STI crosses 5,000 mark for first time to record high

[SINGAPORE] After days of fluctuations, the Straits Times Index (STI) surpassed the 5,000 mark on Thursday (Feb 12), hitting a historic milestone well ahead of forecasts.

It also came ahead of Singapore’s Budget 2026 statement, which was delivered by Prime Minister Lawrence Wong in Parliament at 3.30 pm on Thursday.

The benchmark index soared as high as 5,004.02 at 9.15 am, up by 0.4 per cent or 19.44 points, driven by gains made by its constituents, including the three Singapore banks, which account for about half of the STI by index weight. The STI ended the day at 5,016.76, after gaining 0.7 per cent or 32.18 points.

DBS rose 0.5 per cent to S$57.78 on Thursday; OCBC climbed 2 per cent to S$21.78, and UOB closed 1.5 per cent higher at S$39.48.

Blue-chip stock Singtel , announcing its financial results ahead of market open on Thursday, posted a 43.5 per cent surge in net profit to S$1.9 billion for its third quarter ended Dec 31, 2025, from S$1.3 billion in the year-ago period. The counter gained S$0.02 or 0.4 per cent to S$5 on Thursday.

Year to date (YTD), peer Asian bourses have similarly charted upward trajectories as investors hedge US dollar exposure and diversify into other markets.

The Nikkei 225 is up over 14 per cent YTD, the Hang Seng Index is up more than 5 per cent, and the FTSE Bursa Malaysia KLCI has risen around 4.4 per cent.

The STI’s landmark performance follows an extended streak of breakthroughs for the blue-chip barometer and Singapore’s three banks, which have hit all-time highs and made strong gains since last year.

In 2025, the STI rose 22.7 per cent as its largest constituent DBS soared 29.9 per cent. OCBC climbed 18.4 per cent, and UOB ended the year down by a marginal 0.03 per cent.

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The rally had led multiple analysts to forecast the blue-chip barometer crossing the 5,000 mark by the end of 2026. In one of the most bullish estimates, JPMorgan projected the STI soaring as high as 6,500 points by the end of the year.

Equities market revival

The local stock charge comes nearly two years after the formation of the Equities Market Review Group by the Monetary Authority of Singapore (MAS) in August 2024, to recommend measures to improve the local bourse.

Other contributory factors include a shift away from US dollar assets into Asian stocks, an appreciating Singapore dollar, and encouraging growth prospects across the economy and various sectors.

Among initiatives to revitalise Singapore’s equities market, the MAS’ Equity Market Development Programme is a significant factor. The S$5 billion initiative unveiled in February 2025 aims to enhance market liquidity and support Singapore’s fund management ecosystem by channelling funds to asset managers with a focus on Singapore-listed equities.

Another measure is the launch of the iEdge Singapore Next 50 Index, which tracks the 50 largest Singapore-listed companies outside of the STI.

Unveiled in September, it comes in two variants – one weighted by market capitalisation and the other, by liquidity. This index aims to increase the visibility of small and mid-cap stocks while broadening investor exposure to a wider scope of companies.

The proposal for a dual-listing highway enabling firms to list on both the Singapore Exchange (SGX) and the Nasdaq using a single set of listing documents, announced in November, is yet another measure drawing interest to the local bourse.

With an expected launch in mid-2026, the cross-border listing framework aims to attract high-growth Asian companies and tech unicorns to list in Singapore by offering them the benefit of a Nasdaq listing.

The SGX has also proposed to reduce its board-lot size to 10 units from 100 units for securities above S$10, in a move aimed at boosting affordability by lowering outlay for investors, and thence, stimulating trading activity.

Another move is the Value Unlock programme by MAS and SGX, which aims to help listed companies strengthen investor engagement and sharpen their focus on creating shareholder value.