• In the first quarter of 2025, the STI achieved a 4.9% gain, reaching 3,972.43. Including dividend distributions, the total return increased to 5.3%, matching the pace of returns seen in 2024. For investors using fintech platforms, since the end of 2019, the indicative CAGR for monthly STI ETF dollar cost averaging comes to 6.8% as of the end of 1Q25.
   
• ST Engineering led the STI in 1Q25 with a 46% rally. The stock saw significant upgrades by analysts in 1Q25, with the 12M Consensus Estimate Target Price rising 36% from S$5.02 to S$6.85. Its 1Q25 average daily turnover also more than doubled 2024 levels, while Industrials booked the second highest net institutional inflow for the quarter. 
   
• In 1Q25, net creation of S$36M in units saw the two STI tracking ETFs combined AUM increase from S$2.3B to S$2.6B. Towards the end of 1Q25, the Lion-CM CSI Dividend Index ETF made its debut, while the ETF formerly known as the United SSE 50 Index ETF underwent a major change and now tracks the FTSE China A50 Index.

In the final trading session of first quarter of 2025 (1Q25), the Straits Times Index (STI) briefly surpassed 4,000, reaching a new all-time high of 4,005.18. It took nearly two and a half years for the STI to move from oscillating around the 3,000 threshold in October 2022 to surpassing the 4,000 threshold in March 2025. For investors using fintech platforms, since the end of 2019, the indicative Compound Annual Growth Rate (CAGR) for monthly STI ETF dollar cost averaging comes to 6.8% as of the end of 1Q25. The month-to-month moves in the STI mean that around one-quarter more units would have been acquired when the STI ETFs were near 3,000 at the end of October 2022, compared to when these ETFs were near 4,000 at the end of March 2025. 

Economists estimate that the Singapore economy grew by 3.8% YoY in 1Q25, following 4.4% GDP growth in 2024. The STI's 4.9% price gain in 1Q25 continued the momentum from 2024, which saw a 19.8% price gain. Dividend distributions boosted the STI's total return to 5.3% in 1Q25 and 24.3% in 2024.

In 1Q25, the STI had 22 gainers and 8 decliners. The heavyweight banks ranked as the eighth, fourteenth, and eighteenth strongest for the quarter, compared to their top five performance among STI stocks in 2024. This saw the trio of STI Banks maintain their 54% STI weightage in 1Q25, following the increase from 47% to 54% in 2024.

The five strongest STI performers in 1Q25 are listed in the table below.

All Data as of 31 March 2025, Source: SGX & Refinitiv. Note ADT refers to Average Daily Trading Turnover; NIF refers to Net Institutional Flow.ST Engineering

As detailed in the table above, ST Engineering led the STI constituents with its share price surging 45.7% to S$6.79. The stock received significant upgrades this year, with the 12-month CETP rising by 36% from S$5.02 to S$6.85. The company maintains a robust Return on Equity (ROE) of 26%, with FY24 revenue up by 12% and attributable profit increasing by 20%. ST Engineering's order book now stands at S$28.5 billion, with S$8.8 billion expected to be delivered in 2025. Middle River Aerostructure Systems (MRAS), a 2 million square foot facility on 180 acres in Maryland, supplies and supports products for engine makers, airplane manufacturers, and aircraft operators, and is a key part of its global network of aerospace facilities and offices. The average daily turnover (ADT) of the stock in 1Q25 was more than double the 2024 levels.

1Q25 Net Institutional Flow

The 30 STI stocks booked S$1.63 billion of net institutional outflow in 1Q25, accounting for the lion share of the S$1.66 billion of net institutional outflow across the entire Singapore stock market. The majority of the net institutional outflow was on account of the trio of STI Banks and the S-REIT Sector. As illustrated below, proportionate to their respective combined market capitalisation as of the end of 1Q25, the trio of STI banks, S-REITs Sector and Technology Sector booked comparable net institutional outflow.

All Data as of 31 March 2025, Source: SGX & Refinitiv. Note ADT refers to Average Daily Trading Turnover; NIF refers to Net Institutional Flow.The full breakdown of STI performances, net institutional flow and ADT, in addition to 2024 comparisons are tabled below. 

All Data as of 31 March 2025, Source: SGX & Refinitiv. Note ADT refers to Average Daily Trading Turnover; NIF refers to Net Institutional Flow.2Q25 and BeyondShould current upside and downside market risks parallel the broader economic risks 2Q25 stock performance will be influenced by downside risks that include geopolitical tensions, higher tariffs, weaker growth in China, and a resurgence in global inflation. On the upside, stronger growth in China, a sustained tech cycle upturn, and milder-than-expected trade tensions offer potential positive developments. For more details on the relative weightings of these risks, refer to the March 2025 MAS Survey of Professional Forecasters here.Enjoying this read?

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