To The Moon

🇸🇬 SINGAPORE STOCKS AT A 16-YEAR HIGH — CAN SGX STILL OUTPERFORM IN 2026?

After a blockbuster +22.7% rally in 2025, Singapore equities enter 2026 at levels not seen in 16 years 📈

That’s an impressive run — but it also raises the obvious question:

Is SGX late-cycle… or just getting started?

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🌬️ The Tailwinds Are Still Blowing

Despite the strong base, the macro setup remains unusually supportive.

1️⃣ Rates Are No Longer a Headwind

Interest rates have eased to around 1.20%, the lowest in 3.5 years 💸

That matters more for Singapore than many realise.

Lower rates:

• Support REIT distributions 🏢

• Reduce financing costs for corporates

• Improve equity relative attractiveness vs fixed income

In a yield-hungry market, Singapore’s dividend profile suddenly looks compelling again.

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2️⃣ The S$5B EQDP: Liquidity Is the Missing Link

The Equity Development Programme (EQDP) could be a quiet game-changer.

SGX’s long-standing problem hasn’t been valuation — it’s been liquidity and visibility, especially for small and mid-caps.

If executed well, EQDP may:

• Increase institutional participation

• Improve analyst coverage

• Narrow valuation discounts vs regional peers

This doesn’t mean every small cap rallies — but it raises the floor for quality names.

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🧠 The Big Question: Can Returns Repeat After +22%?

Probably not in a straight line — but that’s not the right benchmark.

2026 doesn’t need another 22% year to be successful.

Instead, upside likely comes from:

• Earnings stability, not hyper growth

• Multiple normalisation, not multiple expansion

• Capital rotation, not speculative flows

SGX works best when investors are:

👉 cautious

👉 yield-focused

👉 looking for defensiveness

Which… describes the current global mood pretty well.

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🔍 Where the Opportunities May Be

🏦 Financials

Banks benefit from:

• Still-healthy net interest margins

• Strong capital positions

• Consistent dividend payouts

Not cheap — but still trusted core holdings.

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🏢 REITs (Selective)

Lower rates help, but:

• Asset quality

• Debt maturity profiles

• Sponsor strength

will matter far more than sector beta in 2026.

This is a stock-picker’s market, not a blanket REIT trade.

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🧱 Small & Mid Caps — The Optionality Trade

This is where EQDP could have the biggest psychological impact.

Names with:

• Clean balance sheets

• Domestic cash flows

• Export resilience

stand to benefit most from:

• Improved liquidity

• Better price discovery

But patience is required ⏳ — re-ratings happen gradually, not overnight.

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⚠️ Risks to Watch

• A sharp global risk-off move

• Regional capital flows reversing

• EQDP execution risk (timing and allocation matter)

SGX rallies tend to be quiet and slow — but also sticky once they take hold.

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🧩 Final Take

Singapore equities don’t usually lead global bull markets — they outlast them.

After a strong 2025, 2026 may not be flashy…

but for investors seeking:

• income

• stability

• and selective re-rating opportunities

SGX is starting to look relevant again 🇸🇬✨