STI Reaches Record High Before September Consolidation
$Straits Times Index(STI.SI)$ Consolidates After Record High, STI ETF Milestone and Catalist and Technology Indices Outperform
The Straits Times Index ended September at 5,675.88, declining 1.4% during the month after reaching a record high of 5,828.5 on 4 September. This brought its 9M26 total return to 26.4%, moderately ahead of the FTSE Asia Pacific Index's 22.2% total return over the same period.
$SS SPDR STI ETF(ES3.SI)$ and $Amova STI ETF S$D(G3B.SI)$ ended the month at S$5.769 and S$5.874 respectively, with the two ETFs booking net inflow of S$293 million in September, representing 19 successive months of net inflow totalling S$1.96 billion. This brought their combined AUM to S$6.07 billion. SGX STI Futures volumes also accelerated in September.
Across global markets, the Federal Reserve raised the federal funds target range to 3.75% to 4.00% in September, while the US 10-year Treasury yield increased from 4.75% to 5.28% over the month. Brent crude also spent most of the month between US$100 to US$110 per barrel. In China, manufacturing and non-manufacturing PMIs returned to expansion in September, while policymakers lowered the rate on a key lending facility, expanded targeted credit and announced mortgage-interest subsidies for eligible first-home buyers.
The STI decline was less pronounced than the Hang Seng Index (-3.4%), CSI 300 (-5.1%) and Jakarta Composite (-7.4%) in SGD terms. Within Singapore's equity market, performance was mixed. The FTSE ST Catalist Index gained 2.4%, led by iX Biopharma's 25.9% gain for the month. The stock's weighting in the index increased from around 5% in March to 11% in June and 19% by September month-end.
On 7 September, $IX Biopharma(42C.SI)$ announced that a US Government declaration had opened an emergency-use pathway for Wafermine, with its FDA submission targeted for completion by 4Q26. As reported in August its FY26 revenue declined 12% to S$6.85 million, while its net loss narrowed to S$7.99 million from S$10.14 million in FY25. Gross profit increased 19% to S$2.43 million, with gross margin improving to 36%. Phillip Capital published an update on the stock on 8 September.
The FTSE ST All-Share Technology Index gained 1.7%, led by $PC Partner(PCT.SI)$ and $AEM SGD(AWX.SI)$ , while the FTSE ST REIT Index declined 5.7%. PC Partner Group share price gained 15.9%, while a S$0.10 dividend boosted the total return on the month to 19.6%.
Among the close to 180 actively traded stocks with 3Q26 Average Daily Turnover (ADT) of more than S$100,000, September’s strongest performers were $Katrina(1A0.SI)$ and $Accrelist Ltd(QZG.SI)$ , which gained 270.0% and 39.3%, respectively.
Katrina’s gain followed BYD By 1826 Investment Holdings acquiring a 5% stake from Executive Chairman and CEO Alan Goh for approximately S$300,000. The new substantial shareholder is linked to BYD By 1826, an authorised BYD passenger-vehicle dealer in Singapore. For 1H26, Katrina’s revenue fell 15.7% to S$18.9 million, while its net loss widened to S$2.38 million.
Other than PC Partner, technology names also featured prominently, with $InnoTek(M14.SI)$ , $iWOW Tech(NXR.SI)$ , $Frencken(E28.SI)$ and AEM gaining between 10.6% and 22.7%. $Geo Energy Res(RE4.SI)$ and $PanUnited(P52.SI)$ rose 12.1% and 10.2%, respectively, while $YZJ Shipbldg SGD(BS6.SI)$ gained 6.0%. For 9M26, close to 220 stocks averaged more than S$100,000 ADT, compared with more than 190 in 9M25.
Trading Turnover Shifted Towards Resources and Consumer Names
More than a third of stocks recorded higher 3Q26 average daily turnover (ADT) as of 30 September than as of 31 August, with Energy/Oil & Gas, Consumer Non-Cyclicals and Materials & Resources recording the highest incidence of ADT increases.
Among the more actively traded Energy/Oil & Gas stocks, Geo Energy Resources' 3Q26 ADT increased from S$6.09 million to S$7.19 million. During September, the group issued profit guidance stating that it expects a significant increase in 3Q26 sales volume and net profit compared with 3Q25 and the preceding quarters of FY26. RH Petrogas and Pacific Radiance also recorded higher 3Q26 ADT as of 30 September relative to 31 August.
Within Consumer Non-Cyclicals, $Golden Agri-Res(E5H.SI)$ recorded the largest increase in 3Q26 ADT, from S$3.65 million to S$7.05 million. $First Resources(EB5.SI)$ 3Q26 ADT increased from S$8.78 million to S$10.63 million, while $Bumitama Agri(P8Z.SI)$ 's increased from S$3.70 million to S$4.70 million. $ThaiBev(Y92.SI)$ , $DFIRG USD(D01.SI)$ and $Food Empire(F03.SI)$ also recorded higher 3Q26 ADT as of 30 September relative to 31 August.
