Singapore's STI index rises 0.5% to a record high of 4,108.190 points

Singapore's STI index rises 0.5% to a record high of 4,108.190 points

Singapore's Straits Times Index (STI) surged to a new record high of 4,108.190 points on July 2, 2025, marking a 0.5% increase from its previous close. This robust performance comes on the heels of the city-state's resilient economic growth in the second quarter of 2025, which expanded by 4.3% year-on-year [1].

The manufacturing sector, which grew by 5.5% year-on-year, was a significant driver of this growth, led by electronics, precision engineering, and biomedical output [1]. Meanwhile, the logistics and transportation sector, which saw a 10.2% year-on-year growth, reflects Singapore's critical role as a global supply chain node [1]. The services sector also contributed to the overall expansion, with a 4.1% growth rate, driven by wholesale/retail trade and professional services [1].

Investors have taken note of these sector-specific performances, with companies like ST Engineering and Singapore Technologies Telemedia benefiting from rising demand for semiconductors and advanced logistics solutions [1]. Additionally, the exclusion of Singapore from the first wave of U.S. tariffs has boosted investor confidence, as seen in the rally of the local bourse on July 8 [2].

The STI's rise is also supported by a positive global market sentiment, with technology stocks leading the way higher. The European and U.S. markets were up, and the Asian bourses followed suit, with the STI finishing slightly higher on Wednesday [3].

While the U.S. has yet to issue "tariff letters" that could impose additional levies on Singaporean goods, creating uncertainty, the city-state's structural advantages—its strategic location, world-class ports, and $1.4 trillion GDP (as of 2024)—provide a solid foundation [1]. The Monetary Authority of Singapore (MAS) is expected to maintain a neutral stance in its July policy decision, given low inflation (0.8% in May) and weak external demand [1].

In conclusion, Singapore's STI index rise to a record high reflects the city-state's enduring economic resilience and investor confidence in its diversified economy. As the MAS prepares its July policy move and the MTI releases its full Q2 report on July 14, now is the time to capitalize on Singapore's enduring economic dynamism.

References:
[1] https://www.ainvest.com/news/singapore-resilient-growth-q2-2025-navigating-tailwinds-tech-logistics-finance-2507/
[2] https://www.businesstimes.com.sg/companies-markets/singapore-stocks-hold-firm-after-latest-salvo-us-tariffs-sti-0-4
[3] https://www.nasdaq.com/articles/continued-strength-predicted-singapore-stock-market