Singapore investors head into Tuesday’s session with a mixed backdrop: Wall Street has eased off record highs ahead of a closely watched US Federal Reserve meeting, oil prices have slipped, local hiring sentiment has cooled, and several SGX names – from Sembcorp and Genting Singapore to high‑flyers like MetaOptics – are in the spotlight.
Here’s a pre‑open playbook for the Straits Times Index (STI) and key Singapore stocks on Tuesday, 9 December 2025, before trading kicks off at 9am SGT. [1]
1. Global lead: quiet risk‑off tone ahead of the Fed
Wall Street: slight pullback from records
Overnight, US equities slipped as traders hunkered down ahead of the Fed’s December policy meeting:
- Dow Jones: about 0.45% lower
- S&P 500: down roughly 0.35%
- Nasdaq Composite: off around 0.14% [2]
The move came even as hopes for a 25‑basis‑point rate cut this week remain strong after recent data showed US consumer spending rising moderately at the end of Q3. But investors are fixated on what happens after this decision, in what is expected to be one of the most divided Feds in years. [3]
Adding to the bullish backdrop for US risk assets, Oppenheimer Asset Management has just set the highest year‑end 2026 target for the S&P 500 at 8,100, implying further upside from current levels and underscoring optimism around earnings and the AI‑driven capex cycle. [4]
Europe: cautious trading as bond yields creep up
In Europe, the Stoxx 600 index finished 0.1% lower, with real estate shares down around 1.6% as long‑dated bond yields climbed to multi‑year highs in Germany. [5]
Despite recent gains, European investors also appear to be in “wait‑and‑see” mode ahead of the Fed meeting – CME FedWatch‑style probabilities cited in local reports put the odds of a quarter‑point cut at roughly 85–88%, but markets are far less certain about the pace of easing in 2026. [6]
Commodities: oil slips on supply news and Ukraine talks
Brent crude fell about 2% to around US$62.5 a barrel, while WTI dropped to just under US$59, after Iraq restored production at the giant West Qurna‑2 oilfield, which accounts for roughly 0.5% of global supply. [7]
At the same time, markets are weighing the potential impact of renewed diplomatic pushes to end the war in Ukraine – a resolution could materially alter Russian export volumes and therefore oil prices in coming years. [8]
For Singapore, cheaper crude is typically a mild positive for airlines, transport and consumer plays, but can weigh on upstream energy stocks.
Asia‑Pacific: Australia’s RBA and regional sentiment
In the region, attention today also turns to the Reserve Bank of Australia (RBA). A Reuters poll of economists late last week suggested the RBA will keep its cash rate at 3.60% at its December 9 meeting and hold it there through 2026, following a pickup in inflation to 3.2%, above its 2–3% target band. [9]
A prolonged period of higher‑for‑longer rates in Australia, alongside a cautious Fed, tends to reinforce the narrative of slower but still resilient global growth – a backdrop that historically favours yield plays and quality blue‑chips on the SGX.
2. Singapore macro: strong growth, but hiring outlook cools
Growth story still anchored by exports and AI
Singapore’s medium‑term growth picture remains solid. In late November, the Ministry of Trade and Industry (MTI) sharply raised its 2025 GDP forecast to “around 4%”, up from the earlier 1.5–2.5% range, after Q3 GDP surprised to the upside at 4.2% year‑on‑year. The upgrade was driven by strong export performance, especially in AI‑related semiconductors and broader trade‑related sectors. [10]
However, MTI simultaneously projected a slower 1–3% growth range for 2026, citing the likely drag from renewed US tariffs and lingering geopolitical risks. [11]
For equity investors, that combination – strong current growth but softer 2026 – tends to favour:
- Export‑oriented tech and logistics names in the near term
- Defensive yield plays like REITs and high‑dividend blue‑chips, as the cycle matures
Fresh data: Singapore hiring outlook drops to 4‑year low
The newest local data point arriving just before the open is notably more downbeat.
The latest ManpowerGroup Employment Outlook Survey, released today, shows Singapore’s net employment outlook for Q1 2026 at 15%, down 5 percentage points from the previous quarter and 11 points from a year earlier – the weakest reading since Q1 2022, and well below the global average of 24%. [12]
Key details from the survey:
- 46% of employers plan to keep headcount unchanged
- 32% plan to increase hiring
- 18% expect to cut staff, while 4% are unsure [13]
- Finance and insurance stands out with a robust 33% outlook, while manufacturing lags at 10%, reflecting sectoral divergence in demand for talent [14]
For markets, this adds nuance:
- It reinforces resilience in financials, potentially supportive for local banks and insurers.
- It flags pressure on cyclicals tied to manufacturing, industrials and some exporters.