Among the most actively traded stocks, $Addvalue Tech(A31.SI)$ , Golden Agri-Resources, $CityDev(C09.SI)$ , $CapLand Ascendas REIT(A17U.SI)$ and $Jardine C&C(C07.SI)$ recorded the largest increases in 3Q26 ADT as of 30 September relative to 31 August. Addvalue Technologies' 3Q26 ADT increased from S$11.45 million to S$15.76 million, while Golden Agri-Resources', City Developments' and CapitaLand Ascendas REIT's increased by between S$3.24 million and S$3.40 million. Jardine Matheson's ADT increased by S$2.21 million, from S$29.04 million to S$31.25 million.
In September, Addvalue secured US$5 million of new orders, lifting its order book to US$20.23 million, while shareholders approved the proposed spin-off and US listing of the group's space connectivity business. City Developments also announced the outcome of its strategic review, outlining a FY27-FY29 plan targeting approximately S$5 billion of investments and S$6 billion of divestments. Other stocks recording ADT increases of more than S$1 million included CapitaLand Integrated Commercial Trust, First Resources, Frasers Centrepoint Trust, iX Biopharma, Yangzijiang Shipbuilding, Hongkong Land, Frasers Logistics & Commercial Trust, Frencken, Geo Energy Resources, NTT DC REIT and Bumitama Agri.
Institutions Rotated Towards Utilities and Technology
Institutional investors recorded net selling of approximately S$1.02 billion in September, while retail investors added approximately S$1.13 billion. Utilities, led by $Sembcorp Ind(U96.SI)$ , and Technology, led by AEM, recorded the largest net institutional inflows during the month, attracting approximately S$106 million and S$81 million, respectively. Energy/Oil & Gas and Materials & Resources also recorded smaller net institutional inflows of approximately S$7 million and S$3 million.
In contrast, Financial Services, REITs, Real Estate (excluding REITs) and Telecommunications recorded the largest institutional outflows during the month, while retail investors were net buyers of those same sectors.
Among individual stocks, Sembcorp Industries, AEM, Yangzijiang Shipbuilding and $UOB(U11.SI)$ recorded the largest improvements in cumulative institutional net flow during September, with increases of approximately S$110 million, S$63 million, S$61 million and S$37 million, respectively. $ST Engineering(S63.SI)$ and Frencken also recorded institutional inflows of approximately S$35 million and S$31 million.
$DBS(D05.SI)$ , CapitaLand Ascendas REIT, $UOL(U14.SI)$ and $Singtel(Z74.SI)$ recorded the largest declines in cumulative institutional net flow during September, ranging from approximately S$117 million to S$188 million. Retail inflows were led by DBS, CapitaLand Ascendas REIT, Singapore Telecommunications, and City Developments, which recorded increases of approximately S$252 million, S$115 million, S$99 million and S$84 million, respectively.
Singapore Growth Outlook Improved
Singapore economic indicators released in September were led by stronger trade and manufacturing activity, alongside higher core inflation and softer labour-demand indicators.
Enterprise Singapore reported that non-oil domestic exports increased 46.2% year on year in August. Economic Development Board data showed industrial production rose 15.4% year on year, with electronics output increasing 10.9% from July and semiconductor production up 9.0%. Ministry of Manpower data showed the recruitment rate eased to 1.4% in 2Q26 from 1.6% in 1Q26, while retrenchments increased to 4,620 from 3,830. MAS and MTI reported that core inflation rose to 2.2% year on year in August from 2.0% in July.
In its September Financial Stability Review, MAS assessed Singapore corporates, households and banks as remaining resilient, noting that SGX-listed firms' debt-servicing capacity improved over the past year while most firms reported stable earnings. The resident credit-to-GDP ratio stood at 133% in 2Q26 compared with 134% in 4Q25.
The September MAS Survey of Professional Forecasters showed the median private-sector forecast for 2026 GDP growth increased to 5.0% from 3.5% in the June survey. Median forecasts were also revised higher for manufacturing, finance and insurance, wholesale and retail trade, non-oil domestic exports and bank lending growth. The survey projected GDP growth of 4.6% in 3Q26 and 3.1% in 2027.
September's forecast upgrades were consistent with Singapore's structural strengths in trade and investment, advanced manufacturing, financial services, infrastructure and workforce capability. The higher forecasts for GDP, manufacturing, finance and insurance, trade and non-oil domestic exports indicate more supportive operating conditions entering 4Q26.
Alongside the improving macro outlook, September's company developments reflected multiple value-creation levers across the market, including growth and transformation initiatives, capital returns, capital formation, asset optimisation, financial optimisation, value unlock and market recognition activities. The latter included multiple research initiations made over the course of the month.
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What stands out is the underlying rotation. STI ETFs attracted another S$293 million, extending net inflows to 19 consecutive months, while technology and Catalist stocks outperformed. Institutional investors also shifted capital toward utilities and technology, suggesting investors are looking beyond traditional banking and REIT exposures.
Meanwhile, Singapore’s 2026 GDP growth forecast was raised to 5.0%, supported by stronger exports, manufacturing and electronics activity.
The key question for 4Q26 is whether this economic strength can translate into broader corporate earnings growth. If so, Singapore’s market story could increasingly become one of earnings diversification rather than simply index momentum.
@SGX_Stars [得意]