Singapore’s Straits Times Index Surges Past 4000 Mark

On March 28, 2025, Singapore’s Straits Times Index (STI) crossed the 4,000-mark for the first time in early trade, hitting a record 4005.18 points shortly after the market opened. This milestone follows the previous record of 3,991, which was set just a day earlier on March 27, 2025. According to data from the Singapore Exchange (SGX), the STI reached 4,005.18 at 9:02 am with 24.9 million shares traded.

However, the excitement was short-lived as the index fell back to 3,981.75 by 9:51 am, with 238.6 million shares worth S$281.7 million changing hands. The STI had previously peaked at 3,912.38 on February 10, 2025, shortly after the opening bell, as Singapore banks recorded new levels.

SGX market strategist Geoff Howie noted that the recent surge to the new all-time high coincides with above-trend gross domestic product (GDP) growth in 2024, which was reported at 4.4 percent. Howie expressed a cautiously optimistic market outlook for 2025, suggesting that the STI breaking the 4,000 barrier is a significant psychological milestone. He stated, "The most recent charge to the new 4,005.18 all-time high coincides with above-trend gross domestic product (GDP) growth in 2024 at 4.4 percent, and a cautiously optimistic market outlook for 2025."

Daphne Tan, business development director at CMC Markets Singapore, echoed Howie’s sentiments, emphasizing that the STI's crossing of 4,000 could be interpreted as strong investor confidence, resilient blue-chip performance, and a favorable economic climate. Tan remarked, "The STI breaking 4,000 is a key psychological milestone, which could be interpreted as strong investor confidence, resilient blue-chip performance and a favorable economic climate."

As of 10:07 am on March 28, 2025, Singapore's trio of banks, which account for more than half the index, showed mixed results. DBS was up 0.1 percent or S$0.06 at S$46.64; OCBC rose 0.1 percent or S$0.02 to S$17.40; while UOB declined 0.2 percent or S$0.09 to S$38.17. The benchmark index is noted for maintaining one of the highest dividend yields in the region, with the banks contributing significantly to the indicative yield of 4.5 percent.

Investment management firm Yangzijiang Financial was notably active in trading on this day, emerging as the most traded counter on the exchange by volume. At 10:16 am, it was up 1.3 percent or S$0.01 at S$0.795, with 28.7 million shares changing hands. Howie highlighted that ST Engineering and Sembcorp Industries led the STI’s charge for the first quarter of FY2025. By 10:30 am, ST Engineering was trading 0.7 percent or S$0.05 higher at S$6.78, while Sembcorp remained flat at S$6.37.

Howie also pointed out that both companies had their 12-month consensus estimate target prices revised upwards for the first quarter of FY2025. ST Engineering’s consensus was upgraded from S$5.02 to S$6.85, and Sembcorp’s was raised from S$6.82 to S$7.32. This positive outlook comes as Singapore’s industrial sector booked the most net institutional inflow in March, bucking broader net outflows.

Howie noted, "This has seen ST Engineering’s average daily turnover (ADT) more than double in Q1 FY2025 from 2024 levels to S$42 million." Another 30 industrial stocks had their ADT more than double during the same period, driven by developments abroad that have put industrial value chains clearly in the frame. He added that nearly half the revenue associated with the STI is generated outside Singapore, primarily across the Asia-Pacific region.

On a broader scale, industrials are benefiting from China’s efforts to strengthen regional supply chains with services-led growth. Howie highlighted that coordinated structural policies from the US Treasury, Commerce Department, and USTR (United States Trade Representative) are focused on reindustrializing the US. Meanwhile, ASEAN policymakers are continuing to bolster economic integration and the movement of capital goods within the region.

CMC Markets Singapore’s Tan cautioned that recent movements in the US market could indicate volatility ahead. She emphasized the importance of monitoring shifts in policy, economic data, and sentiment in navigating this uncertainty. Tan stated, "While the US market may not be necessarily past its peak, the volatility that we’re witnessing may continue sporadically throughout (US President Donald) Trump’s term. His policies and mandate tend to create such volatility."

In related news, Zomato's share price has also been in the spotlight. The Zomato share closed trade on March 27, 2025, at Rs 205.75, reaching an intraday high of Rs 208.75 and a low of Rs 200.50 during the same session. Its market capitalization stood at Rs 198,555.96 crore, with a 52-week high of Rs 304.50 and a low of Rs 146.85. As of March 28, 2025, Zomato's stock is trading at Rs 206.7, reflecting a slight increase of 0.46% or Rs 0.95 from the previous close.

Meanwhile, the Indian stock market is also experiencing significant movements. On the same day, BSE shares rallied by 14%, with BEML shares soaring 6% to ₹3,320.55 following a contract receipt from Bengaluru Metro Rail Corporation Limited. Crude oil futures traded lower as the market assessed the impact of impending US tariffs set to come into effect on April 2.

Trivesh D., COO at Tradejini, discussed India's increasing dependence on household savings to manage its rising debt, with around $346 billion in sovereign bonds due over the next five years. He noted, "The Indian government is becoming more dependent on household savings to handle its rising debt, with around $346 billion in sovereign bonds due over the next five years."

As the day progresses, traders are advised to keep an eye on market fluctuations and economic indicators as they navigate through the complexities of the current financial landscape.