STI Breaks 3,400 in 2024 – What’s Ahead for 2025

Singapore Straits Times Index Clears 3,400 Resistance

Singapore Straits Times Index Clears 3,400 Resistance As anticipated in our analysis during last year’s Singapore National Day special, the STI has closed above 3,400 at the end of the year for the first time in its history. This has sent a clear signal to the market that its long-standing 3,400 resistance may now act as a new support level. 

Source: TradingView

As our report stated on 19 August 2024 (see chart below) we noted: “Technically, the STI has been trying to breach the 3,400 level since 2007. However, if it can close above 3,400 in the coming quarters with a high inflow of investment, this would indicate a psychological breakthrough.” 

Source: TradingView

Indeed, this milestone represents a psychological breakthrough. From a technical perspective, any retracement around the 3,400 level could present another entry point for investing in Singapore stocks. As mentioned in our 19 August 2024 report: “The next crisis may not be bad for Singapore stocks. Could it be AI fatigue or another inflation fear?” Or could it be the Trump’s tariffs or even a bonds crisis, as explained in our latest video analysis? This year brings more areas of concern compared to last year. Nevertheless, our outlook remains that global investors continue to view Singapore as a safe haven. The demand for safe-haven assets is higher than ever, driven by uncertainties such as geopolitical tensions and inflation fears. 

Charting STI New Path 

Source: TradingView

As the US Federal Funds Rate is likely to see fewer cuts this year, borrowing costs are expected to remain elevated. This trend will continue to benefit bank shares, which hold a significant weighting in the STI components. The Monetary Authority of Singapore (MAS) established a review group in August 2024 to recommend measures for strengthening Singapore's equities market. The review group is expected to present its recommendations by August 2025. This initiative may bring a new wave of hope to Singapore's equities landscape. On my wish list is the inclusion of more local and foreign tech companies being listed in Singapore.

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