Singapore Stock Market Today: STI Jumps 1.5% to 4,586 as Banks Rally; Sembcorp-Alinta Deal and Seatrium Contract in Focus (Dec 12, 2025)

SINGAPORE (Dec 12, 2025) — The Singapore stock market ended the week on a strong note on Friday, with the Straits Times Index (STI) climbing 1.5% (up 65.62 points) to 4,586.45. Market breadth was firmly positive, as gainers outpaced losers 360 to 200, with 1.3 billion securities changing hands for roughly S$1.7 billion in turnover. ^[1]

Today’s upswing came as Asian equities broadly advanced, even while global investors continued to debate the “next leg” of the rally after renewed volatility in big tech — a theme reignited by Oracle’s weak forecast and heavier AI-related spending plans. ^[2]

Market snapshot: What happened on SGX today

Singapore shares moved higher alongside most regional markets. By the close:

STI: 4,586.45 (+1.5%)
iEdge Singapore Next 50 Index: 1,434.64 (slightly higher)
Market breadth: 360 gainers vs 200 losers
Value traded: ~S$1.7 billion ^[3]

Among STI blue chips, the day’s standout was Jardine Matheson, while Genting Singapore lagged. The “Next 50” index saw a sharp split between winners and losers, with Hong Leong Asia outperforming and Keppel REIT sliding on a capital-raising overhang. ^[4]

Top movers: Winners, losers, and the sector story

Blue-chip leader: Jardine Matheson

Jardine Matheson led the STI gainers, rising 4.9% to US$69.94. ^[5]

Blue-chip laggard: Genting Singapore

At the other end, Genting Singapore was the weakest STI constituent, slipping 0.7% to S$0.72. ^[6]

Banks back in charge

A key driver of the benchmark’s strength was a synchronized move higher in the three local banks:

DBS: +1.2% to S$55.04
OCBC: +1.3% to S$19.20
UOB: +1.3% to S$34.72 ^[7]

In practice, when Singapore’s banks rise together, they tend to provide a “steady lift” for the STI because of their heavyweight index representation. Today looked like that kind of session — broad-based, bank-supported, and less dependent on a single theme.

Next 50: Hong Leong Asia surges, Keppel REIT drops

Within the iEdge Singapore Next 50 Index:

Hong Leong Asia gained 3.8% to S$2.19
Keppel REIT fell 6.8% to S$0.96 ^[8]

The sharp drop in Keppel REIT has a clear “event” explanation (detailed below): a large equity fundraising priced at a discount.

Why Singapore stocks rose despite tech jitters

Today’s SGX mood reflected a broader regional tone: Hong Kong, Japan, South Korea, and Malaysia all closed higher. ^[9]

But the bigger story running through global markets is the tug-of-war between:

Rate-sensitive, cyclical areas finding support, and
Tech/AI-linked names facing periodic reality checks on profitability and spending

Interactive Brokers’ Jose Torres noted that tech has taken a hit after Oracle’s cloud miss and increased capex plans, while cyclicals and rate-sensitive segments have been more resilient. ^[10]

At the global level, Reuters’ market wrap highlighted how Asian shares pushed cautiously higher even as Oracle’s sharp drop revived questions about the returns on massive AI infrastructure investment. ^[11]

For Singapore specifically, this matters because the STI is not dominated by mega-cap US-style “AI winners.” It’s more financials, industrials, telcos, and property/REIT exposure — the kinds of segments that often respond more directly to shifts in rates, growth expectations, and capital flows.

Stocks to watch: The corporate headlines shaping the tape

Today’s market action wasn’t just macro-driven. Several major Singapore-listed names were active in the newsflow — with implications for both near-term trading and 2026 positioning.

1) Sembcorp’s blockbuster move into Australia

One of the biggest corporate developments in the Singapore market this week is Sembcorp Industries’ acquisition of Alinta Energy, a deal announced via a bourse filing and widely covered due to its size and strategic shift.

Key facts disclosed:

Enterprise value: A$6.5 billion (about S$5.6b)
Estimated purchase price: A$5.6 billion, to be paid in cash via bridge and working-capital facilities
Expected completion: 1H 2026, subject to approvals
Management said the acquisition is expected to be immediately accretive; on a pro forma basis, Sembcorp projected EPS up 14% and ROE rising to 22.5% (for the 12 months ended Jun 30, 2025). ^[12]

Alinta supplies gas and electricity to ~1.1 million customers and owns ~3.4 GW of generation capacity (including gas plants and a wind farm). The deal also comes with a complication investors will be watching closely: Sembcorp explicitly noted its near-term emissions will rise, and it said it will not meet certain emissions targets because of the acquisition. ^[13]

Why it matters for SGX: this is the kind of large-scale, cross-border corporate action that can reset valuation narratives — especially when it combines “energy transition” ambitions with legacy thermal assets.

2) Seatrium wins another major offshore grid contract

In Singapore’s industrials and offshore engineering space, Seatrium drew attention after a consortium comprising Seatrium and GE Vernova was awarded a contract by transmission operator TenneT to connect North Sea wind powerto Germany’s grid.

Highlights:

Contract relates to BalWin5, a 2.2 GW offshore HVDC grid connection
Seatrium said this brought its FY2025 contract wins to more than S$4 billion
Seatrium shares closed up 2.4% at S$2.13 on Dec 12 on the news ^[14]

This kind of win reinforces the market’s view of Seatrium as a beneficiary of long-cycle offshore infrastructure spending tied to Europe’s energy transition — a theme that can support sentiment even when global tech is wobbling.

