STI Inches Higher Amid Tariff Headwinds and REIT Weakness; Bank Stocks Stay Strong

Market Overview and STI ETF Performance

The Straits Times Index (STI) closed the trading week from 20 July to 24 July 2026 at 5,588.00 points, representing a modest gain of 0.11 per cent on the final day and a weekly advance of 1.62 per cent from the prior week’s close of 5,499.00. The index moved within a relatively narrow range of approximately 100 points over the five sessions, reflecting a tug-of-war between positive momentum in the banking sector and persistent headwinds from the real estate and telecommunications segments. The STI now sits just 7 points below its 52-week high of 5,595.00, a level not seen since the current cycle began. The SPDR STI ETF, which tracks the index directly, ended the week at S$5.663, slightly below its previous close of S$5.67, and remains well within its 52-week range of S$4.23 to S$5.686. For novice investors, the ETF offers a simple way to gain broad exposure to Singapore’s blue-chip equities without having to pick individual stocks.

The market’s performance over the week was uneven. Advancing stocks outnumbered decliners on only two of the five days, and the latest trading session saw 11 gainers against 14 losers, with five counters unchanged. The average daily change across all constituent stocks on the final day was –0.34 per cent, confirming that the STI’s slight rise was driven largely by a handful of heavyweights rather than broad-based strength. Turnover on the final day exceeded S$600 million in the top five stocks alone, led by DBS Group Holdings at around S$205 million, Oversea-Chinese Banking Corporation at S$140.5 million, and Singapore Telecommunications at S$129.4 million. This pattern of concentrated liquidity in a few names is characteristic of a market where conviction is uneven and participants are gravitating toward perceived safety.

Sector-by-Sector Analysis

The sector breakdown from the data reveals a clear divergence between financial services and defensive sectors on one hand, and real estate and technology on the other. The Financial Services sector posted an average daily change of +0.45 per cent on the latest day, bolstered by persistent buying interest in the three local banks – DBS, OCBC, and United Overseas Bank. The Energy sector, represented solely by Seatrium, gained 1.43 per cent, while Consumer Defensive stocks, including Thai Beverage and Wilmar International, rose 0.92 per cent. These sectors benefit from relatively stable earnings and, in the case of banks, rising net interest margins in a high-rate environment.

By contrast, the Real Estate sector suffered an average daily decline of 1.04 per cent. This group comprises 12 constituents, making it the largest sector in the index, and its weakness dragged on the overall market. Within real estate, both property developers and real estate investment trusts (REITs) came under pressure. CapitaLand Integrated Commercial Trust, Keppel DC REIT, and City Developments Limited were among the top five losers on the final day, with declines ranging from 1.61 per cent to 3.09 per cent. The Technology sector, represented by Venture Corporation, fell 1.10 per cent, and Communication Services, represented by Singtel, lost 1.57 per cent. Industrials, a diverse group that includes Singapore Airlines, SATS, and ST Engineering, edged down 0.11 per cent on average.

The weak performance of REITs is particularly noteworthy given the high dividend yields they offer. CapitaLand Ascendas REIT, Mapletree Logistics Trust, and Mapletree Pan Asia Commercial Trust all yield above 6 per cent, yet their share prices continue to languish near 52-week lows. This suggests that income-oriented investors are demanding a higher risk premium to compensate for uncertainty around interest rates, occupancy rates, and distribution growth. The situation is compounded by recent news that merger talks between Temasek-backed CapitaLand Investment and Mapletree have stalled, as reported by The Business Times and The Edge Singapore on 23 July. Such a deal would have reshaped the REIT landscape and potentially unlocked synergies, but its collapse removes a near-term catalyst for the sector.

Top Gainers and Losers Analysis

On the final day of the week, the top five gainers were Seatrium (+1.43 per cent), Thai Beverage (+1.11 per cent), DFI Retail Group (+0.88 per cent), ST Engineering (+0.86 per cent), and Wilmar International (+0.78 per cent). Seatrium continues to benefit from a recovery in offshore and marine activity, which is reinforced by Energy sector strength. Thai Beverage and Wilmar are defensive plays that attract investors seeking stability amid geopolitical uncertainty. ST Engineering, despite being slightly below its 50-day moving average of S$10.80, remains a core holding with a low beta of 0.15, meaning it moves less dramatically than the broader market.

Over the full week, the top gainers were Yangzijiang Shipbuilding (+10.50 per cent), Seatrium (+6.50 per cent), SATS (+3.05 per cent), Hongkong Land (+2.91 per cent), and DBS (+2.84 per cent). Yangzijiang’s surge stands out. The shipbuilder trades at a price-to-earnings multiple of just 9.5 times, making it one of the cheapest stocks in the index on an earnings basis. Its high beta of 0.87 suggests it is more sensitive to market movements, and the weekly rally likely reflects optimism about order book momentum and the broader shipping cycle. For novice investors, such a sharp gain in a short period underscores the potential reward – and risk – of satellite holdings.

