Singapore stocks’ record run gets ‘Goldilocks’ boost from growth

Singapore equities are heading for a fifth straight quarter of gains, their longest winning streak in a decade.

Singapore’s stocks have outperformed the world over the past month as their traditional strengths of high dividend yields and resilient balance sheets get a lift from a “Goldilocks” economic backdrop.

Robust growth fuelled by tech exports, alongside productivity gains that are helping keep inflation in check, has boosted corporate earnings, prompting JPMorgan Chase & Co to use the “Goldilocks” label.The nation’s benchmark equity index has surged 23 per cent to a series of record highs this year, following a similar gain in 2025.

Fund managers say the rally has room to run.Jupiter Asset Management believes the nation’s expanding economy and strengthening currency will underpin further equity gains, while Eastspring Investments points to structural themes such as wealth management and artificial intelligence-related infrastructure as driving inflows.

“Singapore is gradually evolving from a traditional dividend and defensive market into a dividend-plus-growth market,” said Ernest Chew, head of Asean equities at BNP Paribas Asset Management in Kuala Lumpur. “We still value its defensive characteristics, but increasingly see more opportunities for capital appreciation alongside income.”

Singapore equities are heading for a fifth straight quarter of gains, their longest winning streak in a decade, as the market’s combination of growth and stability attracts institutional investors seeking shelter from volatility driven by global conflicts and swings in the AI trade.

The main contributors to the rally in Singapore’s benchmark Straits Times Index have been its three biggest banks: DBS Group Holdings, OCBC Bank and United Overseas Bank.They have each set a series of all-time highs in recent months, with investors particularly attracted by their exposure to Singapore’s thriving wealth management industry.

Over the past month, all three lenders reported second-quarter earnings that beat analysts’ forecasts. OCBC has been the standout, with shares climbing 61 per cent this year, making it the best performer in the 30-stock gauge.

Singapore’s banks have not been alone in attracting investor interest. Expectations of higher-for-longer global interest rates have bolstered financial firms around the world, with the MSCI World Bank Index rising about 20 per cent this year to a record.

Adding to the appeal is a positive long-term outlook for the Singapore dollar.The currency has appreciated almost 6 per cent against the greenback in the past three years as investors gravitate towards haven assets amid the global geopolitical turmoil. Singapore’s monetary authorities use the local dollar as their main tool to manage the economy and have been guiding it stronger against a basket of trading-partner currencies to temper inflation.

“We’ve been significantly overweight Singapore for many years, with over 16 per cent of our funds invested in Singapore today versus a benchmark weighting of around 3 per cent,” said Sam Konrad, a fund manager for Asian equities at Jupiter Asset in Singapore.“We think it is one of the most attractive developed markets in the world, yet strangely is often ignored, or underappreciated, by investors.”

JPMorgan meanwhile raised its forecast for the Straits Times Index to 6,500 in a note published on Aug 11, implying a gain of about 13 per cent from the Aug 14 close of 5,743.59.