Singapore stocks end 2025 on high note, more upside expected in 2026

SINGAPORE – Singapore’s stock market ended 2025 on a strong note, with further upside expected in 2026.

The blue-chip Straits Times Index (STI) finished at above 4,600 points, after notching several all-time highs over the past months. It started 2025 at around 3,800 points.

The iEdge Singapore Next 50 Index, officially launched in September to track the 50 largest stocks on the Singapore Exchange (SGX) by market value after the 30 STI component stocks, also rose. It closed 2025 above 1,450 points compared with 1,150 points at the start of the year, based on the index’s June 23, 2014, base date and starting value of 1,000 points.

While many blue-chip stocks rose, some of the biggest gains in 2025 were recorded among small- and mid-cap companies.

CNMC Goldmine was one of the biggest winners. Buoyed by soaring gold prices, the stock rose to a record high of $1.35 in October, and closed the year at $1.04, up 316 per cent since January.

Instant coffee-maker Food Empire was an outperformer, rising around 145 per cent to close the year at $2.40.

The other big winner was CSE Global, which builds and installs integrated technology systems for mission-critical operations in sectors like oil and gas and data centres. The stock closed at 98.5 cents on Dec 31, up by almost 135 per cent through the year.

Construction stocks did well in 2025, driven by a slew of property and infrastructure development projects across Singapore. OKP Holdings rose the most at over 297 per cent, followed by Hong Leong Asia, which is up 152 per cent. Both Koh Brothers and Pan United also rose by over 107 per cent.

A handful of companies took the chance to hive off and list parts of their businesses at attractive valuations on the SGX.

Centurion Corporation spun off its student and worker accommodation assets in Singapore, Britain and Australia into Centurion Accommodation Reit, while space manager LHN hived off its co-living arm, Coliwoo.

Separately, Yangzijiang Financial carved out and listed its maritime investment portfolio as Yangzijiang Maritime Development, while construction firm Lum Chang spun off its interior fit-out business, Lum Chang Creations, on the Catalist.

The Jardine group of companies were among the top performers on the STI in 2025.

DFI Retail Group rose the most, closing the year at US$3.95, up around 72 per cent since January. In March, it sold all Cold Storage and Giant supermarkets in Singapore to Malaysian group Macrovalue for $125 million to focus on higher-margin businesses like 7-Eleven and Guardian. 

Hongkong Land closed the year at US$6.95, up 57 per cent year to date. In 2025, Hongkong Land offloaded its Singapore and Malaysia residential arm, MCL Land, to Sunway Group for around $739 million. It also sold space in Hong Kong’s One Exchange Square to the city’s stock exchange operator for over $1.1 billion, as well as its stake in Marina Bay Financial Centre Tower 3 here to Keppel Reit for $1.45 billion.

Jardine Matheson, which holds controlling stakes in both DFI Retail and Hongkong Land, rose around 64 per cent through the year, closing on Dec 31 at US$68.39.

The other STI stocks that rose substantially were ST Engineering, which closed 2025 at $8.42 after rising 81 per cent in the year to date, as well as Keppel and Singtel, which both rose around 50 per cent over the year.

This year also saw two of the three Singapore banks hit record levels. DBS closed the year at $56.36, up 28 per cent, while OCBC Bank finished at $19.76, up almost 19 per cent.

A better year ahead

A slew of factors helped drive momentum on the SGX in 2025, and analysts expect them to continue fuelling interest in local stocks in 2026.

Responding to calls from the industry, the Monetary Authority of Singapore in 2025 rolled out measures to reform and revive the Singapore stock market.

They included pooling $5 billion with selected fund managers to invest in SGX companies, particularly small- and mid-cap stocks, as well as moves to make listing easier.

Investors were promised more robust legal recourse against errant companies and their directors, even as the stock exchange regulator officially adopted a lighter approach to oversight.

Listed companies can now tap government funds to improve their investor relations, and brokerages will also receive support to expand their research and coverage of local stocks.

These moves, aimed at boosting liquidity and attracting more initial public offerings, drew investors back to the Singapore market as interest rates softened, freeing up capital that flowed into equities.

“These reforms are already showing early signs of traction, and we believe they lay the groundwork for a more resilient and attractive Singapore market in the year ahead,” said Mr Gerald Wong, chief executive of financial platform Beansprout. As interest rates continue to normalise, companies with strong balance sheets, disciplined capital allocation and sustainable dividends will continue to draw investors, he said.

Mr Jerry Chua, CEO of boutique investment bank Evolve Capital, said that compared with 2025, “2026 has the potential to be a high-quality year for Singapore equities, marked by deeper markets, better price discovery and rising institutional participation”.

“For long-term investors, that is a more sustainable and attractive outcome than a short-lived rally,” he added.

Mr Chua also pointed to growing investor interest in 2026 beyond banks and real estate investment trusts, particularly in industrial and infrastructure-linked companies tied to the energy transition and supply-chain shifts, as well as technology-enabled services, digital infrastructure, and selected consumer and healthcare names with regional exposure.

What to look out for in 2026

As the global economy grows and supply chains become more complex, logistics-related infrastructure is expected to be in demand, making Mapletree Logistics Trust, Frasers Logistics and Commercial Trust, AIMS Apac Reit and CapitaLand Ascendas Reit among the counters to watch.

Other logistics-related SGX stocks include Samudera Shipping, GKE Corp and Cosco Shipping International.

There should also be continued interest in data centres as spending on artificial intelligence (AI) grows, putting Keppel DC Reit, Digital Core Reit and NTT DC Reit, which listed in July, in the spotlight.

Stocks related to local tourism could be worth watching in 2026 as tourist numbers rise. Genting Singapore, which operates the Resorts World Sentosa integrated resort, could see more action as tourists return.

Hotel operators like Banyan Tree are already receiving more interest, with the family behind property giant Far East Organization raising its stake in the company to 7.14 per cent from 6.93 per cent on Dec 28.

From January to October 2025, Singapore recorded 14.3 million international visitors, up 3 per cent from a year earlier. The Singapore Tourism Board (STB) expects full-year arrivals of 17 million to 18.5 million, while analysts project up to 19 million visitors in 2026, close to the pre-pandemic peak of 19.1 million in 2019.

Visitors are also spending more, with tourism receipts surpassing pre-pandemic levels at $29.8 billion in 2024, 7.6 per cent higher than in 2019. The STB expects spending to reach between $29 billion and $30.5 billion in 2025.

Some companies could pay special dividends in 2026. Analysts see City Developments as a prime candidate after the property developer spent much of the year offloading assets, including the sale of its 50.1 per cent stake in Singapore’s South Beach mixed-use complex to its partner IOI Properties Group in August for $835.29 million.

Keppel has also promised to reward shareholders with part of the cash unlocked from ongoing asset monetisation efforts, which include the sale of M1. However, a special dividend has not been confirmed.

The offshore sector could be an area to watch, on the back of higher investments into offshore wind infrastructure in 2025. Seatrium could see further interest, while Marco Polo Marine, a vessel charterer in this space, has recorded good growth. Some analysts also like ASL Marine, while Yangzijiang Maritime has some positive calls.

Meanwhile, recently listed UltraGreen.ai, which develops AI-powered fluorescence imaging technology for precision surgery, has strong fundamentals and room for further growth and upside, analysts said.

Some analysts expect more moderate gains for the STI in 2026 after a strong 2025, as support from ongoing market reforms and Singapore’s safe-haven appeal is offset by economic, tariff and US market risks. DBS has an end-2026 STI forecast of 4,880 points.