Singapore shares ended slightly lower on Tuesday, 16 December 2025, as investors stayed cautious ahead of major US economic releases that could reset global rate expectations and risk appetite. The Straits Times Index (STI) slipped 0.2% (down 9.44 points) to 4,579.73, while the iEdge Singapore Next 50 Index eased 0.1% to 1,434.88. Market breadth was negative, with losers outnumbering gainers 352 to 227, and about 1.1 billion securities worth roughly S$1.4 billion changing hands. [1]
The softer close in Singapore came as regional trading leaned risk-off: Hong Kong’s Hang Seng fell 1.5%, Japan’s Nikkei 225 lost 1.6% and South Korea’s Kospi dropped 2.2%, while Malaysia’s KLCI bucked the broader weakness with a 0.3% gain. [2]
Why the Singapore stock market dipped today
The central theme driving markets on 16 Dec was not a single Singapore headline, but a global “wait-and-see” stance before US data—particularly a delayed US jobs report—arrives and potentially reshapes expectations for Federal Reserve policy into 2026.
Reuters reported that Asian equities tumbled while the US dollar hovered near two-month lows, with investors cautious ahead of a slate of US data due later Tuesday, including jobs figures that may influence the Fed outlook for next year. The same report noted that markets were also focused on an inflation report later in the week, with some details missing due to a prolonged US government shutdown that disrupted data collection. [3]
This matters for Singapore because the STI is heavily influenced by global rates and risk sentiment—especially via its large financial sector weight and the market’s income-oriented investor base.
STI movers: CDL rises on Sentosa divestment; Singtel is the laggard
Despite the softer index close, there were clear stock-specific drivers within the STI:
City Developments leads gainers
City Developments Limited (CDL) topped the STI gainers, rising 1.9% to close at S$7.50. [4]
Investor attention sharpened after CDL confirmed a deal to sell its Quayside Isle @ Sentosa Cove property for S$97.3 million. The transaction implies S$2,205 per square foot (based on net lettable area) and represents a 47% premium over the property’s book value of S$66 million. CDL indicated the deal is expected to be completed in the first quarter of 2026. [5]
For market participants, this type of capital recycling tends to be watched closely because it can strengthen balance sheets, support redeployment into higher-return opportunities, and provide signals on private-market liquidity for income-producing assets—particularly relevant for Singapore’s property and REIT ecosystem.
Singtel is the worst-performing blue chip
Singtel was the STI’s weakest blue-chip performer on Tuesday, falling 2.4% to S$4.56. [6]
While the session’s main narrative was macro caution, the move in Singtel also illustrates how quickly positioning can rotate between “steady dividend” names and other exposures when investors reduce risk ahead of major global data.
Local banks finish mixed
The three local banks—core pillars of the STI—closed mixed:
- DBS rose 0.4% to S$55.49
- OCBC gained 0.8% to S$19.44
- UOB edged down 0.03% to S$34.75 [7]
The bank split is notable because Singapore banks often act as a sentiment barometer for the STI. When global rate expectations shift, bank margins, loan growth assumptions, and overall risk appetite can all move quickly—sometimes in opposing directions depending on whether the market is pricing “cuts because inflation falls” versus “cuts because growth weakens.”
Broader SGX: outsized moves in small caps alongside cautious index tone
Even on a down day for the benchmark, pockets of the broader market saw sharp moves—often in lower-priced stocks where percentage swings can be amplified.
Among SGX’s top percentage gainers on 16 Dec, SGinvestors.io data showed Clearbridge Health up 100% to S$0.002, Creative Technology up 13.27% to S$0.64, and Raffles Education up 8.33% to S$0.143 (with heavy turnover indicated on the same list). [8]
These kinds of moves can reflect stock-specific catalysts and trading flows, but they can also be a feature of year-end liquidity conditions—when thinner order books can magnify price action.
The macro setup: US jobs report, inflation prints, and central bank meetings in focus
US data: “the unemployment rate is the key thing”
In Singapore’s market wrap, The Business Times pointed to the looming US releases—retail sales and a delayed November non-farm payrolls report—as major near-term catalysts, citing Saxo Markets’ Neil Wilson saying the unemployment rate is the key factor to watch. [9]
Reuters similarly highlighted that investors were awaiting combined US employment reports (October and November) due later Tuesday, as well as an inflation report later in the week—events that could affect the trajectory for Fed policy in 2026. [10]
For traders and long-term investors alike, the “rate path” matters because it can directly change the relative appeal of:
- Singapore bank stocks (margin expectations, credit cycle assumptions),
- REITs and yield plays (discount rates and refinancing outlook),
- growth/tech exposures (duration sensitivity).
Central banks: BoE, ECB, BOJ in a packed week
Beyond the US releases, Reuters described a “central bank bonanza” week with decisions from the Bank of England, the European Central Bank, and the Bank of Japan also on investor radar. [11]
The BOJ is particularly important for global cross-asset flows: major yen moves can spill over into Asian equities, including Singapore, especially when markets are already jittery.
