Singapore’s stock market is ending 2025 in rare form. The Straits Times Index (STI) is trading just below record highs — around 4,500+ points — after gaining roughly 19% over the past 12 months, even as daily moves have turned choppy ahead of this week’s US Federal Reserve meeting. [1]
At the same time, cash and bond yields have sunk: short‑term T‑bills and fixed deposits are now under ~1.5%, and 10‑year Singapore government bond yields have drifted near 2%. That sharp drop in risk‑free yields is pushing investors back toward dividend‑paying blue chips, REITs and quality growth names on SGX. TechStock²+1
Below is a news‑driven, research‑backed look at 8 of the most interesting Singapore stocks to consider now, based on developments up to 9 December 2025. This is not personal investment advice — treat it as a starting point for your own research.
Singapore stock market today: 9 December 2025 snapshot
1. Market level & sentiment
- On Monday, 8 December, the STI slipped 0.5% to close at 4,507.08, with banks dragging while the iEdge Singapore Next 50 Index actually rose 0.3%. [2]
- In early trading on Tuesday, 9 December, the market opened slightly firmer: the STI ticked up about 0.06% to 4,509.77 as investors positioned for the Fed’s decision later this week. [3]
Regional markets are equally cautious. Across Asia, equities have been drifting as traders price in another 25‑basis‑point US rate cut this week but debate how much further easing will follow into 2026. [4]
2. Macro backdrop: from high rates to gentle tailwinds
Several fresh pieces of analysis are framing today’s opportunity set for Singapore investors:
- DBS’s chief investment office says Asia remains “under‑invested” despite improving profits and attractive valuations, pointing to dividend yields of roughly 5–6% for Singapore banks and REITs and strong early FY2026 earnings estimates for Asian tech. [5]
- Singapore‑listed REITs (S‑REITs) are on track for their best year since 2019: the iEdge S‑REIT Index is up 9.3% YTD, with dividend distributions lifting total returns to 14.7% as of 5 December. 29 out of 33 constituents have delivered positive total returns this year. [6]
- Borrowing costs have fallen sharply: the three‑month compounded SORA has dropped from about 3.02% in January to around 1.25% in early December, easing pressure on leveraged sectors like REITs. [7]
Brokerage UOB Kay Hian (UOBKH) has responded by keeping an “overweight” rating on S‑REITs, arguing that falling debt costs, stable occupancy and positive rental reversions make them poised for an upturn as they “catch up” with the broader market. [8]
At the same time, DBS strategists have gone as far as projecting that the STI could reach 10,000 by 2040, driven by passive fund inflows into large caps, government efforts to deepen equity markets, and lower interest rates over the long term. [9]
How this list of “best Singapore stocks to buy now” was built
For this article, we focused on SGX‑listed names that:
- Have fresh catalysts or news in the last few months (earnings, M&A, sector upgrades, index changes).
- Sit in sectors with strong current tailwinds: banks, REITs, infrastructure/energy and tech‑enabled industrials.
- Show reasonable fundamentals – profits, balance‑sheet strength, sustainable dividends or visible growth drivers.
- Are liquid and widely followed by institutions and analysts (not thinly traded story stocks).
We’ll group them by theme: blue‑chip banks, high‑quality REITs, and growth / structural‑change plays.
Important: Prices, yields and analyst views mentioned here are snapshots from recent articles (mostly up to 8–9 December 2025). Always check the latest data before acting.
Top SGX stocks to watch now (December 2025)
1. OCBC (O39): High‑yield bank with room to catch up
If DBS is the “quality at any price” champion, OCBC increasingly looks like the value‑tilted blue chip in Singapore banking.
Fresh news & analyst views
- A Straits Times review of Q3 2025 results reported that analysts are generally positive on DBS and OCBC, but more cautious on UOB after a big jump in loan provisions. [10]
- Within that piece, OCBC emerged as the standout, with analysts highlighting:
- Robust non‑interest income and strong net new money inflows in wealth management.
