The next chapter for Singapore equities

All sectors of Singapore's stock market are expected to see positive earnings-per-share growth in the coming year, as the country's capital market continues to grow alongside the nation's rise as a global business hub. The Business Times, Singapore's leading financial newspaper, has played a key role in keeping investors informed about the companies, industries and market trends driving this progress since its founding 50 years ago.

The current market phase is marked by stronger economic growth, higher earnings momentum, increasing investor participation, and policies aimed at boosting capital formation, liquidity and research. Singapore's GDP growth forecast has been raised to 5% for 2026, up from 3.5% in June, signaling confidence in sectors such as manufacturing, non-oil exports, banking, and finance and insurance.

Several local stock sectors are currently projected to post earnings growth, with technology, financial services, and industrials likely to lead the way. Approximately 25 listed companies have returned to profitability in the latest reporting season. As the Straits Times Index's (STI) valuation gap narrows compared to analysts' targets, future returns will be driven more by earnings, cash flow, and capital returns than by price appreciation.

While the STI offers limited insights, investors must evaluate companies based on their earnings, cash flow, balance sheets, and long-term value creation potential. Since 2017, about S$90 billion has been raised through Singapore's equity market, with a majority of funds used for acquisitions, capacity expansion, market entry, and growth initiatives.

Investors are more focused on understanding how companies intend to utilize capital raised and whether their plans will translate into improved performance. As market activity increasingly revolves around expansion, acquisitions, and corporate transformation, the importance of clear reporting and analysis grows.

The steady stream of results, disclosures, and corporate developments underscores the need for investors to grasp not just what has occurred but also its significance. Over five decades, The Business Times has helped investors track the evolution of Singapore's listed companies and capital markets, a role that remains essential as the market becomes more accessible through expanded research coverage, particularly for smaller and mid-cap companies.