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Singapore shares continue upward trajectory amid mixed regional showing; STI up 0.2%

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  Published in Stocks and Investing on Wednesday, November 5th 2025 at 8:42 GMT by The Straits Times
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Sector‑by‑sector performance

Financials: Banks were the biggest beneficiaries of the day’s rally. DBS Group Holdings rose 1.6 %, buoyed by a strong earnings outlook that highlights growing fee income from its wealth‑management arm. Oversea-Chinese Banking Corporation (OCBC) gained 1.4 %, while UOB also ticked up 1.2 %. These gains reflected optimism around higher deposit rates and an improving domestic economy.

Real‑estate: The housing sector also posted gains, with CapitaLand Holdings up 1.9 % and City Developments Ltd (CDL) up 1.7 %. The rise was linked to renewed confidence in the property market as the Monetary Authority of Singapore (MAS) is expected to maintain its policy stance in the near term, ensuring continued liquidity for developers.

Industrials and Utilities: Keppel Corporation, a diversified conglomerate with interests in offshore and marine, climbed 1.3 %. The share price of Singapore Power Group also saw a 1.1 % rise. These moves came as the energy mix is expected to see an incremental shift toward renewables, which the company has been actively investing in.

Consumer & Services: In contrast, consumer discretionary and retail stocks posted modest gains. Singapore Airlines Limited was the standout, up 1.8 % on the back of an early‑booking boost and a forecasted lift in passenger traffic for the first half of the year.

Energy: Oil and gas stocks fell 2.4 % as the benchmark Brent crude slipped to $83.50 a barrel, reflecting global inventory builds and the U.S. Treasury yield curve flattening.

Regional and Global Context

Singapore’s gains came against a backdrop of mixed performances in the region. The Hong Kong Stock Exchange (HKEX) dipped 1.3 % amid political uncertainty and a cautious stance on the U.S. Federal Reserve’s next move. In Canada, the S&P/TSX Composite Index was essentially flat, a sign of indecision among Canadian investors as the Bank of Canada signals a possible rate cut later this year.

Internationally, the day’s market was heavily influenced by data from China and the United States. China’s Purchasing Managers’ Index (PMI) for February came in at 50.7, surpassing market expectations and providing a lift to Asian equities. The Chinese central bank, the People’s Bank of China, hinted at a continued accommodative stance, which helped ease concerns over a slowdown in China’s manufacturing sector.

On the U.S. front, Treasury yields continued to slide. The 10‑year U.S. Treasury yield fell to 3.58 %, the lowest level in four months, signaling a dovish sentiment that could ease pressure on Singapore’s debt‑heavy companies. The Fed’s upcoming policy meeting is expected to maintain a neutral stance, but with a cautious approach towards future rate cuts. Analysts warned that any hint of a more hawkish stance could trigger a sell‑off in the region.

Analyst Commentary

Securities firms such as DBS Investment Bank and CIMB Securities weighed in on the day’s rally. A DBS analyst said the “core banking segment is expected to benefit from an improved interest‑margin profile, thanks to a projected rise in domestic credit demand.” Meanwhile, a CIMB analyst highlighted that the real‑estate sector would see a “slow but steady recovery” in property sales and rental yields, driven by a steady stream of foreign buyers.

“While the market’s short‑term direction is still quite fragile, the underlying fundamentals remain solid,” noted a senior equity analyst from Standard Chartered. “The policy environment is supportive, and the economic outlook in Singapore is still favorable. Investors should therefore keep a close eye on the policy signals from the Fed and China.”

Key Takeaways for Investors

1. Banking and real‑estate stocks continue to lead gains – driven by positive earnings forecasts and an accommodative monetary policy stance.
2. Energy stocks remain under pressure – due to falling oil prices and a shift toward cleaner energy sources.
3. Regional markets are mixed – Hong Kong remains cautious, while Canada is on hold as its central bank considers rate cuts.
4. U.S. policy expectations dominate sentiment – a dovish stance from the Fed is likely to keep the market buoyant, but any shift towards hawkishness could create volatility.
5. China’s manufacturing data is a key catalyst – the recent PMI release boosted confidence in Asian equities, a trend that could continue as China’s policy framework evolves.

Additional Context from Follow‑Up Links

The original article also referenced a commentary on global interest rate cuts, which highlighted how a dovish Fed stance can lower borrowing costs worldwide, indirectly benefiting export‑heavy sectors in Singapore. Another internal link directed readers to a deeper dive into the performance of specific tech stocks, underscoring the importance of monitoring valuation metrics as market conditions shift. A further link led to a detailed analysis of the S&P/TSX Composite Index, explaining how Canadian economic data such as employment reports and inflation measures are influencing investor sentiment.

In summary, Singapore’s market saw a modest uptick, largely supported by strong banking and real‑estate performances. While regional markets displayed a mixed picture, the overarching sentiment was driven by expectations of a dovish U.S. Federal Reserve and a resilient Chinese manufacturing sector. Investors remain attentive to policy signals, as they could significantly influence market direction in the weeks ahead.