STI could hit 7,000 in bull case over next 12 months: JPMorgan
Singapore stocks have been on a tear in 2026, buoyed by demand for a haven from geopolitical tensions and AI-driven volatility
JPMorgan has increased its target for Singapore stocks, envisioning a potential STI index value of 7,000 within the next 12 months in a bullish scenario. This projection represents a 22% increase from the current closing price. Analyst Khoi Vu highlighted that the robust economic growth and narrowing valuation gap with developed-market peers contribute to this optimistic outlook.
JPMorgan's analysts expressed confidence that the "goldilocks economic backdrop" would sustain earnings per share growth and provide fiscal flexibility. The strong yields, stable currency, and Equity Market Development Programme are foreseen to attract more investor inflows. Since January, JPMorgan had previously set the base case for the STI at 6,000, and the index has already surged more than 23% this year, outperforming rival financial centers like Hong Kong.
Singapore upgraded its 2026 economic growth forecast on August 11, driven by the AI boom in trade and manufacturing, which counterbalanced the adverse impact of ongoing Middle Eastern conflicts. The stronger Singapore dollar also bolstered local equities. While valuations have surpassed average levels, JPMorgan analysts believe the STI can maintain this level as it realigns closer to other developed markets, supported by high yields and a stable currency.
The JPMorgan analysts singled out DBS Group Holdings, Singapore Exchange, Keppel, and UOL Group as their top stock picks for the Singapore market.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
