Singapore Stock Market Today, 3 December 2025: STI Extends Rally on Fed Cut Hopes and UltraGreen.ai’s Blockbuster IPO

Singapore’s stock market extended its year-end rally on Wednesday, 3 December 2025, as the Straits Times Index (STI) logged a sixth straight day of gains. Rate‑cut optimism, a record‑high OCBC share price and the high‑profile UltraGreen.ai listing on SGX all helped keep sentiment risk‑on, even as broader market breadth remained slightly negative. ^[1]

Key takeaways for 3 December 2025

STI closes at 4,554.52, up 0.4% (16.56 points), its sixth consecutive advance and near a three‑week high. ^[2]
Blue‑chip banks rallied: OCBC hit an all‑time closing high at S$18.95 (+1%), while DBS and UOB gained 0.5% and 0.6% respectively. ^[3]
UltraGreen.ai’s mainboard IPO – the largest non‑REIT listing since 2017 – closed 4.8% above its US$1.45 offer price after intraday gains of up to 12%. ^[4]
Infinity Development’s Catalist debut was muted, opening slightly higher but ending flat at S$0.39 after raising S$13.7 million via a 35.1‑million‑share placement. ^[5]
Market breadth was negative: decliners (297) outpaced gainers (275) on 1.3 billion shares traded, worth just over S$1.4 billion, suggesting gains were concentrated in large caps. ^[6]
Analysts remain broadly constructive for 2026, with RHB Research forecasting STI earnings growth of ~7.5% in 2026 and maintaining themes around S‑REITs, high‑yield plays and MAS market‑reform beneficiaries, while OCBC’s wealth team is “positive on Singapore equities for 2026.” ^[7]

STI performance today: sixth straight gain on Wall Street tailwind

Singapore shares tracked the positive tone across Asia, with both the STI and the iEdge Singapore Next 50 Index finishing in the green. The STI added 16.56 points, or nearly 0.4%, to 4,554.52, while the iEdge Next 50 – which is heavy on S‑REITs and mid‑caps – climbed 6.36 points (just over 0.4%) to 1,447.52. ^[8]

Phillip Securities research analyst Zane Aw noted that this marks the sixth consecutive up day for the benchmark index, attributing the move to “an extended recovery in Wall Street” and persistent expectations that the US Federal Reserve will cut interest rates next week. ^[9]

According to CME FedWatch figures cited by The Business Times, US rate futures now price an about 87% chance of a 25‑basis‑point Fed cut at the 10 December meeting, while OCBC’s latest daily markets dashboard shows fed funds futures essentially pricing a full 25‑bp easing into that meeting. ^[10]

Breadth, however, was less convincing:

Decliners: 297
Gainers: 275
Volume: about 1.3 billion securities
Value: just over S$1.4 billion ^[11]

That pattern – indices up but breadth slightly negative – suggests big banks and selected blue chips did the heavy lifting, while many small and mid‑cap counters were either flat or weaker.

Global and regional backdrop: rate‑cut optimism and resilient Asia outlook

Today’s move in Singapore sits within a broader global risk‑on narrative:

Overnight, US equities extended their rally on hopes that the Fed is approaching a more sustained easing cycle, with Business Times highlighting how rate‑cut bets have risen even as US macro data remain broadly healthy. ^[12]
Across the region, most Asian markets traded higher, with The Edge noting that Indonesian equities even hit a record high, while also pointing out that Singapore’s STI had risen as much as 0.4% intraday and was on its sixth straight up session. ^[13]

On a 2026 macro horizon, a widely read Business Times guest piece from Lombard Odier projects Asia’s GDP growth at around 4% in 2026, outpacing the roughly 3% global average. The bank expects the MSCI Asia ex‑Japan index to deliver mid‑to‑high single‑digit equity returns, aided by continued portfolio inflows as US rates drift lower and the dollar weakens. ^[14]

The same analysis sees:

The Fed delivering another 75 bps of cuts through 2026, taking the terminal Fed funds rate to about 3%. ^[15]
Liquidity tailwinds for emerging Asia as a softer US dollar encourages capital flows into Asian local‑currency bonds and equities. ^[16]

For Singapore, a small, open economy with a yield‑heavy equity market, this combination of moderating global rates, steady growth and soft‑landing hopes remains a key driver of the year‑end rally we’re seeing in December.

