Singapore stocks close higher amid cautious Middle East outlook; STI up 0.4%

[SINGAPORE] Singapore stocks ended higher on Friday (May 22), even as investors stayed cautious amid ongoing US-Iran peace talks aimed at ending the conflict in the Middle East.

The benchmark Straits Times Index (STI) gained 0.4 per cent or 22.44 points to finish at 5,068.15.

Keppel led the gainers on Singapore’s blue-chip index, rising 4.7 per cent or S$0.49 to S$10.91. The asset manager confirmed on Friday morning that the proposed sale of M1’s telecommunications business to Simba Telecom had fallen through.

The worst performer among STI constituents was Singtel , which fell 2.3 per cent or S$0.11 to S$4.59.

The trio of local banks ended higher.

DBS gained 0.6 per cent or S$0.35 to close the day at S$62.10, OCBC rose 0.9 per cent or S$0.20 to S$23.53, and UOB was up 0.03 per cent or S$0.01 at S$37.70.

Within the iEdge Singapore Next 50 Index, CSE Global was the top gainer, rising 10.3 per cent or S$0.16 to finish at S$1.71. Meanwhile, Frencken Group was the biggest loser, falling 4.8 per cent or S$0.15 to end the session at S$2.96.

Across the broader market, gainers outnumbered losers 330 to 244, after 1.4 billion securities worth S$2 billion changed hands.

Key regional indices were positive.

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Hong Kong’s Hang Seng Index gained 0.9 per cent, Japan’s Nikkei 225 rose 2.7 per cent, South Korea’s Kospi was up 0.4 per cent, and the FTSE Bursa Malaysia KLCI advanced 0.3 per cent.

Dr Karsten Junius, chief economist at private bank Bank J Safra Sarasin, said strong company earnings were a key reason for broader equity-market resilience amid the Iran war.

He flagged that the healthcare sector might still benefit from a positive shift in earnings revisions.

“After its recent underperformance, the sector is now being supported by a combination (of) attractive valuations and positive earnings revisions for the first time since mid-2025,” he added.