Singapore Stock Market Today: STI Climbs After Fed Rate Cut as Keppel REIT Deal, Job Data and Dividend Plays Drive SGX

Singapore’s stock market entered Thursday’s session with a cautiously upbeat tone, and by mid‑afternoon the Straits Times Index (STI) was trading around 4,528–4,530 points, about 0.3–0.4% higher than Wednesday’s close of 4,511.90. ^[1]

A fresh US Federal Reserve rate cut, a blockbuster office deal by Keppel REIT, strong Q3 labour market data, and a steady drumbeat of dividend and REIT ideas are setting the tone for Singapore stocks today.

Market snapshot: STI edges higher after Fed cut

On Wednesday, the STI barely moved, slipping 0.03% to 4,511.90, as investors waited for the Fed’s final policy decision of 2025. ^[2]

Overnight, the Federal Reserve delivered the widely expected 0.25 percentage‑point rate cut, its third of 2025, while signalling it may now pause further easing. Policymakers nudged up their 2026 US GDP growth forecast to 2.3%, kept unemployment projections steady and, crucially, avoided a hawkish tone – a combination that pushed Wall Street higher, with the S&P 500 up about 0.7%, the Nasdaq up 0.3% and the Dow gaining just over 1%. ^[3]

That positive backdrop flowed into Asia. By midday, the STI was up 0.3%, alongside modest gains in Hong Kong’s Hang Seng Index and Malaysia’s KLCI, even as Japan’s Nikkei and South Korea’s Kospi slipped. ^[4]Later quotes from international data providers showed the index hovering just below 4,530, roughly 15–18 points higher on the day – extending a strong year in which the STI has delivered almost 20% year‑to‑date gains, according to local market research. ^[5]

In other words: Singapore stocks are quietly grinding higher, helped by lower global rates and supportive domestic fundamentals, even as traders sift through plenty of stock‑specific news.

Domestic backdrop: jobs still strong, Asia still under‑owned

Labour market report paints a resilient picture

The Ministry of Manpower’s Labour Market Report for Q3 2025, released today, confirmed that Singapore’s economy remains on solid footing:

Total employment (excluding migrant domestic workers) grew by 25,100 in Q3, more than double the 10,400 increase in Q2.
Unemployment stayed low, at 2.0% overall, 2.8% for residents and 3.1% for citizens in September 2025.
Long‑term resident unemployment remained steady at 0.9%, signalling limited scarring in the job market. ^[6]

Retrenchments have ticked up slightly, but MOM and local media describe them as still modest in historical terms, with job vacancies easing yet remaining above pre‑pandemic levels. ^[7]

For equity investors, this combination – healthy employment, low joblessness and only a mild cooling in vacancies – helps underpin domestic consumption, bank asset quality and demand for commercial and retail property.

DBS: Asia is “under‑invested” and yields remain attractive

At DBS’s Market Outlook 2026 forum, the bank’s chief investment office repeated a theme that matters directly for Singapore equities: Asia remains “under‑invested” despite improving earnings and attractive valuations. ^[8]

Key points from DBS strategist Daryl Ho:

Dividend‑paying investments in Asia still offer solid income.
Dividend yields in Singapore and China are around 5–6%, with Singapore’s banks and REITs commonly yielding close to 6%, supported by a relatively strong Singapore dollar. ^[9]
Early FY2026 estimates point to mid‑20% earnings growth for Asian tech ex‑Japan, yet these stocks trade at less than 20x earnings on average, versus mid‑30s multiples for comparable US tech names. ^[10]

DBS argues that this mix of higher growth and lower valuations, paired with high income yields, makes Asia – and by extension Singapore – a “clear and present” opportunity for global investors who are still heavily overweight the US. ^[11]

Big corporate stories on SGX today

Keppel REIT’s S$1.45b Marina Bay Financial Centre bet

One of the day’s headline corporate moves comes from Keppel REIT:

