SINGAPORE — Singapore shares pulled back on Monday (Dec 15, 2025), with the Straits Times Index (STI) easing after last week’s surge and as investors weighed a softer regional mood, renewed debate over the AI-led rally, and a packed week of central bank decisions.
The benchmark STI ended at 4,569.80, down 16.65 points (about 0.36%) from the previous close. The index traded between 4,563.23 and 4,581.29, with an opening level of 4,575.92. [1]
The slight dip comes immediately after the STI’s strong finish on Friday, when the index gained 1.5% to close at 4,586.45. [2]
Why Singapore stocks eased today
1) Asia risk appetite softened as “AI doubts” returned
Across the region, sentiment was fragile at the start of the week, with selling pressure linked to renewed concern over whether big-ticket AI investment can keep translating into near-term profits—particularly after a bout of tech-led weakness on Wall Street. [3]
That same “risk-off” bias showed up early in regional trading, with market watchers pointing to profit-taking and caution into year-end as liquidity typically thins. [4]
Singapore did not have a large, concentrated “AI mega-cap” sector the way the US does, but it tends to follow the broader Asia tape—especially when investors rotate between cyclical and defensive exposures.
2) China macro signals stayed mixed, with property worries still in focus
China-related headlines remained a key background driver for Asian markets. A Reuters global markets wrap highlighted fresh attention on China’s economic indicators and ongoing property-sector stress, including worries around major developers and the broader real-estate downturn. [5]
For Singapore, that matters because many SGX-listed bellwethers—banks, developers, commodity-linked names, and regional conglomerates—are sensitive to China growth expectations, regional trade momentum, and cross-border capital flows.
3) A busy central bank week raised the “wait-and-see” premium
Investors are also looking ahead to a packed calendar of policy decisions and key data releases. Reuters flagged multiple major central bank events in the days ahead, including the Bank of Japan (widely expected by markets to tighten), with other policy meetings and important data prints lining up during the week. [6]
An OCBC Global Markets Research note dated 15 December 2025 similarly pointed to a week heavy with central bank meetings and major data releases that could shape rates, FX, and equity positioning into year-end. [7]
In practical terms for the Singapore stock market, the “rates path” tends to influence:
- Banks (through net interest margins and credit conditions),
- REITs and high-dividend equities (through funding costs and yield spreads),
- SGX trading activity (through volatility, hedging demand, and risk appetite).
Singapore stocks and SGX names in focus on 15 Dec 2025
Beyond the index-level move, several Singapore-listed companies were in the spotlight due to corporate headlines and brokerage attention.
ST Engineering: US lawsuit headline on investors’ radar
ST Engineering’s US subsidiary, VT San Antonio Aerospace, was named among multiple companies in a wrongful death lawsuit filed in Kentucky, according to The Business Times’ “stocks to watch” update for Dec 15. The report said the lawsuit alleged negligence tied to aircraft maintenance work performed between September and October, and added that the company would not comment on pending litigation and would cooperate with authorities. [8]
While this is a legal headline rather than an earnings or guidance update, such developments can still influence near-term sentiment—especially for widely held index components.
ESR-REIT: S$338.1 million divestment to Brookfield-managed affiliates
In the REITs space, ESR-REIT announced a portfolio recycling move that stood out for its size and its explicit trade-off between long-term portfolio quality and near-term income.
The Business Times reported that ESR-REIT’s manager signed a deal to divest eight non-core Singapore assets for S$338.1 million, representing a 2% premium to independent valuation as at Nov 30, with buyers managed by affiliates of Brookfield Asset Management. The report added that the sale is expected to lower distribution, and is part of a strategy to reduce the impact of land lease decay on NAV by offloading shorter-lease assets. [9]
The same report detailed that the divestment would improve certain portfolio lease metrics, including weighted average remaining land lease for the overall portfolio and for the Singapore subset. [10]
This matters for the broader Singapore REITs narrative because investors have become more attentive to:
- lease tenure and renewal risk,
- capital recycling discipline, and
- whether distributions are being protected as rates and refinancing conditions evolve.
Soilbuild Construction: four-for-one stock split after a sharp run-up
Small- and mid-cap activity remains a big theme in Singapore’s market reform story, and Soilbuild became a high-profile example on Monday.
The Business Times reported Soilbuild proposed a four-for-one stock split, citing the goal of improving affordability, liquidity and broadening the shareholder base. The company’s share price had risen 313% year-to-date, and it currently had issued and paid-up share capital of about S$107.9 million comprising 165.5 million shares; the split would add about 496.4 million shares. An extraordinary general meeting to vote on the proposal is set for Jan 5. [11]
SGX in the spotlight: broker targets rise as reforms and trading activity underpin optimism
While today’s STI move was modestly negative, one of the most consequential “Singapore market” stories on Dec 15 was about the exchange operator itself.
