Prime Highlights:

• Singapore’s stock market climbed to a decade high after delivering a 34% return in 2025, ranking among the top three performers in the Asia-Pacific region.
• Strong earnings growth in financial stocks and a rebound in electronics and AI-related exports fueled the rally, supported by improving profit forecasts and macroeconomic stability.

Key Facts:

• Financial stocks rose 8%over the past three months, helping lift the overall market by 13.2% and pushing the FTSE ASEAN Index up 9.6%.
• The Monetary Authority of Singapore has kept its S$NEER policy unchanged since April 2025, while steady upward EPS revisions strengthened investor confidence.

Background:

Singapore’s stock market has climbed to a 10-year high after delivering a 34% return in 2025, making it one of the top three performing equity markets in the Asia-Pacific region, according to data from LSEG.

Strong earnings growth, especially in the financial sector, has pushed the rally. A recovery in electronics and AI-related exports has also helped boost the rally. Analysts have increased their earnings per share (EPS) forecasts. This puts Singapore among the few markets in the region where profit outlooks are improving and stock prices still look reasonably valued.

The market is now trading near decade-high levels based on historical averages. However, steady earnings upgrades have supported investor confidence. Over the past two years, Singapore has recorded some of the strongest upward EPS revisions in the region.

Financial stocks played a key role in the rally. Banks benefited from higher interest rates, which improved margins and profitability. As a regional financial hub, Singapore attracted more capital and cross-border business activity. Over the past three months, financial stocks rose 16.8%, which pushed the overall market up 13.2% and lifted the FTSE ASEAN Index by 9.6%.

Macroeconomic stability also supported the market. Since April 2025, the Monetary Authority of Singapore has kept its S$NEER policy unchanged as export growth strengthened.

Singapore stayed steady despite global trade uncertainty. A rebound in semiconductor and AI-related electronics exports reflected strong global demand. Government efforts to expand data centre capacity and strengthen its position in the global AI supply chain also boosted long-term investor confidence.

Read Also : Wing Tai’s H1 Profit Surges 300% to $40.3m on Strong Singapore Property Sales