Singapore stocks notch 5-day rally ahead of GDP data
[SINGAPORE] The local bourse extended its winning streak to end the week on a high note as investment sentiments have been undisturbed by tariff news, ahead of the release of the advance GDP estimate for the second quarter of 2025 next Monday.
The blue-chip Straits Times Index (STI) closed 0.3 per cent or 12.11 points higher at 4,087.81 on Friday (Jul 11). Across the broader market, gainers outnumbered losers 298 to 202, with about 1.6 billion securities worth S$1.4 billion changing hands.
On STI, Yangzijiang Shipbuilding led the gains, up 1.8 per cent or S$0.04 at S$2.32. Genting Singapore was at the bottom of the list, down 1.4 per cent or S$0.01 at S$0.73.
Despite a week of tariff shocks, Singapore equities marched on as the trading hub stands to benefit from trade disruptions. The country has also been ranked the top port for the 12th consecutive year on the 2025 Xinhua-Baltic International Shipping Centre Development Index.
Nomura’s analysis shows that the Singapore economy “easily avoided a technical recession” in the second quarter, amid an estimated GDP growth driven by a rising number of total exports, its global markets research team indicated in a report on Friday.
This was due to front-loading and re-routing effects which have been boosting its industrial output and trade-related services, noted the team.
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“We estimate Q2 GDP growth is tracking at 4.4 per cent year-on-year in Q2, up from 3.9 per cent in Q1,” added the team.
Overall, the team maintains its 2025 GDP growth forecast of 2 per cent, higher than the consensus of 1.7 per cent, at the top end of the official forecast range of 0 to 2 per cent. “We expect the Ministry of Trade and Industry to maintain this forecast range at the Q2 GDP advance release, as the improvement in Q2 is likely to be viewed by officials as a near-term reprieve that may not be sustainable.
“We also continue to pencil in slower growth in H2 after some rebound in Q2, reflecting payback effects after the front-loading exports. That said, we think the government will roll out sizeable fiscal support measures, especially for labour markets, providing some offset.”
Nonetheless, the team acknowledged uncertainty over the growth outlook, given the US tariff policy “which could have large indirect effects on Singapore’s economy”. It added that sectoral tariffs, such as those on pharmaceuticals, could pose more direct risks.
