Straits Times Index (STI)

STI starts consolidation as ADX falls; Chinese equities may have found a temporary floor with local proxy HSTECH attempting a rebound.

STI experiences correction as high risk-free rates cloud outlook for S-REITs.

The team at PhillipCapital prefers OCBC and UOB among the banks and the retail sub-sector for REITs. The team also sees Singtel as the primary beneficiary should a telco consolidation occur.

According to Bloomberg data, the benchmark index closed at an all-time high of 3,886.98 points on Jan 8, 1.54% higher than the previous day’s close.

Analysts’ top picks are ST Engineering, DFI Retail and Seatrium as they recommend investors position for ‘resilience’ and ‘growth’ in ‘volatile’ 2025.

For traders who have lived through the boom-and-bust cycle of Singapore stocks, there’s a stark difference between the euphoria back on that record day in 2007 and the reality now.

STI is likely to find support at 3.600 during corrective phase. risk-free rates are likely to trend higher as Nasdaq settles in for a consolidation.

Carmen Lee, head of OCBC Investment Research, expects banking analysts to start revising upwards their full-year earnings forecasts for Singapore’s three banks in January after the holiday season.

RHB estimates the STI to hit 3,940 points by the end of 2025.

Technically, negative divergences have appeared on the STI but no breakdown is likely yet.