NEW YORK, Dec. 27, 2025, 9:00 a.m. ET — Market closed.
Singapore Exchange (SGX) heads into the final weekend of the year with two cross-currents that matter for both Singapore equities and the exchange operator itself: a quiet, liquidity-thinned post‑Christmas session that left the Straits Times Index (STI) essentially unchanged, and a fresh burst of macro data showing Singapore’s manufacturing engine still growing at a double‑digit pace—though slower than October’s surge. [1]
With U.S. markets shut for the weekend in New York, the immediate question for global investors isn’t what happens “today,” but what could gap prices at Monday’s reopen—especially in a year‑end environment where positioning, thin volumes, and headline risk can matter more than normal. That dynamic is relevant for SGX in two ways: it shapes near‑term trading appetite in Singapore-listed stocks, and it can influence volatility and hedging demand across SGX’s derivatives complex (equity index, FX and commodities). [2]
Where SGX and Singapore stocks left off on Friday
Shares of Singapore Exchange Ltd (ticker: S68) ended Friday’s session at S$17.13, down 0.75% on the day, with about 706,600 shares traded, according to Financial Times market data (delayed). FT also shows the stock up about 37.8% over the past year—an eye-catching run into year-end. [3]
In the broader market, Singapore stocks finished flat on Dec. 26, with the STI edging down by just 0.19 point to close at 4,636.15. Market breadth was mildly positive—gainers beat losers 225 to 170—with about 764.9 million securities worth S$667.8 million changing hands, according to a market wrap published by The Business Times and republished by The Straits Times. [4]
A few blue-chip moves helped illustrate the tone: Thai Beverage was among the stronger STI performers, while Jardine Matheson was cited as the weakest. Local banks ended mixed. None of that screams “panic” or “euphoria”—it looks like late‑December market choreography: show up, trade a little, don’t break anything expensive. [5]
The macro catalyst in the last 24–48 hours: Singapore factory output surprises (again)
The biggest “fresh” datapoint for Singapore-focused investors over the last 24–48 hours was industrial production.
Singapore’s manufacturing output rose 14.3% year-on-year in November, according to the Singapore Economic Development Board (EDB). Strip out biomedical manufacturing—often the most volatile component—and output was still up 4.6% year-on-year. On a seasonally adjusted month-on-month basis, total output fell 10.2%. [6]
Under the hood, the EDB breakdown shows why the headline is both strong and slightly tricky:
- Biomedical manufacturing: +79.3% year-on-year, driven by pharmaceuticals (+124.3%). [7]
- Electronics: +8.9% year-on-year (with notable strength in infocomms & consumer electronics). [8]
- Transport engineering: +24.2% year-on-year. [9]
- Chemicals: +2.2% year-on-year, while general manufacturing contracted. [10]
That mix matters because it shapes how investors think about “quality” of growth into 2026—particularly around tech demand and the durability of pharma output.
What analysts are actually worried about: “front-loading” and the 2026 handoff
Two widely-followed themes popped up in the commentary around the factory-output release: resilience, and the risk that some of that resilience is borrowed from the future.
The Straits Times reported that Maybank economist Brian Lee said the jump in pharmaceutical output could reflect firms ramping up production and exports ahead of potential U.S. tariffs on the sector. That’s supportive in the short run—more shipments, more activity—but it can create a hangover if demand is effectively pulled forward. [11]
The same report cited Jonathan Koh, economist and FX analyst for Asia at Standard Chartered, warning that while AI-related demand may remain robust, it’s not clear whether 2025’s strength can carry cleanly into 2026 if some of the year’s performance was boosted by pre‑emptive activity ahead of potential punitive U.S. sectoral tariffs (including on semiconductors). [12]
For SGX, this kind of macro nuance matters because macro expectations feed into flows: if investors start debating “soft landing vs. growth air pocket,” they hedge more, rotate sectors more, and generally trade more—often positive for an exchange’s activity levels, but not always positive for equity prices across the board.
The global backdrop: thin trading, “Santa rally” psychology, and rate-cut expectations
Friday’s market mood wasn’t uniquely Singaporean. Reuters described a light-volume, post‑Christmas session on Wall Street that ended near record levels but slightly lower on the day, with few catalysts and many investors looking toward the year-end “Santa Claus rally” window. [13]
Reuters quoted Ryan Detrick, chief market strategist at Carson Group, saying the market was essentially “catching our breath” after a strong five-day rally and that he still sees “a little more upward bias going forward” as the Santa rally period progresses. [14]
That matters for SGX because Singapore is a globally owned market: U.S. risk appetite, U.S. rate expectations, and USD moves often ripple into Asia’s Monday open—especially when liquidity is thin.