Banks and blue chips: OCBC hits record high, DFI leads the STI

OCBC: record price, still high yield

Local banks were again at the centre of today’s move:

OCBC climbed 1% (S$0.18) to S$18.95, a new record closing high. ^[17]
DBS gained 0.5%, ending at S$54.43.
UOB added 0.6% to close at S$34.55. ^[18]

A separate December 2025 deep‑dive on OCBC shares notes that at prices in the high‑S$18 range, the bank trades at about 1.4x price‑to‑book, above its long‑term average (~0.94x) but still cheaper than DBS (P/B > 2.2x). Based on 2025 distributions, OCBC’s dividend yield is roughly 4.4–5.3% depending on whether special dividends are included. TS2 Tech

The same analysis highlights:

Q3 2025 net profit of about S$1.98 billion, flat year‑on‑year but up ~9% quarter‑on‑quarter.
Net interest margins that are trending lower as rates normalise, but record non‑interest income (wealth, fees, trading, insurance) helping offset this pressure. TS2 Tech

In other words, today’s record share price is underpinned by resilient earnings and a generous capital‑return programme rather than speculative euphoria alone, though valuations are clearly richer than in previous years.

DFI Retail Group: quiet newsflow, strong price action

Among STI constituents, DFI Retail Group was the top performer, jumping 4.9% to US$3.67, a 52‑week high, despite the absence of fresh market‑sensitive disclosures. ^[19]

The move likely reflects:

A continued rotation into defensives and consumer staples amid rate‑cut expectations.
Bottom‑up interest in pan‑Asian retail names that could benefit if Asian consumption strengthens in 2026, as suggested by the broader Asia macro outlook. ^[20]

Most‑active counters: speculative pockets stay busy

On the activity front, CapAllianz again topped the volume table, with 109.4 million shares changing hands. The Catalist‑listed investment holding company – with business lines including software development and IT consulting – finished unchanged at S$0.002 despite the heavy turnover. ^[21]

That pattern – very high volume but no price progress – shows that speculative trading remains lively, but the day’s index gain came primarily from banks and larger blue chips, not penny stocks.

IPO spotlight: UltraGreen.ai and Infinity Development energise SGX

One of the biggest stories on the Singapore market today was the return of sizeable IPOs, a key focus for policymakers trying to revitalise SGX’s listing pipeline.

UltraGreen.ai: largest non‑REIT IPO since 2017

UltraGreen.ai – a fluorescence‑guided surgery technology and imaging specialist – made its SGX mainboard debut in what The Business Times calls the largest non‑REIT IPO since 2017. ^[22]

Key details:

Offer price: US$1.45 per share.
Funds raised: about US$150 million from the base offering, with a market capitalisation of roughly US$1.6 billion on listing. ^[23]
Subscription: overall book about 13.6x subscribed, with the Singapore public offer 4.5x covered and the international tranche around 14.1x. ^[24]
First‑day trading:
- Opened at around US$1.51.
- Hit an intraday high of US$1.62 (+12% vs offer).
- Closed at US$1.52, up about 4.8% for the day on over 36 million shares traded. ^[25]

A Finimize market brief notes that UltraGreen.ai’s success – alongside Infinity Development’s listing – is a strong signal that investor appetite for growth and tech‑adjacent stories is returning to Singapore, after years in which the market was dominated by dividend and REIT names. ^[26]

Infinity Development: modest but strategic Catalist debut

Over on the Catalist board, Infinity Development Holdings – a Hong Kong‑based manufacturer of adhesives for footwear and electronics – also began trading today. ^[27]

Key highlights:

