Flows, Positioning and Sector Dispersion Across Singapore Equities in May
Global equities edged higher in May, with US and European benchmarks firmer, while Asia remained mixed with clear dispersion across markets. Strength in North Asia was offset by softer trends in Southeast Asia and China‑related indices.
Singapore equities traded in a range through much of the month, with the $Straits Times Index(STI.SI)$ finishing modestly higher, as gains in selected large caps were offset by more mixed performance across industrials and smaller capitalisation segments, with S-REIT Indices marginally softer over the period. The STI generated a 3.3% total return with around a quarter of that contributed by dividends. On 25 May, the benchmark also formed a new all-time high at 5,102.07.
Moves in May brought the STI total return of the past five months to 10.8% and 108.8% since the end of 2019. The two STI ETFs by $SS SPDR STI ETF(ES3.SI)$ and $Amova STI ETF S$D(G3B.SI)$ recorded S$129 million of net inflows in May, bringing 2026 YTD inflows to S$687 million. This marked the 15th consecutive month of inflows, with cumulative inflows reaching S$1.2 billion since March 2025, while combined AUM stands at S$4.7 billion. For investors using digital platforms, since the end of 2019, the indicative Compound Annual Growth Rate for monthly STI ETF dollar cost was 9.2% as of the end of May.
Over the month the iEdge Next 50 Liquidity Index, generated a 2.5% total return in May, bringing its 5-month total return to 12.2%, while the iEdge S-REIT Index saw a 0.7% decline in total return extending its 5-month decline in total return to 3.7%.
Spot Brent crude and December 2026 Brent futures moved closely through May, with both contracts firming into mid‑month before retracing toward the end of the period. The front‑month contract maintained a premium to longer‑dated futures, although the spread narrowed over the month, pointing to some moderation in near‑term tightness. Against this backdrop, market expectations for the Fed policy path remained largely unchanged, with implied rate distributions still centred on the 350–375 basis point range across the June and July FOMC meetings. Although there were modest intra‑month shifts, pricing remained centred on the current policy range, without signalling a clear change in the expected rate path.
Global trade dynamics remained a key macro theme, with geopolitical tensions continuing to reshape trade flows and reinforce a shift toward resilience, alongside ongoing supply chain reconfiguration, and tariff uncertainty. The two SGX-listed gold ETFs by State Street (O87/GSD) and Lion Global Investors (GLS/GLU) recorded S$150 million of net inflows in May, bringing 2026 YTD inflows to S$1.1 billion. This marked the 24th consecutive month of inflows, with cumulative inflows reaching S$2.5 billion since June 2024, while combined AUM stands at S$5.3 billion.
Resilient Growth and AI Tailwinds Offset Rising Global Risks
Ministry of Trade and Industry (MTI) reported Singapore’s GDP expanded 6.0% YoY in 1Q26, above the advance estimate, extending the 5.7% growth in the previous quarter, with wholesale trade, manufacturing, and finance & insurance driving expansion on robust AI‑related demand across electronics and precision engineering.
Growth momentum remained supported into April, with industrial production rising 17.6% YoY and 5.8% MoM, led by semiconductors and transport engineering, even as petrochemical output contracted amid energy‑related supply disruptions linked to the Middle East conflict. Core CPI eased to 1.4% YoY in April, although imported cost pressures are beginning to broaden.
The IMF notes that energy price shocks are acting as a negative supply shock, with broad measures such as energy price caps or subsidies risking distortions to price signals and adding to inflation pressures, reinforcing the case for targeted and temporary support. Locally, the Singapore Business Federation has emphasised preserving cost competitiveness and improving access to transformation support as firms navigate higher energy and operating costs.
Singapore’s external sector remains firm, with Enterprise Singapore reporting non‑oil domestic exports (NODX) expanding 24.5% YoY in April, supported by strong electronics‑driven growth. MTI maintains its GDP growth forecast at 2.0% to 4.0%, while UOB has raised its forecast to 3.2% following stronger 1Q26 momentum.
The global backdrop has weakened following the US‑Israel‑Iran conflict, which MTI notes has disrupted energy supply, increased input costs and tightened financial conditions, weighing on external demand prospects. AI‑related demand remains a key offset, supporting electronics, precision engineering, and wholesale trade activity, with spillover effects across outward‑oriented sectors as highlighted in the Economic Survey of Singapore 1Q26.