The REIT has agreed to acquire an additional one‑third stake in Marina Bay Financial Centre (MBFC) Tower 3 for S$1.45 billion from Sageland, a subsidiary of Hongkong Land. ^[12]
On completion (expected by 31 December 2025), Keppel REIT’s interest in the prime Grade‑A tower will rise from one‑third to two‑thirds, pushing Singapore exposure in its portfolio from about 75.8% to 79% and lifting total portfolio value to roughly S$11.2 billion. ^[13]
The deal is funded via an underwritten non‑renounceable preferential offering of about S$886.3 million, offering 23 new units for every 100 held at S$0.96 per unit – a roughly 6.8% discount to the previous day’s volume‑weighted average price. ^[14]

Management frames the transaction as a “strategic opportunity” to deepen exposure to a landmark CBD asset at a time when no new office supply is expected in the Marina Bay area between 2026 and 2029, which could support rental growth and capital values. ^[15]

The trade‑off: Keppel REIT’s own pro‑forma projections show the deal to be dilutive to distribution per unit by roughly 3.6–6.4%, depending on interest‑cost assumptions. ^[16] Investors will be weighing short‑term DPU pressure against the potential for long‑run NAV and rental upside.

The seller, Hongkong Land, saw its shares jump as much as 5% to US$6.90 after announcing the S$1.45 billion disposal, highlighting how capital recycling from mature Singapore assets can unlock value for regional property groups. ^[17]

“Stocks to watch”: CLI and MPACT in focus

The Business Times flagged several names as “stocks to watch” this morning, including CapitaLand Investment (CLI)and Mapletree Pan Asia Commercial Trust (MPACT): ^[18]

CLI closed a 1 billion yuan (about S$183 million) China Retail RMB Fund I under its RMB master fund, with plans to recapitalise CapitaMall Xinduxin into the vehicle – another step in monetising and recycling capital from its China retail portfolio. ^[19]
MPACT announced the sale of Festival Walk Tower (the office component of Festival Walk in Hong Kong) for nearly HK$2 billion, crystallising value from a non‑core asset while it continues to manage retail exposure in the same complex. ^[20]

These moves fit a broader pattern on SGX: large property groups and REITs actively recycling assets, often into private funds or alternative vehicles, to improve balance sheets and drive fee income.

Ever Glory’s offer ahead of mainboard upgrade

On the smaller‑cap front, Ever Glory United Holdings is in the spotlight as it prepares to move from Catalist to the SGX mainboard:

The company is launching a public offer of up to 2 million new shares at S$0.64 each, with Business Times estimates suggesting net proceeds of around S$1.2 million if fully subscribed. ^[21]
The shares would represent about 0.5% of post‑offer share capital, so the raise is more about broadening the float and signalling confidence than about funding major acquisitions. ^[22]

Shares last closed at S$0.695, implying a modest discount on offer – and giving investors another bite at the cherry before a potential re‑rating on the mainboard.

IPO and capital‑markets pulse: CGS International, UltraGreen.ai and SGX reforms

Singapore has quietly put in a strong IPO year in 2025, helped by both cyclical and structural tailwinds.

A PRNewswire release carried by regional media highlights that CGS International (formerly CGS‑CIMB) has completed 63 capital‑markets deals across ASEAN up to 11 December 2025, including 14 IPOs across Singapore, Malaysia and Thailand. ^[23] In Singapore specifically, CGS played key roles in:

Info‑Tech Systems – a Mainboard IPO raising S$57.4 million, billed as Singapore’s first Mainboard IPO in two years.
China Medical System – a secondary Mainboard listing whose shares rose over 11% on debut.
Lum Chang Creations – a Catalist IPO raising S$12.25 million in the construction and real‑estate space. ^[24]

Separately, recent Reuters reporting underlines how policymakers are trying to keep this IPO momentum going:

