My 5 Best Picks for Singapore 2026 (from STI)

1. DBS Group Holdings (SGX: D05) — Banking heavyweight

Why:

Largest bank in Singapore and the STI, with strong balance sheet and high profitability.

Healthy dividends and capital returns — attractive in a yield-focused market.

Institutional optimism as Singapore equities are labeled “overweight” with banks as a key driver. �

DollarsAndSense.sg +1

Role: Core defensive income + growth from regional expansion.

2. Oversea-Chinese Banking Corp (OCBC, SGX: O39) — Bank with diversified earnings

Why:

Large bank with diversified earnings streams (wealth management, insurance, etc.).

Analysts expect OCBC to be a top STI pick for 2026 and yield growth as capital returns. �

sginvestors.io

Role: Dividend + relatively stable earnings.

3. Singapore Telecommunications (Singtel, SGX: Z74) — Defensive telecom with turnaround potential

Why:

High dividend yield and strong institutional flows amid market volatility. Singtel saw significant inflows as a high-yield defensive play in 2025. �

Reuters

Analysts show very strong target-price upside potential. �

sginvestors.io

Role: Defensive income + potential valuation rerating.

4. Singapore Technologies Engineering (ST Engineering, SGX: S63) — Industrial/defence growth

Why:

Strong performance in 2025 and robust order book (multi-year revenue visibility).

Beneficiary of higher global defence budgets and resilient aerospace/training segments. �

The Business Times

Role: Growth cyclicals + diversification away from banks/REITs.

5. CapitaLand Ascendas REIT (SGX: A17U) — REIT with structural demand

Why:

Leading industrial REIT with exposure to logistics, data centres & advanced manufacturing — areas facing structural demand in 2026+.

Strong portfolio metrics and acquisitions that support future distribution growth potential. �

Role: Dividend plus structural asset growth.

Why These 5? (Strategy Overview)

Pick-Core Strength

DBS-Sector leader bank=Stability + income

OCBC-Banking diversification=Dividend + earnings growth

Singtel-High-yield defensive=Safe income + recovery potential

ST Engineering-Industrial growth=Cyclical + secular demand

Capital/Ascendas REIT-Structural property demand

Finally-STI Itself !

Singapore Stocks Hit a 16-Year High: How to Invest SGX in 2026?

After a standout 2025, the Singapore stock market enters 2026 with solid momentum. Local equities surged 22.7% in 2025, the strongest gain in 16 years, setting a high base for the year ahead. Tailwinds remain in place: interest rates have eased to around 1.20%, the lowest in three and a half years, while the government’s Equity Development Programme (S$5B EQDP) is expected to inject liquidity, particularly into small- and mid-cap names. After a 22%+ year, can Singapore equities still deliver upside in 2026? Will the EQDP meaningfully re-rate small and mid-cap Singapore stocks?

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My 5 Best Picks for Singapore 2026 (from STI)

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