Downside risks include prolonged energy disruptions, renewed tariff escalation, and any pullback in AI‑related capital spending, which could weigh on global growth and financial market conditions, with more frequent geopolitical and supply chain shocks reinforcing the importance of resilience. In this context, the Economic Strategy Review (ESR) highlights the need to sharpen Singapore’s value proposition, strengthen adaptability across firms and workers, and build resilience to a more uncertain global environment.
SATS Record FY26 Revenue, Target Price Adjustment and Trade Flow Disruptions
SATS led the STI constituents in May with a 16.7% price gain. On 25 May SATS reported record FY26 revenue of S$6.35 billion, up 9.0% from FY25, with operating profit increasing 14.2% to S$543.3 million and net profit rising 17.0% to S$285.2 million.
Cargo volumes increased 7.0% YoY to 9.65 million tonnes, with the Group noting that volumes have outperformed IATA global benchmarks over the past two and a half years, alongside continued market share gains in gateway services.
Coinciding with the above-mentioned shift in global trade dynamics, SATS cited tariff escalations and the Middle East conflict as disrupting cargo flows and reducing capacity across key corridors. The Group also highlighted its ability to capture cargo rerouting across alternative lanes and regions, supported by its global network footprint.
Consensus estimates adjusted marginally through May, with the Bloomberg 12‑month target price increasing to around S$4.42 from S$4.38 earlier in the month, while the share price rose from S$3.30 to S$3.85 over the same period, narrowing the gap between price and target based on Bloomberg data.
Venture Corporation: Mix Shift, Margin Resilience and Analyst Re-ratings
Venture Corporation was the STI’s second strongest performer in May, coinciding with its improving momentum across its higher value‑add technology segments, alongside a positive shift in analyst recommendations and target price expectations over the period. In its 1QFY26 Business Update, the group reported a return to YoY revenue growth, with revenue rising 1.9% YoY to S$628.5 million (+8.2% in constant currency), supported by demand across Test & Measurement Instrumentation, Networking & Communications and Semiconductor‑related equipment.
This reflects a continued portfolio shift, with stronger momentum in higher value segments offsetting ongoing weakness in the Lifestyle Consumer portfolio, where volumes declined due to longer product cycles and improved product durability rather than competitive pressures.
Margins remained resilient at around 9%, supported by favourable product mix and a focus on complex, high value‑add solutions despite softer volumes across parts of the business.
Further to the broader shift in global trade dynamics, Venture has cited unprecedented tariff volatility and highlighted the resilience of its business model, supported by flexible and agile supply chain solutions across multiple geographies and a globally diversified operational footprint.
Analyst positioning also improved in May, with two upgrades to Buy and the consensus target price increasing by close to S$2.00 to around S$18.90, although coverage remains mixed. The group also maintains a strong balance sheet, with a net cash position exceeding S$1 billion, underpinning dividends and share buybacks while supporting continued investment across its technology domains.
FLCT: European Acquisition Deepens Logistics Exposure
Frasers Logistics & Commercial Trust (FLCT) was the strongest performing REIT within the STI in May, with a 4.2% price gain. On 26 May FLCT entered agreements to acquire four logistics and industrial properties in Germany and the Netherlands for €294.9 million, adding c.179,600 sqm of fully leased space with a 5.7‑year WALE across established logistics clusters.
The assets are expected to lift portfolio occupancy from 96.1% to 96.3% and increase the logistics and industrial weighting from 75.1% to 76.6%, extending the portfolio’s tilt toward income‑generating logistics assets alongside stable operating metrics, including 1HFY26 DPU of 2.95 Singapore cents.
On a pro forma basis, 1HFY26 DPU is expected to increase to 3.00 cents, with the acquisition fully debt‑funded, aligning with FLCT’s use of balance sheet capacity to fund accretive acquisitions, while DBS notes core earnings have improved on leasing momentum and positive rental reversions despite lower capital distributions.
iEdge Singapore Next 50 Index
The iEdge Singapore Next 50 Liquidity Weighted Index has delivered a 9.7% total return over the first 5-months of 2026. Four technology stocks now account for 23% of the Index, up from 19% six weeks ago. Adjacent to the technology segment, NetLink NBN Trust, NTT DC REIT and Digital Core REIT together represent a further 7% of the index by weight. At the end of the month, Frencken Group saw a significant compression in its most recent average 5-day bid offer spread, at 33bps compared to 89 bps for the same period in 2025.
Riverstone: Consensus Shifts Through May
Riverstone Holdings saw its Bloomberg 12-month target price move higher over the month to S$1.01 from S$0.81, while the last traded price rose to S$0.93 from around S$0.75 over the same period.
