Singapore Stocks Extend Rally as STI Gains 13.7% in H1 2026
In June, Singapore equities matched May momentum, with the $Straits Times Index(STI.SI)$ advancing 2.6% to 5,170.65. The benchmark also reached a record high of 5,241.80 on 23 June. June’s gains lifted the STI’s 1H26 total return to 13.7% and its 12-month total return to 36.4%. Since end-2019, the STI has delivered an annualised total return of 12.4%, while monthly STI ETF dollar-cost averaging generated an indicative CAGR of 9.4%.
Regional performance was mixed in June. Japan's Nikkei gained 6%, while Taiwan's TAIEX managed to hold on to a 3% advance despite heightened volatility. Hong Kong equities were softer, with the Hang Seng Index declining 9% over the month.
Financial Services Lead June Institutional Inflow
During June, Singapore stocks attracted S$611 million in net institutional inflow, reversing more than 40% of the cumulative net outflow recorded over the previous five months.
Financial Services led June institutional inflow with S$683 million in net buying. While the net inflow reduced earlier net outflow, the sector still finished 1H26 with net institutional outflow of S$626 million, accounting for the bulk of the S$823 million in net institutional outflow over the past six months.
This largely reflected net institutional outflow in $DBS(D05.SI)$ earlier in the year.
Ahead of its 1QFY26 results reported back on 30 April, Citi Research noted that DBS had experienced outsized institutional outflow and that a more constructive outlook could support some unwinding of those positions. DBS subsequently attracted S$739 million in net institutional inflow over May and June, reducing its 1H26 net institutional outflow to S$1.36 billion.
United Overseas Bank (UOB), $OCBC Bank(O39.SI)$ , DBS, and Singapore Exchange accounted for a significant share of the sector's June institutional inflow. The renewed institutional interest coincided with continued investor focus on earnings resilience, capital return visibility, and balance-sheet strength, with the four stocks averaging a 6.5% total return during the month.
For the first six months of 2026, net institutional inflow into Financial Services stocks were led by UOB, Singapore Exchange, OCBC, UOB Kay Hian Holdings, $CapitaLandInvest(9CI.SI)$ , Singapore Investment & Finance, Pacific Century Regional Developments and Hotung Investment Holdings.
The breadth of institutional participation across banking, capital markets, asset management, and investment companies coincided with an average total return of 21.4% across these eight stocks in 1H26, led by Singapore Exchange, UOB Kay Hian Holdings, OCBC, UOB, and Hotung Investment Holdings.
SATS & SIA Led STI Gains Again in June, Driving Consumer Goods & Services Index Advance
The FTSE ST Consumer Goods & Services Index generated a 6.2% total return in June. While classified as a consumer-focused index, its 15 constituents span a diverse range of business activities, including technology, industrial, transportation, and consumer-facing exposures. Performance was led by $SATS(S58.SI)$ , $SIA(C6L.SI)$ and $First Resources(EB5.SI)$ , amid continued strength in aviation-linked activity, resilient travel demand, and firmer palm prices.
Both Singapore Airlines and SATS booked the next highest net institutional inflow in June after UOB, at S$344 million and S$147 million, respectively. Across the local market, Singapore Airlines also led net institutional inflow in 1H26. The airline group delivered record revenue of S$20.5 billion in FY2025/26, carried a record 42.4 million passengers and continued to expand its network, while maintaining one of the strongest balance sheets in the industry with shareholders' equity of S$17.3 billion and a reduced debt-to-equity ratio of 0.62 times.
Gains in Sheng Siong Group also reflected ongoing demand for defensive consumer exposures, while performance across the index highlighted the diversity of earnings drivers beyond traditional consumer spending.
Singapore 2H26: Resilience Amid a More Selective Market
Singapore's economic backdrop remained supportive in June. Following 1Q26 GDP growth of 6.0% year on year, the MAS Survey of Professional Forecasters pointed to firmer growth expectations, supported by electronics and semiconductor demand, alongside steady contributions from finance and insurance, construction, and wholesale trade. Business activity also remained expansionary, while inflation expectations stayed contained and labour market conditions remained firm.
Technology and Industrials attracted the strongest net institutional inflow in 1H26, drawing S$580 million and S$457 million respectively, underpinned by continued investor interest in AI, semiconductor, and infrastructure-related themes.
Looking into 2H26, investors are likely to focus on earnings resilience and execution amid a more challenging external environment. Structural themes linked to AI, semiconductors, digital infrastructure, and regional investment remain supportive, while Singapore's improved FDI standing and expanding liquidity base continue to underpin its role as a regional capital hub. Higher energy costs, evolving trade policies, and softer global demand are likely to widen performance dispersion across sectors. In this environment, investors are expected to remain focused on earnings resilience, balance-sheet strength, and execution.
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