[SINGAPORE] Singapore stocks ended slightly lower on Wednesday (Dec 31), the final trading day of 2025. The decline followed the release of the US Federal Reserve’s December meeting minutes, which indicated that policymakers are inclined to keep interest rates unchanged.
The benchmark Straits Times Index (STI) slipped 0.2 per cent or 9.17 points to 4,646.21 on the shorter trading day of New Year’s Eve. Similarly, the iEdge Singapore Next 50 Index edged down 0.1 per cent or 1.36 points to 1,450.13.
Across the broader market, advancers outnumbered decliners 249 to 209, after 824.1 million securities worth S$660.5 million changed hands.
For the whole of 2025, the STI soared 22.7 per cent.
Mapletree Industrial Trust was the top blue-chip gainer, with a 1.5 per cent or S$0.03 rise to S$2.08.
Singapore Exchange was the largest decliner on the STI. It fell 0.8 per cent or S$0.14 to S$16.96.
The trio of local banks all ended lower. OCBC fell 0.5 per cent or S$0.09 to S$19.76, UOB lost 0.4 per cent or S$0.15 to close at S$35.06, and DBS slipped 0.2 per cent or S$0.14 to S$56.36.
Elsewhere in the region, major indices were mostly lower. Hong Kong’s Hang Seng Index closed 0.9 per cent down and Malaysia’s FTSE Bursa KLCI had dropped 0.6 per cent as at the midday trading break, while Australia’s ASX 200 was largely flat. South Korea’s Kospi and Japan were closed.
In the US, the S&P 500 and Nasdaq were little changed in volatile trading on Tuesday, as gains in communication services stocks were offset by losses in technology and financials.
The newly released minutes from the Fed meeting revealed a nuanced debate on the risks to the economy, with the officials agreeing to cut rates only after extensive discussion. The next meeting is scheduled for Jan 27 to 28, with expectations that the Fed will keep rates unchanged.
UOB senior economist Alvin Liew noted that the US central bank remains biased towards further rate cuts, though not immediately. He said: “We continue to anticipate a period of pause in early 2026 to coincide with Jerome Powell’s scheduled departure as chair in May.”
He also maintained his forecast for two rate cuts in the second and third quarters of 2026, driven by expected weakness in the labour market.
“This would bring the terminal fed funds target rate to 3.25 per cent by (end-2026), consistent with our view of a gradual normalisation path,” he added.
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