Straits Times Index crosses 5,000 mark for the first time
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The gains follow measures to revive Singapore’s stock market, a strong Singdollar and a pivot from US-dollar assets.
PHOTO: ST FILE
SINGAPORE - After days of fluctuations, the Straits Times Index (STI) surpassed the 5,000 mark on Feb 12, hitting a historic milestone well ahead of forecasts.
The benchmark index rose as high as 5,021.27 before midday, before closing at 5,016.76, up 32.18 points or 0.65 per cent.
The advance was driven by gains made by its constituents, including the three Singapore banks, which form around half of the STI by index weight.
DBS rose 0.5 per cent to $57.78, OCBC surged 2 per cent to $21.78 and UOB jumped 1.5 per cent to $39.48.
The STI’s landmark performance follows an extended streak of breakthroughs for the blue chip barometer and Singapore’s three banks, which have hit all-time highs and made strong gains since 2025.
In 2025, the STI rose 22.7 per cent as its largest constituent DBS soared 29.9 per cent. OCBC climbed 18.4 per cent and UOB ended the year down by a marginal 0.03 per cent. The rally led multiple analysts to forecast the index crossing the 5,000 mark by the end of 2026. In one of the most bullish estimates, JPMorgan projected the STI soaring to as high as 6,500 points by the end of 2026.
Stock market revival
The local stock charge comes nearly two years after the formation of the equities market review group by the Monetary Authority of Singapore (MAS) in August 2024, to recommend measures to improve the local bourse.
Other contributory factors include a shift away from US-dollar assets into Asian stocks, an appreciating Singapore dollar and encouraging growth prospects across the economy and various sectors.
In his Budget speech on Feb 12, Prime Minister Lawrence Wong announced that MAS will inject another $1.5 billion to increase investor participation in Singapore stocks.
The sum adds to an earlier $5 billion MAS initiative to invest in and boost the vibrancy of the market. It has allocated $3.95 billion so far to nine fund managers to do so, with MAS expected to announce a third tranche of managers in 2026.
Among earlier initiatives to revitalise the stock market is the launch of the iEdge Singapore Next 50 Index, which tracks the 50 largest Singapore-listed companies outside of the STI.
Unveiled in September, the new index comes in two variants which are weighted by market capitalisation and liquidity, respectively. It aims to increase visibility of small and mid-cap stocks while broadening investor exposure to a wider scope of companies.
The proposal for a dual-listing highway enabling firms to list on both the Singapore Exchange and the Nasdaq using a single set of listing documents, announced in November, is yet another measure drawing interest to the local bourse.
Expected to be launched in mid-2026, the dual-listing framework aims to attract high-growth Asian companies and tech unicorns to list in Singapore by offering them the benefit of a Nasdaq listing.
The SGX also proposed reducing its board lot size to 10 units from 100 units for securities above $10, to boost affordability by lowering outlay for investors and stimulate trading activity.
Another move is the Value Unlock programme by the MAS and SGX, which aims to help listed companies strengthen investor engagement and sharpen their focus on creating shareholder value.
THE BUSINESS TIMES