- Low credit costs (around 16 basis points annualised for Q3) and general allowance coverage of 0.9%, suggesting no need for large additional provisions. [11]
- A 12‑month “outperform” call from Macquarie, with a target price of S$19.90, and the comment that OCBC is their preferred pick among the three Singapore banks. [12]
- On 9 December, OCBC also appeared in Business Times’ “Stocks to watch” list after its mezzanine capital unit committed funding to a US$1.5 billion low‑carbon steel plant in Sabah, Malaysia, supporting regional decarbonisation efforts. The stock ended Monday at S$18.73 (down 1% that session). [13]
Why OCBC looks attractive now
- Dividend + value combo: With yields still around the mid‑5% to 6% region and more conservative guidance than DBS, OCBC offers income plus potential valuation catch‑up, especially as Asia’s equity markets remain under‑owned. [14]
- Wealth & insurance engine: Its strong wealth management franchise and Great Eastern insurance arm provide diversified fee income less reliant on interest margins. [15]
- Balance‑sheet strength: Low non‑performing loan (NPL) ratios and solid capital buffers give OCBC room to ride a softer economic patch.
Key risks: Slower global growth or renewed trade tensions could hurt trade‑related lending and wealth flows; and as rates fall, net interest margins (NIMs) will face pressure across all banks.
Best suited for: Investors seeking core income exposure to Singapore banks with somewhat more attractive valuations than DBS.
2. DBS Group (D05): Dividend powerhouse at the heart of the STI
Despite full valuations, it’s hard to discuss “best Singapore stocks” without DBS, the largest bank in the market and a heavyweight in the STI.
Current backdrop
- In Q3 2025, DBS and OCBC beat earnings forecasts, while UOB lagged due to heavy provisions. [16]
- Analysts highlighted that:
- DBS’s net interest income held steady despite NIM compression, thanks to deposit growth and interest‑rate hedging.
- The bank plans to raise its quarterly dividend to 81 cents per share in 2026, comprising a 66‑cent ordinary dividend and 15‑cent capital return each quarter. [17]
- Brokers like RHB maintained “buy” ratings with 12‑month target prices around S$59, pointing to a still‑compelling dividend and capital return story, even if earnings growth slows. [18]
- On the flip side, Morningstar has warned that DBS shares are “not cheap”, arguing that the bank trades at a roughly 15% premium to their fair value estimate, reflecting how much good news is already priced in. [19]
DBS’s own strategists, meanwhile, are openly bullish on Singapore assets in general – they see scope for the STI to potentially reach 10,000 by 2040, driven by passive flows into large caps, government market‑development programs and structurally lower rates. [20]
Why DBS still belongs on many watchlists
- Anchor position for income portfolios: Even if dividend growth moderates, a high absolute payout level, potential special returns and strong capital ratios make DBS a flagship income stock. [21]
- Regional franchise strength: DBS has leading positions in Singapore and North Asia, with robust wealth management, transaction banking and digital capabilities that can cushion NIM pressure. [22]
Key risks: As hedging positions roll off in 2026, NIM will feel more of the impact from lower rates; any spike in credit costs or macro shock could hit a richly valued stock harder than cheaper peers. [23]
Best suited for: Investors who want a core, long‑term, blue‑chip anchor and can tolerate valuation risk in exchange for a strong and relatively predictable dividend stream.
REITs: riding lower yields and a recovery in property
Singapore’s REIT sector has quietly shifted from laggard to comeback story in 2025.
- As of 5 December, S‑REITs delivered 9.3% price gains and 14.7% total returns YTD — the best annual performance since 2019 — helped by falling interest rates and stable operating metrics. [24]
- An SGX research note and multiple broker commentaries point to stable occupancy, positive rental reversions and falling debt costs across retail, industrial and office sub‑sectors. [25]
- UOBKH keeps an “overweight” rating on S‑REITs and highlights five blue‑chip names as top picks: Keppel DC REIT, Keppel REIT, Lendlease Global Commercial REIT, CapitaLand Ascendas REIT and CapitaLand Ascott Trust. [26]
From that group, three stand out for different reasons:
3. CapitaLand Ascendas REIT (CLAR, A17U): Industrial giant for the rate‑cut cycle
CLAR is one of Singapore’s largest and most widely held REITs, with a diversified portfolio spanning business parks, logistics and high‑spec industrial space.
