Singapore Stock Market Today (Dec 12, 2025): STI Jumps Above 4,578 as Fed Cut Tailwinds Meet Tech-Valuation Jitters

Singapore stocks ended Friday on a strong note, with the Straits Times Index (STI) climbing 1.27% to 4,578.10 as investors extended the post–Federal Reserve rate-cut relief rally—while still keeping one eye on renewed volatility in global tech following a sharp sell-off in Oracle and broader “AI trade” nerves. ^[1]

The day’s action was shaped by two overlapping forces: (1) easier-rate expectations supporting financials and dividend-heavy markets across Asia, and (2) valuation anxiety in tech weighing on risk appetite globally—an important crosscurrent even for Singapore’s bank- and defensive-heavy benchmark. ^[2]

Market snapshot: STI closes higher, tests fresh highs

The STI closed at 4,578.10, after trading between 4,553.25 and an intraday high of 4,579.61. ^[3]

That move nudged the index above its prior 2025 peak of 4,575.91 (set in mid-November, per widely followed index tracking), placing Singapore’s bellwether back in the spotlight heading into year-end positioning. ^[4]

Early in the session, the benchmark was already showing clear upward momentum: a delayed quote indicated the index around 4,561.53 (+0.90%) by mid-morning Singapore time—before gains broadened further into the close. ^[5]

What drove Singapore shares today

1) Global rates: Fed cut supports “carry” markets and financials

Asian equities were generally firmer as investors digested a Fed rate cut and a tone markets interpreted as less hawkish than feared, pushing the US dollar to a two‑month low and reinforcing expectations for at least two US rate cuts next year. ^[6]

For Singapore, that backdrop matters because:

The STI is heavily exposed to rate-sensitive and yield-oriented segments (banks, REITs, defensives), which typically benefit when the market starts to price in a gentler path for global funding costs. ^[7]

2) Tech nerves: Oracle shock revives “AI bubble” chatter

The rally came with caveats. A fresh wave of caution rippled across markets after Oracle shares fell sharply on earnings and heavy investment spending that reignited debate about how quickly AI-related bets will pay off—a theme also echoed by broader concern over tech valuations. ^[8]

While Singapore’s benchmark is not a tech index, global tech sentiment often influences:

regional risk appetite,
offshore fund flows,
and whether investors rotate into defensives versus momentum trades.

3) Macro watch: labour-market signals and “next data” positioning

US jobless claims surprised to the upside even as the labour market was described as broadly stable—another reason markets are now laser-focused on upcoming releases (including delayed US jobs data) for clues on the Fed’s 2026 trajectory. ^[9]

Singapore corporate news moving SGX attention today

Several Singapore and Singapore-listed names had major developments flagged for Friday trading—important for stock-specific flows even when the index tone is set offshore.

Sembcorp Industries: A$6.5b Alinta Energy acquisition

Sembcorp announced it will acquire Australian utilities provider Alinta Energy, with an agreed enterprise value of A$6.5 billion and an estimated purchase price of A$5.6 billion, to be funded in cash via facilities (including bridge financing). ^[10]

Singapore property developers: DBS Research turns more bullish

In a notable sector call, DBS Research adopted a bullish stance on Singapore developers, lifting target prices for names including CDL, UOL and GuocoLand, and flagging potential upside of 28% to 64% from the reference trading levels cited. ^[11]

Seatrium: New offshore wind grid connection contract momentum

Seatrium said a consortium including Seatrium and GE Vernova secured a contract from TenneT to connect North Sea wind power to Germany’s grid. Seatrium also indicated the value of new contracts secured for FY2025 has reached over S$4 billion to date. ^[12]

Singtel: S$1 million IMDA fine over 2024 voice disruption

Singtel was fined S$1 million by Singapore’s Infocomm and Media Development Authority (IMDA) linked to a 2024 voice disruption that affected about 500,000 users for more than four hours, according to the report. ^[13]

Hongkong Land: Private real estate fund push accelerates

Hongkong Land said it made “significant advancements” toward launching its first private real estate fund, following its earlier MBFC Tower 3 stake transaction headlines. The new entity was described as expected to hold more than S$8 billion in AUM at inception. ^[14]

Analyst forecasts & broker calls published today

Beyond the day’s tape, fresh analyst notes and broker calls dated Dec 12 outlined concrete forecasts—ranging from multi‑year earnings targets to revised price targets—offering a roadmap for what local institutions are watching into 2026.

