The Straits Times Index (STI) recorded a 5.3% total return in the first quarter of 2025, according to data from the Singapore Exchange (SGX) and Refinitiv. This performance comes despite a broader market downturn, highlighting the resilience of certain sectors and stocks within the index.
Amongst the top performers in Q1 2025 were stocks with codes S63, U96, and U14, which achieved total returns of 46%, 15%, and 15% respectively. Notably, Singtel and CapitaLand Integrated Commercial Trust also showed strong performances, with both achieving 11% total returns. The STI’s robust performance was supported by a net institutional inflow of S$50m, particularly benefiting larger-cap Singapore Real Estate Investment Trusts (S-REITs).
The Lion-CM CSI Dividend Index ETF, which provides exposure to high-yielding A-Shares on the Shanghai and Shenzhen Stock Exchanges, also played a role in the market dynamics. The ETF maintains a 6.2% indicative dividend yield and includes 100 constituents selected for high cash dividend yields and stability. The Energy sector, comprising 20% of the index, aligns with China’s ongoing energy transition efforts.
Looking ahead, the outlook for US Federal Reserve rates has shifted to a more dovish stance, with expectations of further rate cuts by 2026. This could influence future market conditions and investor sentiment. Additionally, China’s retail sales growth, projected to reach 5% in 2025, may positively impact S-REITs with retail assets in the Greater China region.
In summary, the STI’s performance in Q1 2025 underscores the resilience of certain sectors amidst market volatility, with implications for future investment strategies and economic conditions.
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