Singapore’s benchmark stock index crossed the psychologically-important 5000 mark for the first time, as the once-sleepy stock market roars back to life.
The FTSE Straits Time Index has been on a tear, hitting a streak of record highs over the past months with investors drawn by the government’s initiatives to revitalize the market and reinforce its reputation as a safe haven in times of volatility.
The STI was 0.6% higher at 5016.84 around midday Thursday, and the benchmark is widely expected to continue to rise this year.
J.P. Morgan Securities’ bull-case scenario has the index reaching 6500, with tailwinds coming from strong corporate earnings and high dividends.
Singapore’s earnings season is underway, with strong results coming from several major local companies. CapitaLand Integrated Commercial Trust’s 2025 distributable income rose 14%, beating DBS analysts’ expectations. Keppel Ltd.’s underlying full-year earnings climbed around 39% and the asset manager proposed a special dividend alongside its results.
A multi-billion dollar program rolled out by the central bank and the stock exchange is driving momentum too, underlining officials’ push for more public listings and more dynamic trading.
Government policies in Singapore are boosting the equity market’s returns, said Robert St. Clair at Fullerton Fund Management, citing actions like the tax concessions for firms issuing new shares and listing, as well as the central bank’s equity market development program.
“All these initiatives, combined with Singapore’s master-plan to continue to enhance its global financial center status, have made investors very excited about a deeper and more vibrant investment environment,” he said in a note.
Not all analysts are so sanguine.
Macquarie Capital analysts said in a recent note that the STI’s gains could be capped this year, as shares of its three heavyweight constituents — DBS Group, Oversea-Chinese Banking Corp. and United Overseas Bank–could be pressured after three strong years.
Shares of the three major lenders have also been trading record highs. DBS was last 0.9% higher, while OCBC was up 1.8% and UOB rose 1.3%.
Macquarie Capital has a year-end target of 4500 for the Singapore index.
Write to Amanda Lee at [email protected] and Megan Cheah at [email protected]
