Singapore Stock Market Today (20 Dec 2025): STI Ends Week Flat Near 4,570 as Banks Hold Record Highs; 2026 Outlook Turns More Bullish

Singapore’s stock market is closed on Saturday, 20 December 2025, but investors ended the week with the Straits Times Index (STI) still parked near multi-year highs after a muted final session on Friday. The takeaway from the latest trading day: steady breadth, selective buying, and a market that’s increasingly being framed as a 2026 “dividend + re-rating” story—led by banks, supported by macro stability, and shaped by global rate-cut expectations. ^[1]

Below is a round-up of the key news, forecasts, and market analysis circulating as of 20.12.2025, and what they may mean for the first trading week ahead of year-end.

Singapore stocks close virtually unchanged heading into the weekend

In the last trading session (Friday, 19 Dec 2025), the benchmark STI edged down 0.02% (0.83 point) to 4,569.78, while the iEdge Singapore Next 50 Index slipped 0.1% (1.51 points) to 1,434.85—a “flat tape” finish that contrasted with firmer moves across parts of the region. ^[2]

Market participation, however, remained healthy:

Advancers beat decliners 329 to 177
1.3 billion securities changed hands
Total turnover hit S$2.1 billion ^[3]

That combination—positive breadth with a near-flat index—often signals rotation rather than retreat, especially typical in the year-end window when investors rebalance and liquidity becomes more uneven.

Top movers: CDL jumps, Yangzijiang slips; CICT most active by volume

The biggest blue-chip moves on Friday underlined how stock-specific the market has become:

City Developments (CDL) led STI gainers, up 4% (S$0.31) to S$7.98
Yangzijiang Shipbuilding was the STI’s biggest decliner, down 2.9% (S$0.10) to S$3.37 ^[4]

Meanwhile, CapitaLand Integrated Commercial Trust (CICT) was the most actively traded STI counter by volume, with 58.7 million units worth S$137.5 million changing hands; it closed 0.4% higher at S$2.34. ^[5]

These moves matter for positioning because they highlight two forces that keep showing up in Singapore-market commentary late in 2025:

Yield and “quality income” demand (a tailwind for REITs and steady blue chips when rates are expected to fall or remain contained)
Stock selection over broad beta (where specific corporate catalysts can move names even when the index is quiet)

Regional backdrop: Japan’s rate move grabs attention, but timing expectations remain cautious

Across the region, sentiment was firmer, and Japan was in focus after its central bank action.

Japan’s Nikkei rose 1% after the Bank of Japan hiked its benchmark interest rate to 0.75%, a level described as the highest in three decades. But at least one economist cited in the regional wrap suggested that while additional tightening may be possible next year, another hike before June 2026 is unlikely—with developments around annual wage negotiations seen as pivotal. ^[6]

For Singapore investors, Japan matters less as a direct macro driver and more as part of the wider “Asia rates and FX” mosaic—especially given Singapore’s positioning as a financial hub and the STI’s heavy weighting in financials and real-estate-linked names.

Banks remain the STI’s centre of gravity—DBS and OCBC set records, UOB still lags

Even with bank counters mixed on Friday, the dominant Singapore equity storyline into 20 Dec remains the banks—particularly DBS and OCBC, which notched record highs earlier in the week.

In a “hot stock” update dated 16 Dec 2025, The Business Times reported:

DBS hit a new record of S$56, and was up 28.1% year-to-date at the time, with JPMorgan having assigned a target price of S$70 (as of a Nov 28 note referenced in the report). DBS later closed that day at S$55.49. ^[7]
OCBC hit a fresh high of S$19.44, up 16.5% year-to-date at the time, and closed at that record level; a DBS Group Research report dated Dec 8 assigned S$19.80 as a target price, according to the same story. ^[8]
UOB, by contrast, was described as trailing peers and down more than 4% year-to-date at one point in that week’s trading; it ended that day at S$34.75. ^[9]

