Singapore’s stock market finally took a breather on Thursday, 4 December 2025, as the Straits Times Index (STI) slipped 0.4% to 4,535.14, ending a six-session winning streak that had pushed the benchmark to fresh highs. [1]
Despite upbeat cues from Wall Street and firm expectations of a US Federal Reserve rate cut next week, local investors turned more cautious amid signs of a slowing US economy and after a strong run-up in Singapore blue chips. [2]
Market recap: STI edges lower after strong run
The STI fell 19.38 points, or 0.4%, to close at 4,535.14 on Thursday. [3]
Trading was active but not overheated:
- Turnover: nearly 1.6 billion securities changed hands, worth about S$1.3 billion.
- Market breadth: decliners narrowly outnumbered gainers 259 to 256, suggesting a mild pullback rather than a broad sell-off.
- Secondary indices: the iEdge Singapore Next 50 Index – a key gauge of large mid-caps – actually inched higher by 0.77 point to 1,448.29, underscoring resilience outside the 30 STI heavyweights. [4]
Thursday’s slide came right after a powerful run: going into the session, the STI had risen for six consecutive days, gaining more than 65 points (around 1.6%) and closing Wednesday at 4,554.52. [5] Pre-market commentary from international newswires had even flagged “additional support” for Singapore shares, highlighting how quickly sentiment can turn when profit-taking sets in. [6]
Banks cool off; broader market stays balanced
After leading much of the recent rally, Singapore’s trio of local banks took a pause:
- DBS Group Holdings slipped about 0.4% to S$54.21.
- UOB eased 0.3% to S$34.46.
- OCBC was flat at a record‑high region around S$18.95, holding on to strong recent gains. [7]
Given the banks’ outsized weight in the STI, even small declines translated into meaningful index pressure. Yet the narrow gap between losers and gainers, plus a slightly positive move in the Next 50 Index, suggests that selling was concentrated in large caps rather than an across-the-board risk-off move. [8]
Selected stock stories stood out:
- Tuan Sing rose about 1.6% to S$0.325 after confirming it will push ahead with the redevelopment of its flagship Melbourne property housing the Grand Hyatt hotel, following receipt of a key planning permit. [9]
- YHI International slipped to a 52-week low around S$0.385, down 1.3%, even without fresh market-moving news, highlighting how pockets of the market remain under pressure despite the broader rally. [10]
Regionally, Singapore’s move was in line with a modest softening across Asia. A regional currencies piece noted that Singapore shares fell roughly 0.4% after a six-day rally, reflecting both profit-taking and unease about global growth momentum. [11]
Global backdrop: Fed cut hopes vs US slowdown jitters
Thursday’s cautious tone in Singapore came despite an upbeat overnight handover from Wall Street. US indices closed higher on 3 December after:
- The Dow Jones Industrial Average climbed about 0.86% (over 400 points).
- The S&P 500 added 0.30%.
- The Nasdaq Composite gained 0.17%. [12]
The key driver was a surprisingly weak US private payrolls report from ADP, which showed a decline in November employment. That combination of softer labour data and steady services activity pushed market-implied odds of a 25-basis-point Fed rate cut next week to around 89%, up from the high‑80s previously. [13]
In theory, easier US policy and lower global yields are supportive of Singapore’s income‑oriented market. But Thursday’s local reaction suggests investors are now weighing the trade-off:
- Positive: Cheaper funding costs and lower bond yields tend to favour REITs, high-dividend stocks and defensives.
- Negative: Signs of US economic cooling raise questions about the durability of global demand heading into 2026.
That tension – between rate-cut optimism and growth concerns – framed much of today’s trading mood.
Liquidity broadens: Tech and REITs outside the STI stay in focus
While the STI itself drifted lower, liquidity in the broader market remains healthy and increasingly diversified. New data released today by BusinessToday, drawing on Singapore Exchange (SGX) statistics, shows:
- The 30 most-traded non‑STI stocks in 2H 2025 span all 12 sectors and carry a combined market capitalisation of about S$74.4 billion.
- Their average daily turnover nearly doubled to S$214 million in 2H 2025, from S$115 million in 1H 2025 for stocks that were in the list for both periods.