Riverstone Holdings’ 1QFY26 update reflected continued moderation in performance, with revenue declining 15.1% YoY and 14.5% quarter-on-quarter to RM214.3 million, while net profit fell 27.1% YoY and 20.1% sequentially to RM41.1 million. As reported by NextInsight, the earnings weakness was attributed to forex headwinds. However, over the month analysts highlighted Riverstone’s pricing power and continued demand support from higher-specification gloves used in AI and semiconductor applications, underpinning the more constructive stance reflected in select broker updates through the month.
Overall broker research positioning remained mixed, with UOB Kay Hian maintaining a buy call, CGS International upgrading to add, and Nomura and RHB Research maintaining neutral calls. CGS International relayed that customers are prioritising securing glove supply amid tight supply‑demand conditions, supporting expected ASP increases, while Riverstone’s established supplier relationships have enabled it to secure raw material supply through June, with easing raw material costs potentially supporting margins if geopolitical tensions moderate.
UMS Integration: Consensus Repricing Through May
UMS Integration led the iEdge Next 50 Liquidity Index in May with a 28.4% price gain. UMS’ 1QFY26 results reflected improved performance, with revenue rising 20% YoY to S$69.4 million and net profit attributable to shareholders increasing 43% YoY to S$14.0 million, driven by higher sales across its Semiconductor, Aerospace and Other segments and supported by a shift to foreign exchange gains.
UMS saw its Bloomberg 12-month target price move higher over the month to S$3.55 from S$2.14, while the last traded price rose to S$2.80 from S$2.18 over the same period. Consensus ratings remained unchanged, with all covering brokers maintaining buy recommendations based on Bloomberg data.
Broker updates through May reflected higher target prices at UOB Kay Hian, DBS Bank, Nomura, and RHB Research, while CGS International maintained an add recommendation at a higher target price. Separately, going into May, DBS highlighted UMS’ production ramp-up, new product introductions for a second customer, participation in advanced packaging programmes, and AI-driven semiconductor demand.
Institutional Positioning and Capital Activity Continue Through May
$DBS(D05.SI)$ booked S$637 million of net institutional inflow in May, reducing its accumulated 2026 net institutional outflow to S$1.47 billion. In the lead-up to May, Citi Research maintained that DBS had seen outsized net institutional outflow and a more constructive outlook for the stock following its 1QFY26 results could see some unwinding of the outflow. Click here for more on the 1Q26 reporting for the STI banks.
Combined, the 30 STI stocks booked S$78 million of net institutional inflow during the month, which represented a significant portion of the overall S$90 million of net institutional inflow booked in May. As tabled below, as many as seven of the 20 stocks that booked the most net institutional inflow over the month represented the Technology sector.
The month also saw stake increases by Silchester in ComfortDelGro Corporation, new substantial shareholder entry by Azure Prime Fund (VCC) in Trek 2000 International, Bank of America crossing the 5% deemed substantial shareholder threshold in AEM Holdings, and LC Capital increasing its stake in PC Partner Group beyond the 7% threshold.
May also saw a series of control‑related ownership changes, with control transfers at Asia Vets Holdings, Avi‑Tech Holdings and ASTI Holdings through stake transfers and block acquisitions. The month also saw more Catalist‑to‑Mainboard transfers, with Aspial Lifestyle (4 May), MoneyMax Financial Services (6 May) and Choo Chiang Holdings (7 May) completing their moves. Koh Brothers Eco Engineering subsequently submitted its application on 26 May, highlighting objectives to enhance corporate profile, broaden its investor base and improve trading liquidity.
Placements remained active through May, with companies including $Aspial Lifestyle(5UF.SI)$ , $Aoxin Q & M(1D4.SI)$ , $TrickleStar(CYW.SI)$ , $H2G Green(5AI.SI)$ $VCPlus(43E.SI)$ , $Rex Intl(5WH.SI)$ , $Salt Investments(FQ7.SI)$ and announced transactions by Mooreast Holdings and TOTM Technologies. Proceeds were directed toward business expansion, working capital, balance sheet strengthening and project capacity. If sustained, the current run rate of secondary fundraisings in 2026 will mark the strongest annualised pace of secondary capital raising in the local market since 2021.
Singapore Telecommunications led the share buyback consideration tally in May, repurchasing 42.5 million shares at an average price of S$4.63 apiece. Keppel and United Overseas Bank booked the next highest buyback considerations on the month.
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