The banking-sector bull case being repeated in late-2025 notes is essentially: stronger capital-return potential, attractive dividend yields, and structural inflows as Singapore becomes an even bigger wealth-management and capital hub. The Business Times report also cited the view that banking tailwinds are supported by dividend yields “up to 6%” and excess capital. ^[10]

DBS gets a China-RMB clearing boost—another “hub premium” catalyst

A notable piece of financial-sector news with longer-run implications: DBS’s appointment as Singapore’s second renminbi (RMB) clearing bank, alongside ICBC Singapore (the first clearing bank designated in 2013). MAS said the move would support the offshore RMB market and facilitate RMB use for trade and investment. ^[11]

Reuters also reported related bilateral financial initiatives—such as a pilot enabling Singapore travellers to use digital RMB wallets in China by year-end and an “over-the-counter” bond market arrangement to broaden institutional access to selected China interbank fixed-income products. ^[12]

For Singapore equities, the key point is not just incremental fee opportunities. It reinforces a broader narrative that can influence valuations: Singapore’s “financial hub premium”—a factor that has supported both bank earnings stories and sentiment toward SGX-linked market development initiatives.

Forecasts: JPMorgan turns more bullish on Singapore equities for 2026—and names top picks

The most direct “market forecast” headline into 20 Dec comes from JPMorgan’s constructive stance on Singapore equities for 2026, as reported by The Business Times.

Highlights of the JPMorgan framing, per the report:

Singapore equity valuations remain attractive, with the yield gap against T-bills tracking above historical averages. ^[13]
Banks are seen benefiting from a 9.3% surge in deposits, supporting margins and wealth growth. ^[14]
JPMorgan highlighted a “S$70 billion cash pile” (described in the report as sitting in savings accounts and fixed deposits) that could rotate into equities. ^[15]
The bank’s seven top picks listed were: DBS, Keppel, City Developments, CICT, Sea, ST Engineering, and Singtel. ^[16]
JPMorgan’s least preferred names in that write-up included UOB and Yangzijiang Shipbuilding. ^[17]

In a market like Singapore—where dividends, balance-sheet strength, and policy-linked catalysts can matter as much as momentum—calls like these often influence positioning into year-end and early January, particularly among local and regional allocators.

OCBC Investment Research: “Overweight” Singapore equities into 2026, with dividends near 5% in focus

Another major house view in the late-December stack: OCBC Investment Research remains positive, arguing the Singapore market “is still not expensive” on STI valuations even after a strong 2025.

Key points from OCBC’s December 2025 note:

OCBC said it has an overweight call on the Singapore stock market and remains positive on the medium-term outlook, arguing the STI’s P/E is not demanding after 2025 performance. ^[18]
It highlighted low domestic interest rates as a tailwind for blue chips and referenced average dividend yields just under 5%. ^[19]
The note also pointed to stronger participation, stating that Q3 2025 trading volume was up 33% quarter-on-quarter and 40% year-on-year, and cited SGX information in linking retail activity to market strength. ^[20]

This aligns with the broader 2025 “Singapore equity re-rating” narrative: rates down, yields attractive, and policy initiatives nudging more liquidity into local equities.

Singapore macro signals: exports beat forecasts; economists lift growth outlook

Macro data and economist forecasts through mid-December have also been feeding the constructive tone.

Exports surprise to the upside

Reuters reported Singapore’s non-oil domestic exports (NODX) rose 11.6% year-on-year in November, beating the median forecast referenced in that report. Enterprise Singapore raised its full-year outlook for both NODX growth and overall GDP growth for 2025, according to the same coverage. ^[21]

For equity markets, export strength tends to support:

cyclical confidence (industrials, logistics),
the “regional tech recovery” narrative that some strategists reference,
and broader risk appetite toward Singapore beta.

