The Straits Times Index (STI) has achieved a new all-time high of 3,921.30, marking a 23.2% increase over the past 10 months from April 2024 to February 2025. This significant rise was bolstered by substantial net institutional inflows amounting to $489m, despite uneven gains among its constituents.
Key contributors to this surge included Singapore Telecommunications, United Overseas Bank, Singapore Exchange, Oversea-Chinese Banking Corporation, and Singapore Technologies Engineering, which saw the most net institutional inflow. Yangzijiang Shipbuilding led the STI with a remarkable 65% price gain, followed by Singapore Exchange and Hongkong Land with 53% and 45% gains, respectively.
The trio of banks—DBS, UOB, and OCBC—averaged 33% price gains, increasing their combined STI weightage from 50% to 54%. DBS Group Holdings reported a record net profit of S$11.4 billion for FY24, contributing to the STI’s new high. The bank plans to manage excess capital over the next three years, including a Capital Return dividend.
Hongkong Land’s strategic shift towards ultra-premium integrated commercial properties in key Asian cities also played a role in its strong performance. The company aims to double its underlying profit and dividends by 2035.
The STI’s total return over the 10-month period was 29.2%, reflecting its high dividend yield. The index’s current price-to-book ratio of 1.3x suggests a more conservative valuation compared to past peaks.
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