STI sets new records above 4,900, JPMorgan lifts 2026 target to 6,000

SINGAPORE – The Straits Times Index (STI) hit new records on Jan 27, surpassing 4,900 points for the first time, and extending its gains from 2025.

The blue chip index closed Jan 30 at 4,905.13, after touching a high of 4,923.02 after several constituents reached record highs on Jan 27.

The rally was driven by upbeat earnings expectations, a strong Singapore dollar and attractive dividends, analysts at JPMorgan said on Jan 28, and added that the Republic is also benefiting from its status as a safe haven amid global geopolitical uncertainties.

This rally is set to continue, especially as Government-led measures to revitalise the Singapore equities market continue to take effect.

JPMorgan analysts said the initiatives, aimed at unlocking value, could improve how stocks are priced by the market. They added that funds allocated to asset managers to invest in local equities could also help small- and mid-cap stocks catch up with larger names.

Against that backdrop, the analysts raised their target for the STI to 6,000 in 2026, with further upside to 6,500 in a bull-case scenario. Their top STI picks include DBS, UOL and Keppel.

UOL saw its stock rise to the highest price in two decades on Jan 27, after the property developer, alongside consortium partners CapitaLand Development and CapitaLand Integrated Commercial Trust, won the tender for a mixed-use site in Hougang Central.

UOL and CapitaLand Development will develop the residential component of the 4.7ha, 99-year leasehold site, while the commercial trust will develop the commercial component.

The stock jumped 8 per cent on Jan 27 to $11.18, with some 3.7 million shares changing hands. This marked its highest price since 2006.

JPMorgan raised its target price for UOL to $12.05, which is over an 18 per cent increase compared with its previous target price for the stock.

UOL shares closed the week at $10.84.

More liquidity for small and mid-cap stocks

Meanwhile, the stock market rally has extended beyond blue chips, with the number of stocks recording at least $1 million in average daily trading turnover (ADT) rising to 100 in January so far, according to data released by the Singapore Exchange (SGX) on Jan 28.

In comparison, 92 stocks booked $1 million in ADT in 2025.

SGX noted that new listings in 2026 so far had helped to lift the number of Singapore stocks booking $1 million in ADT. These include two Catalist listings – co-living start-up The Assembly Place and AI-powered technology firm Toku.

Stocks that saw over $1 million in ADT in January, from below that in 2025, include dental group Aoxin Q & M, GuocoLand and IX Biopharma.

Seven of the 15 stocks within the 100 that recorded the highest net institutional inflow relative to market capitalisation in January are from the technology sector, SGX said.

These include names like AEM, InnoTek, CSE Global, UMS and iFAST.

CSE Global, which provides electrification, critical communications and automation solutions for data centres, utilities and energy, industrial sites and infrastructure, was among this week’s gainers, rising more than 5.6 per cent since Jan 26 to close Jan 30 at $1.12.

Financial platform Beansprout on Jan 28 initiated coverage on CSE Global, setting a price target of $1.40 on the stock.

Beansprout analyst Ng Hui Min said the company is positioned to benefit from sustained spending on data centres, electrification and communications infrastructure, which should support earnings visibility over the next few years.

Other market movers

Another gainer over the week was offshore marine group Nam Cheong, which saw its shares rise some 9 per cent to $1.18 in intraday trading on Jan 27.

The jump came after Nam Cheong said it had sold a platform support vessel for US$19.8 million (S$25.2 million) to an Indonesian customer. The vessel is meant to be immediately deployed to support the customer’s ongoing operations.

Nam Cheong said it expects the sale to contribute positively to its earnings for the financial year ending Dec 31. It added that the net proceeds will be used to repay debt and fund working capital needs.

Nam Cheong shares closed flat at $1.19 on Jan 30.

Real estate company Ho Bee Land’s shares rose after it announced on Jan 26 that it had acquired a development site in Queensland, Australia, for A$318.5 million (S$282.3 million).

The move will expand the group’s long-term land bank in the country, and is expected to yield about 1,400 residential lots and roughly 64 mixed business and industrial lots, and is located with direct access to the Bruce Highway and close to established employment, residential and logistics hubs, Ho Bee said.

Its shares closed Jan 30 at $2.44, up by more than 3.8 per cent through the week.

Vehicle leasing company Skylink Holdings slipped after it announced a proposed share placement on Jan 29.

It plans to raise up to $7.02 million in gross proceeds through the proposed placement to further strengthen its financial position while implementing and evaluating its growth strategies. These include potential strategic acquisition opportunities for its leasing and credit financing business, it said.

Skylink listed on the Catalist board in September 2025. It raised $9.2 million in gross proceeds at the listing.

Since then, the group has won maiden engineering service contracts from SBS Transit and F&N Foods.

It signed new leases in Jurong Port Road, which doubled its engineering specialist workshop areas to more than 33,000 sq ft, and bought 132 units of a commercial vehicle fleet to provide recurring revenue streams. It also acquired the business and related assets of a firm called CLP 2026, which provides customisation services for commercial vehicles.

Skylink shares fell by almost 4.7 per cent through the week to close Jan 30 at 30 cents.

In a fundamental shift, agriculture group Don Agro International announced that it will be diversifying its core business from agriculture into healthcare.

Shareholders approved the proposed acquisition of healthcare assets, and the proposed change of the company’s name to UpHealth Group at an extraordinary general meeting on Jan 28.

The approvals represent a significant milestone in the group’s strategic transformation, following its divestment of agricultural assets and repositioning as a healthcare-focused business, it said.

Shares of the group closed down 4.5 per cent at 15 cents on Jan 30.

Beyond the Republic

Gold prices tumbled by almost 7 per cent on Jan 30, while silver fell around 15 per cent on speculation that the US Federal Reserve might get a more hawkish chair, leading to a stronger US dollar. The US dollar index rose by 0.35 per cent on Jan 30.

US President Donald Trump later nominated Mr Kevin Warsh as the next chair of the Fed. Mr Warsh was a former Fed governor between 2006 and 2011 and seen as a “relatively hawkish choice”, favouring higher interest rates, the media reported.

Gold traded just above US$5,000 per ounce on Jan 30, while silver traded just below the US$100 mark.

US stocks ended lower on Jan 30, with the Nasdaq and S&P 500 retreating as investors grew concerned that heavy spending on artificial intelligence by major technology firms may not deliver the expected returns.

The sell-off was led by Microsoft, whose shares fell about 10 per cent to a low of US$423 on Jan 29, after the company reported its earnings, wiping roughly US$357 billion off its market capitalisation.

US media reports said investors were trimming exposure to equities and adopting a more cautious stance amid broader economic and market uncertainties.

Closer to home, Singapore-based, Hong Kong-listed cancer diagnostics firm Mirxes announced a placement of 21.8 million new shares priced at HK$32.50 per share, representing a 40 per cent increase over the company’s price in May 2025 at its initial public offering.

The placement, which was oversubscribed, is expected to raise gross proceeds of approximately HK$711.36 million (S$115.8 million), which will be used to fund investments and merger and acquisition activities, as well as research and development. It also wants to expand into emerging markets such as India.

Shares of Mirxes closed Jan 30 at HKD33.96, down by 15.3 per cent through the week.

What to look out for next week

Companies will begin reporting their 2025 financial year earnings next week. These firms include Keppel REIT, Digital Core REIT and Capitaland Ascendas REIT.

SGX will report its earnings for the first half of 2026 on Feb 5.

Markets could also be volatile in response to the nomination of the new Fed chair.