IPO structure: 35.1 million placement shares at S$0.39 apiece, raising gross proceeds of about S$13.7 million and net proceeds of around S$11.1 million. ^[28]
Use of proceeds:
- ~S$6.2 million for overseas expansion.
- ~S$2.4 million for acquisitions, JVs or strategic alliances.
- ~S$2.4 million for working capital. ^[29]
Trading on debut:
- Opened at S$0.395 (+1.3%), briefly touched S$0.40, then settled back to close flat at S$0.39 with about 4.7 million shares traded. ^[30]

The company sees itself as a future leading footwear‑adhesive supplier in Asia, with a presence in markets such as Bangladesh, Vietnam, Indonesia and China. Management highlights industry research projecting the Asian footwear adhesives market to grow at 4.5–5.5% CAGR through 2029, reaching US$1.2–1.8 billion in size. ^[31]

Combined, UltraGreen.ai and Infinity Development underpin the narrative – articulated by SGX and MAS – that Singapore wants to be a capital‑raising hub not just for traditional industrial and property plays but also for health‑tech, data and manufacturing supply‑chain names. ^[32]

Mid‑caps, REITs and the “Next 50”: how broad is the rally?

The iEdge Singapore Next 50 Index, which tracks a basket of mid‑cap and emerging blue‑chip stocks and is heavily represented by S‑REITs, rose slightly more than the headline STI today, up just over 0.4%. ^[33]

This matters because several brokerages see small and mid‑caps (SMID caps) and REITs as key beneficiaries of lower interest rates and MAS’ Equity Market Development Programme (EMDP):

RHB Research’s Singapore Market Strategy (published in late November) argues that Singapore’s macro outlook is “constructive” and that market earnings are set to grow by more than 7% per annum in 2026–2027, with consensus STI profit growth of 7.5% in 2026 and 7.2% in 2027, led by industrials, telecommunications and real estate. ^[34]
RHB also raised its end‑2025 STI target to 4,690, from 4,300 previously, based on 13.5x 2026F P/E – implying roughly 3% upside from today’s close near 4,554. ^[35]
Their key themes include:
- Building exposure to S‑REITs (especially industrial and prime office names) to benefit from falling funding costs.
- High‑yield plays outside REITs such as ComfortDelGro, StarHub and Bumitama.
- EMDP beneficiaries and Next 50 constituents like Centurion, Frencken and CSE Global, which may see improved liquidity and valuations as MAS reforms deepen the market. ^[36]

Separate strategy notes from DBS and Phillip Securities over the past quarter have echoed this, flagging a “sweet spot ahead of a year‑end rally” for small‑mid caps linked to the iEdge SG Next 50 and MAS’ S$5 billion EMDP push. ^[37]

Today’s price action supports that narrative: although the move was modest, the Next 50’s outperformance versus the STI hints that investors are just beginning to broaden out beyond the big banks and industrials.

How are strategists positioning Singapore for 2026?

Beyond the day‑to‑day moves, several major houses released or updated 2026 outlooks in recent weeks that are highly relevant to today’s trading.

1. OCBC Investment Research / OCBC Wealth Panel

Minichart’s summary of “Singapore Market Outlook 2026: Strong Growth, Top STI Stocks & Investment Themes Explained” (published today and based on OCBC Investment Research) notes that the broker maintains an “Overweight” stance on Singapore equities heading into 2026. ^[38]

This aligns with OCBC’s own Market Insights page, which highlights:

A “constructive” view on risk assets in 2026.
A dedicated feature stating they are “Positive on Singapore equities for 2026”.
A “Stable economic outlook for 2026” at the global level, reinforcing their preference for quality equities and bonds in the region. ^[39]

Taken together, OCBC’s house view suggests:

Moderate but steady earnings growth for Singapore corporates.
Ongoing appeal of high‑dividend blue chips and S‑REITs, especially as yields start to look attractive versus falling bond yields.
Opportunities in structural themes like digital payments (e.g., OCBC’s new WeChat Pay QR initiative) and healthcare/med‑tech (e.g., UltraGreen.ai). TS2 Tech+2The Business Times+2

