Market Insights
DBS and OCBC break new records, SGX rises amid volatility in Venezuela
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Singapore's stock market began 2026 strongly, despite US-Venezuela tensions, with banking stocks leading gains.
ST PHOTO: AZMI ATHNI
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- Singapore's stock market began 2026 strongly, amid US-Venezuela tensions, with banking stocks leading gains. DBS and OCBC hit record highs amid rising dividend yields.
- SGX rebranded its equities business to SGX Stock Exchange after a review aimed to revive investor interest, and saw a rise in daily securities traded value.
- Digital Core Reit secured a major lease, boosting rental income, and analysts predict Singapore Reits with quality assets will perform well in 2026.
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SINGAPORE - Singapore’s stock market got off to a brisk start in its first week of trading in 2026 amid heightened geopolitical tensions after the US captured Venezuelan president Nicolas Maduro
Banking stocks led the gains. Shares of DBS Group rose by more than $2 to hit an all-time high above $58 on Jan 7
With interest rates expected to ease further in 2026, Singapore’s banking stocks are becoming more appealing to income-focused investors, supported by dividend yields of above 5 per cent. These payouts could rise further if earnings remain resilient, analysts said.
At current valuations, though, UOB stands out as the most attractive pick, with its dividend yield projected at 5.8 per cent based on its Jan 5 closing price of $35.50, said Ms Lorraine Tan, director of Asia equity research at Morningstar.
UOB, which has lagged behind DBS and OCBC in share price gains, closed this week at $36.02.
The banks, which are heavyweights on Singapore’s benchmark Straits Times Index (STI), helped propel the index to fresh highs above 4,700 points this week, with analysts now eyeing the 5,000 level within the year.
The other notable movers on the STI were the property developers, including City Developments, which rose more than 10 per cent through the week to close at $8.87; Hongkong Land, which rose around 9.3 per cent to close at US$7.73; and UOL, which was up by around 7 per cent, closed the week at $9.35.
Jardine Matheson closed the week at US$74.72, up by more than 9 per cent.
SGX rebrands equities business
Singapore Exchange (SGX) rose over 2 per cent to close the week at $17.51 after an eventful start to the year, which saw it celebrating the STI’s 60th anniversary and rebranding its equities business.
The group’s equities business is now known as the SGX Stock Exchange, a move that “reinforces equities as a core pillar of SGX Group’s multi-asset ambitions, while highlighting their importance to Singapore as an international financial centre”, SGX chief executive Loh Boon Chye noted.
The rebranding from SGX Securities follows the completion of the Equities Market Review Group’s work in November 2025 after a year-long effort by the SGX and the central bank to implement measures aimed at reviving investor interest in the local stock market.
In 2025, the average value of securities traded daily on SGX rose 21 per cent to nearly $1.5 billion – the highest level since 2010 – while retail participation rose to a four-year high, data released on Jan 9 showed.
Mr Loh said recovery in initial public offerings (IPOs) in 2025 helped drive interest, with more than $2.4 billion in total funds raised during the year, the highest since 2019.
The exchange chalked up its first listing of the year on Jan 6 with Concord New Energy, whose shares closed the week at 6.3 cents, up 12.5 per cent since debuting on the SGX Mainboard by way of introduction.
Mr Liu Shunxing, chairman of the Singapore-headquartered renewable energy company, said its secondary listing on the SGX marks an important step in advancing its global business strategy.
“By listing here, we are aligning our company with a market that will allow us to capture a generational growth opportunity at the convergence of AI and sustainable energy.”
Concord New Energy first listed in Hong Kong in 2007 and has a current market value of HK$2.6 billion (S$429 million). The group manages 83 wind and solar power plants globally, with a presence in North America, Europe and Asia.
A second company, UI Boustead real estate investment trust (REIT), is also gearing up for a listing in Singapore as early as March, Bloomberg reported, quoting people familiar with the matter.
The REIT unit of Boustead Singapore is aiming to raise as much as $900 million, making it one of the largest offerings in Singapore in recent years. It will begin taking investor orders as soon as February.
The REIT’s IPO portfolio will include more than 20 leasehold properties in Singapore and two freehold properties in Japan, for a total agreed property value of $1.9 billion, Bloomberg reported.
REITs back in vogue
Digital Core REIT, which manages data centres globally, said on Jan 5 it has secured a 10-year lease with an investment-grade global cloud service provider for its vacant Linton Hall data centre in Northern Virginia.
The deal will raise the proportion of space that is rented out across the portfolio to 98 per cent, from 81 per cent, and is expected to bring in about US$14.8 million (S$19 million) a year in rental income. Based on the REIT’s 90 per cent ownership of the property, this works out to about US$13.3 million – around 35 per cent more than what the site was previously earning.
The lease will begin on Dec 1. It will increase the share of rental income to 82 per cent and lengthen the average remaining lease term across the portfolio to nearly six years, chief executive John Stewart said.
He added that the deal marks a “strategic reset” for the REIT and that the new property will make up about 10 per cent of revenue.
Following the announcement, DBS Group Research, UOB Kay Hian, Bank of America and Citi reiterated their buy calls on Digital Core REIT, citing expectations of higher distributions to unitholders and more attractive valuations.
The REIT closed Jan 9 at 54 cents, up nearly 1 per cent through the week.
With real estate transaction activity and yields expected to stabilise as interest rates ease in 2026, analysts said the Singapore REIT sector continues to offer opportunities for gains, even after its strong performance in 2025.
Beyond data centre REITs, analysts have also flagged those with high-quality office and retail assets in Singapore
Other market movers
Shares of Nam Cheong, which builds and charters offshore support vessels for the oil and gas industry, rose by more than 8 per cent this week, closing Jan 9 at $1.06.
No announcements were made, although the jump came as oil prices turned more volatile in the wake of the US capture of Maduro, the seizure of several Venezuelan tankers in the Caribbean by the US in attempts to control Venezuela’s oil exports, and escalating protests in Iran.
Other offshore-related stocks fell, though. ASL Marine dropped by more than 10 per cent, finishing the week at 26 cents, while Marco Polo Marine fell 6.6 per cent, closing at 16 cents.
Shares of Wee Hur rose by more than 8 per cent this week, closing Jan 9 at 80 cents apiece.
The property group on Jan 6 commenced development of Wycombe Abbey School (Singapore) in Hougang Avenue 3. The project is part of Wycombe Abbey International Schools’ broader expansion in Asia, with campuses in mainland China and Hong Kong.
What to look out for next week
Markets will continue to be volatile next week as more developments on Venezuela emerge, and also depending on what US President Donald Trump decides to say or do.
Gold prices, which are now over US$4,500 per ounce as its role as a safe haven asset class grows, could be one to watch.
The US is also set to release its December inflation data on Jan 13, a key indicator watched by the Federal Reserve that could influence the market’s expectations for future interest rate moves.
