The Singapore Straits Times Index (STI) maintained a steady course during the week of May 26 to May 30, 2025, reflecting investor confidence in the nation’s political stability following the recent general election, despite global market uncertainties.
The STI hovered around the 3,900-point mark throughout the week, showcasing resilience amid mixed global cues. The index’s stability was underpinned by gains in key sectors, including financials and industrials, offsetting declines in property and trust segments.
Financial stocks provided substantial support to the market. Notably, DBS Group Holdings reported a record net profit of S$11.4 billion for its financial year 2024, an 11% increase from the previous year, bolstering investor sentiment. Industrial players like Singapore Technologies Engineering Ltd also contributed positively, with a 3.75% gain observed during the week.
Conversely, the property sector faced headwinds. City Developments Ltd experienced a 0.4% decline amid ongoing boardroom disputes, while CapitaLand Investment Ltd saw a 0.38% drop, reflecting cautious investor outlook in the real estate domain.
Meanwhile, the outcome of the recent general election, where the People’s Action Party (PAP) retaining its supermajority, securing 87 out of 97 seats with a 65.57% vote share, further reinforced political continuity, instilling confidence among investors regarding Singapore’s economic policies and governance.
Analysts highlighted that the election results signalled voters’ trust in the PAP to navigate the nation through global uncertainties.
Despite domestic stability, external factors such as concerns over US tariffs and global economic growth prospects influenced market sentiment.
Analysts from RHB Bank and OCBC Investment Research anticipate moderate returns for the Singapore market in 2025, citing the significant impact of global economic conditions on the STI, especially given the substantial weightage of banks in the index.
Looking ahead, market participants are expected to monitor global economic developments closely. While the Singapore market may not replicate the highs of 2024, its resilience and the government’s strong mandate suggest a stable investment environment.
Investors are advised to adopt a cautious approach, focusing on sectors with robust fundamentals amid the evolving global landscape.