The Edge Singapore reported that brokers have been raising target prices on Singapore Exchange (SGX), citing stronger market activity and a supportive structural backdrop. The report highlighted metrics such as year-on-year growth in total traded value for securities and commentary that reforms could help establish Singapore as a stronger regional equities centre—potentially lifting SGX’s earnings via operating leverage. [12]
Among the points flagged in the same Dec 15 report:
- UOB Kay Hian kept a hold but lifted its target price, citing ongoing support from the MAS Equity Market Development Programme (EQDP) and continued derivatives hedging demand in a geopolitically uncertain environment. [13]
- Maybank Research maintained a more bullish stance with a buy call and a higher target price, arguing SGX is moving into a higher average daily value environment. [14]
- The report also pointed to improving IPO momentum and the idea that listing reforms (and potential cross-market initiatives) could be supportive for the ecosystem over time. [15]
For investors tracking Singapore’s longer-term market development push, the takeaway is that today’s STI wiggle may matter less than the direction of travel in:
- liquidity and participation,
- mid-cap discovery and valuation,
- IPO and secondary fundraising pipelines,
- and the depth of derivatives and hedging markets.
Forecasts and outlook: what analysts expect next for Singapore stocks
Even on a “down day,” Dec 15 coverage leaned heavily toward 2026 positioning—because the market is now close enough to year-end that investors are already shifting from “what happened” to “what could drive returns next.”
DBS: STI 2026 target 4,880, earnings growth led by financials, industrials and TMT
DBS’s equity strategy content published in December (and actively circulated in the market this month) points to an STI end-2026 target of 4,880, with FY26F earnings growth of 8.8% led by financials, industrials and TMT. [16]
In its broader Singapore 2026 outlook, DBS also expects Singapore GDP growth to moderate to about 1.8% in 2026, down from 2025’s stronger pace, while highlighting “tariffs and the tech cycle” as key macro risks to watch—especially for electronics and parts of the tech supply chain. [17]
This matters for STI investors because the index is heavily weighted to:
- banks (financials),
- property and REIT-linked exposures, and
- several industrial and “new economy” enablers tied to regional trade and capex.
Rates as a 2026 lever: REITs and yield names stay on watchlists
One recurring theme across Dec 15 analysis is that if global rates drift lower in 2026, yield-sensitive segments—especially REITs—could regain momentum through:
- narrowing funding-cost pressure,
- stabilising valuation models,
- and renewed appetite for income.
The Edge Singapore explicitly cited the idea that a softer domestic rate backdrop and expected US Federal Reserve rate cuts in 2026 could lift demand for REITs and other yield assets, supporting cash-equity activity. [18]
What to watch next: catalysts for SGX and the STI this week
With Singapore now in the final stretch of the trading year, market direction can turn quickly—often driven by global headlines rather than domestic data. Here are the most relevant catalysts investors are watching after today’s close:
Central banks and rates repricing
A heavy week of policy meetings and macro releases can shift the “rates narrative” rapidly—affecting Singapore banks, REITs, and the SGD rates curve. Reuters highlighted a week packed with central bank decisions and key data releases, a setup that tends to encourage lighter risk-taking into year-end. [19]
OCBC’s Dec 15 note also pointed to major data and central bank meetings that could set the tone across markets. [20]
China growth and property headlines
China’s demand signals and property stress remain a key variable for Asia. For Singapore’s market, that influence often arrives via:
- commodity and shipping expectations,
- regional consumer and tourism sentiment,
- and earnings outlooks for companies with China exposure.
Reuters’ Dec 15 markets wrap highlighted China-related macro and property concerns as an important driver of regional risk sentiment. [21]
SGX reform momentum and deal flow
For investors looking beyond daily index moves, the more structural question is whether Singapore’s market reforms and liquidity initiatives translate into:
- sustained turnover,
- healthier valuation discovery for mid-caps,
- and a more durable pipeline of listings and fundraisings.
The Edge Singapore’s Dec 15 broker roundup shows how closely the sell-side is tying SGX’s earnings outlook to these reform-driven activity trends. [22]
Bottom line for the Singapore stock market today
Singapore shares ended slightly lower on Dec 15, with the STI easing to 4,569.80 after last week’s surge. [23]
But the day’s “Singapore market” story was less about a single down session and more about positioning into 2026:
- global risk sentiment is cautious again amid AI-profitability debate and China uncertainty, [24]
- SGX is drawing fresh optimism from brokers who see reforms and trading activity lifting the exchange’s operating backdrop, [25]
- and major houses such as DBS are already anchoring next-year expectations around earnings growth, macro cooling, and the evolving rates cycle. [26]
References
1. finance.yahoo.com, 2. www.straitstimes.com, 3. www.businesstimes.com.sg, 4. www.reuters.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.ocbc.com, 8. www.businesstimes.com.sg, 9. www.businesstimes.com.sg, 10. www.businesstimes.com.sg, 11. www.businesstimes.com.sg, 12. www.theedgesingapore.com, 13. www.theedgesingapore.com, 14. www.theedgesingapore.com, 15. www.theedgesingapore.com, 16. www.dbs.com.sg, 17. www.dbs.com, 18. www.theedgesingapore.com, 19. www.reuters.com, 20. www.ocbc.com, 21. www.reuters.com, 22. www.theedgesingapore.com, 23. finance.yahoo.com, 24. www.businesstimes.com.sg, 25. www.theedgesingapore.com, 26. www.dbs.com.sg
