Singapore stocks head into the Christmas Eve session with the Straits Times Index (STI) sitting at fresh highs, local inflation staying subdued, and Wall Street providing a late-year tailwind after the S&P 500 printed another record close overnight. The main caveat for traders and investors this morning: liquidity will likely be thin, with SGX running a half-day and global desks already in holiday mode—conditions that can amplify small price moves.
Singapore shares at record levels as banks keep leading the STI
The headline into Wednesday’s open is straightforward: Singapore’s benchmark is at an all-time high.
On Tuesday (Dec 23), the STI rose 0.6% (28.68 points) to close at 4,638.97, after authorities maintained their inflation forecasts while November’s inflation prints remained mild. [1]
The rally has been broad enough to keep the index grinding higher, but the leadership has remained familiar. Financials—especially the big three banks—continue to do much of the heavy lifting. In the Dec 23 session, all three local lenders finished higher, with DBS, OCBC and UOB gaining ground. [2]
A separate market wrap noted that financials helped lift Singapore shares to another all-time high, with DBS and OCBC hitting lifetime highs and cited as key drivers of index gains. [3]
Zooming out, the STI’s 2025 performance has been strong enough to reshape how investors talk about Singapore equities. The same Reuters-linked report said the STI is up about 22% for the year, positioning it for a second straight annual gain, while ST Engineering has surged nearly 80% this year. [4]
That combination—index momentum plus leadership from high-quality large caps—sets up today’s session with a “hold-the-line” feel: investors will likely be more focused on preserving year-end levels than initiating major new positions in a shortened, lower-volume market.
Singapore inflation stays cool, keeping the “soft-landing” narrative intact
Singapore’s latest inflation data remains a supportive macro backdrop for risk assets—especially rate-sensitive pockets of the market.
Reuters reported that core inflation rose 1.2% year-on-year in November, slightly below economists’ median forecast of 1.3%, and unchanged from October; headline inflation also came in at 1.2%, also below the 1.3% consensus. [5]
Why it matters for the SGX open:
- Rates and discounting: Steady-to-lower inflation pressure can keep local financial conditions from tightening unexpectedly, which tends to be constructive for equities with longer-duration cash flows.
- Sector positioning: A benign inflation picture often helps sustain demand for dividend and “yield” trades(including REITs and defensive blue chips) when investors are balancing equity exposure with income.
This inflation tone also fits with broader economist expectations that 2026 growth will likely cool from 2025’s pace, even as Singapore avoids a hard landing. A recent MAS survey relayed by Reuters showed economists raising their 2025 growth forecast to 4.1%, while expecting 2026 growth of 2.3%, with monetary policy broadly expected to be held steady. [6]
In practical terms: the market’s base case looks less like “overheating risk” and more like “moderation”—a backdrop that can support Singapore’s defensive, dividend-rich profile.
Christmas Eve trading hours on SGX: what “before the bell” means today
Because it’s Dec 24, traders should treat the session structure as part of the market call.
According to DBS’s Singapore market trading-hours guide, on half-day trading the key phases are:
- Pre-open: 08:30–08:58/08:59 (random end)
- Continuous trading: 09:00–12:00
- Trade-at-Close (TAC): 12:06–12:16 (after the pre-close/non-cancel phases) [7]
That means the “opening bell” matters more than usual: if institutions or funds want to adjust exposure, much of that activity gets compressed into a shorter window. It also means any late-day global headlines (especially out of the US) may have less opportunity to be reflected in Singapore cash equities today because the market closes around midday.
Overnight global cues: Wall Street’s record close meets holiday-thinned volumes
Global sentiment coming into Singapore’s open leans mildly constructive.
A Reuters-linked global markets update carried by Channel NewsAsia said major stock indexes advanced after stronger-than-expected US data, with the S&P 500 notching a record closing high. It also highlighted that US Q3 GDP rose at a 4.3% annualised rate, above the Reuters-polled consensus of 3.3%. [8]
The Straits Times’ market report echoed the same setup: US stocks rose on Dec 23, the S&P 500 closed at a record, and the stronger GDP reading contributed to bond-market repricing and reduced expectations for an imminent January rate cut. [9]
But the tone comes with an important holiday asterisk. The same Straits Times piece noted that trading volumes were already light and expected to thin further into Christmas, with US markets closing early on Dec 24 and shut on Dec 25. [10]
For Singapore traders, the implication isn’t necessarily “risk-on surge”—it’s more nuanced:
- Positive US closes can buoy Asia at the margin.
- But holiday liquidity can make price action choppy, headline-driven, and sometimes misleading.
Cross-asset signals: record precious metals and a firmer Singapore dollar
Two cross-asset trends stand out this morning because they can influence sector rotations and macro expectations: a powerful precious-metals rally and a steady-to-firmer FX backdrop in Asia.
