SINGAPORE, Jan 23, 2026, 15:03 SGT — Regular session
- Singtel shares slipped further in afternoon trading, marking their third straight session of losses
- Singapore’s STI climbed to a new high, powered by a bank rally that pressured defensive stocks
- Rate expectations have returned to the forefront ahead of the MAS’ upcoming policy update
Shares of Singapore Telecommunications Ltd (Singtel) slipped 0.7% to S$4.43 Friday afternoon, extending a losing streak to three sessions. The stock had dropped 0.7% Thursday and 1.8% Wednesday. Volume hit roughly 9.7 million shares as the price moved between S$4.42 and S$4.48. 1
The weakness was notable against the backdrop of the Straits Times Index hitting a record high, fueled by a strong surge in banking stocks. UOB jumped up to 4.8%, while OCBC climbed as much as 3.4%, pushing the benchmark roughly 1.4% higher at its peak. 2
Why it matters now: Singapore’s newest inflation figures failed to clarify the trajectory of price pressures, leaving rate-sensitive shares on edge. Core inflation, which strips out accommodation and private road transport costs, climbed 1.2% year-on-year in December, in line with economists’ predictions, official data revealed Friday. 3
Beyond Singapore, the rate environment remained volatile. Asian shares climbed following the Bank of Japan’s decision to hold rates steady, though the central bank’s comments came across as more hawkish than anticipated. “The tone appears hawkish,” noted David Chao, Invesco’s Asia-Pacific global market strategist based in Singapore. 4
Singtel’s shift on Friday seemed driven more by positioning than any new company news. As the index rose, traders in Singapore rotated into banks and other cyclical stocks, letting defensives slip.
Singtel, Singapore’s largest telecom company, is listed on the Singapore Exchange with the ticker Z74 and appears on Reuters as STEL.SI. 5
The company is targeting growth outside its home turf, focusing on digital infrastructure via Nxera, plus boosts from its Australian arm Optus and regional partners. “We expect our growth engines to change the complexion of the business in the mid-term,” group CEO Yuen Kuan Moon said when Singtel last announced a 14% jump in first-half underlying profit. 6
Telcos such as Singtel are often seen as “bond-like” stocks, prized for their steady cash flows and dividends. But when inflation chatter heats up or the market scales back rate cut expectations, these shares tend to take a hit quickly.
Yet the risk remains that the trend reverses. Should inflation remain in check and investors return to yield plays, Singtel and other defensive stocks might rally. On the other hand, a stronger inflation outlook or a hawkish turn from central banks could continue to weigh on these names as yields climb.
The next key trigger comes with the Monetary Authority of Singapore’s policy statement on Jan 29. Traders will be eyeing fresh guidance on inflation and the overall stance. 7
