Dear Readers, today is Good Friday, a significant day for many celebrating across the world. I would like to extend my warm wishes to all who observe Good Friday — may this day bring reflection, peace, and renewal. Additionally, I want to wish everyone in Singapore a happy public holiday! It’s a well-deserved break for many, and it’s a perfect time to review recent market developments during this shortened trading week.
Singapore’s stock market has experienced notable positive momentum over the past week. The Straits Times Index (STI), which is the benchmark index for Singapore’s equity market, has gained approximately 5.9% in just one week. This impressive rally follows a period of heightened volatility driven primarily by international trade tensions, particularly concerns surrounding tariffs and trade negotiations involving the United States and China. As trade tensions eased, investor confidence gradually returned, leading to increased buying activity and a rally in the local market.
The STI closed at 3,720.33 on 17 April 2025, up from 3,512.53 on 11 April 2025, marking a significant weekly gain. This surge suggests a shift in investor sentiment from cautious optimism to more bullish outlooks amid easing trade fears. The positive momentum reflects confidence in the resilience of Singapore’s economy and its companies, many of which are closely tied to global trade and manufacturing sectors.
Within the STI, certain stocks have shown remarkable strength and are currently considered overbought—meaning they have experienced significant price increases in a short period and may be due for a short-term correction. Notably, Singtel and ST Engineering are among these stocks.
Singtel, one of Singapore’s leading telecommunications and digital services providers, has rallied strongly over the past five trading days. Its stock price has surged by approximately 7.14%, reflecting investor enthusiasm and optimism surrounding its growth prospects and strategic initiatives. Year-to-date, Singtel’s stock has gained an impressive 21.36%. This substantial appreciation indicates strong investor confidence, possibly driven by positive earnings reports, strategic partnerships, or favorable industry trends such as increased demand for digital connectivity and cybersecurity services.
Similarly, ST Engineering, a diversified engineering group involved in aerospace, electronics, land systems, and marine sectors, has experienced an even more significant rally. Over the last five days, ST Engineering’s stock has surged by approximately 9.86%. Year-to-date, the company has achieved a remarkable capital gain of 53.33%, making it one of the top performers in the Singapore market this year. The substantial increase can be attributed to several factors, including robust order wins in defense and aerospace sectors, strategic acquisitions, and positive outlooks from analysts regarding the company’s growth trajectory.
While these stocks’ recent performance is impressive, their overbought status warrants caution. An overbought condition typically indicates that the stock has risen too quickly and may be vulnerable to a short-term correction or profit-taking by investors seeking to lock in gains. It’s essential for investors to consider technical indicators, such as the Relative Strength Index (RSI), which can help assess whether a stock is overbought or oversold.
In summary, the Singapore stock market has enjoyed a strong rally this week, driven by easing trade tensions and renewed investor optimism. However, some of the most prominent stocks, including Singtel and ST Engineering, have surged significantly in a short period and are now considered overbought. Investors should remain vigilant and consider the potential for short-term corrections, especially given the rapid pace of recent gains.
As always, prudent investing involves balancing optimism with caution. While the market appears to be on a positive trend, it’s crucial to stay informed about global developments and technical signals that might suggest a pause or reversal. Diversification and a long-term perspective remain key strategies in navigating these dynamic markets.
Wishing everyone a restful Good Friday and a joyful holiday weekend. May your investments continue to grow wisely and steadily.