Precious metals hit new highs
The Business Times reported that silver breached the US$70/oz level, with spot silver around US$71.22, after touching a record high intraday; it added that silver prices are up 147% year-to-date. The same report said spot gold rose to around US$4,492.99 after hitting a record, while spot platinum climbed to about US$2,268.95 after also reaching a record. [11]
Channel NewsAsia’s Reuters-linked markets piece similarly noted that silver, gold and platinum set new records, underscoring how strong the move has been across the complex. [12]
While Singapore doesn’t have a large roster of pure-play precious-metals miners, these moves still matter because they can:
- Reinforce inflation/real-rate narratives globally
- Shift attention toward commodity-linked earnings and hedge-like exposures
- Affect market psychology when “safe haven” assets are strong at the same time equities are near highs
Singapore dollar edges higher
In Asia FX, the Reuters-linked report carried by The Star said the Singapore dollar inched higher and was at its strongest level since Oct 2, in a session where regional currencies were largely supported by a softer US dollar. [13]
For Singapore equities, a firmer SGD can be a double-edged sword:
- It can help on imported inflation and purchasing power narratives.
- But it may temper enthusiasm in pockets with significant foreign-currency revenue sensitivity (depending on hedging and reporting).
What to watch at the SGX open: likely themes, not just tickers
With the STI at record highs and the session shortened, the market’s “how” may matter as much as the “what.”
1) Banks and financials: will leadership broaden or concentrate further?
The bank-heavy nature of the STI means that even a quiet day can be index-significant if DBS/OCBC/UOB are active. Recent market reports have explicitly pointed to banks as major drivers of record highs. [14]
What to watch: whether buying extends into the wider financial ecosystem (insurers, exchanges, asset managers) or stays concentrated in the big three.
2) Income trades: REITs and high-dividend blue chips in a calm inflation setting
Cool inflation tends to keep income strategies relevant—particularly late in the year when investors are rebalancing for 2026 and looking for carry.
OCBC’s wealth view has been that Singapore equities remain attractive on valuation and income: it said Singapore blue chips can offer average dividend yields just under 5%, and that the Singapore market is “still not expensive” on P/E, supporting an overweight stance. [15]
3) Defence/industrial winners: ST Engineering remains a market talking point
With ST Engineering up sharply this year (nearly 80% per the Reuters-linked report), it remains emblematic of how non-bank heavyweights can still matter to the index narrative in 2025. [16]
4) Liquidity and order-flow signals
Because the trading window is compressed, investors should pay attention to:
- Opening auction dynamics
- Whether volume clusters early (often a sign of institutional rebalancing)
- Any sharp, low-liquidity swings that may mean less than they appear
Market outlook: what strategists expect for Singapore equities after a strong 2025
With 2025 nearly in the books and the STI at record highs, the near-term conversation is increasingly about “what comes next” rather than “what just happened.”
A DBS outlook note (dated Dec 11, 2025) said that after a strong re-rating in 2025, it expects the STI to rise at a gentler pace in 2026, balancing positives such as MAS reforms, safe-haven appeal and attractive yields against uncertainties including slower GDP growth, tariff impacts, the US interest-rate outlook and potential US equity volatility. It put an end-2026 STI target at 4,880, pegged to 14.8x 12-month forward P/E. [17]
That framing is consistent with how many global allocators have been using Singapore: not as the highest-beta growth story in Asia, but as a market where income, balance-sheet quality, and policy credibility can justify premium attention during uncertain cycles.
Bottom line before the bell
As Singapore stocks prepare to open on Wednesday, Dec 24, 2025, the setup is supportive but potentially low-conviction:
- The STI is coming off a record close (4,638.97) and remains driven by heavyweight banks. [18]
- Inflation remains mild (core and headline at 1.2% y/y in November), reinforcing the “stable macro” narrative. [19]
- Wall Street’s record close and strong GDP print provide a positive lead, but holiday liquidity is the overriding condition globally. [20]
- SGX’s half-day schedule compresses price discovery into the morning and early afternoon, raising the odds of sharper moves on lighter volume. [21]
In other words: this looks like a session where investors may prioritize risk management and year-end positioning over bold new bets—yet remain alert, because thin markets can still surprise.
References
1. www.straitstimes.com, 2. www.straitstimes.com, 3. www.thestar.com.my, 4. www.thestar.com.my, 5. www.reuters.com, 6. www.reuters.com, 7. www.dbs.com.sg, 8. www.channelnewsasia.com, 9. www.straitstimes.com, 10. www.straitstimes.com, 11. www.businesstimes.com.sg, 12. www.channelnewsasia.com, 13. www.thestar.com.my, 14. www.thestar.com.my, 15. www.ocbc.com, 16. www.thestar.com.my, 17. www.dbs.com, 18. www.straitstimes.com, 19. www.reuters.com, 20. www.channelnewsasia.com, 21. www.dbs.com.sg
