KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
While global markets have been rattled by trade tensions and policy uncertainty, Singapore’s FTSE Straits Times Index (.STI.SG) continues to defy the odds. The index not only held firm but outperformed the S&P 500, reinforcing Singapore’s position as a defensive stronghold in a shaky global landscape.
In October alone, the STI climbed 1.76%, while the S&P 500 slipped 0.66% — a striking divergence that underscores the market’s underlying resilience.
STI Hits Record High in October
The momentum is clear. On October 7, the STI surged to a record intraday high of 4,474.12, lifting its year-to-date gains to over 15%. The rally has been broad-based, anchored by strong blue-chip performance and Singapore’s stable economic footing.
Leading the charge are the three local banking giants — DBS, OCBC, and UOB — alongside Singtel and ST Engineering. All five posted positive returns this year, with ST Engineering (S63.SG) emerging as a star performer, soaring over 80% thanks to global defense demand.
Meanwhile, DBS (D05.SG) broke new ground by surpassing a S$150 billion market cap, becoming the first Singapore-listed firm to cross the US$100 billion milestone in June.
Why STI Is Outshining Global Peers
So, what’s fueling this outperformance?
Here are the four main catalysts driving Singapore’s equity market higher:
- Steady Economic Growth:Singapore’s GDP expanded 2.5% in H1 2025, while unemployment held near 2%, signaling resilience amid external headwinds.
- Capital Inflows into Asia:With volatility spiking in Western markets, global funds are rotating into Asia, and Singapore — known for its stability and governance — remains a top destination.
- MAS’s Market Support Measures:Under its S$5 billion Equity Market Development Programme, the Monetary Authority of Singapore has already deployed S$1.1 billion to strengthen market liquidity and investor participation.
- Regulatory Reforms Boosting Market Depth:Simplified IPO requirements, faster listing processes, and the launch of the iEdge Singapore Next 50 Index are attracting a new wave of issuers and investors.
A Tale of Two Markets: STI vs S&P 500
While the STI enjoys smooth upward momentum, the S&P 500 (.SPX.US) faces more turbulence — rising roughly 13% year-to-date but plagued by sharper short-term swings.
In contrast, Singapore’s market exhibits low beta characteristics, offering a calmer ride even as global investors navigate uncertainty in AI valuations, trade policies, and rate adjustments.
Policy Tailwinds Strengthen Market Confidence
Recent SGX and MAS initiatives are setting the stage for sustained equity growth:
Simplified listing rules are making it easier for both local and foreign firms to access Singapore’s capital markets.
Liquidity injections continue to support price stability and reduce volatility.
The Next 50 Index expands opportunities beyond blue chips, tapping into the country’s next generation of mid-cap growth leaders.
What’s Next? Eyes on Q4 Earnings
As Q4 earnings season approaches, the spotlight remains on Singapore’s banking, technology, and defense sectors.
The big three banks are expected to deliver steady profits, supported by stable net interest margins.
ST Engineering and Singtel could extend their strong momentum amid rising regional demand and digital transformation trends.
For investors, the STI’s trajectory underscores one message: diversification matters. Balancing between Singapore’s defensive blue chips and emerging mid-cap plays could be the key to capturing long-term upside in 2026.
Investor Takeaway
Singapore continues to prove that stability can outperform speed. As global uncertainties persist, the STI’s steady gains serve as a reminder that resilient markets don’t just survive — they lead.
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