The Monetary Authority of Singapore (MAS) plans a “dual‑listing bridge” between SGX and Nasdaq, expected to go live around mid‑2026, allowing qualifying companies to use a single prospectus that meets both regulatory regimes. ^[25]
MAS is also rolling out a S$30 million “Value Unlock” programme to help listed firms improve investor engagement and shareholder returns, and has appointed additional asset managers (including BlackRock and Lion Global Investors) to run S$2.85 billion under its Equity Market Development Programme, bringing total allocations close to S$4 billion. ^[26]
Other reforms include lowering minimum board lot sizes, modernising post‑trade custody and enhancing market‑making incentives to reduce trading costs. ^[27]

Taken together, these initiatives aim to make SGX more competitive for high‑growth regional companies – a theme that should matter for the next leg of Singapore’s equity‑market development beyond the mature STI heavyweights.

Income and dividend themes: banks, REITs and high‑yield laggards

STI laggards with 5%+ yields

While the STI itself has returned nearly 20% in 2025, not every constituent has participated equally. A fresh analysis from Dr Wealth today highlights 10 index members that have lagged the benchmark but are yielding above 5%, including: ^[28]

Thai Beverage – negative double‑digit year‑to‑date returns amid softer spirits volumes and structural concerns about alcohol consumption, but still yielding around 5%.
Mapletree Industrial Trust (MIT) – down mid‑single digits this year after DPU declines, as it reshapes its portfolio; yield roughly 6.5%.
United Overseas Bank (UOB) – slightly negative YTD as it took hefty credit provisions, but still paying more than 5%.
Genting Singapore, Singapore Airlines, Mapletree Logistics Trust, Frasers Centrepoint Trust, CapitaLand Ascendas REIT, Frasers Logistics & Commercial Trust and Venture Corporation round out the list, with yields between about 5–6%. ^[29]

The article stresses that some laggards face real structural or company‑specific challenges, but others may simply be late‑cycle plays in sectors like logistics REITs or tourism that could benefit if rate cuts continue and travel demand stays resilient. ^[30]

REITs screens: where income investors are hunting

A separate REIT‑focused screen by local blogger My Sweet Retirement uses Stocks Café data to filter for Singapore‑listed REITs with:

Market cap ≥ S$1 billion
Dividend yields between 5% and 10%
Price‑to‑book ≤ 3

The resulting December shortlist includes: Lendlease REIT, Far East Hospitality Trust, Keppel REIT, AIMS APAC REIT, CapitaLand Ascott Trust, Mapletree Industrial Trust, CapitaLand China Trust, Starhill Global REIT and others, most trading at sub‑1x book with yields in the 6–8% range. ^[31]

Markets have long treated REITs as rate‑sensitive, so the Fed’s latest cut – and signs of a pause – are supportive, especially for high‑quality, moderately leveraged names. But investors still need to watch currency risk, occupancy trends and asset‑recycling plans, particularly for vehicles with large overseas exposure.

Beyond the STI: dividend stocks and small‑cap winners

Research site The Smart Investor points out that some of the more interesting income stories now sit outside the STI itself: ^[32]

Elite UK REIT – with ~99% of rental income backed by UK government tenants and a strong pipeline of asset repositionings (including potential student housing and a data‑centre project), it is pitched as a defensive high‑yield play listed in Singapore. ^[33]
Boustead Singapore – moving towards listing UI Boustead REIT on SGX to unlock value from its industrial and logistics real‑estate portfolio. ^[34]
Civmec, CSE Global and Wee Hur Holdings are highlighted as small‑cap growth names that have dramatically outperformed the STI this year, helped by infrastructure, defence and student‑housing themes. CSE Global, for example, has delivered roughly 139% total returns year‑to‑date on the back of solid revenue growth and a deep order book tied to data‑centre demand. ^[35]

The message: income and growth opportunities on SGX increasingly sit beyond the 30 STI constituents, in the “Next 50” and other mid‑caps that are starting to attract more institutional coverage.

