Singapore’s Record Rally: Why the Opportunity May Be Just Beginning

14 Jul 2026

Supportive policies, resilient economic growth and diverse investment opportunities continue to make Singapore’s equity market one to watch.

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The Straits Times Index (STI) has closed above 5,400 for the first time, marking a new record after climbing more than 30% over the past year. While some investors may wonder if they have already missed the rally, Singapore’s market continues to be supported by strong economic fundamentals, policy initiatives and attractive investment opportunities.

Why It’s Not Too Late

Singapore’s recent market strength is underpinned by improving corporate earnings, resilient economic growth and renewed investor interest in local equities.

One of the key structural drivers is the Monetary Authority of Singapore’s Equity Market Development Programme (EQDP). Expanded to S$6.5 billion under Budget 2026, the programme is designed to improve liquidity and encourage long-term investment into Singapore-listed companies. As of March 2026, only S$3.95 billion had been allocated to appointed asset managers, leaving further deployments that could continue to support the market.

Valuations also remain relatively reasonable despite the rally. The STI continues to trade close to its historical average valuation rather than the elevated multiples often associated with speculative bull markets. While no investment outcome is guaranteed, today’s market appears to be supported by fundamentals rather than optimism alone.

Why Singapore? Income Meets Growth

Singapore continues to offer investors a compelling combination of stable income and long-term growth potential.

On the income front, Singapore REITs generally distribute at least 90% of their taxable income to qualify for tax transparency, while the STI remains anchored by Singapore’s three major banks, which continue to deliver resilient earnings.

On the growth front, Singapore’s economy expanded 6.0% year-on-year in the first quarter of 2026. The Ministry of Trade and Industry continues to forecast GDP growth of between 2.0% and 4.0% for the year, supported by resilient external demand, including AI-related electronics.

Beyond the STI, investors can also gain exposure to established mid-cap companies through the iEdge Singapore Next 50 Index, which includes businesses across semiconductors, precision engineering, consumer staples and digital infrastructure.

Four Ways to Gain Exposure to Singapore

Singapore’s Market Leaders

Singapore’s three major banks remain the backbone of the STI, benefiting from strong market leadership, diversified businesses and regional expansion. Investors can gain exposure through individual stocks such as DBS (SGX: D05), OCBC (SGX: O39) and UOB (SGX: U11), or through STI-tracking ETFs.

Singapore’s Next-Generation Leaders

Investors seeking opportunities beyond blue chips may consider companies within the iEdge Singapore Next 50 Index. Businesses such as AEM Holdings, Frencken Group, UMS Integration, Sheng Siong and NetLink NBN Trust represent sectors including semiconductors, precision engineering, consumer staples and digital infrastructure. As there is currently no ETF tracking the index, investors typically access these opportunities through direct stock investing.

Singapore ETFs

For diversified exposure through a single investment, Singapore-listed ETFs provide a convenient solution. These include the SPDR STI ETF (SGX: ES3), Amova Singapore STI ETF (SGX: G3B) and Phillip SING Income ETF (SGX: OVQ), offering exposure to Singapore’s leading companies and income-generating sectors.

Tactical Trading Opportunities

For experienced, CAR-qualified investors seeking short-term market opportunities, leveraged and inverse exchange-traded products provide additional flexibility. The Phillip-Nova MSCI Singapore Daily (2x) Leveraged Product (SGX: LSS) allows investors to position for rising markets, while the Phillip-Nova MSCI Singapore Daily (-1x) Inverse Product (SGX: SSS) enables investors to express bearish views on Singapore equities.

The Investment Case

Potential Upside

Continued deployment of the remaining EQDP capital could further support market liquidity.
Singapore’s resilient GDP growth and AI-driven manufacturing demand remain supportive of corporate earnings.
Valuations remain broadly in line with historical averages.
The Next 50 Index offers exposure to quality mid-cap companies across multiple sectors.

Risks to Consider

The STI remains heavily weighted towards the banking sector, making it sensitive to interest rate expectations.
Singapore’s open, trade-dependent economy remains exposed to global economic developments.
Higher energy prices and inflation could weigh on corporate margins.
The Next 50 currently has no ETF, and some constituent stocks may have lower trading liquidity.

Access Singapore Markets with NOVA

Whether you’re investing for long-term growth or actively trading market opportunities, NOVA provides access to Singapore’s financial markets through a single trading account.

On NOVA, investors can trade:

Singapore-listed stocks, including STI constituents and Next 50 companies
Singapore ETFs
Leveraged and inverse exchange-traded products (for eligible investors)
Global markets across stocks, ETFs, futures, forex and CFDs—all from one integrated platform with professional TradingView charting.

Final Thoughts

Although the STI has reached record highs, Singapore’s investment story continues to be supported by strong fundamentals, supportive government initiatives and a broad range of investment opportunities.

Whether your objective is blue-chip stability, dividend income, emerging growth companies or tactical trading opportunities, Singapore remains a market worth watching—and with NOVA, investors can access these opportunities through a single multi-asset trading platform.

