The FTSE ST Industrials Index gains 36% as sector rerates

Hong Leong Asia was the top performer, gaining 141% year to date and attracting $53m in institutional inflows. The FTSE ST Industrials Index has posted one of its strongest years in recent memory, closing at 915.2 on 2 December with a total return of 36% for the first eleven months of 2025, or 40.7% including dividends.By comparison, the broader FTSE ST All-Share Index delivered a total return of 24.9% over the same period.According to SGX, the sector has been undergoing a rerating, with the consensus target price for the index rising 33% in 2025 from 777.9 to 1,031.9. Institutional investors recorded $269m in net inflows across the index’s 16 constituents.Median and average total returns were 30% and 41% respectively, whilst median ROE stood at 9.2% and median price-earnings ratios rose to 16.8 times from 9.5 times at end-June.Hong Leong Asia was the top performer, gaining 141% year to date and attracting $53m in institutional inflows. Its trading turnover increased from $1.1m to $4.1m in the second half of the year following the launch of MTU Series 2000 engines under a joint venture.Smaller and mid-cap names also saw a sharp pickup in trading activity. Hiap Seng Industries, Soilbuild Construction and ASL Marine recorded the strongest increase in average daily turnover between the first and second halves of 2025, rising in combination from $90,000 to $2.5m.SGX said the sector benefited from global supply-chain diversification, growing adoption of AI and automation, and sustained construction demand.Goods-producing industries posted five consecutive above-trend year-on-year growth prints of 9.8%, 6.5%, 4.5%, 4.9% and 4.5%.Looking ahead to 2026, manufacturing and trade-related services are expected to slow, whilst construction is projected to continue expanding on the back of public housing and civil engineering activity.