Recent research & catalysts
- A REIT‑Watch column on S‑REITs’ strong 2025 performance noted that many trusts, including large diversified names, reported stable occupancy and positive rental reversions in Q3, while benefiting from lower borrowing costs. [27]
- In a Brokers’ Take published 1 December, UOBKH’s Jonathan Koh reiterated an “overweight” rating on S‑REITs and highlighted CapitaLand Ascendas REIT as one of his five top picks, with a target price of S$4.02. [28]
- Koh pointed out that CLAR has:
- Upgraded guidance for positive rental reversion from mid‑single‑digit to low double‑digit in 2025, reflecting strong demand especially for logistics assets.
- Completed the redevelopment of 5 Toh Guan Road East into a modern six‑storey ramp‑up logistics facility.
- Four ongoing development and redevelopment projects across Singapore, the US and UK totalling about S$717 million. [29]
Investment case
- Structural demand for logistics, business parks and data‑centre‑linked assets ties CLAR to long‑term themes such as e‑commerce and digitalisation.
- Moderate gearing and improving debt costs position it well for a prolonged rate‑cut cycle, with scope for accretive acquisitions. [30]
Key risks: DPU growth may be uneven in the short term due to tax adjustments or one‑off costs, and a global slowdown in manufacturing or tech could soften demand for industrial space. [31]
4. Keppel DC REIT (AJBU): Data‑centre REIT leveraged to AI demand
If you’re looking for an S‑REIT aligned with the AI and cloud boom, Keppel DC REIT has been one of the go‑to names this year.
What analysts are saying
In the same UOBKH Brokers’ Take, Keppel DC REIT is one of the five blue‑chip S‑REITs with a “buy” rating, carrying a target price of S$2.65. [32]
Key highlights from the report include:
- Positive rental reversion of around 10% in Q3, driven mainly by lease renewals in Dublin.
- Plans to invest about S$53.9 million to fit‑out an additional hall at SGP8, a next‑generation AI‑ready hyperscale data centre. Once completed in Q3 2027, that project is expected to boost the asset’s revenue contribution by about 15%. [33]
These updates come as data centres globally are expected to need trillions of dollars in investment by 2030, with Singapore positioning itself as a regional hub — often via REIT structures that tap global capital for local infrastructure. [34]
Investment case
- Secular growth: Even if interest rates fluctuate, structural demand for compute and storage creates a long runway for well‑located, efficiently run data centres.
- Singapore risk premium: Tight local supply and strict moratoria make existing capacity particularly valuable.
Key risks: Regulatory constraints on data‑centre capacity, technology changes, or higher‑than‑expected capex could pressure returns; and as a leveraged yield vehicle, Keppel DC REIT remains sensitive to future interest‑rate surprises.
5. CapitaLand Ascott Trust (CLAS): Hospitality REIT riding tourism recovery
CapitaLand Ascott Trust (CLAS) offers diversified exposure to serviced residences, hotels and rental housing across multiple countries, and is emerging as both a yield and re‑rating story.
Latest developments
- On 5 December, CLAS was named in BT’s “Stocks to watch” after the STI reserve list review: together with supermarket operator Sheng Siong, it will join the STI reserve list, replacing Olam Group and Yangzijiang Financial. That means CLAS is next in line if an STI constituent is removed, often a sign of rising profile and liquidity. [35]
- UOBKH’s December S‑REIT report kept a “buy” rating on CLAS with a target price of S$1.56, noting:
- A one‑off land tax adjustment in Australia that temporarily weighed on Q3 results.
- Nonetheless, revenue per available unit (RevPAU) rose about 3% year‑on‑year in Q3 2025, with average occupancy up to around 83%. [36]
Investment case
- Global tourism recovery and a shift toward longer‑stay formats support earnings, while CLAS’s diversified portfolio reduces single‑market risk. [37]
- Inclusion on the STI reserve list can draw more attention from index‑aware investors and fund managers. [38]
Key risks: Hospitality earnings are inherently cyclical and exposed to events (for example, the timing of major events like Formula 1 races complicates year‑on‑year comparisons). Further tax or regulatory changes in key markets could also impact distributions. [39]
Growth and structural‑change plays
Not all of 2025’s winners are banks and REITs. The “next 30” most traded non‑STI stocks have also done well, with a Business Times / SGX study highlighting tech names and S‑REITs outside the STI delivering a median total return of 25% in H2 2025 to 3 December. [40]
Here are three non‑bank, non‑blue‑chip ideas catching institutional attention.
