Overview of the Singapore Market
The MSCI Singapore Free Index (SIMSCI) closed the year at 373.14 points, reflecting a modest 0.7% month-over-month growth. While the Federal Reserve executed its anticipated rate cut in December 2024, the markets responded tepidly due to the Fed’s indication of fewer rate cuts in 2025. November’s Non-Oil Domestic Exports (NODX) showed a promising 3.4% year-over-year growth, reversing October’s contraction and outperforming Bloomberg’s consensus projection of -1%.
The electronics sector demonstrated robust growth of 23.2%, compensating for minor declines in non-electronics (-1.6%) and a drag from pharma. Private home sales in November surged 246% month-over-month and tripled year-over-year due to multiple new launches and growing consumer demand. Despite this, condominium rental volumes fell by 12.3% month-over-month, though there was a slight 0.8% year-over-year increase.
Sector Performance and Market Movements
In December, the outperforming sectors included Utilities, Industrials, and Financial Services, while Transportation, Real Estate, and Communications lagged. Institutional investors showed a preference for Industrials, Financials, and Utilities, continuing to sell REITs for the third consecutive month. Meanwhile, retail investors leaned towards REITs and Telcos but reduced their holdings in Industrials, Utilities, and Financials.
Deep Dive into Listed Companies
Sembcorp Industries (SCI)
Sembcorp Industries emerged as a top performer with a 5.75% gain, closing at \$5.52. This growth was fueled by contract wins, which boosted investor confidence in the company’s operational and financial outlook. The company’s strategic positioning in the Utilities sector further contributed to its resilience and strong performance.
Singapore Technologies Engineering (STE)
STE recorded a 3.56% increase in its share price, closing at \$4.66. Like SCI, its growth was underpinned by contract wins, which showcased its competitive edge and ability to secure high-value projects. This aligns with the broader trend of strength within the Industrials sector.
DBS Group
DBS Group saw a 3.04% rise in its stock price, closing at \$43.72. The Financial Services giant benefited from strong institutional buying and its robust performance amidst a challenging macroeconomic environment. Its ability to navigate interest rate fluctuations and maintain profitability has reinforced investor confidence.
SEA Ltd
SEA Ltd faced challenges, with its stock price dropping by 5.55% to \$107.48. The pullback in U.S. tech stocks significantly impacted SEA, reflecting market sentiment around high-growth technology companies amidst rising macroeconomic uncertainties.
Grab Ltd
Grab Ltd experienced a 4.80% decline, closing at \$4.76. Similar to SEA Ltd, Grab was affected by the broader sell-off in U.S. tech stocks. Despite this, its fundamentals and strategic initiatives in Southeast Asia remain focal points for future growth potential.
CapitaLand Investment (CLI)
CapitaLand Investment recorded a 4.03% drop, ending at \$2.62. The company reported a loss of S\$141 million due to the reclassification of CapitaLand Ascott Trust (CLAS) from a subsidiary to an associate following a share sale. This restructuring impacted its financial performance and investor sentiment.
Frasers Hospitality Trust (FHT)
FHT stood out with a significant 38.10% gain, closing at \$0.58. This remarkable performance highlights its strong recovery trajectory, bolstered by positive market sentiment and strategic initiatives within the hospitality sector.
Japfa Ltd
Japfa Ltd delivered a robust 25.33% increase in its stock price, closing at \$0.47. The uptick was largely attributed to a recent contract win, showcasing its operational strength and growth potential.
Yangzijiang Shipbuilding Holdings
Yangzijiang Shipbuilding Holdings recorded a 24.07% jump in its share price, ending at \$2.99. A contract win played a pivotal role in boosting investor confidence and driving the stock’s strong performance.
DFI Retail Group
DFI Retail Group saw its stock price decline by 9.41%, closing at \$2.31. The company faced headwinds due to the termination of senior executives, which raised concerns about its leadership stability and operational continuity.
Singapore Post Ltd (SPOST)
SPOST experienced an 8.62% drop, ending at \$0.53. Similar to DFI, the termination of senior executives negatively impacted investor sentiment, contributing to the decline in its stock price.
Digital Core REIT (DCREIT)
DCREIT reported a 5.69% decrease in its stock price, closing at \$0.58. The issuance of new units for fees diluted shareholder value, leading to a negative market reaction.