- It may temper expectations for wage‑driven inflation, which can be mildly positive for rate‑sensitive plays like REITs over time.
3. STI recap: banks slip as breadth turns negative
Monday 8 December close sets the stage
On Monday, the Straits Times Index slipped 0.5%, losing about 24 points to finish near 4,507.08, as Singapore shares tracked a mixed regional session and investors turned cautious ahead of the Fed. [15]
Market breadth was weak:
- Gainers: 222
- Losers: 290
- Turnover: about 1.1 billion securities worth S$1.1 billion [16]
Regionally, Hong Kong’s Hang Seng fell about 1.2%, Malaysia’s KLCI dipped 0.2%, while Japan’s Nikkei 225 and South Korea’s Kospi managed modest gains, underscoring the split risk sentiment across Asia. [17]
Sector moves: banks and retail under pressure
Within the STI:
- Venture Corp was the top gainer, rising roughly 1.1% to S$15.07.
- DFI Retail Group was the worst performer, down about 2.2% to US$4.01. [18]
The three local banks all finished lower:
- DBS: about 0.4% lower at S$53.97
- OCBC: down 1% to S$18.73
- UOB: off 0.2% to S$34.44 [19]
Commentary from Swissquote analyst Ipek Ozkardeskaya summed up the mood: a 25‑bp Fed cut this week is “essentially locked in”, but markets are anxious that politically driven cuts without economic justification could push long‑term yields higher, a scenario that tends to hurt rate‑sensitive banking and REIT sectors. [20]
Over the past month, though, the STI remains up roughly 2–3%, and is still showing an impressive high‑teens percentage gain year‑on‑year, tracking the broader global equity rally. [21]
4. SGX stocks to watch on 9 December 2025
Sembcorp Industries: eyeing Australian utility Alinta Energy
Sembcorp Industries will be closely watched after confirming that it is in talks to acquire Australian utility Alinta Energy, currently owned by Hong Kong’s Chow Tai Fook Enterprises. The company stressed that no definitive transaction has been signed yet. [22]
Sembcorp shares rose about 0.5% to S$5.99 last Friday before the news broke. Investors will weigh potential earnings accretion and deleveraging risks if a deal proceeds, particularly in light of ongoing volatility in energy markets and the recent pullback in oil prices. [23]
Singapore Paincare: failed privatisation and trading resumption
Singapore Paincare is back on the radar after the privatisation offer by Advance Bridge Healthcare collapsed. The suitor failed to meet the conditions of the scheme of arrangement before it expired on Nov 27. [24]
Key points:
- The now‑lapsed privatisation proposal was at S$0.16 per share, representing a premium of about 27% to its last traded price at the time, but still below the IPO price of S$0.22 in 2020. [25]
- Shares last changed hands at S$0.159 on Nov 25, before a trading halt; they are set to resume trading as of Monday. [26]
Traders should be prepared for heightened volatility, as investors reassess the company’s standalone prospects in the absence of a buyout.
Rex International: high‑coupon bond issue to fund drilling
Oil and gas player Rex International disclosed that its subsidiary, Jasmine Energy (JEL), has raised US$25 million via three‑year senior secured bonds with a 14% coupon. The funds are earmarked for a three‑well drilling campaign in 2026 and general corporate purposes at Masirah Oil, an 87.5%‑owned unit. Settlement is expected on 12 December. [27]
Rex shares closed at S$0.151 before the announcement. With oil prices currently retreating, the market will be balancing the appeal of targeted growth capex against the cost of capital and commodity price risk. [28]
Genting Singapore: Moody’s downgrade but stable outlook
Late last night, Moody’s Investors Service downgraded Genting Bhd and two subsidiaries, including Genting Overseas Holdings – the vehicle for its stake in Genting Singapore – reflecting what the agency called an “already‑weak position” amid prolonged deleveraging and slower‑than‑expected earnings recovery. [29]
Crucially for SGX investors:
- Genting Singapore’s rating was cut from A3 to Baa1, still investment‑grade but one notch lower.
- Moody’s cited higher debt linked to Genting’s takeover offer for Genting Malaysia and expected spending tied to a potential New York City casino licence as key factors.
- The outlook on all ratings is stable, with Moody’s still expecting earnings at Genting’s Singapore and Las Vegas operations to improve and the New York project to be earnings‑accretive from H2 2026. [30]
- Genting Singapore’s shares closed flat at S$0.735 on Monday. [31]
Investors will be watching for any impact on funding costs and investor appetite for the stock, particularly among income‑oriented holders sensitive to credit quality.
