Analyst
Analyst
Highlights
- The STI gained 2.3% mom to 5,755, supported by banks (+4.2%) and shipyards (+8.6%). REITs and aviation lost 3.8% and 2.8% respectively. Singapore continues to attract safe-haven liquidity inflows and remains sheltered from the strain in the government bond markets in the US and Japan.
- Key events: a) Escalation of US-Iran hostilities, b) Singapore’s National Day Rally 2026, c) Jackson Hole Economic Policy Symposium, d) IMDA announcing successful bidders for the second Data Centre ‒ Call for Application, and e) launch of CGS Fullgoal Singapore Next 50 Active ETF.
- Key upcoming events: a) STI September quarterly review, b) rollout of Budget 2026 Support Measures, including the payout of the Cost-of-Living Special Payment and commencement of the enhanced enterprise financing scheme, c) FOMC meeting on 16 Sep 26, and d) Asia Financial Markets Forum on 22 Sep 26.
What’s New
- STI performance. The Straits Times Index (STI) gained 2.3% mom in Aug 26. Shipyards (+8.6% mom), plantation (+6.9% mom), and technology (+5.6% mom) led the gains. Finance (+4.2% mom), telecoms (+2.0% mom) and property (+1.8% mom) also advanced. REITs, land transport and aviation lost 3.8%, 3.7% and 2.8% respectively.
- Top outperformers. The biggest winners were palm oil stocks First Resources (FR, +34.8%) and Bumitama (BAL, +34.8%), driven by strong 1H26 results and higher global CPO prices. OCBC continued to rally by 8.2%, benefitting from an increased probability of a US rate hike in Sep 26. STI laggard YZJ Shipbuilding gained 23.5%. Semiconductor stocks UMS and AEM also rallied 16.7% and 7.5% respectively.
- Top underperformers. Travel-related and fuel-dependent stocks bore the brunt of the recent flare-up in hostilities in the Middle East. SATS, China Aviation and SIA fell 17.1%, 16.1% and 11.8% respectively. Both logistics REITs Mapletree Log Trust and Frasers L&C Trust dropped 5.6%. Hospitality REIT CapLand Ascott lost 5.5%.
- 2026 National Day Rally. PM Lawrence Wong’s National Day Rally 2026 speech was centred on the theme of “A Changed World, A Stronger Singapore”. He highlighted that Singapore must navigate a “new normal” of increasingly uncertain global environment. PM Wong reaffirmed Singapore’s commitment to remain open, connected and globally relevant. He focused on strengthening support for families and addressing Singapore’s demographic challenges. He announced a significant expansion of family-oriented measures, including enhanced childcare leave, greater financial support for children, improved access to preschool services and housing assistance for young families. These initiatives help to ensure that parenthood becomes a more achievable aspiration for Singaporeans.
- Support for families and workers. PM Wong outlined plans to harness technology and embrace AI, while ensuring that people remain at the centre of technological progress through appropriate safeguards and workforce support. He discussed long-term development projects, including plans for Singapore’s outer islands, to create additional space for future generations. Singapore’s resilience ultimately depends on social cohesion and trust. He urged Singaporeans to stay united, adapt to change and work together to build a stronger Singapore.
- AI demand drives NODX growth. Singapore’s non-oil domestic exports (NODX) increased 24.2% yoy. Growth was driven by the electronics sector, where exports surged 112.0% yoy, supported by robust global demand for AI-related products such as disk media, integrated circuits and personal computers. In contrast, non-electronics exports declined 2.3% yoy, weighed by weaker pharmaceutical, petrochemical and food preparation exports. Enterprise Singapore has raised its full-year 2026 NODX growth forecast to 14-16%, reflecting the exceptionally strong performance of electronics exports and Singapore’s continued participation in the global AI and semiconductor investment cycle. Growth is expected to moderate from the current elevated levels due to higher base effects and continued uncertainty arising from geopolitical and trade tensions.
