Commentary: What STI’s record run doesn’t say about the Singapore stock market

The Straits Times Index (STI) has been performing exceptionally well this year, closing at new highs almost every week and generating a 24% total return on a year-to-date basis. However, this strong performance is largely driven by the three local banks - DBS, United Overseas Bank, and OCBC, which together account for 57% of the index's weight.

While these banks have been strong performers, the STI is not an accurate reflection of the broader Singapore market, which includes other strong sectors such as property, technology, manufacturing, and biotech. The Monetary Authority of Singapore (MAS) has launched an Equity Market Development Programme to boost investor participation in the broader market and attract more listings to the Singapore Exchange (SGX).

While the STI is a strong indicator of Singapore's financial sector, it does not capture the full picture of the country's diverse and thriving market.

Brief written by urgent.news from Channel News Asia's own syndicated text. Machine-written — may contain errors; check the original before relying on it.