DFI Retail: New earnings targets and higher dividend payout guidance

A key focus today was DFI Retail Group, with analysts reacting to management’s financial targets and shareholder return posture.

Highlights from the Dec 12 analysis:

DFI expects underlying profit CAGR of 11%–15%, targeting US$310m to US$350m by 2028, versus US$201m underlying profit reported for FY2024. ^[15]
DFI also indicated a new dividend policy targeting a 70% payout ratio (up from 60%), effective from the final dividend of 2025. ^[16]
DBS Group Research maintained a “buy” and raised its target price to US$4.50 (from US$3.90), explicitly tying the higher valuation to clearer targets and the higher payout ratio. ^[17]
RHB also maintained a “buy” and raised its target price to US$4.50, citing margin and efficiency levers plus store expansion. ^[18]
CGS International reiterated an “add” and likewise lifted its target price to US$4.50, pointing to margin improvement expectations and dividend guidance. ^[19]

Why it matters for the STI: DFI Retail is an STI constituent and has been framed as among the stronger STI performers year-to-date, so upgrades and target hikes can influence both index points and broader sentiment around “re-rating” opportunities inside Singapore’s relatively concentrated benchmark. ^[20]

Broker’s Digest: today’s updated target prices in Singapore stocks

A separate set of broker calls published today highlighted these rating/target moves:

Sheng Siong: DBS downgraded to “hold”, target price S$2.60, arguing a “SG60 voucher tailwind” and other positives are largely priced in at around 24x FY2026 earnings. ^[21]
Nanofilm: Tickrs Financial initiated “buy”, target price S$0.75, expecting the rebound to accelerate on diversified growth drivers (including recovery in electronics and growth in automotive coatings/hydrogen solutions). ^[22]
Lincotrade & Associates: SAC Capital initiated “buy”, target price S$0.301, citing an order book that doubled to S$113m (as of Sept 30) and improved revenue visibility. ^[23]
Singtel: Citi resumed coverage with “buy”, target price S$5.08, describing the recent share price correction as offering “better value,” while noting risks around potential Australia-related fines could be mitigated by liquidity/capital management factors. ^[24]
Lum Chang Creations: Lim & Tan Securities maintained “buy”, lifted target price to S$0.70, pointing to brighter prospects and raising its earnings expectation (including a cited FY2026 earnings figure). ^[25]

What to watch next for Singapore stocks

1) Next macro catalyst: US jobs data (and the rate path narrative)

With markets still repositioning after the Fed’s move, attention is shifting to upcoming labour-market signals—especially delayed US jobs data next week referenced as a key input for how investors interpret the Fed’s next steps. ^[26]

2) Tech valuation volatility remains a live risk—even for Singapore

Today’s rebound doesn’t erase the market’s sensitivity to the “AI profitability timeline” debate. Further earnings surprises or capex concerns in global tech could trigger fast rotations (risk-on/risk-off) that spill into Asia via ETFs and macro funds. ^[27]

3) Singapore stock-picking is back in focus

The day’s news flow was not just macro-driven. A cluster of company-specific catalysts—from Sembcorp’s Australia deal to Seatrium’s offshore wind work and Hongkong Land’s fund progress—suggests that into year-end, SGX trading may increasingly reward investors who track corporate execution and sector rotation, not just index direction. ^[28]

Bottom line

On Dec 12, 2025, Singapore equities delivered a decisive upside session as the STI rose 1.27% to 4,578.10, testing fresh highs on the back of easier-rate optimism—even as tech valuation concerns (reignited by Oracle’s slide) kept global markets selective. ^[29]