What’s Driving the STI Rally
The STI’s strength stems from recovering REITs and steady industrial performance, though bank earnings diverged. DBS Group (SGX: D05) reported S$2.95 billion in 3Q2025 net profit, while Oversea-Chinese Banking Corporation (SGX: O39), or OCBC, posted a healthy S$1.98 billion for the same period. United Overseas Bank Ltd (SGX: U11), or UOB, however, saw its net profit fall to S$443 million after setting aside an additional S$615 million in pre-emptive provisions. REITs have stabilised, with CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT,...Singapore’s Straits Times Index (SGX: STI) just broke through 4,500, a level we haven’t seen in a decade that has investors buzzing.
With rate cuts looming globally, and Singapore’s heavyweights posting strong results, many are asking: is this the STI’s long-awaited breakout after years of treading water?
To answer that, we need to examine what’s driving the surge, and what could get in the way.
