already near an annual high, the next “driver” may be less about local headlines and more about whether global conditions stay supportive.
1) U.S. data and global yields remain the main swing factor
Reuters framed Tuesday’s agenda around upcoming U.S. growth data, with markets gauging whether the U.S. economy is cooling enough to justify further easing without triggering recession fears. [23]
For the STI, that transmission channel is straightforward:
- lower U.S. yields → easier financial conditions globally → better support for REITs and dividend plays,
- but too-strong U.S. growth could keep yields elevated and cap upside for rate-sensitive segments.
2) FX volatility (especially JPY) can spill into Asia risk sentiment
The same Reuters report highlighted heightened sensitivity around the yen and intervention risk. [24]
While SGD is not a “high beta” currency, sharp FX swings in Asia can influence regional asset allocation and hedging flows—especially in a holiday-thinned market.
3) Technical levels: STI is in “breakout proximity”
Based on today’s data, the STI has been trading in a tight upper band:
- session low: 4,607.29
- session high: 4,630.55
- recent 52-week high marker shown: 4,632.47 [25]
In practical terms, many traders will interpret this as:
- a break and hold above ~4,632 could trigger a “new high” narrative into year-end,
- while slipping below ~4,607–4,610 risks a quick fade back into the prior range. [26]
4) The year-end playbook: defend gains, rotate selectively, look for catalysts
The holiday setup described in global coverage—risk appetite improving, but liquidity thinning—often creates a market that can drift higher on modest buying, yet still react sharply to surprises. [27]
In Singapore, that tends to translate into:
- preference for high-quality balance sheets,
- emphasis on dividend visibility,
- selective interest in corporate actions (like today’s REIT offer),
- and patience toward smaller caps unless there is a clear catalyst.
Bottom line: Singapore stocks steady-to-firmer as inflation stays contained and deal headlines build
The Singapore stock market’s performance on Dec 23, 2025 fits a classic late-December pattern: incremental index gains, close attention to macro signals, and strong interest in stock-specific news that can move individual names even when the benchmark is calm.
With the STI holding near highs and inflation steady at 1.2%, the near-term question is whether the global “risk-on” mood persists long enough to carry Singapore shares into a new year-end peak—or whether thin liquidity and global macro surprises interrupt the rally. [28]
Market data referenced above is based on published/aggregated figures and may be subject to exchange delays. [29]
References
1. www.investing.com, 2. www.investing.com, 3. english.news.cn, 4. www.businesstimes.com.sg, 5. www.reuters.com, 6. www.businesstimes.com.sg, 7. www.businesstimes.com.sg, 8. www.businesstimes.com.sg, 9. www.reuters.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.businesstimes.com.sg, 13. www.businesstimes.com.sg, 14. www.businesstimes.com.sg, 15. www.businesstimes.com.sg, 16. www.businesstimes.com.sg, 17. www.businesstimes.com.sg, 18. www.businesstimes.com.sg, 19. www.businesstimes.com.sg, 20. www.businesstimes.com.sg, 21. www.businesstimes.com.sg, 22. www.businesstimes.com.sg, 23. www.reuters.com, 24. www.reuters.com, 25. www.investing.com, 26. www.investing.com, 27. www.reuters.com, 28. www.investing.com, 29. www.investing.com
