To The Moon

Singapore’s stock market momentum has surged into 2026, with the benchmark $Straits Times Index(STI.SI)$ climbing above 4,700 levels not seen in over 16 years driven by record performances from $DBS(D05.SI)$ , $OCBC Bank(O39.SI)$ and renewed retail interest, while ETFs logged all-time inflows into SGX equities and REITs.

STI annual closing level (2018–2025) + latest intraday 2026 high (~4,700+)

🧠 What’s Driving the Rally in 2026?

Banking bears fruit — banks lead STI gains

• DBS & OCBC hit all-time highs, lifting the overall index, with dividend yields appealing to income investors.

Broader market participation

• Retail and ETF flows returning strongly SGX-listed funds gathered record inflows in 2025, suggesting broader investor interest, not just banking.

Macro tailwinds

• Interest rate easing expectations and policy support (Equity Market Development Program) underpin sentiment.

Reforms & liquidity

• Trading value surged, deeper derivatives volumes, and stronger liquidity signal healthier market dynamics.

📌 How to Invest SGX in 2026 Practical Tips

✅ Long-term investors

• Blue-chip leaders: $DBS, $OCBC, $UOB(U11.SI)$ stable dividends + regional banking exposure.

• SGX itself: SGX Ltd benefits from higher trading, derivatives and listings growth.

✅ Sector themes

• REITs — strength in property and industrial trusts. • Tech/Industrials stocks like $ST Engineering(S63.SI)$ hitting new highs.

✅ Tactical plays

• ETFs for diversified exposure (STI or sector baskets) useful in volatile periods. • Dividend strategies allocate to high-yield SGX payers given attractive yields relative to rates.

⚠️ Risks to Watch

• Valuation stretch markets at highs can pull back on global macro shifts.

• Liquidity & small caps some SGX stocks still thinly traded vs bigger markets.

Singapore equities appear well-positioned for another strong year as we enter 2026. With record index levels, robust ETF flows, and renewed investor interest across sectors, SGX offers both steady dividend plays and growth opportunities but smart entry points and risk management remain key.

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Disclaimer: This article is provided for informational purposes only and does not constitute financial, investment, legal, or tax advice, nor the solicitation of any offer to buy or sell securities. The views expressed are those of the author and do not account for individual financial circumstances. Investing involves risk, including the potential loss of principal. Past performance is not indicative of future results. You alone are responsible