MAS survey: higher growth forecasts, low inflation expectations

A separate Reuters report on the MAS survey said economists raised Singapore’s 2025 growth forecast to 4.1% and lifted the 2026 forecast to 2.3%. It also reported forecasts for 2025 core inflation at 0.7% and headline inflation at 0.9%, and noted expectations for MAS to keep policy unchanged. ^[22]

If inflation remains subdued, the knock-on implication for equities is straightforward: it keeps the door open for easier financial conditions—supportive for dividend stocks and rate-sensitive segments, and less restrictive for valuations.

MAS policy outlook: “breathing room” in 2026 if shocks hit, economists say

On 20 Dec 2025, The Business Times reported economists saying low inflation may give MAS “breathing room” to loosen policy in 2026 if growth is unexpectedly hit—though it also noted that resilient growth means tightening is not fully off the table. The baseline expectation cited was for MAS to hold policy steady throughout 2026, after two slight easings in early 2025. ^[23]

For the STI, which is heavily bank- and property/REIT-influenced, the MAS path matters because it shapes the broader rates, FX, and risk premium environment in which investors decide whether a 4.5%–5% dividend yield is “enough” versus cash and bills.

Policy and market structure: STI review shows no constituent changes; reserve list updates go live 22 Dec

For index investors and ETF flows, a notable technical update is the STI quarterly review.

SGX announced (via a corporate announcement dated 4 Dec 2025) that there were no changes to STI constituents following the December 2025 quarterly review. It also said the STI reserve list would change, with CapitaLand Ascott Trust and Sheng Siong Group entering, and Olam Group and Yangzijiang Financial Holding exiting. The updated reserve list (alphabetical) was stated as:

CapitaLand Ascott Trust
Keppel REIT
NetLink NBN Trust
Sheng Siong Group
Suntec REIT

SGX added that changes take effect at the start of business on 22 December 2025, and that the next review would be in March 2026. ^[24]

Even when constituents don’t change, this kind of “index plumbing” can matter around year-end because some managers track reserve-list dynamics and corporate actions that can pull names into eligibility.

Global cue into Monday: Wall Street rebounds; “Santa rally” watch turns louder

While Singapore was winding down into the weekend, US markets provided a potentially supportive lead for the next open.

Reuters reported that on 19 Dec 2025, Wall Street climbed as a tech rebound gained momentum—supported by AI-linked optimism and Micron’s forecasts—while consumer names such as Nike slid. ^[25]

Separately, Reuters’ “week ahead” framing highlighted investors watching for a possible Santa Claus rally into year-end, while also noting recent volatility and ongoing uncertainty around the Federal Reserve’s 2026 path. ^[26]

For Singapore, the transmission mechanism is less “STI equals Nasdaq” and more nuanced:

Tech sentiment can affect Singapore-listed tech-exposed names and broader risk appetite.
Global rate-cut expectations can influence dividend-demand and REIT sentiment.
Year-end positioning can amplify moves in less liquid pockets of the market.

What to watch next for the Singapore stock market

With the STI ending the final full week before Christmas essentially flat, the near-term playbook into year-end (and the first sessions of 2026) is likely to revolve around a few high-signal catalysts:

Banks and capital return headlines
The market continues to price the idea that excess capital and dividend visibility can keep banks bid. ^[27]
Macro follow-through after strong exports
Investors will watch whether export strength broadens beyond a handful of segments and supports earnings confidence. ^[28]
MAS expectations and inflation prints
Low inflation plus steady policy expectations keep the “yield trade” alive, especially if global central banks also turn more accommodative. ^[29]
Liquidity/flow factors into year-end
Multiple research views have flagged potential rotation of cash into equities and policy-linked support for the local market—if realised, this could be most visible in high-dividend blue chips and selected mid-caps. ^[30]

Bottom line

As of 20.12.2025, Singapore’s stock market narrative is less about a single “today” headline and more about a steady, yield-backed grind: the STI is consolidating near highs, banks remain the index’s anchor, and major strategists are increasingly talking about 2026 upside—supported by valuations, dividends, potential inflows, and a macro backdrop that looks stable rather than inflation-stressed. ^[31]

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