Singapore Stock Market Today (18 Dec 2025): STI Slips as Global Tech Jitters, Central Bank Risk and Singtel-Optus Headlines Shape SGX Mood

SINGAPORE (Dec 18, 2025) — Singapore equities ended the day slightly softer as investors weighed a choppy global risk backdrop and fresh company catalysts on the Singapore Exchange (SGX). The Straits Times Index (STI) closed at 4,564.67, down 10.81 points (-0.24%), after trading in a tight range between 4,561.14 and 4,582.15. ^[1]

The move marked a cautious session rather than a decisive reversal — but it underscored how sensitive Singapore’s market remains to international sentiment in December, especially when global tech leadership wobbles and major central bank decisions cluster on the calendar.

Why the Singapore stock market was cautious today

Singapore-listed blue chips are not dominated by mega-cap US-style “AI winners,” but global technology volatility still affects risk appetite across Asia, and that tone carried into local trading.

Overnight and into the Asian session, markets broadly took their cue from renewed unease around AI spending, data-centre buildouts, and stretched valuations, themes that contributed to a risk-off tilt across the region. ^[2]

At the same time, investors globally stayed defensive ahead of several key policy events:

A wave of central bank decisions (including in Europe) expected to highlight diverging policy paths
A closely watched Bank of Japan decision due Friday, with traders positioning for a possible hike
Ongoing sensitivity to US inflation signals and what they imply for the next phase of US rate cuts ^[3]

For Singapore, that combination tends to translate into narrow index moves, selective stock-picking, and a preference for balance-sheet strength — especially as the year winds down and liquidity becomes more uneven.

A local macro twist: Singapore bonds are being treated as a “safe harbour”

One Singapore-specific factor adding nuance to the market story today is the growing global appetite for Singapore government bonds — and what that says about how international investors view the city-state.

A Straits Times report highlighted that Singapore sovereign bonds have decoupled from US Treasuries, with the correlation between 10-year Singapore government bonds and comparable Treasuries reportedly falling to around zero on a 120-day basis (from 0.40 at the start of 2025). ^[4]

Why it matters for SGX-listed equities:

A stronger safe-haven bid for Singapore debt can support domestic liquidity conditions
Lower and more stable funding expectations are typically constructive for yield-sensitive segments (including parts of the REIT and infrastructure universe)
Singapore’s “stability premium” can help cushion risk assets when global policy uncertainty rises ^[5]

In a year where investors have repeatedly questioned the durability of the global rally, Singapore’s positioning as a high-quality alternative to US dollar assets has become a theme that equity investors can’t ignore. ^[6]

Stocks to watch on SGX: Singtel in focus after Optus outage review

The most prominent Singapore-linked corporate headline today wasn’t a quarterly earnings beat — it was a governance-and-resilience story tied to Singtel’s Australian subsidiary Optus.

An independent review into Optus’ Sep 18 outage (which disrupted emergency “Triple Zero” calling) found gaps in process, accountability, escalation and information protocols, and also flagged cultural issues that affected decision-making and response times. ^[7]

Key details reported by major outlets include:

Only 150 out of 605 attempted emergency calls were successfully connected during the outage (about a 75% failure rate)
The incident was linked to two deaths, according to the review
Optus’ board accepted all 21 recommendations, with implementation expected to move quickly
The board also indicated actions on accountability, potentially ranging from financial penalties to termination in appropriate cases ^[8]

For SGX investors, the takeaway is less about a single trading session and more about headline risk, regulatory scrutiny, and the operational-risk discount that markets can apply to telecom assets when critical infrastructure failures occur.

Singapore’s Business Times also flagged the development as a catalyst likely to affect trading attention around Singtel. ^[9]

REIT and income investors’ radar: Stoneweg Europe Stapled Trust refinancing

On the yield side of the market, Stoneweg Europe Stapled Trust (SERT) drew attention after announcing it had refinanced and extended an €85 million unsecured facility, aimed at strengthening its debt maturity profile and liquidity position. ^[10]

According to The Business Times:

€70.6 million will be initially drawn to refinance an outstanding loan
The facility includes an “accordion” option that may increase total capacity up to €185 million
The refinancing introduces credit-rating features tied to facility margin calculations ^[11]

In a market that has spent much of the last few years recalibrating how it prices leverage and refinancing risk in listed property vehicles, balance-sheet optimisation updates like this tend to be watched closely — even when the broader index is quiet.

The global backdrop that mattered for Singapore equities today

Even when Singapore-specific news is busy, the STI often trades to a global rhythm — and today’s rhythm was set by two cross-currents:

1) Tech-led volatility and AI spending anxiety
Asian equities tracked weaker US tech sentiment as investors questioned the pace and financing of AI infrastructure expansion. ^[12]

2) Central banks and “policy divergence” risk
Markets were bracing for multiple rate decisions, with investors focused on what policy guidance might imply for 2026, especially amid debate around US rate cuts and future Fed leadership dynamics. ^[13]

There were also commodity and geopolitics angles in play — including higher oil prices linked to US actions around sanctioned Venezuelan tankers — which can subtly influence inflation expectations and rate narratives globally. ^[14]

Forecasts and outlook: What analysts are watching into 2026

While “today’s” STI move was small, investors are increasingly trading Singapore equities with a 2026 frame in mind: dividends, policy support, and whether global volatility spills over into Asia’s financial hubs.

One widely circulated 2026 outlook from DBS set an end-2026 STI target of 4,880, describing expectations for more moderate gains after 2025’s re-rating. The note also pointed to FY26 earnings growth led by heavyweight sectors and an STI dividend yield that remains attractive for income-oriented investors. ^[15]

At the same time, the balance of risks is shifting. A recent Reuters report on the MAS survey of economists flagged that AI bubble concerns have emerged more explicitly as a downside risk — a notable point given how closely global equity direction has been tied to the AI theme. ^[16]

What to watch next for Singapore stocks

With the STI still moving in relatively measured steps, the near-term direction for Singapore equities may hinge on whether global volatility intensifies — and how quickly local investors rotate between defensives and cyclicals.

Key catalysts investors are likely to track next:

Follow-through from major central bank decisions and guidance (rates, inflation trajectory, and policy credibility) ^[17]
Any escalation (or relief) in AI-related valuation and spending concerns driving global tech ^[18]
Additional headlines around Singtel/Optus implementation steps and potential regulatory consequences ^[19]
Refinancing and balance-sheet updates across REITs and yield counters as investors position for 2026 ^[20]

Bottom line: Singapore’s stock market today reflected a familiar late-year setup — muted index movement, global-driven caution, and stock-specific stories that can dominate attention even when the STI barely budges. ^[21]

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