SGX Weekly Review | STI Extends 5-Week Winning Run; SingPost, NIO Gain About 8%

Singapore's stocks rose this week, further improving on a 52-week high, mirroring gains in Wall Street. The Straits Times Index $(STI.SI)$ rose 3.13% to 3562.65 this week, extending a 5-week winning run.

Market News

Economists Upgrade Singapore 2024 Growth Forecast, Central Bank Survey Shows

Economists have upgraded their expectations for Singapore's growth in 2024, according to a survey by the country's central bank published on Wednesday, with better-than-expected external growth seen as the top upside driver for the economy.

The median forecast of 21 economists surveyed by the Monetary Authority of Singapore (MAS) is for the economy to grow 2.6% this year, up from a forecast of 2.4% in surveys done in March and June. They also forecast economic growth of 2.5% in 2025.

Singapore Will Have Largest Share of Passenger EVs in S-E Asia by 2040

Singapore is forecast to have the largest share of passenger electric vehicles (EVs) in South-east Asia by 2040, according to a report from Bloomberg’s energy research service BloombergNEF.  

A total of 80 per cent of all passenger vehicles here are expected to be electric by that year, compared with a regional average of 24 per cent, the report said.

Singapore to Begin Building Changi’s T5 Mega Airport Terminal in 2025

Singapore will start construction of a new mega terminal at Changi Airport in the first half of next year, aiming to lift the aviation hub’s annual passenger handling capacity by more than half, Prime Minister Lawrence Wong said.

The new Terminal 5 would add capacity for another 50 million passengers a year when operational in the mid-2030s, up from 90 million, and would allow the aviation hub serve more than 200 destinations, from almost 150 now.

Singapore Will ‘Act Decisively’ on More Housing Curbs If Needed

Singapore will continue to monitor the private and public housing resale markets closely following its latest round of cooling measures in August to boost the affordability of public flats.

The government “will not hesitate to act decisively to ensure prices remain in line with economic fundamentals,” the Ministry of National Development wrote in response to a parliamentary question on whether additional curbs are being considered for the private condominium market.

Singapore Office Floor in Orchard Road Sells for Record Rate

An office floor in a building on Singapore’s Orchard Road is being sold for a record rate, in a sign of continued investor interest in the city-state’s prime market.

The sixth story of the Tong Building, which is located next to a luxury mall on the retail strip, is being sold for S$31.3 million ($24 million), according to a property filing seen by Bloomberg News. That works out to S$4,562 per square foot based on its 6,867 square feet (638 square meters) of floor area.

Singapore Passes Law to Ration Power During Emergencies, Set up Energy Fund

The Energy Market Authority (EMA) will be able to implement power rationing as a “last resort” during a crisis, with priority given to critical services, after a Bill to support the country’s energy transition was passed on Monday (Sep 9).

A Future Energy Fund, announced during this year’s Budget, will also be part of measures to spur Singapore’s transition towards clean energy. 

The Week Ahead

There are no important economic data or earnings reports in Singapore market next week. But the Fed's decision on size of rate cut may take effect on Singapore market.

Traders Bet a Quarter-of-a-Percentage Point Reduction on Sept. 18

U.S. central bankers will likely start a series of interest-rate cuts next week with a quarter-of-a-percentage point reduction as government data showed inflation cooled in August from a year earlier, but a measure of underlying inflation remained sticky.

Traders now see just a 15% chance of a bigger half-point rate cut at the Fed's Sept 17-18 policysetting meeting, down from about 29% before the report, after government data showed the consumer price index rose 2.5% from a year earlier, but excluding volatile food and energy prices it was up 3.2%.