Date: January 2, 2026
- The STI added 123 points or 2.7% over the month at 4646.21
- The index set three new closing highs during December
- The gain for the year was 859 points or 22.7%
- As expected, the US Fed cut rates in Dec but outlook highly unclear
- Manulife US REIT proposes strategic shift to retail, industrial sectors
- ai debuted on the mainboard
- Noodle maker Leong Guan debuted on Catalist
- Gordon Tang to buy out Suntec REIT’s manager for S$190m
- EC World REIT given until May 2026 to submit resumption proposal
- Mandatory offer for Alpha Integrated REIT at S$0.48 per unit
- JP Morgan bullish on Singapore stocks, names seven top picks
Three more all-time highs for the STI, gain for the month was 2.7%, 22.7% for the year
It was a relatively quiet month for the local market, at least as far as major corporate news was concerned. This was only to be expected, given the likelihood of investors winding down for the year ahead of the holiday season.
However, there was still sufficient interest in blue chips at least, to push the Straits Times Index above the 4,600 level for the first time ever, cementing its reputation as one of the best performing stock markets in the world.
On 22 Dec, the index closed at a new high of 4,610.29 and followed this up with 4,638.97 the next day and 4,655.38 on Tuesday 30 Dec.
It gained 123 points or 2.7% to close out the year at 4,646.21, recording a rise of 859 points or 22.7% over the twelve months. With dividends reinvested, the return was 28.8% or 37.1% in US dollar terms.
As expected, the US Fed cut rates but outlook highly uncertain
The US Federal Reserve delivered a widely-expected 25-basis points interest rate cut as well as a fairly benign assessment of the US economy thus sending the Dow Jones Industrial Average and S&P 500 to record highs that week.
The Fed lowered its benchmark borrowing rate for a third consecutive meeting, taking it to between 3.5% and 3.75% but new projections issued after the December meeting show only one rate cut expected next year, while language in the new policy statement indicated the Fed would likely remain on hold for now until new data shows that either inflation is again falling or unemployment is rising more than anticipated.
Furthermore, in economic projections released after the 9-10 December meeting, six officials outright opposed a cut and two of that group dissented as voting members of the Federal Open Market Committee.
Manulife US REIT proposes strategic shift to retail, industrial sectors
The manager of the pure-play US office real estate investment trust (REIT) Manulife REIT outlined plans to revitalise its portfolio by diversifying into industrial, living-sector, and retail assets in the US and Canada a move that comes amid continued headwinds in the US office sector.
To execute this pivot, the manager is seeking unitholder approval for a disposition mandate and an acquisition mandate that will run from Jan 1, 2026, to Apr 30, 2027.
UltraGreen.ai debuted on the mainboard
UltraGreen.ai debuted on the mainboard and closed its first day at US$1.52, up 4.8% or US$0.07 from its offer price of US$1.45, with over 36.2 million shares transacted.
However it finished its first week at US$1.44, though a late push on the final day enabled it to finish the year at US$1.52.
UltraGreen.ai develops fluorescence-guided surgery technology, offers fluorescence imaging services and supplies indocyanine green dyes used in surgical procedures. It represents the kind of high-tech players that investors want listed on the local bourse.
The initial public offering (IPO) was the largest since 2017, outside of real estate investment trust (Reit) listings. It raised US$150 million and debuted with a market capitalisation of US$1.6 billion.
Noodle maker Leong Guan debuted on Catalist
Shares of food manufacturing and distribution company Leong Guan debuted on Catalist and closed its first day at S$0.24 versus the S$0.23 offer price. It ended the month at S$0.23.
Gordon Tang to buy out Suntec REIT’s manager for S$190m
Acrophyte Asset Management, controlled by property tycoon Gordon Tang,
will buy from ESR Asset Management all the shares in the Suntec REIT manager for S$190 million, “plus the manager’s assets less the liabilities as at Dec 31, 2025”.
It said in a statement that Tang currently owns, directly and through his affiliates, a 35.7% stake, or about one billion units, in Suntec REIT while ESR owns 10.8%.
EC World REIT given until May 2026 to submit resumption proposal
EC World Real Estate Investment Trust’s (ECW) application for more time to submit a resumption proposal was approved by the Singapore Exchange Securities Trading (SGX-ST), the REIT manager.
The waiver, valid until May 31, 2026, was granted on several conditions. This includes announcing the granting of the waiver, the reasons for seeking the waiver, as well as SGX-ST’s considerations.
Mandatory offer for Alpha Integrated REIT at S$0.48 per unit
Mindarie Investment, a wholly owned subsidiary of Swiss-based Volare Group, launched a mandatory conditional cash offer for all issued and outstanding units of Alpha Integrated Real Estate Investment Trust (AI-REIT) at S$0.48 per unit.
The move comes after Volare acquired a significant stake of AI-Reit, formerly known as Sabana REIT from ESR Group, triggering the mandatory offer threshold of 30% under the Singapore Code on Take-overs and Mergers.
During the month Volare entered into a sale and purchase agreement with ESR Group and E-Shang Infinity Cayman Limited to buy approximately 241.6 million units in AI-REIT.
Following the acquisition, Volare and its concert parties now control an aggregate of roughly 464.3 million units, representing 41.27% of the total issued units.
As the group’s shareholding has crossed the 30% threshold, it is legally required to make a mandatory general offer for the remaining units it does not already own.
JP Morgan bullish on Singapore stocks, names seven top picks
JPMorgan said in its Regional Outlook that 2026 will feature an upside for Singapore equities as global funds remain under-positioned and a much-larger-than-average cash pile of S$70 billion begins rotating from deposits into the stock market.
This trend is expected to persist until the end of the year, on the back of the Monetary Authority of Singapore holding rates steady while global yields decline.
The bank also noted that Singapore equity valuations remained attractive, with the yield gap against T-bills tracking well above historical averages.
Its top Singapore picks are DBS, Keppel, City Developments, CapitaLand Integrated Commercial Trust, ST Engineering, Sea and Singtel. Its least preferred stocks are UOB and Yangzijiang Shipbuilding
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