On the losing side, the weekly laggards were DFI Retail Group (–4.19 per cent), Keppel DC REIT (–3.02 per cent), City Developments (–2.35 per cent), Genting Singapore (–1.59 per cent), and Mapletree Pan Asia Commercial Trust (–1.48 per cent). DFI Retail’s decline may be linked to consumer spending concerns and rising competition in the grocery sector. The REIT losses align with the broader sector weakness. City Developments, which also saw unusual volume at 1.9 times its average, faces headwinds from the property market slowdown and higher interest rates.

Volume and Momentum Analysis

Volume patterns offer clues about conviction behind price moves. City Developments traded at 1.9 times its average volume on the final day, coinciding with a 2.98 per cent drop. This elevated turnover with a price decline suggests distribution or profit-taking. Similarly, CapitaLand Investment saw 1.6 times average volume amid the merger talk news, while Keppel DC REIT experienced 1.5 times average volume as its price fell by 2.17 per cent. For investors, unusually high volume on a down day is a warning sign that selling pressure may be building.

In contrast, the volume in DBS and OCBC remained robust but did not reach an unusual multiple of their averages. Their steady upward drift on decent volume is a healthier sign of accumulation. The concentration of turnover in banks – DBS, OCBC, and UOB together accounted for over S$424 million on the final day – illustrates where institutional money is flowing. Singtel, despite being a loser on the day, saw S$129 million in turnover, indicating active debate among traders about its valuation.

From a momentum perspective, several stocks are hovering near their 52-week highs. DBS, OCBC, SATS, Singapore Exchange, Singapore Airlines, UOB, and Wilmar are all within 5 per cent of their 52-week peaks. This cluster of stocks near highs could mean further upside if earnings support current valuations, but it also raises the risk of a pullback if sentiment shifts. Conversely, six stocks are within 5 per cent of their 52-week lows: CapitaLand Investment, CapitaLand Ascendas REIT, Frasers Centrepoint Trust, Keppel DC REIT, Mapletree Industrial Trust, and Sembcorp Industries. Contrarian investors may see opportunity here, but one must consider whether the low is a genuine value trap.

Two stocks – ST Engineering and Venture Corporation – sit below their 50-day moving averages but above their 200-day moving averages. This technical pattern, sometimes called a “dip buy” setup, suggests that the short-term trend has cooled but the long-term uptrend remains intact. ST Engineering’s price of S$10.60 is S$0.20 below its 50-day average, while Venture at S$16.20 is over S$1 below its 50-day average. Both have strong fundamental stories: ST Engineering has a low beta and a robust 11.7 per cent revenue growth, while Venture is a technology manufacturer with a diversified customer base. For patient investors, these dips might present entry points.

Impact of Macroeconomic or Geopolitical Factors

The week was overshadowed by significant geopolitical and trade developments that have direct implications for Singapore’s economy and stock market. On 24 July, the United States imposed a new 12.5 per cent tariff on Singapore, citing alleged failure to ban imports produced with forced labour, as reported by The Straits Times and CNA. The tariff affects about one-third of Singapore’s exports to the US, though technology goods and semiconductors are reportedly exempt. This announcement came on the final trading day of the week, and the STI still managed to close slightly higher, suggesting that markets had already partly priced in the risk or that other factors offset the negative sentiment.

The tariff news is a significant headwind for trade-dependent sectors such as logistics, manufacturing, and certain services. However, the STI’s composition is dominated by domestic-oriented banks, property developers, and defensive consumer stocks, which are less directly exposed to tariffs. The local banks, in particular, benefit from high interest rates and a relatively insulated domestic loan market. Analysts remain broadly positive on the outlook for banks, as highlighted by The Edge Singapore on 24 July, noting that the sector’s record share prices are supported by strong earnings and capital ratios. DBS, which recently surpassed the S$200 billion market capitalisation milestone, has delivered year-to-date total returns of nearly 30 per cent, according to a 19 July Business Times feature.

Geopolitical tensions in the Middle East also contributed to market volatility. On 23 July, Singapore shares fell amid increased concerns about supply availability following Red Sea incidents and US-Iran strikes, as reported by Yahoo Finance. These events drive up energy prices and shipping costs, which could benefit Seatrium and Yangzijiang but hurt airlines and consumer discretionary stocks. Singapore Airlines, despite being near its 52-week high, faces fuel cost uncertainty, while SATS, which handles ground services, may see demand fluctuate.

On a more positive macroeconomic note, the Monetary Authority of Singapore (MAS) is expected to hold its exchange rate policy steady at its July meeting, as indicated by multiple sources. The Edge Singapore and Singapore Business Review both reported on 23–24 July that mild inflation and balanced growth risks support a pause in tightening. A stable Singapore dollar environment removes one layer of uncertainty for investors and helps REITs, which often have offshore assets.

