Singapore equities climb 6% on gains in finance, telecom sectors: FTSE Russell

Over the past three months, Singapore’s equity market delivered a 6% return, outperforming its ASEAN peers.

Singapore’s strong equity performance, driven by Financials, Telecom, and Utilities, reflects robust market sentiment, FTSE Russell said.

In its report, FTSE Russell said the financial sector continues to benefit from rate correlations with the US, whilst AI-driven data center growth is fueling sectoral rallies.

Over the past three months, Singapore’s equity market delivered a 6% return, outperforming its ASEAN peers, FTSE Russell noted.

This growth was primarily driven by the Financials sector, which saw gains of 13%, alongside significant contributions from the Telecom and Utilities sectors.

Additionally, wealth management has emerged as a key growth driver, reinforcing Singapore’s role as a rising Asian financial hub, according to FTSE Russell.

On the policy front, the Monetary Authority of Singapore has taken a measured approach by easing its policy stance, reducing the SGDNEER slope in response to lower core inflation and global trade uncertainties, FTSE Russell highlighted.

Despite this easing, Singapore’s interest rates remain aligned with US rates, supporting the continued strength of the financial sector.

Whilst Singapore’s economy remains highly exposed to global trade risks, it is less likely to face direct tariff hikes due to its trade deficit with the US, FTSE Russell pointed out.

Any impact on export growth would likely be indirect, driven by global demand fluctuations and shifts in international supply chains.

The Telecom and Utilities sectors have also seen significant growth, driven by the government’s pledge to expand data centre capacity, FTSE Russell noted.

This expansion caters to the increasing demand for AI infrastructure, reinforcing Singapore’s strategic position as a regional leader in AI and digital technologies.

In the bond market, Singapore government bond yields have remained stable, benefiting from correlations with US yields and steady domestic inflation, FTSE Russell said.