Highlights
- The STI gained 2.3% mom to 5,755, supported by banks (+4.2%) and shipyards (+8.6%). REITs and aviation lost 3.8% and 2.8% respectively. Singapore continues to attract safe-haven liquidity inflows and remains sheltered from the strain in the government bond markets in the US and Japan.
- Key events: a) Escalation of US-Iran hostilities, b) Singapore’s National Day Rally 2026, c) Jackson Hole Economic Policy Symposium, d) IMDA announcing successful bidders for the second Data Centre ‒ Call for Application, and e) launch of CGS Fullgoal Singapore Next 50 Active ETF.
- Key upcoming events: a) STI September quarterly review, b) rollout of Budget 2026 Support Measures, including the payout of the Cost-of-Living Special Payment and commencement of the enhanced enterprise financing scheme, c) FOMC meeting on 16 Sep 26, and d) Asia Financial Markets Forum on 22 Sep 26.
What’s New
- STI performance. The Straits Times Index (STI) gained 2.3% mom in Aug 26. Shipyards (+8.6% mom), plantation (+6.9% mom), and technology (+5.6% mom) led the gains. Finance (+4.2% mom), telecoms (+2.0% mom) and property (+1.8% mom) also advanced. REITs, land transport and aviation lost 3.8%, 3.7% and 2.8% respectively.
- Top outperformers. The biggest winners were palm oil stocks First Resources (FR, +34.8%) and Bumitama (BAL, +34.8%), driven by strong 1H26 results and higher global CPO prices. OCBC continued to rally by 8.2%, benefitting from an increased probability of a US rate hike in Sep 26. STI laggard YZJ Shipbuilding gained 23.5%. Semiconductor stocks UMS and AEM also rallied 16.7% and 7.5% respectively.
- Top underperformers. Travel-related and fuel-dependent stocks bore the brunt of the recent flare-up in hostilities in the Middle East. SATS, China Aviation and SIA fell 17.1%, 16.1% and 11.8% respectively. Both logistics REITs Mapletree Log Trust and Frasers L&C Trust dropped 5.6%. Hospitality REIT CapLand Ascott lost 5.5%.
- 2026 National Day Rally. PM Lawrence Wong’s National Day Rally 2026 speech was centred on the theme of “A Changed World, A Stronger Singapore”. He highlighted that Singapore must navigate a “new normal” of increasingly uncertain global environment. PM Wong reaffirmed Singapore’s commitment to remain open, connected and globally relevant. He focused on strengthening support for families and addressing Singapore’s demographic challenges. He announced a significant expansion of family-oriented measures, including enhanced childcare leave, greater financial support for children, improved access to preschool services and housing assistance for young families. These initiatives help to ensure that parenthood becomes a more achievable aspiration for Singaporeans.
- Support for families and workers. PM Wong outlined plans to harness technology and embrace AI, while ensuring that people remain at the centre of technological progress through appropriate safeguards and workforce support. He discussed long-term development projects, including plans for Singapore’s outer islands, to create additional space for future generations. Singapore’s resilience ultimately depends on social cohesion and trust. He urged Singaporeans to stay united, adapt to change and work together to build a stronger Singapore.
- AI demand drives NODX growth. Singapore’s non-oil domestic exports (NODX) increased 24.2% yoy. Growth was driven by the electronics sector, where exports surged 112.0% yoy, supported by robust global demand for AI-related products such as disk media, integrated circuits and personal computers. In contrast, non-electronics exports declined 2.3% yoy, weighed by weaker pharmaceutical, petrochemical and food preparation exports. Enterprise Singapore has raised its full-year 2026 NODX growth forecast to 14-16%, reflecting the exceptionally strong performance of electronics exports and Singapore’s continued participation in the global AI and semiconductor investment cycle. Growth is expected to moderate from the current elevated levels due to higher base effects and continued uncertainty arising from geopolitical and trade tensions.
Analyst
Analyst
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