Retail investors have played a pivotal role in Singapore’s stock market during a volatile April, as the Straits Times Index (STI) experienced significant fluctuations. The STI saw a sharp 14.6% decline to 3,393.69 on 9 April, followed by a 12.9% recovery to 3,832.32 by 23 April, resulting in a total return decline of 3.2% for the month. Whilst these changes occurred, retail investors emerged as strong net buyers, purchasing S$1.165b in Singapore stocks by 9 April.
The buying spree was largely concentrated on major financial institutions, including DBS Group Holdings, Oversea-Chinese Banking Corporation (OCBC), and United Overseas Bank (UOB), all of which are set to release their Q1 2025 results in early May. Non-STI stocks such as iFAST, Keppel DC REIT, and Aztech Global also saw significant retail interest.
However, since 14 April, retail investors have reversed nearly one-fifth of their net buying, selling S$253m in stocks as the STI gained 8% from 3,548.91 to 3,832.32. Stocks most net sold included Singtel, DBS, and Singapore Exchange, which averaged a 7.6% gain over the period.
The market’s volatility is attributed to global macroeconomic factors, including recent trade policy announcements and the potential expiry of US tariffs in July. The International Monetary Fund has downgraded its 2025 global growth outlook to 2.8%, citing trade tensions as a key factor. Despite the recovery in regional stocks, the economic outlook remains uncertain, with growth risks tilted to the downside.
“`