- This group delivered a median ~25% total return year‑to‑date, roughly matching the STI’s performance. [14]
Within this “Next‑30” cohort:
- REITs are prominent, with seven names collectively worth S$19.5 billion and generating S$53.1 million in average daily turnover. While the group saw modest net institutional outflows, key names such as Suntec REIT, Lendlease Global Commercial REIT, and Keppel REIT actually attracted net inflows and delivered strong double‑digit total returns in 2H 2025. [15]
- Technology counters – including CSE Global, iFAST Corporation, and Frencken Group – saw notable increases in trading activity and institutional interest as data‑centre, digital wealth and electronics themes stayed in vogue. [16]
This pattern suggests that even as mega‑cap banks take a breather, investors are actively rotating into income plus growth plays among REITs and technology‑leaning mid‑caps.
Investor‑education platform The Smart Investor echoed this theme today, highlighting REITs such as Lendlease Global Commercial REIT, NTT DC REIT, and Centurion Accommodation REIT as candidates for a potential year‑end rally, citing attractive yields (around 5–8% in many cases), improving occupancy and steady balance sheets. [17]
Index review: STI unchanged, but reserve list gets a refresh
Structural news also landed after the close. SGX and FTSE Russell completed their December 2025 quarterly review of the Straits Times Index:
- No changes will be made to the 30 constituent stocks of the STI.
- However, the reserve list – the five highest‑ranking non‑constituents by market capitalisation that can be fast‑tracked into the index if a member drops out – will be refreshed from 22 December 2025. [18]
Key changes:
- CapitaLand Ascott Trust and Sheng Siong Group will join the reserve list, replacing Olam Group and Yangzijiang Financial, which had been added only in the September 2025 review. [19]
- The other three reserve‑list names remain Keppel REIT, NetLink NBN Trust and Suntec REIT. [20]
On Thursday, CapitaLand Ascott Trust’s units closed flat at S$0.94, while Sheng Siong’s shares slipped 0.8% to S$2.62 – a reminder that inclusion on the reserve list is more a structural signal than an immediate share‑price catalyst. [21]
For investors, the unchanged STI basket underscores the market’s stability, while the refreshed reserve list shines a spotlight on hospitality, grocery retail and REITs as likely candidates for future index inclusion.
Listings spotlight: UltraGreen.ai keeps SGX on the global IPO map
Another big story shaping sentiment around SGX this week is the blockbuster IPO of UltraGreen.ai, which debuted yesterday (3 December 2025).
- The medtech and AI‑driven surgical‑imaging company raised roughly US$400 million through its listing, in what Reuters describes as Singapore’s largest non‑REIT IPO in around eight years, valuing the firm at about US$1.7 billion. [22]
- UltraGreen.ai’s shares opened above their US$1.45 IPO price and at one point traded up more than 10–12% before closing about 4.8% higher at US$1.52 on their first day. [23]
UltraGreen.ai develops fluorescence‑guided surgery systems and AI‑powered surgical intelligence platforms, and supplies ICG dyes used in medical procedures. Its successful float follows earlier 2025 listings such as NTT DC REIT and Centurion Accommodation REIT, and it has been widely framed as a test case for Singapore’s push to attract more “new‑economy” issuers. [24]
As investors digested UltraGreen.ai’s debut on Thursday, the stock remained one of the more closely watched counters on SGX, symbolising a broadening opportunity set beyond the traditional dividend and property names.
Corporate and policy angle: SGX distances itself from Cboe Australia speculation
In corporate governance news, the Singapore Exchange moved quickly today to quash talk of a fresh overseas acquisition.
- An article in the Australian Financial Review had suggested SGX was exploring a bid for Cboe Australia, a rival to the ASX.
- SGX responded with a formal statement saying the speculation was “inaccurate” and that it is not exploring or considering an acquisition of Cboe’s Australian unit. [25]
The clarification is notable given history: SGX’s 2011 attempt to acquire the main Australian Securities Exchange was blocked by Canberra on national‑interest grounds. [26]
For market participants, today’s denial removes a potential overhang about large‑scale M&A risk on SGX’s balance sheet, even as the bourse continues to pursue more incremental reforms – such as dual‑listing bridges and micro‑structure tweaks – to deepen liquidity and attract listings. TechStock²+1
Strategy views: What analysts and strategists are saying
Beyond the day’s price action, several research pieces published around 4 December help frame the medium‑term outlook for Singapore equities:
1. Singapore macro upgrades and STI targets
A detailed pre‑open note on TS2 Tech highlighted that:
- Singapore’s Q3 2025 GDP grew about 4.2% year‑on‑year, prompting the Ministry of Trade and Industry to upgrade its 2025 growth forecast to around 4%, from a much lower earlier range.
