Liquidity returns to Singapore market as rally spreads beyond blue chips

SINGAPORE – Singapore equities kicked off 2026 strongly, benefiting from capital shifting out of riskier US dollar-denominated assets and a pickup in investor interest after government-led reforms to broaden liquidity in the stock market.

The Straits Times Index has gained about 5.4 per cent since the start of the year to end Jan 28 at 4,909.34 points.

However, the rally has extended beyond blue chips, with the number of Singapore-listed stocks recording at least $1 million in average daily trading turnover (ADT) rising to 100 in January so far, according to Singapore Exchange (SGX) data.

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

The increase in investor participation was driven partly by new initial public offerings (IPOs).

They include

two Catalist debutants

– artificial intelligence-powered customer-experience technology firm Toku and co-living operator The Assembly Place – as well as other companies that listed in 2025, SGX said in its Jan 28 market update.

Singapore in 2025 topped South-east Asia’s IPO market by proceeds, according to Deloitte, with 16 IPOs raising US$2.5 billion (S$3.15 billion), the highest since 2019.

This was driven by two major real estate investment trust (REIT) listings – NTT DC REIT

and Centurion Accommodation REIT

– which each raised more than US$500 million. 

“Investor interest is expected to be supported by a growing pipeline of upcoming IPOs and cross-border listings, including other South-east Asian companies eyeing a Singapore listing,” said Ms Tay Hwee Ling, Deloitte capital markets services leader for South-east Asia, in a statement.

Among the companies that crossed the $1 million ADT threshold in January are previously staid counters like PC Partner, Embracing Future Holdings (formerly Biolidics), Ley Choon, Aoxin Q & M, Bukit Sembawang, InnoTek, Pacific Radiance, GuocoLand, Raffles Education, Sunpower and IX Biopharma.

Collectively, the ADT of these stocks jumped from just $3.3 million for the whole of 2025 to $23.1 million in January alone, reflecting a sharp pickup in investor participation, SGX said.

Interest was also driven by institutional investors, who channelled some $438 million into the 100 stocks with at least $1 million in ADT in January.

Embracing Future Holdings, notably, announced multiple acquisitions, to be funded by new shares while conserving cash, that will enable it to expand into biomedical, AI and multi-channel network businesses. 

Meanwhile, Raffles Education will seek shareholder approval for two major asset disposals to repay borrowings, a move that will also reduce its debt and associated interest costs, addressing a major factor that had impacted profitability in the past.

PC Partner is drawing interest after it released a favourable profit guidance for 2025 and said it expects strong demand for its new graphics cards.

Within the group of 100 Singapore-listed stocks that recorded at least $1 million in ADT in January, technology companies made up seven of the 15 counters that saw the strongest net institutional buying relative to their market size: AEM Holdings, Frencken Group, InnoTek, CSE Global, UMS Integration, iFAST Corporation and Venture Corporation.

The seven stocks also averaged share price gains of 15.3 per cent in January.

SGX’s strong performance so far has coincided with Singapore entering 2026 with strong economic momentum, with gross domestic product (GDP)

unexpectedly growing 4.8 per cent in 2025

, tourist numbers nearing their 2019 peak and air travel hitting record highs for Singapore Airlines during the year.

Despite most economists forecasting lower GDP growth rates for 2026, the Singapore Business Federation’s 2025 National Business Survey showed that local companies are pushing ahead with overseas expansion and operational changes even as costs rise and confidence softens amid global uncertainty.

One area where spending is expected to rise is AI.

On Jan 24, the Government announced it

will set aside $1 billion over five years

from 2025 to 2030 to strengthen Singapore’s public research capabilities in the field.

This marks the second tranche of public funding for AI research and development, following an earlier investment of more than $500 million between 2019 and 2023.

In a Jan 28 report, analysts at OCBC highlighted several SGX-listed stocks they expect to benefit from increased investment and activity in AI.

Unlike the US and China, Singapore’s AI growth is infrastructure-led, with investments concentrated in building foundational infrastructure, they noted.

The analysts expect growing adoption of AI to drive demand for fibre connectivity, data centres, power generation and grid infrastructure, and are positive over 11 stocks that enable large-scale deployment of AI.

These include Keppel DC Reit, Mapletree Industrial Trust, CapitaLand Ascendas Reit, Stoneweg Europe Stapled Trust and CapitaLand India Trust in the data centre space; power providers Sembcorp Industries, Keppel, Keppel Infrastructure Trust and Hong Leong Asia; as well as Singtel and NetLink NBN Trust, which provide communications services.

They also favour companies that have been leaders in AI adoption like ST Engineering, ComfortDelGro, Boustead Singapore and UOB.