STI hits record 5,561.42 ahead of earnings season

Reporting season begins on 23 July with key STI companies.

The Straits Times Index (STI) reached a record high of 5,561.42 on 15 July, as attention turned to the upcoming earnings season following a strong market rally.

The benchmark has returned 21.2% through 17 July, including an 18.6% price gain, with investor participation rising alongside the rally.

Assets under management in STI exchange-traded funds (ETFs) reached $5.5b, about double a year ago, whilst Singapore equity ETFs are on track for a 17th straight month of net inflows, totalling $1.6b since the Equity Market Development Programme was announced in February 2025.

The largest institutional inflows this year through 17 July were recorded by Singapore Airlines, United Overseas Bank (UOB), Wilmar International, Oversea-Chinese Banking Corporation (OCBC), and SATS.

Meanwhile, retail investors primarily bought DBS Group Holdings, Singapore Telecommunications, CapitaLand Ascendas REIT, Genting Singapore, and Sembcorp Industries.

OCBC stood out as one of the few stocks to attract both institutional and retail inflows whilst also posting the strongest total return amongst STI constituents during the period.

Across the wider Singapore market, net retail inflows totalled $2.15b through 17 July, equivalent to more than 80% of the retail inflows recorded throughout 2025.

The upcoming reporting season is expected to determine whether corporate earnings can support the market's recent rally.
Investors will focus on revenue growth, margins, order books, demand trends, capital expenditure, and management guidance, alongside headline profit figures.

According to LSEG Workspace consensus estimates, STI constituents are expected to post around 10% earnings growth in their current financial year, with similar growth projected for the following year.

Beyond the STI, earnings expectations remain positive across several SGX sectors, supported by infrastructure investment, trade activity, and Singapore's position as a regional transport and financial hub.

The reporting season starts on 23 July with Keppel DC REIT and Mapletree Industrial Trust.

Frasers Centrepoint Trust is scheduled to report on 27 July, followed by Singapore Airlines on 28 July. Keppel, Frasers Logistics & Commercial Trust, and Mapletree Pan Asia Commercial Trust will report on 30 July, whilst Seatrium follows on 31 July.

In early August, CapitaLand Ascendas REIT is due on 5 August, followed by Singapore Exchange, Venture Corporation, and DBS on 6 August. OCBC and UOB are scheduled to report on 7 August.

Analyst forecasts continue to point to earnings growth across several major Singapore-listed companies. SATS, which reported FY2026 EPS of 19.2 cents, is currently expected to deliver 21.825 cents in FY2027.

Amongst the banks, DBS' EPS is forecast to increase from $3.84 in FY2025 to $3.96 in FY2026, whilst OCBC's is expected to rise from $1.63 to $1.71, and UOB's from $2.76 to $3.40.

Consensus estimates also point to higher earnings for industrial companies including Singapore Technologies Engineering, Seatrium, SATS, and Yangzijiang Shipbuilding, as well as technology firms such as AEM Holdings, UMS Integration, Frencken Group, and Nanofilm Technologies.