The Straits Times Index (STI) extended its gains at Tuesday’s (7 July) open, hitting another intraday record high.
Driven by overnight gains in US technology stocks, the STI opened 4.92 points, or 0.09%, higher at 5,264.73. By 9:10 am, the index had widened its gains to 0.55%, reaching 5,288.84. The previous day (6 July), the STI had already risen 0.91% to close at 5,256.37, after touching an intraday high of 5,259.82. Over the past five trading sessions, the index has gained 1.66%, sitting just 0.1% below its 52-week high.
Banking stocks have been the primary drivers of this rally. Shares of OCBC, DBS and UOB rose 1.65%, 1.14% and 1.06%, respectively. Market analysts note that investors continue to rotate funds into domestic financial and transport sectors, reflecting confidence in Singapore’s economic outlook. DBS Group Holdings, as Singapore’s largest bank and a heavyweight STI component, has contributed significantly to the index’s performance.
The government’s expanded S$6.5 billion Equity Development Programme (EQDP) continues to provide structural support to the local stock market, boosting institutional participation. In its latest professional forecast survey, the Monetary Authority of Singapore (MAS) slightly lowered its 2026 GDP growth forecast to 3.5%, but economists still expect the MAS to maintain its monetary policy stance at its July review, which helps stabilise investor sentiment.
Singapore Exchange (SGX) has been the best-performing STI component in the first half of 2026, with its share price rising about 42%, buoyed by active trading activity and market support measures. JPMorgan had previously raised its base-case target for the STI to 6,000 points, with an optimistic scenario of 6,500, citing robust earnings prospects, a strong Singapore dollar, high dividends and the index’s status as a safe‑haven asset amid global geopolitical uncertainty.
Some investors took profits after the strong rally, but selling pressure was limited, suggesting underlying sentiment remains positive. Market watchers will be watching closely to see whether the STI can extend its record run in the coming weeks, while also monitoring global market developments and fresh catalysts such as corporate earnings.