The STI regained the 4,400 mark, boosted by all-time Wall St highs

Date: October 27, 2025

• The STI rose 2.17% to 4,422.21, underpinned by firm wall St
• US indices at all-time highs thanks to benign inflation report
• Probability of rate cut this week is 96.9%
• Jardine Matheson made privatization offer for Mandarin Oriental, both stocks surged
• Seatrium rejected “wrongful termination’’ of US$475m contract
• STI could hit 10,000 and SGD could be on par with USD by 2040: DBS report
• More market measures to be announced in November
• MAS issued consultation paper on civil compensation from market misconduct

The STI rebounded with a 2.17% rise

The Straits Times index had lost 100 points the previous week but then rebounded about 94 points or 2.17% to 4,422.21 last week, underpinned by a firm Wall Street where all three major indices finished the week at all-time highs.

Average daily volume in the holiday-shortened week was S$1.4b versus S$1.65b.

Over on Wall Street – benign inflation report lifted indices to new highs

The Dow Jones Industrial Average closed above 47,000, hitting its second thousand-point milestone of 2025 after crossing the 46,000 threshold 31 trading days ago, according to Dow Jones Market Data. The S&P also notched its best week since Aug. 8.

The September reading of the consumer price index, released early Friday, drove the session’s gains. Both the headline and core CPI rose at a 3% annual rate, slightly lower than economists’ expectations for both to grow at a 3.1% annual rate.

“After weeks without any official economic data due to the government shutdown, Friday’s inflation data did little to change expectations for the Fed’s rate cut path, with price increases coming in cooler than expected and reinforcing expectations that the Fed will cut rates next week and again in December in response to a weakening labour market,” Joe Mazzola, head of trading and a derivatives strategist at Charles Schwab.

For the week, the benchmark S&P 500 index gained 1.9%, while the blue-chip Dow Jones Industrial Average added 2.2%. The tech-heavy Nasdaq Composite advanced 2.3%.

Probability of a 25-basis points US rate cut this week now 96.9%

Odds of a 25-basis points rate cut at this week’s Federal Open Markets Committee meeting are now 96.9%, compared to 91.1% prior to the report, according to the CME FedWatch Tool.

 Jardine Matheson made privatization offer for Mandarin Oriental, both stocks surged

Shares of hotel chain Mandarin Oriental (MO) surged as much as 36.7 per cent on Tuesday on the back of a privatisation offer from controlling shareholder Jardine Matheson (JM) whose shares also rose sharply.

JM had earlier said that it is aiming to take MO private in a recommended cash takeover valued at US$3.35 per share, bringing the hotel group’s total valuation to about US$4.2 billion.

MO eventually closed at US$3.27, up 36.3% or US$0.87. They ended the week at US$3.27. Also on Tuesday, JM rose US$4.77 or 7.8% to US$65.90 but weakened thereafter, finishing the week at US$61.73.

The privatisation offer represents a 62.6, 65.8 and 70.9% premium over MO’s volume-weighted average price for the one-month, three-month and six-month period, respectively.

Jardine Matheson’s investment holding company, Jardine Strategic, will acquire the remaining 11.96% of Mandarin Oriental shares it does not already own.

Seatrium rejected “wrongful termination’’ of US$475m contract

Seatrium said that it has rejected the notice of termination of its US$475 million contract inked with a Maersk Offshore Wind affiliate in 2022, adding that the Maersk affiliate was “in repudiatory breach of the contract” and that Seatrium“ reserved all its rights against the buyer for wrongful termination”.

The contract was for the construction of a wind turbine installation vessel at the US offshore wind farm, Empire Wind 1. Seatrium had said that it was going to “explore viable solutions”, including talks with the end-customer, Empire Offshore Wind, a joint venture between Equinor and BP.

Seatrium also sent a notice to the buyer on Monday that the vessel, which is 98.9% complete, will be delivered on Jan 30, 2026.

In response, it received a notice of arbitration on Tuesday regarding the contractual dispute. The notice stated that such disputes are to be referred to arbitration in London, in accordance with the current London Maritime Arbitrators Association terms.

STI could hit 10,000 and SGD could be on par with USD by 2040: DBS report

The STI could rise to nearly 10,000 points by 2040 if historical return patterns hold, DBS’ Singapore 2040 report indicated.

The Singapore dollar could also reach parity with the greenback by 2040, amid policy and safe-haven appeal, the report released on Wednesday (Oct 22) said.

Singapore’s benchmark index has notched a strong year-to-date performance, driven by fading US exceptionalism, which is attracting global fund inflows, as well as the city-state’s safe-haven status in an environment of global geopolitical and tariff uncertainties.

The market also has attractive yield and price-to-book valuations, low domestic interest rates and a strong local currency. It is also receiving support measures from the government to revitalise its equity market.

“The ability to offer attractive dividend yields appears to have become part of the Singapore equity market’s DNA,” said the report.

Looking ahead, DBS expects three funding sources to drive Singapore equities higher.

Passive funds should drive growth in large-cap stocks, where safe-haven inflows from US and Europe passive funds more than offset outflows from active funds.

The government’s Equity Market Development Programme (EQDP) should also help to sustain interest in small-cap stocks.

Furthermore, stocks in the income and staples categories across all market capitalisations should benefit from the fall in interest rates as depositors redeploy their funds from money market, fixed deposits and high-yield current and savings accounts.

More market measures to be announced in November

The authorities will be announcing more details of its “Value Unlock” programme in November, said National Development Minister and Monetary Authority of Singapore (MAS) deputy chairman Chee Hong Tat.

These are measures to help listed companies deliver greater shareholder value and actively engage shareholders on their business plans, he said at a DBS event on Wednesday.

In September, he said that Singapore was looking to introduce a programme that will help companies unlock shareholder value and improve investor engagement capabilities.

The measures will include government grants, toolkits, and an expanded suite of engagement platforms.

MAS will also “soon” consult on proposals to enhance investor recourse avenues with proper safeguards “so we do not become an overly litigious society”, Chee said.

In the next few weeks, MAS and the Singapore Exchange Regulation will also issue public consultations that will lay out proposals to streamline the listing process that they are both involved in.

MAS issued consultation paper on civil compensation from market misconduct

The Monetary Authority of Singapore (MAS) is looking to enhance investors’ ability to seek civil compensation for losses suffered from market misconduct.

The proposals are to facilitate self-organisation, provide access to funding and reduce legal barriers to civil action, it said in a consultation paper issued on Friday (Oct 24) as part of the next set of measures to boost the local stock market.

MAS noted feedback that retail investors find it difficult to self-organise and get sufficient funds for legal advice when commencing civil action.

t also received feedback of a need to guard against frivolous legal actions which would place undue burden on the market.

“An effective investor recourse regime gives investors greater confidence to participate in the securities market,” MAS said.

Under the current Securities and Futures Act, investors can seek compensation for losses arising from market misconduct through an independent action, by bringing a private action in court for compensation.

They can also use the piggyback provision, by applying to court for compensation after the offender is convicted or a civil penalty order is made against him.

But investors may find it difficult to organise themselves and find someone willing to lead the action. Furthermore, under the current law, a third party can assist claimants, but it cannot bring action on behalf of claimants.

To facilitate self-organisation, MAS is looking to allow an independent party to coordinate and bring legal action on behalf of affected investors, by being appointed as a designated representative.

The designated representative must satisfy criteria such as having no conflicts of interests or direct financial interest in the outcome, to prevent profiteering behaviour and vexatious litigation.

To provide access to funding, MAS is proposing a grant scheme to co-fund meritorious investor actions and defray the costs of the designated representative.