Singapore shares surged to fresh record levels this week, as the Straits Times Index (STI) closed above the 4,300 mark for the first time, buoyed by growing expectations of US interest rate cuts and improving domestic market conditions.
The benchmark STI ended Sept 5 at 4,307.08 points, setting a new all-time closing high after hitting an intraday peak of 4,320.37. The move capped a strong week for local equities, with the index logging a 0.2% daily gain and extending its advance to 0.6% month-to-date and 13.4% year-to-date.
Market sentiment was lifted by softer-than-expected US jobs data, which reinforced hopes that the US Federal Reserve (Fed) will pivot towards rate cuts sooner rather than later. Rate-sensitive sectors such as real estate investment trusts (REITs) benefited from the improved outlook, while banks and blue-chip counters also provided support.
The rally underscores the STI’s remarkable rebound from its April 2025 lows near 3,393, marking a near 27% climb in just a few months. Analysts noted that the momentum reflects both external drivers and renewed confidence in Singapore’s economic resilience.
Separately, the Singapore Exchange (SGX) announced plans to streamline rules for designated market makers in the exchange-traded fund (ETF) space, aiming to align with global standards and improve liquidity. Market observers said the reforms could attract more institutional participation, further strengthening the city-state’s capital markets.
For the week, the STI’s steady gains highlighted a balancing act between global rate expectations and regional growth prospects. With external uncertainties still in play, investors are expected to keep a close eye on policy signals from both the Fed and regional central banks.
Related