Trade Singapore stocks, ETFs and more on Phillip Nova and stay ready to capture opportunities as market-moving events unfold.

Seize the opportunity with Singapore Stocks and ETFs, with no minimum commission, at 0.08%. Open an account now!

Or take a view via index CFDs, Futures, or the Phillip-Nova MSCI Singapore Daily L&I Products now!

An Exchange Traded Fund (ETF) is a marketable security that is formed to track nearly anything, ranging from a specific index, sector, commodity, or increasingly, theme. They are most commonly used to track a basket of stocks, and can typically be accessed through the same channels as regular stocks. ETFs are typically separated into passively-managed ETFs that simply mirror the security they are tracking (e.g. the STI), and actively managed ones that attempt to deliver higher returns or specific investment objectives, often with a pre-specified theme in mind (e.g. ARK Invest’s Innovation ETF).

Why should I trade in ETF CFDs?

ETFs have been growing in popularity over the years. 2020 was the best year for ETFs yet, with global equity ETFs seeing more than $1T in inflows within a 12-month period. Using CFDs to gain exposure to ETFs allows for greater capital efficiency because only a portion of the contract value is required as margin to establish a position.
ETFs are particularly popular with investors seeking a relatively hassle-free investing experience, while desiring exposure to a range of specific and relatively understandable securities. Trading ETF CFDs brings greater convenience by eliminating the need for traders to hold multiple currencies in order to access global ETFs.
An investor wanting exposure to the post-pandemic economic recovery could open a position in the well-known SPDR S&P 500 ETF (SPY), which tracks the performance of the S&P 500. Another investor that may be convinced of the future importance of Environmental, Social and Governance concerns (ESG) may find the increasing selection of ESG-themed ETFs that track a basket of high ESG-rating companies to be a good investment, rather than cherry-picking individual equities by hand. ETF CFDs can act as a powerful tool for traders can profit from both directions of the market by taking on long or short positions.

A look at two ETF CFDs we offer:

1) Has the ARKK been sunk?

ARK Innovation ETF (ARKK) ARKK is an actively managed ETF by ARK Invest that invests in a range of companies based on their innovative and industry-disrupting potential. ARKK’s largest holdings are in companies such as Tesla, Square, and Zoom. ARKK is down around -33% from peaking on 12^th Feb and is currently in the red for the year to date as the market experiences a risk-off outflow of funds. Superstar fund manager Cathie Wood has however been consistently doubling down on her bets, buying even more shares in growth stocks that are going through their own tumultuous periods such as DraftKings, Peloton, Teladoc, and Tesla. In her view, ARKK is playing the long game, and remains steadfastly convinced in the long-term prospects of these growth stocks beyond this current bout of volatility. Similarly on outflows, investors are still betting big on ARKK as ARK Invest has only lost about $1.2B in assets this year across all its six funds, compared to seeing an inflow of $15.1B during the same period. Recently, investors have been nervously eyeing ARKK’s basket of tech stocks as their future earnings potential remain vulnerable to erosion through high inflation – the dominant concern of the market in recent weeks. As commodities – the major contributor to the recent heightened inflation fears – drops sharply from record highs, are investor concerns over hyperinflation overblown?

2) Searching for exposure to Asian equities?

iShares MSCI Asia ex Japan ETF (AAXJ) The AAXJ is currently trading -10.6% adrift of all-time highs seen in February, giving up gains in tandem with an Asia-wide equity sell-off at the time. Given that slightly over 40% of the ETF’s holdings are based in China, the ongoing tumult seen in Chinese equities currently have carried over nearly perfectly in the AAXJ, as Chinese investors take a breather after the stellar gains made over the past year. Looking ahead, Asia – and particularly China, is steaming ahead with its economic recovery. China is widely expected to be one of the best-performing major economies this year, providing a major boost to the outlook for corporate earnings. As the rest of Asia and the world gradually opens up their own economies, AAXJ is likely to again benefit from strong Asian outperformance amidst a strengthening trade outlook.

CFD is available for trading on Phillip MetaTrader 5 (MT5).

Features of trading CFD:

Trade in both the bull and the bear markets
The ability to enter a long and/or short position allow traders to take advantage of both rising and falling markets.
Smaller barrier to entry
Flexible and smaller contract sizes. This means that traders will be able to enter into a contract with a modest amount of capital.
No expiration date or risk of delivery
Unlike futures which commonly have a fixed expiration date, CFD allows traders to perpetually hold the position(s). CFD is cash settled, no need to worry about the delivery of the underlying asset.

Benefits of using Phillip MT5:

Trade at zero commission on a dynamic platform that offers low spreads. Integrated with Autochartist and Trading Central Indicators, and available on mobile, web and desktop app, you will never miss a trading opportunity with Phillip MT5.

Register for a FREE 30-day Phillip MetaTrader 5 Demo Account

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