3) Keppel REIT’s discounted preferential offering hits the unit price

Keppel REIT was the biggest loser on the Next 50 index today — and the move lines up with the details of its large equity raise.

Keppel REIT announced:

A plan to acquire an additional one-third stake in MBFC Tower 3 at an agreed property value of S$1.45 billion
To fund it, it launched an underwritten non-renounceable preferential offering to raise ~S$886.3 million
Offer terms: 23 new units for every 100 existing units, priced at S$0.96 per unit — about a 6.8% discount to the VWAP cited in the report
The manager said pro forma figures indicated the transaction would be dilutive to DPU (in an illustrative scenario, dilution of roughly 3.6% to 6.4%, depending on assumptions). ^[15]

Why it matters: REIT investors can like “bigger, better assets,” but they typically dislike dilution. The market’s job is to decide whether the long-term value of the MBFC exposure outweighs near-term DPU dilution and the discounted issuance.

4) Hongkong Land’s new S$8 billion Singapore private real estate fund

In a separate but related property headline, Hongkong Land announced a major step in its strategy shift toward fund management: it is injecting its interests in One Raffles Quay and MBFC Towers 1 and 2 into a new vehicle — the Singapore Central Private Real Estate Fund (SCPREF).

Key points reported:

The fund is expected to hold more than S$8 billion in AUM at inception
The company said the move aligns with its strategy to grow AUM to US$100 billion by 2035 with meaningful third-party capital participation
Hongkong Land noted it expects to remain both fund manager and the single largest investor ^[16]

Why it matters for Singapore markets: beyond the immediate company-specific read-through, the announcement underscores how Singapore’s prime commercial assets are increasingly being packaged for institutional capital — a dynamic that can influence REIT and property valuations over time.

5) DBS turns more bullish on Singapore developers

DBS Research issued a notably constructive view on Singapore developers, lifting target prices for multiple names including:

UOL target raised to S$11
CDL target raised to S$11.80
GuocoLand target raised to S$3

DBS analysts framed the call around a lower interest-rate environment and capital recycling/value unlocking(including potential REIT spin-offs or restructuring into stapled securities) as catalysts that could improve capital efficiency and valuations. ^[17]

6) Singtel fined S$1 million by IMDA

For Singtel, the headline was regulatory: IMDA imposed a S$1 million fine over a 2024 fixed voice disruption that affected about 500,000 users for more than four hours, including disruptions to access lines for various essential services.

IMDA’s investigation concluded the incident was within Singtel’s control to prevent and was not due to a cyberattack, according to the report. ^[18]

Forecasts and outlook: Where strategists see the STI heading next

With the STI closing at 4,586.45, investors are increasingly focused on whether Singapore’s 2025 re-rating can extend into 2026 — and what kind of returns are realistic from here.

DBS Group Research: STI end-2026 target 4,880, with dividends still a draw

In its “Singapore Market Focus: 2026 Outlook and Strategy” dated Dec 11, 2025, DBS Group Research set an STI end-2026 target of 4,880 and pointed to FY26F earnings growth of 8.8%, led by financials, industrials and TMT, alongside an expected FY26F dividend yield of about 4.5%. ^[19]

DBS also highlighted the balancing act behind the outlook: on the positive side, it cited Singapore’s safe-haven appeal and market-support measures; on the risk side, it flagged uncertainties including slower growth, tariff risks, the US rate path and potential US equity volatility. ^[20]

Market structure and reforms remain part of the story

Beyond day-to-day headlines, Singapore’s equity narrative in late 2025 has been shaped by the push to improve market vibrancy.

A Business Times analysis earlier this month pointed to multiple 2025 initiatives — including the Equity Market Development Programme (EQDP), an enhanced equity market grant scheme, and a “Value Unlock” package — and reported that SGX had 36 new listings in 2025, the highest in a decade. ^[21]

Separately, Reuters previously reported Singapore’s broader market-boost initiative, including tax incentives and a multi-billion-dollar programme aimed at revitalising liquidity and listings. ^[22]

What to watch next: The Singapore market’s near-term checklist

As investors head into the next trading week, several themes are likely to remain dominant for Singapore equities:

Global rate expectations: Singapore’s banks, REITs and developers are all sensitive to the interest-rate narrative (even when moves are driven by global central banks).
Follow-through on corporate “mega moves”: Sembcorp’s Alinta deal and the financing pathway will remain in focus, while investors assess longer-term earnings accretion versus emissions/ESG trade-offs. ^[23]
Capital management and dilution: Keppel REIT’s preferential offering timeline and market absorption may influence broader REIT sentiment (especially for investors watching yield stability). ^[24]
Real estate capital recycling: Hongkong Land’s fund-management pivot could become a reference point for how prime Singapore commercial assets are monetised via third-party capital. ^[25]
Tech volatility spillover: Even if Singapore isn’t an AI-heavy index, sharp swings in US tech sentiment can still affect regional risk appetite and positioning. ^[26]

Bottom line

The Singapore stock market today delivered a clear “risk-on” session — STI up 1.5%, banks higher, and breadth positive — while stock-specific headlines (from Sembcorp to Seatrium, and from Keppel REIT to Hongkong Land) added fresh fuel for sector rotation and single-stock volatility. ^[27]

Note: This article is for informational purposes only and does not constitute financial or investment advice.