Straits Times Index could hit 3,950 by end-2025, says DBS report

SINGAPORE: Singapore’s Straits Times Index (STI) is expected to reach 3,950 by the end of 2025, according to a report by DBS. This growth is expected to be driven by strong performances from bank-heavyweight stocks, supported by stable bank earnings and slower interest rate cuts by the US Federal Reserve.

According to Singapore Business Review, DBS noted that while the banking sector remains a key driver for the index, overall earnings growth for the STI is predicted to slow down to 3.4% in 2025. This is attributed to ongoing U.S.-China trade tensions, inflation pressures, and geopolitical uncertainties.

DBS also projected Singapore’s GDP to expand by 2.8% in 2025, but said global challenges like the U.S.-China trade tensions and inflation uncertainties could weigh on growth.

Industrial REITs, including Mapletree Logistics Trust (MLT) and Mapletree Industrial Trust (MINT), are predicted to perform well, driven by higher rental income and easing costs.

Retail REITs are likely to remain supported by strong tenant spending, but there could be outflows influenced by market sentiment by late 2025.

Grade A office spaces in Singapore’s CBD are expected to stay steady, benefiting from stable occupancy rates and declining costs. /TISG

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