6. CSE Global: Engineering/tech mid‑cap with a big‑ticket Amazon deal
CSE Global, an engineering solutions provider with exposure to energy, infrastructure and critical communications, has been one of the stand‑out tech‑adjacent names this half.
What’s new
- SGX’s market update on the 30 most traded non‑STI stocks in H2 2025 singled out CSE Global as:
- A top contributor to tech‑sector turnover, with average daily turnover surging to S$5.8 million in H2 2025, up from S$1.4 million in H1 and S$1 million in 2024.
- The stock with the highest net institutional inflow relative to market cap among SGX‑listed companies above S$100 million. [41]
- Fundamentally, the same update noted that CSE:
- Reported around 9% year‑on‑year revenue growth for the first nine months of FY2025.
- Secured approximately S$513 million in new orders over that period.
- Announced a partnership with Amazon involving contracts worth up to US$1.5 billion over five years, with Amazon potentially taking an 8% equity stake. [42]
- Consensus target prices for CSE Global have doubled this year from S$0.60 to S$1.20, according to SGX’s summary of analyst data. [43]
Investment case
- The Amazon partnership, if executed well, could anchor multi‑year revenue visibility and deepen CSE’s role in cloud and data‑centre‑related infrastructure.
- Strong net institutional inflows suggest growing confidence from professional investors rather than purely retail speculation.
Key risks: Execution risk on large, complex projects; exposure to capex cycles in energy and infrastructure; and the possibility that some of the Amazon‑related optimism is already priced in.
7. Sembcorp Industries (U96): Energy transition play eyeing Alinta Energy
Sembcorp Industries has been repositioning itself as a cleaner energy and utilities player in recent years, and a fresh M&A headline has once again put it on traders’ radar.
Latest catalyst
- On 8 December, Sembcorp confirmed it is in talks to acquire Alinta Energy, a major Australian utility previously acquired by Hong Kong’s Chow Tai Fook Enterprises in 2017. The company stressed that discussions are ongoing and no definitive agreement has been signed yet. [44]
- The stock rose 0.5% to S$5.99 on Friday ahead of the announcement, reflecting market interest in the potential deal. [45]
Investment case
- If successfully structured, an Alinta acquisition could expand Sembcorp’s footprint in a developed power market, offering scale and diversification alongside its growing renewables portfolio.
- The company sits squarely in the energy‑transition narrative, benefiting from investors’ search for utilities that can grow while decarbonising.
Key risks: A large overseas acquisition carries execution, regulatory and currency risk. Overpaying or inheriting legacy issues could dilute returns, and the market may penalise the stock if the deal is viewed as too aggressive.
8. Keppel REIT (K71U): Office REIT value play as CBD vacancies ease
While retail and logistics REITs have grabbed most headlines, Keppel REIT is emerging as a value play on Singapore’s prime office recovery.
Recent analysis
- A Business Times summary of broker research on S‑REITs noted that the sector still offers an average 2025 yield around 5.4%, with yield spreads over 10‑year government bonds of roughly 3.7–3.9 percentage points, even after this year’s rebound. Within that context, Morningstar highlighted Keppel REIT as one of its top undervalued office REIT picks. TechStock²+1
- UOBKH’s detailed S‑REIT report added that:
- Keppel REIT has backfilled around 73% of space returned by BNP Paribas at Ocean Financial Centre, with new tenants coming from financial, legal and tech/media sectors.
- The REIT recently acquired its first retail asset in Sydney for about A$393.8 million, while keeping a strategic focus on being “Singapore‑centric and office‑focused” with retail capped at 20% of portfolio value. [46]
Investment case
- Improving Category 1 office vacancy, along with resilient CBD rents, points to a “flight to quality” benefiting prime landlords like Keppel REIT. [47]
- The trust still trades at a discount to book value, according to broker commentary, leaving room for a re‑rating if fundamentals continue to firm. [48]
Key risks: Office cycles tend to be long and lumpy; any economic slowdown or new supply could slow rental recovery. As with all REITs, leverage and rate volatility remain structural risks.