Reuters also highlighted that precious metals hit records amid expectations of U.S. rate cuts and geopolitical uncertainty, and cited Soojin Kim, commodities analyst at MUFG, saying the rally could continue into 2026 given strong physical demand and persistent geopolitical and monetary uncertainty (with major banks forecasting further gains). [15]
Even though SGX isn’t a precious-metals exchange in the way COMEX is, the broader point is important: when commodities are moving and macro narratives are shifting, hedging demand often rises across multiple asset classes—including the kinds of contracts SGX does specialize in (such as iron ore, freight and petrochemical derivatives).
Why SGX the company cares about all of this: volume, volatility, and product mix
Singapore Exchange Ltd isn’t “the Singapore stock market”—it’s the operator of a market infrastructure stack that spans issuer services, securities trading and clearing, derivatives trading and clearing, and platform/data services. [16]
So when investors ask “what’s the SGX story,” the near-term answer often comes down to activity: are people trading, hedging and issuing?
A useful reference point is SGX’s own recent snapshot of market conditions. In a December 10 news release (covering November activity), SGX reported:
- Turnover surged 18% year-on-year to S$35.5 billion, and securities daily average value (SDAV) rose 24% year-on-year to S$1.8 billion. [17]
- The STI gained 2.2% month-on-month in November and hit a then-new high of 4,575.91 during the month. [18]
- Commodity derivatives volume climbed 6% year-on-year in November to 5.3 million contracts; benchmark iron ore derivatives volume gained 9% year-on-year, and petrochemical derivatives volume doubled year-on-year (from a small base). [19]
This is the key lens investors often use with exchange stocks: activity begets revenue (trading, clearing, connectivity, data), and activity is often influenced by macro uncertainty. Calm markets can be good for portfolios, but “too calm” can be less exciting for exchanges.
The year-end setup: what investors should watch before the next session
Because both the U.S. market (New York) and SGX are closed over the weekend, Monday’s first hour can matter more than usual. Here’s what investors commonly monitor into the next session—grounded in what moved headlines over the last 24–48 hours:
- Singapore macro momentum vs. volatility risk
The 14.3% year-on-year manufacturing print is strong, but it’s also a moderation from October’s pace and heavily influenced by pharma. Expect investors to debate how much of that strength is structural (AI and electronics demand) versus timing effects (front-loading). [20] - Global rate expectations and the U.S. “soft landing” narrative
Reuters’ market wrap emphasized how rate-cut expectations and policy uncertainty are feeding into cross-asset moves. If U.S. yields or the dollar move sharply on Monday, Asia often feels it quickly. [21] - Liquidity and positioning into the final trading days of the year
Reuters highlighted thin holiday trading conditions and the psychological pull of the “Santa Claus rally” window in U.S. markets—conditions that can amplify short, sharp moves if a surprise headline hits. [22] - SGX as a “flow stock”: watch the tape, not just the thesis
For SGX shares (S68), investors often watch whether price action is being driven by broad market risk-on/risk-off sentiment or by company-specific expectations tied to volumes and product momentum. Friday’s close at S$17.13 leaves the stock near the top of its one-year range, based on FT data. [23]
Bottom line
The latest 24–48 hours of news flow paints a classic late‑December picture for Singapore Exchange: a market that’s not moving much day-to-day, but sitting atop big macro currents—strong manufacturing prints, tariff-related uncertainty, and global rate expectations that continue to swing commodities and risk appetite. [24]
When trading reopens Monday, investors will be watching whether Singapore’s upbeat factory data helps sustain confidence into year-end—or whether “front-loading” concerns and thin liquidity make the next session more jumpy than the last one. Either way, SGX sits at the center of the action as the platform where those convictions get expressed, hedged, and (occasionally) regretted. [25]
References
1. www.straitstimes.com, 2. www.reuters.com, 3. markets.ft.com, 4. www.straitstimes.com, 5. www.straitstimes.com, 6. www.edb.gov.sg, 7. www.edb.gov.sg, 8. www.edb.gov.sg, 9. www.edb.gov.sg, 10. www.edb.gov.sg, 11. www.straitstimes.com, 12. www.straitstimes.com, 13. www.reuters.com, 14. www.reuters.com, 15. www.reuters.com, 16. markets.ft.com, 17. links.sgx.com, 18. links.sgx.com, 19. links.sgx.com, 20. www.edb.gov.sg, 21. www.reuters.com, 22. www.reuters.com, 23. markets.ft.com, 24. www.straitstimes.com, 25. markets.ft.com
