STI Eases 1.64% to 5,635 as Financial and Consumer Counters Slide; SGX Tops Turnover Charts

Market overview and STI ETF performance

The Straits Times Index closed the week ended 2 October 2026 at 5,635.00, down 33.00 points or 0.58 per cent from its previous close of 5,668.00, according to the data. Over the five trading sessions from 28 September to 2 October, the benchmark fell from 5,729.00 to 5,635.00, a decline of 1.64 per cent, leaving it below the top of its 52-week range of 4,312.00 to 5,828.00.

Market breadth on the final session was lopsided. Only four counters advanced, 24 declined and two were unchanged, and the average change across the constituent list was minus 1.19 per cent. The SPDR STI ETF, which tracks the benchmark, last traded at $5.717 against a previous close of $5.75, within a 52-week range of $4.38 to $5.92.

The weekly retreat follows a patchy September. Singapore Business Review reported that the STI ended September at 5,675.88, down 1.4 per cent over the month [1]. The Business Times had earlier reported that Singapore shares ended higher on 28 September as bank counters rose, with UOB leading the blue-chip gainers on a 1.7 per cent rise, while gainers trailed losers 224 to 305 across the broader market [2]. In the prior week to 25 September, the same publication reported the STI added 1 per cent as banks led gains, with Frasers Centrepoint Trust the worst performer among constituents after falling 1.4 per cent to $2.05 [3]. SGX's own market update described the STI reaching a record high before consolidating during September [19].

Sector-by-sector analysis

The data shows consumer defensive counters as the weakest group on the final day, averaging a fall of 2.93 per cent across three stocks, followed by financial services at minus 1.89 per cent across four stocks. The financial services average is heavily influenced by the exchange operator, Singapore Exchange, which fell 7.16 per cent. The three local banks were not uniformly weak: OCBC rose 0.35 per cent to $31.66, DBS traded at $77.21 against a 52-week high of $79.05, and UOB stood at $43.11 against a 52-week high of $45.15. All three sit within 5 per cent of their 52-week highs even as the wider index slipped.

Real estate was the largest sector by constituent count in the data, with 12 counters averaging a decline of 1.24 per cent. That group accounts for the bulk of the counters trading near their 52-week lows. CapitaLand Investment closed at $2.47 against a low of $2.45, CapitaLand Ascendas REIT at $2.22 against $2.21, CapitaLand Integrated Commercial Trust at $2.24 against $2.21, City Developments at $7.04 against $6.87, Frasers Centrepoint Trust at $2.07 against $2.05, Frasers Logistics and Commercial Trust at $0.86 against $0.86, Keppel DC REIT at $2.13 against $2.08, Mapletree Industrial Trust at $1.83 against $1.83, Mapletree Logistics Trust at $1.09 against $1.08, and Mapletree Pan Asia Commercial Trust at $1.19 against $1.18.

Income distributions reported in the data for the S-Reit group range from 6.64 per cent to 6.88 per cent: Mapletree Industrial Trust at 6.88 per cent, Frasers Logistics and Commercial Trust at 6.82 per cent, CapitaLand Ascendas REIT at 6.76 per cent, Mapletree Logistics Trust at 6.70 per cent and Mapletree Pan Asia Commercial Trust at 6.64 per cent. The Business Times published an opinion piece on 28 September arguing that Reits face pressure from rising interest rates, and that bigger risks could come from management fees and the alignment of manager and investor interests [12]. Separately, The Business Times reported on 30 September that Temasek-backed Mapletree is evaluating an India office Reit listing, citing sources [13], and flagged Mapletree Industrial Trust in its stock-watch column on 29 September [14].

Industrials averaged minus 0.52 per cent across six counters, while utilities fell 0.68 per cent and energy slipped 0.49 per cent on a single counter each. Communication services, represented by one counter, eased 0.47 per cent, with Singtel at $4.25 against a 52-week low of $4.15. Technology was the only sector in positive territory, averaging a gain of 0.18 per cent on a single counter, and consumer cyclical was flat at 0.00 per cent.

Top gainers and losers

Thai Beverage led the gainers with a 1.18 per cent rise to $0.43, even though the counter trades close to its 52-week low of $0.41. The data puts its price-to-earnings ratio at 10.8 times, its market capitalisation at $10.8 billion and its beta at 0.46. Jardine Matheson followed with a 0.87 per cent gain to $55.36 on volume 1.8 times its average, against a 52-week low of $52.85. OCBC added 0.35 per cent, Venture Corporation gained 0.18 per cent to $16.42, and Frasers Centrepoint Trust was unchanged at $2.07, rounding out the top five. Singapore Business Review reported that Frasers Centrepoint Trust was the most active stock on 30 September, a session in which the STI fell 0.68 per cent [5]. The Business Times reported that the trust led the gainers on the blue-chip index that same day even as the local banks all ended lower [4].

