Singapore’s STI projected to hit 3,950 by 2025 on strong bank performance: DBS

Due to bank-heavyweight stocks, supported by slower Fed rate cuts and stable bank earnings.

Singapore’s Straits Times Index (STI) is projected to reach 3,950 by end-2025, driven by strong bank performances, though earnings growth may slow amid global trade tensions.

In its report, DBS said this growth is attributed to bank-heavyweight stocks, supported by slower Fed rate cuts and stable bank earnings.

However, it noted STI earnings growth for 2025 is expected to slow to 3.4% due to U.S.-China trade tensions, inflation uncertainties, and geopolitical volatility.

Meanwhile, it forecasted the city’s GDP to grow by 2.8% in 2025, but cited challenges such as U.S.-China trade tensions and inflation uncertainties.

Singapore’s GDP is forecasted to grow by 2.8% in 2025, though similar global headwinds are likely to pose challenges.

On the other hand, industrial REITs are expected to perform well with higher rents and easing costs, led by MLT and MINT.

Retail REITs remain supported by strong tenant sales, though sentiment-based outflows may occur by late 2025.

Grade A offices in Singapore’s CBD are projected to remain resilient with stable occupancy rates and easing costs.