Singapore stocks’ showing may hinge on reforms in 2025, but outlook for some sectors look bright

ANALYSTS expect Singapore stocks to outperform and see significant upside in 2025, but there is a caveat: This is likely to happen only if market reforms are put in place to raise their relative valuations.

Macquarie analysts expect companies to post an estimated 5 per cent rise in earnings-per-share growth, bringing the benchmark Straits Times Index (STI) to their base target of 4,000. Meanwhile, positive “value-up” style reforms could lead the index to a bull case target of 4,410.

“Practically, given the huge weight of financials on the index, much of the upside hinges on whether the banks can continue to rally,” they said in an outlook note in December, adding that they were “constructive” on Singapore equities.