Regional weakness adds pressure
Associated Press also reported broadly weaker Asian markets on 16 Dec as investors awaited US jobs and inflation reports, citing declines across major indices including Japan and South Korea, and noting that weaker China data also weighed on sentiment. [12]
Singapore equities outlook: supportive reforms and yields—but 2026 risks are rising
While today’s move was modest, it fits into a larger late-2025 narrative: Singapore equities have attracted renewed attention for defensive characteristics and income, even as the global macro picture becomes less predictable.
DBS Research: STI end-2026 target 4,880, with “gentler” gains expected
In a December 2025 outlook note, DBS set an end-2026 STI target of 4,880, expecting the market to rise at a more moderate pace next year after a strong re-rating. DBS framed 2026 as a balancing act between positive drivers—MAS reforms, Singapore’s safe-haven appeal, and attractive yields—versus uncertainties including slower GDP growth, tariff impacts, the US interest-rate outlook, and potential US equity-market volatility. [13]
DBS also highlighted an income angle that remains central to Singapore’s equity story: the STI’s FY26 dividend yield was cited at about 4.5% as still attractive for investors. [14]
Earnings expectations: banks and broader sectors seen improving into 2026
DBS projected STI earnings growth accelerating to 8.8% in 2026, with index heavyweight banks expected to deliver positive earnings growth (DBS cited 5.4% for banks in FY26F in its sector outlook table). [15]
This is crucial for the STI because financials are not just “big weights”—they are also the anchor for dividend expectations and for global investors using Singapore as a relatively defensive allocation.
The “2Ts” risk: tariffs and the tech cycle
DBS also warned Singapore is entering 2026 facing “payback risks” after a strong 2025 supported by export front-loading ahead of tariff changes and an electronics upcycle. DBS economists expected Singapore GDP growth to moderate to about 1.8% in 2026 (below the mid-point of the MTI’s 1–3% official forecast range), down from 4.0% in 2025, while highlighting two key risks for 2026: tariffs and the tech cycle. [16]
For the Singapore stock market, that matters because electronics-linked names—and segments of industrials and tech—can swing sharply when global semiconductor demand assumptions change or when policy headlines alter tariff expectations.
Net inflows and “safe-haven” positioning remain key supports
DBS also pointed to cumulative net buying of about US$2.3 billion into Singapore equities during 11M25 (from passive and active funds), reinforcing the “safe-haven” narrative and the role of ongoing policy support measures. [17]
In practical terms, sustained inflows can help underpin valuations and liquidity—particularly during global risk-off phases.
OCBC: Singapore market “still not expensive,” overweight call remains
OCBC Investment Research struck a constructive tone for 2026, arguing that despite strong 2025 performance, the Singapore market is “still not expensive” based on the STI’s price-to-earnings ratio and maintaining an overweight call on Singapore equities. OCBC also emphasized that falling domestic interest rates support Singapore blue chips, and pointed to average dividend yields of just under 5% as a draw for investors. [18]
OCBC additionally highlighted policy measures aimed at supporting the equity market—specifically the Equity Market Development Programme (EQDP), including MAS’s plan for S$5 billion to be deployed via appointed asset managers into Singapore equities, with an initial S$1.1 billion already allocated and further announcements expected by the end of 2025. [19]
What to watch next for SGX and the STI
With Singapore’s market having closed before several key global releases, near-term direction could be shaped by data surprises rather than local corporate headlines.
Key catalysts investors are tracking include:
- US non-farm payrolls and US retail sales (both slated for Tuesday, 16 Dec at 9:30pm SGT), which could move global bond yields and shift risk appetite across Asia the next day. [20]
- US CPI later in the week, which can reprice expectations for Fed cuts and influence rate-sensitive segments like REITs and property. [21]
- Singapore NODX (non-oil domestic exports) for November, flagged in week-ahead calendars as an APAC focus point—relevant for Singapore’s trade-linked sectors. [22]
- Bank of Japan policy decision, with potential FX and cross-market spillovers. [23]
Bottom line: Singapore stocks pause, but the bigger trend is still about yields, flows, and policy support
Today’s dip in the STI was modest, but it underscored how Singapore’s market is currently trading: resilient, income-supported, and policy-tailwinded—yet highly sensitive to global interest-rate expectations and risk sentiment swings.
If US data comes in softer and reinforces a “non-recessionary easing” narrative, Singapore’s yield-oriented market could continue to find support, especially in banks, selected blue chips, and rate-sensitive sectors. But if inflation or jobs data forces a repricing toward higher yields for longer, the STI could see renewed volatility—particularly as investors rebalance portfolios into year-end and start positioning for 2026. [24]
References
1. www.businesstimes.com.sg, 2. www.businesstimes.com.sg, 3. www.reuters.com, 4. www.businesstimes.com.sg, 5. www.businesstimes.com.sg, 6. www.businesstimes.com.sg, 7. www.businesstimes.com.sg, 8. sginvestors.io, 9. www.businesstimes.com.sg, 10. www.reuters.com, 11. www.reuters.com, 12. apnews.com, 13. www.dbs.com, 14. www.dbs.com, 15. www.dbs.com, 16. www.dbs.com, 17. www.dbs.com, 18. www.ocbc.com, 19. www.ocbc.com, 20. www.ig.com, 21. www.ig.com, 22. www.spglobal.com, 23. www.reuters.com, 24. www.reuters.com