How to use these ideas in a Singapore portfolio
Putting this all together, here’s one way investors might think about these names (again, not a recommendation):
- Core income & stability
- OCBC, DBS, CapitaLand Ascendas REIT, CapitaLand Ascott Trust, Keppel REIT
- Focus: diversified, large‑cap exposure with mid‑single‑digit or better yields.
- Yield + secular growth
- Keppel DC REIT, CLAR
- Focus: digital infrastructure and logistics/industrial demand, supported by lower rates.
- Higher‑beta growth / special situations
- CSE Global, Sembcorp Industries
- Focus: earnings growth and re‑rating potential, but with more project and macro risk.
In practice, a sensible approach is to:
- Match holdings to your risk tolerance and time horizon – banks and large REITs for core, more cyclical names in smaller size.
- Diversify across sectors so you’re not overexposed to any single interest‑rate or property theme.
- Review regularly, especially after the Fed decision and Singapore’s upcoming economic data, as these could shift the relative outlook for banks vs REITs.
Quick FAQ: Singapore stocks now
Is it a good time to buy Singapore REITs?
Recent SGX and broker research suggests S‑REITs have delivered 14.7% total returns YTD but still lag the broader market, with yields around the mid‑5% range and borrowing costs falling — which is why several houses remain overweight the sector. [49] That said, you should stress‑test your own income needs and risk appetite before adding leveraged yield vehicles.
Are Singapore banks overvalued after this year’s rally?
Analysts are split: some see DBS as overvalued versus fair value, while others still have “buy” calls with double‑digit upside, highlighting strong dividends and capital returns. OCBC, on the other hand, is widely flagged as a more reasonably valued alternative with improving wealth‑management momentum. [50]
What’s the single biggest macro risk now?
The immediate swing factor is how “hawkish” or “dovish” the Fed’s expected rate cut this week turns out to be. Markets already price in a 25‑bp cut; if guidance for 2026 is more restrictive than expected, both banks and REITs could see volatility. [51]
References
1. www.businesstimes.com.sg, 2. www.businesstimes.com.sg, 3. www.businesstoday.com.my, 4. www.businesstimes.com.sg, 5. www.businesstimes.com.sg, 6. www.businesstimes.com.sg, 7. www.businesstimes.com.sg, 8. www.businesstimes.com.sg, 9. www.businesstimes.com.sg, 10. www.straitstimes.com, 11. www.straitstimes.com, 12. www.straitstimes.com, 13. www.businesstimes.com.sg, 14. www.businesstimes.com.sg, 15. www.straitstimes.com, 16. www.straitstimes.com, 17. www.straitstimes.com, 18. www.straitstimes.com, 19. www.straitstimes.com, 20. www.businesstimes.com.sg, 21. www.straitstimes.com, 22. www.businesstimes.com.sg, 23. www.straitstimes.com, 24. www.businesstimes.com.sg, 25. www.businesstimes.com.sg, 26. www.businesstimes.com.sg, 27. www.businesstimes.com.sg, 28. www.businesstimes.com.sg, 29. www.businesstimes.com.sg, 30. www.businesstimes.com.sg, 31. www.businesstimes.com.sg, 32. www.businesstimes.com.sg, 33. www.businesstimes.com.sg, 34. www.businesstimes.com.sg, 35. www.businesstimes.com.sg, 36. www.businesstimes.com.sg, 37. www.businesstimes.com.sg, 38. www.businesstimes.com.sg, 39. www.businesstimes.com.sg, 40. www.businesstimes.com.sg, 41. www.businesstimes.com.sg, 42. www.businesstimes.com.sg, 43. www.businesstimes.com.sg, 44. www.businesstimes.com.sg, 45. www.businesstimes.com.sg, 46. www.businesstimes.com.sg, 47. www.businesstimes.com.sg, 48. www.businesstimes.com.sg, 49. www.businesstimes.com.sg, 50. www.straitstimes.com, 51. www.businesstimes.com.sg