At the other end, DFI Retail Group dropped 8.82 per cent to $3.10 on volume 2.4 times its average, ending near its 52-week low of $3.07. The fall contrasts with the previous session, when The Business Times reported that DFI Retail Group led the gainers on the blue-chip index [6]. Its price-to-earnings ratio stands at 10.7 times in the data. Singapore Exchange was the second-largest decliner, shedding 7.16 per cent to $20.99 on volume 4.8 times its average, the heaviest relative volume reading in the dataset. CapitaLand Investment fell 1.98 per cent to $2.47, UOL Group slipped 1.95 per cent to $8.03, and Hongkong Land declined 1.83 per cent to $8.05.

Across the full week, the sharpest declines were City Developments at minus 7.25 per cent, from $7.59 to $7.04; Singapore Exchange at minus 6.59 per cent, from $22.47 to $20.99; CapitaLand Investment at minus 5.73 per cent, from $2.62 to $2.47; Hongkong Land at minus 5.63 per cent, from $8.53 to $8.05; and UOL Group at minus 3.95 per cent, from $8.36 to $8.03. The only meaningful weekly gainers were Singapore Technologies Engineering, up 0.92 per cent from $10.87 to $10.97, and Keppel DC REIT, up 0.47 per cent from $2.12 to $2.13. CapitaLand Integrated Commercial Trust, Frasers Centrepoint Trust and Mapletree Logistics Trust were unchanged over the five sessions.

Volume and momentum analysis

Turnover concentrated in the banks and the exchange. DBS Group Holdings recorded about S$349.4 million in traded value, the highest in the dataset, followed by Singapore Exchange at about S$272.7 million, OCBC at about S$225.5 million, UOB at about S$144.7 million and CapitaLand Integrated Commercial Trust at about S$85.6 million.

The data flags five counters trading above 1.5 times their average volume: Singapore Exchange at 4.8 times, DFI Retail Group at 2.4 times, City Developments at 1.9 times, Jardine Matheson at 1.8 times and CapitaLand Ascendas REIT at 1.7 times. The SGX reading stands out because the counter also posted the second-largest single-day percentage decline in the index, combining a heavy volume spike with a sharp price fall. City Developments, meanwhile, fell 7.25 per cent over the week on elevated volume while sitting at $7.04 against a 52-week low of $6.87.

Among the counters trading below their 50-day moving averages but above their 200-day moving averages, the data lists Hongkong Land, with a price of $8.05 against a 50-day moving average of $8.29. The counter carries the lowest price-to-earnings ratio in the dataset at 7.6 times.

Impact of macroeconomic and geopolitical factors

Trade policy remains an active theme. The Straits Times reported on 2 October, citing a Nikkei report, that the United States will unveil measures against excess manufacturing "in weeks", and that a new tariff would add to the 12.5 per cent levy Singapore became subject to in July following a USTR scrutiny of 60 trading partners over alleged failures to enforce prohibitions on imports made with forced labour [15]. The Business Times reported on 30 September that the US trade chief will consider trade deal tariff caps in an excess capacity probe [16]. These developments sit alongside sectoral tariffs described in the same Straits Times report as ranging from 25 per cent to 50 per cent.

Interest rates are the other dominant variable for local equities. The Business Times reported on 2 October that Macquarie sees UOB as having the most to gain from stronger Singdollar rates, noting that the three-month compounded Singapore Overnight Rate Average stood at about 1.4 per cent as at 30 September, compared with 1 per cent at the start of the year, and is forecast to rise to about 1.44 per cent in the first quarter of 2027 as the US dollar strengthens on a hawkish Federal Reserve [11]. Higher short-term rates feed directly into the earnings of the local banks, which derive income from net interest margins, while raising the discount rates applied to distributions from Reits. The Business Times opinion piece on the Reit sector framed rate pressure as manageable but pointed to fee structures and manager-investor alignment as longer-term considerations [12].

Energy market volatility also features in the background. The Business Times reported on 1 October that geopolitical tensions, including the conflict in the Middle East and the effective closure of the Strait of Hormuz in recent months, have heightened volatility in global energy markets, in an interview on how the Energy Market Authority is strengthening Singapore's energy resilience [17]. For an index with shipping, aviation, industrial and utility exposure, the cost of fuel and freight matters to operating margins, and the data shows the energy sector averaging minus 0.49 per cent and utilities minus 0.68 per cent on the day.

What the data shows about stability and volatility

The data captures a wide spread in measured volatility characteristics. At the low end, Sembcorp Industries carries a beta of 0.07, Wilmar International 0.11, Singapore Technologies Engineering 0.15, and OCBC 0.21. At the other end, Yangzijiang Shipbuilding carries a beta of 0.89 and Keppel DC REIT 0.84. Betas in the data are historical measures of how a counter's price has moved relative to the wider market, and the range from 0.07 to 0.89 indicates that constituent behaviour has differed considerably over the measurement window.

Market capitalisation in the dataset stretches from S$10.4 billion at Sembcorp Industries and S$10.8 billion at Thai Beverage to S$219.6 billion at DBS Group Holdings, S$142.3 billion at OCBC and S$71.1 billion at UOB.