2. RHB: higher STI target and REIT overweight

As noted earlier, RHB’s late‑October Singapore Market Strategy:

Raises the STI year‑end 2025 target to 4,690.
Expects further Fed easing in December 2025 and additional cuts in 2026, which should narrow yields and re‑rate S‑REITs. ^[40]
Emphasises a rotation from banks into REITs as the rate‑cut cycle matures, while still acknowledging banks’ strong balance sheets and dividend support. ^[41]

They also highlight MAS’ “Value Unlock” reforms and the EMDP as forces that could lift valuations for under‑owned Singapore names, especially in transport, healthcare, telcos and consumer staples – sectors that align with several of today’s gainers. ^[42]

3. Asia‑wide context: Lombard Odier’s constructive base case

At the regional level, Lombard Odier’s Asia 2026 outlook published late last week underscores that:

Asia’s GDP is expected to grow about 4% in 2026, roughly matching 2025 and beating the global average.
The MSCI Asia ex‑Japan index is projected to deliver mid‑to‑high single‑digit returns, supported by improving earnings and reasonable valuations (forward P/E ~15x vs 23x for the S&P 500). ^[43]

Singapore, with its:

Strong banking system,
Deep REIT market, and
Increasing pipeline of regional IPOs

is well‑placed to act as a “funding gateway” in that scenario, a role already highlighted in today’s Finimize note on Singapore stocks. ^[44]

What today’s move means for investors

Putting all these strands together, here’s how the 3 December 2025 session fits into the bigger picture:

Momentum is positive, but leadership is narrow
- The STI is grinding higher and sits within sight of RHB’s 4,690 year‑end target.
- Gains are still dominated by banks and a handful of blue chips; breadth remains slightly negative, so this is not yet a full‑blown risk‑on stampede. ^[45]
Rate‑cut expectations remain the primary macro driver
- Fed cut odds above 80% for next week and additional easing projected for 2026 underpin the case for equities and REITs over cash and short‑term bonds. ^[46]
IPOs are strengthening SGX’s “new economy” credentials
- UltraGreen.ai brings a health‑tech, AI‑driven data platform to the market, while Infinity Development adds an industrial‑supply‑chain angle via adhesives.
- Strong oversubscription for UltraGreen.ai and decent interest in Infinity suggest investors are willing to fund growth stories again, not just yield plays. ^[47]
Strategists see room for further gains in 2026 – with caveats
- Both OCBC and RHB are constructive on Singapore equities for 2026, citing earnings growth, attractive dividends and supportive policy reforms. ^[48]
- Key risks remain: a surprise resurgence in US inflation, mis‑execution of China’s economic pivot, or renewed trade tensions could all derail the benign base case. ^[49]
Portfolio implications (general, not personalised advice)
- For globally diversified investors, today’s action reinforces Singapore’s role as a defensive‑plus‑income market: high dividend yields, strong banks, and REITs that benefit from falling rates.
- For more growth‑oriented investors, the return of tech‑adjacent and healthcare IPOs on SGX offers fresh stock‑picking opportunities, but also higher volatility and company‑specific risk.

As always, the right mix of Singapore exposure depends on your own objectives, risk tolerance and time horizon. Any allocation or stock selection should be made with those factors in mind, ideally with professional advice.

What to watch next

Looking ahead from today’s close, investors in Singapore will be watching:

10 December 2025 Fed meeting – confirmation (or not) of the widely expected 25‑bp cut. ^[50]
Further price action in UltraGreen.ai and Infinity Development – will the early enthusiasm for IPOs sustain, and will more issuers follow in Q1 2026? ^[51]
MAS’ continued implementation of market‑reform and equity‑development measures, which RHB, Maybank and others argue could gradually re‑rate undervalued Singapore stocks and deepen secondary‑market liquidity. ^[52]

If those pillars hold, 3 December 2025 may be remembered less as a one‑off daily pop and more as another step in a slow‑building, policy‑supported re‑rating of Singapore’s equity market.