The Straits Times Index (STI) closed above 4,000 points for the first time in history, ending July 2 at 4,010.77 points, up 0.53% for the day.
The benchmark index notched two new all-time highs during the day: 4,008.15 points prior to the midday break and 4,011.78 points immediately after the lunch hour.
Unlike the previous record-breaking sessions, however, the STI’s surge was not led by Singapore’s three listed banks. Based on Bloomberg data, year-to-date to July 2, the top five biggest gainers in terms of total return including dividends were ST Engineering (+71.6%), Hongkong Land Holdings (+47.4%), UOL Group (+33%), Sembcorp Industries (+32.3%) and Singapore Telecommunications (+26.2%).
On July 1, Singapore’s High Court approved the $810 million sale of Thomson View condominium, marking the largest residential collective sale since May 2023. CapitaLand Development and UOL were granted the sale order for the 504,314 sq ft site, situated next to Upper Thomson MRT Station on the Thomson-East Coast Line.
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UOL shares have climbed more than 17% over the past month and nearly 30% year to date.
Instead, two of the three banks weighed on the STI on July 2: DBS Group Holdings ended 0.58% lower, United Overseas Bank (UOB) declined 0.08% and Oversea-Chinese Banking Corporation (OCBC) gained 0.24%.
Collectively, the banks make up more than half of the STI by weight. The STI opened at 3,991.74 points on July 2. The index started the week at 3,970.09 points on June 30.
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The STI, whose constituents are the 30 largest Singapore-listed stocks by market capitalisation, last notched a high-water mark of 4,005.18 points on March 28; it was also the first time the STI had crossed the 4,000-point mark. The STI closed at 3,972.43 points that day.
A week later, however, the STI sank to a 2025 low of 3,372.38 points on April 9 owing to Trump’s “Liberation Day” tariffs, though this was later postponed for 90 days to July 9.
Last week, The Edge Singapore reported on OCBC Investment Research’s Singapore strategist Carmen Lee’s comments that the STI has a “slightly good chance” of crossing the 4,000-point mark again in 2H2025.
Following a June 27 media briefing, Lee told The Edge Singapore that her 12-month target for the STI ranges around 4,060 to 4,280 points. — Jovi Ho
Trump announces Vietnam trade deal with 20% import tariff
US President Donald Trump announced that he had reached a trade deal with Vietnam, following weeks of intense diplomacy between the nations and ahead of a deadline next week that would have resulted in higher tariffs being imposed on the country’s imports.
A 20% tariff will be placed on Vietnamese exports to the US, with a 40% levy on any goods deemed to be transshipped through the country, Trump said in a social-media post on July 2. Trump said that Vietnam had agreed to drop all levies on US imports.
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“In other words, they will “OPEN THEIR MARKET TO THE UNITED STATES,” meaning that, we will be able to sell our product into Vietnam at ZERO Tariff,” Trump wrote. The president said he had secured the deal after discussions with Communist Party chief To Lam.
The deal with Vietnam would be just the third announced following agreements with the UK and China, as trading partners race to cut agreements with the US ahead of a July 9 deadline. Trump had imposed a 46% duty on Vietnam as part of his initial rollout of so-called reciprocal tariffs in early April, which were levied on dozens of countries but were subsequently reduced to 10% to allow time for negotiations.
Vietnam posed a particular challenge for the Trump administration, as some of the president’s top advisers view the nation as a strategic partner in efforts to counter China in Asia. At the same time, its exports have become staples for American consumers.
The Southeast Asian nation has seen its sales to US markets surge in recent years, partly due to manufacturers shifting production there from China. It’s a major supplier of textiles and sportswear, hosting factories for companies such as Nike Inc., Gap Inc. and Lululemon Athletica Inc.
Vietnam was the sixth-biggest supplier of US imports last year, sending goods worth almost US$137 billion ($174.2 billion), according to Census Bureau data. Its trade surplus with the US was the third-largest globally on a country basis behind only China and Mexico. Shipments in May jumped 35% as firms sought to get goods onto vessels as quickly as possible ahead of the deadline.
The S&P 500 rose after Trump’s post, with shares in furniture stocks and apparel makers recording gains. On Holding, Nike and Lululemon all jumped to hit session highs.
Some US officials wanted to calibrate tariffs for Vietnam and others in Southeast Asia to ensure they’re sufficiently lower than those imposed on China, to encourage production to relocate from that country.
The higher 40% rate announced on July 2 would be imposed on goods deemed to be “transshipping” — where components from China and possibly other nations are routed through Vietnam or subject to only minimal final assembly before being exported to the US.
That’s been a major concern for Trump’s top trade advisers, including Peter Navarro, who described Vietnam as “essentially a colony of communist China” during an April interview with Fox News.
Full details of what goods would be subject to that higher rate were not immediately available.
US exports to Vietnam were worth just US$15 billion last year. Trump touted the prospect of a boost in auto sales as a result of the deal.
“It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam,” he wrote on Truth Social.
Although Trump shared the broad contours of the agreement, the White House has not yet released a term sheet or published any kind of proclamation codifying the arrangement. Some of the details may still be in development. The US and UK first announced their own trade deal in early May, but it wasn’t until mid-June that Trump signed an executive order implementing the accord. And even then, key details have been set aside to be addressed later.
While Trump and his team initially envisioned holding concurrent negotiations with dozens of trading partners, the president and his advisers have suggested in recent weeks that they will focus talks on major economies and unilaterally impose levies on smaller countries or those that fail to reach agreements.
The deal with Vietnam was struck after weeks of discussions during which the US pressured the country to take tougher action on trade fraud, ensure stricter enforcement against the transhipment of Chinese products, and also pushed for the removal of non-tariff barriers.
Vietnam offered to remove all tariffs and repeatedly promised to purchase more American goods. Senior Vietnamese officials flew to the US to rally support and sign deals, including one worth US$3 billion for agricultural goods. The trade minister also wooed executives from Nike, Gap and others to encourage them to support the negotiation efforts.
Officials in the country also touted the Trump Organization’s plans to develop a US$1.5 billion luxury resort complex, a project that will feature five-star hotels, golf courses and residential estates spanning more than 990 hectares.
The president’s son, Eric Trump, attended a groundbreaking event for the project in May, where he was joined by Vietnamese Prime Minister Pham Minh Chinh. — Bloomberg
