Potential Recovery Ahead for Singapore's Stock Market, Set to Reverse Friday's Decline
On Monday, August 18, 2025, the Asian market showed a mixed performance, with the Singapore Straits Times Index (STI) taking a 1% dip, closing at 4,187.38 points[3]. Despite the global outlook being upbeat and gains on US stock markets, this decline was a temporary setback for the STI, which had performed strongly year-to-date with an 11.3% rise and had hit new all-time highs, surpassing 4,200 points[1].
The STI is expected to find renewed support near the 4,180–4,200 level, a psychological and technical support zone given its recent range of fluctuations and previous breaks above 4,200 points[1][3]. Factors such as upcoming earnings reports, US economic data, and regional geopolitical developments could influence the index’s ability to stabilize or rally after this dip.
Blue-chip stocks within the STI showed mixed results, with some lagging like Genting Singapore due to earnings weakness, which may weigh on the index’s near-term outlook[1]. The broader Asia market faces challenges like weak Chinese economic data dampening investor enthusiasm despite US gains[5].
Meanwhile, the US markets had a strong week. The S&P 500 had a weekly gain of 2.4 percent, while the Dow had a weekly gain of 1.4 percent[2]. The NASDAQ also showed a weekly gain of 3.9 percent[2]. Strength emerged among banking, oil service, brokerage, and networking stocks, with the NYSE Arca Computer Hardware Index climbing by 1.4 percent on the day[4].
One notable performer was Apple (AAPL), which showed a substantial move to the upside last week, following the announcement of plans to spend about $600 billion in the US over the next four years[6]. Crude oil posted very slight gains on Friday, with West Texas Intermediate crude for September up $0.03 or 0.05 percent to $63.91 per barrel[7]. However, the threat of sanctions on Russian oil exports continues to loom[8].
Asian markets, including Singapore, are expected to tick higher on Monday, with technology and financial shares expected to lead[5]. Despite the short-term pressures, the overall global macro factors remain broadly positive, providing hope for a recovery in the STI and the broader Asian market in the near future.
[1] - [https://www.straitstimes.com/business/companies-markets/sti-drops-1-on-friday-as-property-stocks-lag] [2] - [https://www.cnbc.com/2025/08/20/us-stock-market-futures-open-to-day-dow-jones-nasdaq-futures-rise.html] [3] - [https://www.straitstimes.com/business/companies-markets/sti-falls-1-on-monday-as-property-stocks-lag] [4] - [https://www.nasdaq.com/articles/nasdaq-composite-index-technicals-2025-08-20] [5] - [https://www.cnbc.com/2025/08/18/asian-markets-set-to-open-higher-as-us-stocks-rise.html] [6] - [https://www.cnbc.com/2025/08/14/apple-stock-surges-as-tech-giant-announces-600-billion-us-investment-plan.html] [7] - [https://www.reuters.com/business/energy/oil-prices-rise-on-expectations-u-s-stimulus-package-2025-08-20/] [8] - [https://www.reuters.com/world/europe/us-to-send-more-warships-to-black-sea-amid-russia-tensions-2025-08-19/]
- With the STI showing a renewed support near the 4,180–4,200 level, investors may consider this as an opportunity to invest in the stock-market, given the overall positive global macro factors and the expectation of the STI to rally in the near future.
- Despite the short-term setback in the STI, the strong performance of blue-chip stocks within the index, such as Apple (AAPL), and the gains on US stock markets provide reasons for those interested in finance to closely monitor the stock-market investing landscape, particularly in the technology and financial sectors.
