Singapore Markets: A Modest Weekly Gain, With Inflation Rising

Executive Summary

  • Stocks Finished Higher: The Straits Times Index (STI) closed on September 25 at 5,711.12, up 0.49% that day and approximately 0.97% from its September 18 close of 5,656.11 [3][1]. -> Treat the week as a gain, not evidence of a broad rally across every sector.
  • Core Inflation Accelerated: August MAS core inflation rose to 2.2% year on year, from 2.0% in July, as services, food, and retail and other goods inflation increased [2]. -> Watch whether the increase persists before assuming relief for rate-sensitive assets.
  • Headline Inflation Also Rose: August all-items inflation edged up to 2.3%, from 2.2% in July, despite lower private transport inflation [2]. -> Keep inflation risk in the market outlook.
  • Exports Provided Growth Support: The most recently released August non-oil domestic exports rose 46.2% year on year, extending July’s 24.1% gain; electronics exports surged 131.8%, supported by AI-related demand [4]. -> Distinguish strong export demand from a guarantee of similarly strong future growth.
  • The Official Growth Outlook Remained Strong: Singapore’s Ministry of Trade and Industry had raised its 2026 GDP growth forecast to 4.5%-5.5%, citing better-than-expected first-half performance and an improved outlook [5]. -> Weigh the supportive growth backdrop against inflation and external-demand risks.
  • Interest-Rate Sensitivity Mattered: MAS’s July policy statement projected 2026 core and headline inflation averaging 1.5%-2.5% [6]. -> Monitor financing conditions alongside earnings, particularly when assessing income-oriented investments.

STI Reached 5,711.12 by Friday’s Close

Trading referenceSTI levelChangeWhat it shows
Friday, September 185,656.11-0.08% on the dayStarting close for the trailing trading week [1]
Monday, September 215,675.23+0.34% on the dayPositive start to the week [1]
Friday, September 255,711.12+0.49% on the dayHigher week-ending close [3]

The Friday-to-Friday increase was 55.01 points, or approximately 0.97%, calculated from the September 18 and 25 closing levels [1][3]. Friday’s gain was 27.75 points [3]. These are price-index moves, not a dividend-inclusive investor return. The available findings do not establish a reliable week-long ranking of individual banks, REITs, or other constituents, so the index gain should not be attributed to a particular group.

Decision-ready takeaway: The benchmark improved, but investors assessing whether the move is durable should compare subsequent breadth and company results rather than extrapolate from the STI alone.

August Inflation Rose to 2.2% Core and 2.3% Headline

The week’s clearest new domestic macroeconomic release was the September 23 report on August consumer prices [2]. MAS core inflation increased from 2.0% in July to 2.2% in August because inflation was higher for services, food, and retail and other goods [2]. All-items inflation increased from 2.2% to 2.3%; higher core inflation more than offset lower private transport inflation [2].

This is a tension for markets: stronger growth can support company revenue, while persistent price pressure can complicate the outlook for funding costs and valuations. The inflation release does not, by itself, establish that borrowing rates or MAS policy changed during September 21-25. Decision-ready takeaway: Monitor the next inflation reading and financing costs before treating the week’s stock gain as an all-clear for rate-sensitive holdings.

AI-Linked Exports Supported Growth, but Preceded This Week

IndicatorLatest verified readingTiming and interpretation
Non-oil domestic exports+46.2% year on year in August, after +24.1% in JulyReleased September 17, before the week under review [4]
Electronic non-oil domestic exports+131.8% year on year in AugustThe official report links the surge to robust AI-related demand [4]
Official 2026 GDP forecast4.5%-5.5%MTI upgraded this forecast in August; it is an outlook, not measured full-year growth [5]

Exports and the GDP forecast provide context for investors at September 25, not additional data released during that trading week. AI-linked external demand is a material opportunity for Singapore’s trade and manufacturing ecosystem, but the exceptionally large electronics increase should not be assumed to recur at the same rate. Decision-ready takeaway: Test whether future export strength broadens beyond the most AI-sensitive products before upgrading a general market-growth thesis.

The observed financial trend was a higher STI close alongside firmer inflation and previously reported export strength [3][2][4]. Those facts pull in different directions: demand can support profits, while inflation can make the outlook less comfortable for borrowers and yield-sensitive securities. MAS’s earlier inflation projection of 1.5%-2.5% for both core and headline measures provides context, but is not a new policy decision from this week [6].

Decision-ready takeaway: For bank stocks, assess earnings and credit quality; for REITs and other income assets, assess debt refinancing and distributions. The research establishes neither a verified weekly sector return nor a specific September 21-25 move in the Singapore dollar or SORA, so no numerical claim about those markets is warranted.

Synthesis

The week’s approximately 0.97% STI rise contrasts with August’s modest acceleration in both core and headline inflation [1][3][2]. The export figures offer a plausible growth backdrop, but they were published the preceding week and describe a concentrated AI-linked surge rather than a fresh September 25 catalyst [4]. The practical interpretation is constructive but qualified: stocks ended higher, growth expectations remained supportive, and inflation plus financing sensitivity remained risks. Track subsequent prices, exports, and company results before concluding that the week’s index gain signals a broader trend.

References

  1. STI- Singapore Straits Times Index September 2026 | countryeconomy.com. https://countryeconomy.com/stock-exchange/singapore?dr=2026-09
  2. Consumer Price Developments in August 2026 | Ministry of Trade and Industry. https://www.mti.gov.sg/newsroom/consumer-price-developments-in-august-2026-
  3. STI Today: Singapore Market Indices & Constituents …. https://sginvestors.io/market/ftse-st-indices-straits-times-index-constituents
  4. Singapore’s External Trade – August 2026. https://www.enterprisesg.gov.sg/-/media/esg/files/media-centre/media-releases/2026/september/mr04226_monthly-trade-report---aug-26.pdf
  5. MTI Upgrades 2026 GDP Growth Forecast to “4.5 to 5.5 Per Cent”. https://www.mti.gov.sg/newsroom/mti-upgrades-2026-gdp-growth-forecast-to—4-5-to-5-5-per-cent-
  6. MAS Monetary Policy Statement - July 2026. https://www.mas.gov.sg/news/monetary-policy-statements/2026/mas-monetary-policy-statement-27jul26