Revenue growth rates recorded in the data also vary widely: City Developments at 61.1 per cent, Yangzijiang Shipbuilding at 36.2 per cent, Sembcorp Industries at 28.2 per cent, Keppel Ltd at 24.6 per cent, Frasers Centrepoint Trust at 21.9 per cent, Singapore Exchange at 19.6 per cent, Wilmar International at 17.2 per cent and OCBC at 16.9 per cent. These are historical growth figures, not forecasts, and they are shown alongside the price moves.

One clear pattern in the data is dispersion. Fifteen counters sit within 5 per cent of their 52-week lows, while three sit within 5 per cent of their 52-week highs. The three close to their highs are also the three largest banks by market capitalisation in the index, while the group near its lows is dominated by property, Reit and consumer counters. SGX's market update noted that Sembcorp Industries, AEM, Yangzijiang Shipbuilding and UOB recorded the largest improvements in cumulative institutional net flow during September, with increases of approximately S$110 million, S$63 million, S$61 million and S$37 million respectively [19].

What to watch in the coming week

Several scheduled items are worth noting. The United States is expected to publish measures on excess manufacturing capacity within weeks, according to the Nikkei report cited by The Straits Times, and any announced tariff treatment for Singapore exports would be relevant to the industrial, shipping and consumer names in the index [15]. On the rates side, the path of the three-month compounded SORA will continue to inform analyst views on the banks, with Macquarie's published forecast of about 1.44 per cent in the first quarter of 2027 now on record [11].

On the corporate calendar, the exchange operator remains in focus after SGX announced a memorandum of understanding with the Vietnam Exchange to explore the establishment of a depositary receipt linkage, which The Business Times reported on 2 October [7]. SGX chairman Koh Boon Hwee's annual letter to shareholders, covered by The Business Times and The Straits Times, set out expectations that board chairs of listed companies communicate long-term plans to investors and argued that the number of listed companies is an outdated metric of the market's success, while pointing to a growing listing pipeline [8][9]. The Business Times also reported on 28 September an opinion piece arguing that short-selling can boost SGX's liquidity while market resilience must be preserved [10], and The Edge Singapore reported that OCBC Securities will drop minimum commissions for online trades on SGX [18].

In the property sector, The Business Times reported on 30 September that Frasers Property and Mitsubishi Estate will redevelop Valley Point and Frasers Suites Singapore into a mixed-use development [20]. The Business Times also reported that Mapletree is evaluating an India office Reit listing, with sources cited, a development relevant to the wider S-Reit sector's fundraising plans [13].

References

[1] Singapore Business Review; STI ends September at 5,675.88, down 1.4%; 02 Oct 2026

[2] The Business Times; Singapore shares end higher as bank counters rise; STI up 0.3%; 28 Sep 2026

[3] The Business Times; Singapore shares rise as banks lead gains; STI adds 1% for the week; 25 Sep 2026

[4] The Business Times; Singapore stocks continue losing streak on Wednesday, STI falls 0.7%; 30 Sep 2026

[5] Singapore Business Review; Daily Markets Briefing: STI down 0.68%; Top stock is Frasers Centrepoint Trust; 01 Oct 2026

[6] The Business Times; Singapore shares continue to falter on Thursday; STI falls 0.1%; 01 Oct 2026

[7] The Business Times; Stock to watch: SGX; 02 Oct 2026

[8] The Business Times; SGX chairman says board chairs of listcos must communicate long-term plans; 01 Oct 2026

[9] The Straits Times; Investors must take risks on young S'pore companies for future economy to thrive: SGX chairman; 29 Sep 2026

[10] The Business Times; Short-selling can boost SGX's liquidity, but market resilience must be preserved; 28 Sep 2026

[11] The Business Times; UOB has most to gain from stronger Singdollar rates: Macquarie; 02 Oct 2026

[12] The Business Times; Reits face pressure from rising interest rates - bigger risks could come from rich management fees and alignment of manager-investor interests; 28 Sep 2026

[13] The Business Times; Temasek-backed Mapletree evaluating India office Reit listing: sources; 30 Sep 2026

[14] The Business Times; Stock to watch: Mapletree Industrial Trust; 29 Sep 2026

[15] The Straits Times; US to unveil measures against excess manufacturing in 'weeks': Nikkei report; 02 Oct 2026

[16] The Business Times; US trade chief to consider trade deal tariff caps in excess capacity probe; 30 Sep 2026

[17] The Business Times; Powering Singapore's growth through a more complex energy landscape; 01 Oct 2026

[18] The Edge Singapore; OCBC Securities to drop minimum commissions for online trades on SGX

[19] Singapore Exchange; STI Reaches Record High Before September Consolidation

[20] The Business Times; Frasers Property and Mitsubishi Estate to redevelop Valley Point and Frasers Suites Singapore; 30 Sep 2026

Disclaimer

Not financial advice. The author is not licensed to provide investment advice in Singapore. This is general commentary and personal opinion based on publicly available information, and does not take account of your objectives, financial situation or needs. Figures are compiled from public sources and may be incomplete, delayed or wrong — verify against the company's own filings and SGX before relying on anything here. The author may hold positions in the securities mentioned. Do your own research, and consider speaking to a licensed financial adviser before making any investment decision.

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