- Research house RHB has reportedly raised its end‑2025 STI target to 4,690, based on around 13.5x 2026 earnings and projected annual earnings growth of roughly 7–8% into 2027. TechStock²
These macro upgrades and index targets underpin a broad consensus that Singapore remains a “defensive plus income”market – offering high dividends, moderate growth and policy stability, rather than speculative upside.
2. REITs and high-yield plays back in favour
Investor‑education and research platforms continue to highlight REITs and high-yield counters as key beneficiaries of lower global yields:
- The Smart Investor’s 4 December feature picked three Singapore‑listed REITs – Lendlease Global Commercial REIT, NTT DC REIT and Centurion Accommodation REIT – as potential year‑end winners, citing improving rental reversions, stable leverage and yields that cluster in the mid‑single to high‑single digits. [27]
Combined with SGX data showing strong returns and turnover in non‑STI REITs and infrastructure names, the message from research desks is that selective yield plays may continue to attract flows if US bond yields keep drifting lower.
3. Global 2026 outlook still constructive
On the global front, Macquarie’s freshly published 2026 Global Economic and Market Outlook suggests that:
- With the initial shock of “Liberation Day” tariffs fading,
- macroeconomic policy becoming more accommodative, and
- global industrial production recovering,
world growth is expected to pick up modestly next year. [28]
For Singapore – heavily integrated into regional trade and capital flows – such a backdrop supports the view that any near‑term volatility around the Fed or US data is more likely to bring periodic pullbacks than a sustained bear market, especially given the city‑state’s upgraded domestic growth profile.
Key takeaways for investors
Putting today’s moves and the latest research together, several themes stand out for anyone watching the Singapore stock market on 4 December 2025:
- Healthy pause after a record run
- The STI’s 0.4% decline to 4,535.14 looks like classic profit‑taking after a six‑day winning streak, rather than the start of a sharp reversal. [29]
- Banks exhale, but breadth holds up
- Financial heavyweights cooled after pushing the index to new highs, but mid‑caps and the Next 50 cohort remained resilient, with narrow breadth and steady turnover. [30]
- REITs and tech-mid caps are quietly in play
- SGX statistics and independent research point to strong total returns and rising institutional interest in select REITs and tech‑linked names, making them central to the current rotation narrative. [31]
- Index structure stable, reserve list tilts toward yield and defensives
- No changes to the STI constituents, but an updated reserve list featuring CapitaLand Ascott Trust and Sheng Siong signals the market’s long‑term tilt toward hospitality, groceries and income-generating assets. [32]
- Singapore’s role as a listings hub is strengthening
- UltraGreen.ai’s high‑profile IPO and strong debut reinforce Singapore’s pitch as a venue for global growth companies, particularly in healthcare and AI. [33]
- Macro and strategy views remain broadly positive
- Upgraded domestic growth forecasts, supportive global outlooks and still‑elevated Fed cut expectations mean the base case for many strategists is still constructive, even if short‑term jitters persist. TechStock²+2Macquarie+2
Final note
This article is for general information and news reporting only and does not constitute personalised investment advice. Always consider your own objectives and risk tolerance, and if necessary, consult a licensed financial adviser before making investment decisions.
References
1. www.businesstimes.com.sg, 2. www.straitstimes.com, 3. www.businesstimes.com.sg, 4. www.businesstimes.com.sg, 5. www.rttnews.com, 6. www.rttnews.com, 7. www.businesstimes.com.sg, 8. www.businesstimes.com.sg, 9. www.businesstimes.com.sg, 10. www.businesstimes.com.sg, 11. theedgemalaysia.com, 12. www.straitstimes.com, 13. www.straitstimes.com, 14. www.businesstoday.com.my, 15. www.businesstoday.com.my, 16. www.businesstoday.com.my, 17. thesmartinvestor.com.sg, 18. www.businesstimes.com.sg, 19. www.businesstimes.com.sg, 20. www.businesstimes.com.sg, 21. www.businesstimes.com.sg, 22. www.reuters.com, 23. www.businesstimes.com.sg, 24. www.reuters.com, 25. www.straitstimes.com, 26. www.straitstimes.com, 27. thesmartinvestor.com.sg, 28. www.macquarie.com, 29. www.businesstimes.com.sg, 30. www.businesstimes.com.sg, 31. www.businesstoday.com.my, 32. www.businesstimes.com.sg, 33. www.reuters.com