Forecasts and technical views: where could STI go next?

Short‑term: rangebound but biased higher

RTTNews noted yesterday that Singapore shares were likely to stay “rangebound” in the near term, with the STI hovering just above 4,510 after a mild pullback, but with an upside bias thanks to the Fed’s rate cut and stronger global cues. ^[36]

So far, today’s action – a modest 0.3–0.4% climb on light newsflow – fits that script: gradual grinding higher rather than a surge, as investors digest the cross‑currents of lower rates, solid macro data and stock‑specific capital‑raising.

Medium‑term: DBS still sees room to run

Although the full report sits behind a paywall, snippet‑level coverage from The Edge Singapore notes that DBS Group Research is sticking with a long‑term STI target of 10,000 by 2040, and expects the index to potentially reach around 4,880 in 2026 – roughly 8% upside from current levels. ^[37]

DBS’s preferred approach for 2026 is summarised as “ride secular winners, seek SMC clusters” – in other words, own structural winners in sectors like digital infrastructure, renewables and healthcare, and look for clusters of strong businesses among Singapore mid‑caps (“SMC”) rather than focusing only on blue chips. ^[38]

ETF technicals: SPDR STI downgraded to “Hold/Accumulate”

Technical‑analysis site StockInvest.us provides a short‑term trading lens via the SPDR Straits Times Index ETF (ES3.SI):

The ETF closed at S$4.59 on 10 December, essentially flat on the day, but has fallen in six of the last ten sessionswhile still being slightly positive over the past two weeks.
Their AI‑driven model downgraded ES3 from a “Buy” to a “Hold/Accumulate” candidate, citing near‑term weakness but an intact, gently rising trend. ^[39]
Based on the current trend, they project a potential 6.3% upside over the next three months, with a 90% probability band between S$4.83 and S$5.04, and see support near S$4.54 and short‑term resistance around S$4.60–4.61. ^[40]

For investors, the takeaway is that momentum has cooled after the STI’s strong run, but technicals do not yet point to a major reversal – more of a consolidation phase while the fundamental story (earnings, rates, flows) continues to evolve.

What today’s moves mean for investors

Putting it all together, here’s how Thursday 11 December 2025 looks for the Singapore stock market:

Macro & policy backdrop: The Fed’s third rate cut, a still‑tight but cooling US labour market, and Singapore’s own low unemployment and rising employment all support risk assets, even if the Fed hints at a pause. ^[41]
Valuations & flows: Asia – especially Singapore and China – offers 5–6% dividend yields with valuations well below US peers, and DBS continues to argue that the region is under‑owned relative to its improving fundamentals. ^[42]
Corporate action: Deals like Keppel REIT’s MBFC purchase and MPACT’s asset sale underline that Grade‑A office and quality retail assets remain in demand, even as owners rebalance portfolios and manage leverage. ^[43]
Equity‑market development: SGX is leaning into dual listings, value‑unlock schemes and market‑making reforms, while intermediaries such as CGS International and a crop of mid‑cap issuers keep the IPO pipeline healthy. ^[44]
Investment ideas: From high‑yield STI laggards to screened REITs and non‑STI dividend names like Elite UK REIT or Boustead Singapore, there is no shortage of income and growth angles – though each comes with idiosyncratic risks that need careful stock‑by‑stock analysis. ^[45]

For traders, the near‑term story remains rangebound but constructive, with an eye on global data, Fed communication and local economic releases. For long‑term investors, today’s session mostly reinforces an existing narrative: Singapore remains a yield‑rich, policy‑stable hub at the heart of an under‑owned Asia, with structural reforms and deal activity gradually deepening its capital markets.

Disclaimer: This article is for information and news purposes only and does not constitute investment advice, a recommendation to buy or sell any security, or a solicitation of any trading strategy. Always do your own research or consult a licensed financial adviser before making investment decisions.