Stock Exchange in Singapore Potentially Recoups Friday's Decline
In a positive turn of events, major global indices, including the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500, experienced significant gains last week. The Dow climbed 206.97 points or 0.47 percent, the Nasdaq jumped 207.32 points or 0.98 percent, and the S&P 500 gained 49.45 points or 0.78 percent. Notably, the Nasdaq rallied 3.9 percent for the week, while the S&P 500 surged 2.4 percent.
The optimistic trend is expected to continue in Asian markets, with a focus on technology and financial shares. Strength also emerged among banking, oil service, brokerage, and networking stocks. However, uncertainty prevails over the U.S.-Russia conflict over the war with Ukraine, combined with the threat of sanctions on Russian oil exports.
Looking at Singapore's Straits Times Index (STI), it is predicted to open modestly higher on Monday, August 25, 2025, around S$4.30 to S$4.32, with a potential intraday price range of approximately ±1.35% from the last close. Short-term indicators and a generally positive trend suggest a bullish continuation and a buying opportunity in the near term.
Key factors influencing this outlook include robust recent performance, economic growth prospects, and selective sector strength. The STI closed at 4,216.2 on August 19, 2025, up 0.7% for the day and 1% month-to-date, with an 11.3% gain year-to-date. Strong sectors include construction, property development, and niche restoration supported by resilient demand and large order books.
Singapore’s economy outperformed in the first half of 2025, leading to an upward revision of the full-year growth forecast to 2.5%. However, risks remain for the second half of the year due to external uncertainties such as U.S.-China trade tensions. Despite strong fundamentals, market volatility is rising, as indicated by a 3.9% increase in the VIX Index recently. Crude oil prices have fallen sharply (down 10% month-to-date), and bond yields have moved slightly higher, which adds some caution to the outlook.
In the local market, the Singapore stock market ended a four-day winning streak on Friday, with the STI finishing modestly lower. The index lost 18.32 points or 0.43 percent to finish at 4,239.83, primarily due to losses from the property stocks and a mixed performance from the financial shares and industrials.
Among the actives, DBS Group jumped 1.99 percent, while Oversea-Chinese Banking Corporation tanked 1.76 percent. Shares of Apple (AAPL) showed a substantial move to the upside last week, and the NYSE Arca Computer Hardware Index climbed by 1.4 percent on the day.
Overall, while Singapore’s STI is poised for short-term gains supported by economic resilience and selective sector strength, investors should be mindful of rising volatility and geopolitical risks affecting broader Asian markets. 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. European markets were mixed, and U.S. bourses were up, and Asian markets are expected to tick higher on Monday. The Straits Times Index is currently just beneath the 4,240-point plateau. The lead from Wall Street is firm, with the major averages opening higher and finishing near daily highs.
- Given the current optimistic trend in global markets, investors might consider capitalizing on the anticipated rise in Asian markets, particularly in technology and financial sectors.
- As the STI closes in on the 4,240-point plateau, careful investing strategies should be employed, taking into account factors such as rising volatility, geopolitical risks, and external uncertainties like the U.S.-China trade tensions.