High‑growth names: UltraGreen.ai and MetaOptics
The SGX has seen renewed interest in growth and tech‑adjacent names, led by two prominent recent stories:
- UltraGreen.ai (ULG)
- The surgical‑imaging specialist listed on the SGX mainboard on 3 December after a US$400m fundraising(US$162.5m from the IPO plus cornerstone commitments). [32]
- After an initial pop, the stock closed last week at US$1.44, one cent below its IPO price of US$1.45, highlighting choppy post‑IPO trading even in well‑received deals. [33]
- MetaOptics
- The Catalist‑listed semiconductor optics firm has staged a staggering run, closing last week about 76% higher over the week and roughly 530% above its 20‑cent IPO price after announcing a S$4.85m share placement and plans for a Nasdaq listing. [34]
Both counters underscore a broader SGX trend highlighted by recent SGX Group data: non‑STI stocks – particularly S‑REITs and technology names – have delivered a median total return of around 25% year‑to‑date through early December, with rising institutional flows into selected tech and industrial names. [35]
While individual valuations may look stretched after such rallies, these stories confirm that risk appetite is alive in selective pockets of the Singapore market.
REITs, banks and other themes
Other notable themes to keep on the radar:
- No STI constituent changes: FTSE Russell’s December 2025 review leaves the STI basket unchanged, with a refreshed reserve list (CapitaLand Ascott Trust, Keppel REIT, NetLink NBN Trust, Sheng Siong Group and Suntec REIT), effective 22 December 2025. This suggests limited passive index flow disruption into year‑end. [36]
- Manulife US REIT continues to re‑shape its story, seeking unitholder approval to expand its investment mandate beyond US offices into industrial, housing and retail assets, against a still‑soft outlook for US office demand. An EGM is scheduled for 16 December. [37]
For the local banks, the combination of:
- Fed and RBA poised to hold or gently cut rates, and
- A softening hiring outlook but resilient financial‑sector demand
suggests earnings may shift gradually from margin‑driven to fee‑ and wealth‑driven growth, something investors are already pricing in through differentiated valuations for DBS, OCBC and UOB. [38]
5. Trading playbook for Tuesday’s open
Macro drivers to watch
Before the bell and into the first hour of trading, traders are likely to focus on:
- Fed expectations and bond yields
- Markets are heavily pricing a 25‑bp cut this week but uncertain about 2026. Any overnight move in US yields or new Fed‑watch commentary could drive another leg of rotation between banks, REITs and growth stocks. [39]
- Oil price reaction
- The 2% drop in crude puts upstream and services names like Rex International in sharper focus, while potentially aiding airlines, shippers and consumer plays sensitive to fuel costs. [40]
- Regional sentiment
- The RBA’s stance later today, combined with how Asian markets open relative to Wall Street’s modest retreat, will help determine whether the STI tracks global caution or leans on its domestic growth story. [41]
Stock‑specific catalysts
- Sembcorp Industries: Watch for follow‑up commentary or analyst notes on the potential Alinta Energyacquisition. Markets may respond positively to earnings‑accretive expansion, but could punish perceived overreach or leverage build‑up. [42]
- Singapore Paincare: The failed privatisation is likely to trigger price discovery and repositioning among investors who had been trading the stock as a takeover candidate. [43]
- Rex International: Bond investors and equity holders will be scrutinising the 14% coupon and drilling plans against a backdrop of softer oil. [44]
- Genting Singapore: Moody’s downgrade could influence credit spreads and sentiment, but the stable outlook and expected earnings recovery may limit the downside if investors agree with Moody’s assessment that the New York project becomes accretive from late 2026. [45]
6. Bottom line: cautious but opportunity‑rich session ahead
Heading into the 9 December 2025 open, Singapore’s equity landscape is defined by cross‑currents:
- Global: a modest pullback in US and European equities, softer oil and elevated bond yields, all framed by a highly anticipated Fed decision. [46]
- Local macro: stronger‑than‑expected GDP growth and AI‑driven export strength, contrasted with a cooling hiring outlook that hints at a more cautious corporate sector in early 2026. [47]
- Micro / stock‑specific: corporate developments at Sembcorp, Genting Singapore, Rex International, Singapore Paincare, and the ongoing stories around UltraGreen.ai, MetaOptics and Manulife US REIT all offer focused trading opportunities. [48]
Investors who succeed today are likely to be those who:
- Respect the potential for short‑term volatility around central‑bank headlines,
- Stay selective – leaning into fundamentally supported stories rather than chasing every momentum spike, and
- Maintain a clear distinction between short‑term trading angles and long‑term portfolio positioning in Singapore’s evolving growth narrative.
As always, this overview is for information and commentary only and does not constitute investment advice. Consider your own risk tolerance, time horizon and, where appropriate, seek professional advice before acting on any of these themes.
References
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