The STI rally looks impressive, but I think the easy money has already been made.
A 24% YTD gain is difficult to ignore, especially when banks have been doing much of the heavy lifting. Yangzijiang’s record earnings show that this isn’t purely a liquidity-driven rally — real earnings are supporting parts of the market.
But that also raises the bar. After such a strong run, valuation expansion alone probably won’t be enough. The next leg needs stronger profits, dividends and guidance.
I’d be more selective here: banks for cash flow, shipbuilders like Yangzijiang for earnings momentum, and REITs if the rate environment becomes friendlier.
My biggest takeaway: the STI may still have upside, but 2026 is shifting from an index-buying market to a stock-picking market.
@SGX_Stars [龇牙]
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