The next chapter for Singapore equities
All local stock sectors are expected to record positive earnings-per-share growth in the next financial year.
Singapore's stock market is entering a new era, driven by stronger economic growth, higher earnings, increased investor participation, and measures aimed at enhancing capital formation, liquidity, and research coverage. This shift comes at a time when the country's GDP growth forecast has been raised to 5% for 2026, up from 3.5% in June, reflecting robust expectations for manufacturing, non-oil exports, bank lending, and finance and insurance sectors.
The positive earnings-per-share growth is expected across all local stock sectors, with technology, financial services, and industrials leading the charge. Around 25 listed companies have returned to profit in the latest reporting season, indicating a robust business environment. The Straits Times Index's (STI) discount to analysts' weighted target prices has narrowed significantly, suggesting that the upcoming market gains will be driven more by earnings and cash flow than by valuation catch-up.
Despite the STI's limited scope, it remains a valuable tool for investors assessing companies' business performance, earnings, balance sheets, and value creation potential. Since 2017, approximately S$90 billion has been raised through Singapore's equity market, with around 80% of the capital raised through secondary offerings. Investors focus not only on fundraising but also on how management intends to utilize the capital and whether those plans will deliver stronger business performance over time.
As companies deploy capital raised through fundraising, acquisitions, capacity investments, and corporate transformations, clear reporting and analysis become increasingly crucial. Investors need to understand not just what has happened but also why it matters. Over the past five decades, The Business Times (BT) has played a pivotal role in helping investors follow the developments shaping Singapore's listed companies and capital markets.
As more market activity becomes linked to business expansion, broader research coverage, company disclosures, and investor engagement are essential to help investors stay informed and better understand the companies they follow.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