The broader investment backdrop was underlined by GIC’s announcement of lower returns, reported by The Straits Times on 24 July. The sovereign wealth fund cited wars, tariffs, and volatile global markets as constraints. For retail investors, this is a reminder that even the most sophisticated long-term investors are facing headwinds, and patience and discipline are more important than ever.

Portfolio Strategy Recommendations

Given the current environment, a core-satellite portfolio approach remains appropriate for novice investors. Core holdings should consist of large-cap, stable companies with low beta, high institutional ownership, and predictable earnings. From the data, stocks that fit this description include DBS Group Holdings (beta 0.28), OCBC (beta 0.18), UOB (beta 0.37), Singapore Exchange (beta 0.25), and Singapore Telecommunications (beta 0.25). These names are unlikely to skyrocket in a short period, but they offer relatively steady returns and dividends. The banks, in particular, are supported by analyst optimism and record share prices, suggesting that the momentum may have further to run, though investors should be mindful of valuations near highs.

Another core candidate is Wilmar International, with a beta of just 0.10 and a dividend yield that is not among the highest but is underpinned by a resilient business in agricultural commodities. The stock is near its 52-week high, which reflects consistent earnings. For defensive income, Thai Beverage offers a low beta of 0.46 and a price-to-earnings ratio of 11.4 times, making it relatively cheap among defensives.

For the satellite portion of the portfolio, investors seeking higher growth can consider Yangzijiang Shipbuilding, Seatrium, and Keppel DC REIT, but with caution. Yangzijiang’s low P/E of 9.5 times and high beta of 0.87 make it a volatile but potentially rewarding satellite pick. The stock has rallied sharply this week, so waiting for a pullback could improve the risk-reward profile. Seatrium, with a beta of 0.21 and 17 per cent revenue growth, offers exposure to the energy sector without excessive price swings. Keppel DC REIT, despite its recent weakness near a 52-week low, has a beta of 0.84 and 14.5 per cent revenue growth, indicating potential for a rebound if data centre demand remains strong.

REITs overall are tempting for their high dividend yields, but the sector faces multiple headwinds: interest rate uncertainty, slower rental growth, and merger talk collapses. The analyst view that “positive surprises” may be in store for S-REITs’ first-half earnings, as reported by The Business Times on 21 July, offers some hope, but investors should treat these as satellite positions rather than core holdings.

For novice investors who prefer a diversified single-product solution, the SPDR STI ETF remains the simplest option. Its current price of S$5.663 is within striking distance of the 52-week high, but the ETF’s low expense ratio and broad diversification reduce the risk of picking a wrong stock. Regular monthly investing in the ETF, known as dollar-cost averaging, helps smooth out entry points over time.

Outlook for the Coming Week

The STI enters the new trading week at a critical juncture, just 7 points shy of its 52-week high. The ability to break through the 5,595 resistance level will depend on whether the positive momentum in banks can overcome the drag from REITs and the fresh tariff headwinds. Earnings season for S-REITs is about to begin, with several blue-chip REITs reporting next week, as noted by Yahoo Finance on 23 July. These results will be closely watched for clues about distribution per unit trends, portfolio occupancy, and management guidance. A series of better-than-expected reports could spark a relief rally in the sector, lifting the STI.

However, the macro environment remains unsettled. The US tariff on Singapore took effect on 24 July, and its economic impact will take time to materialise. Market participants may react with caution, especially if more details emerge about which products are affected. Separately, any escalation in Middle East tensions could push oil prices higher, benefiting Seatrium but hurting airlines and consumer spending. The MAS rate decision, expected around the end of July, is likely to be a non-event, but any hawkish surprise could further pressure REITs.

Despite the risks, the STI’s resilience in the face of negative headlines is a positive sign. Historically, markets that shrug off bad news tend to have underlying strength. For novice investors, the best course of action is to maintain a disciplined investment plan, avoid chasing momentum in hot stocks, and consider adding to core positions on any significant dips. The coming week will be a test of whether the brief setback on Thursday was a simple blip or the start of a broader correction. If the STI can sustain above 5,550 and eventually challenge the 5,600 level, the bullish trend will remain intact. If a pullback occurs, the 5,500 level, which served as support earlier in the week, may offer a buying opportunity for long-term portfolios.

References

[1] The Business Times; Singapore stocks gain as regional markets end mixed; STI up 0.5%; 21 Jul 2026

[2] Yahoo Finance; Singapore Shares Incur Losses Amid Increasing Concerns Over Supply Availability; 23 Jul 2026

[3] Yahoo Finance; Singapore Shares Gain More Than 1% as AI Boom Extends; MetaOptics Soars 11%; 22 Jul 2026

[4] The Business Times; Singapore stocks fall on Thursday, bucking regional trend; STI down 0.2%; 23 Jul 2026

[5] The Business Times; Singapore shares rise on Wednesday; STI up 1.2%; 22 Jul 2026

[6] CNA; Time to sell or too late to buy? What to know about Singapore banks' record share prices; 22 Jul 2026

[7] The Edge Singapore; Analysts remain broadly positive on outlook of banks; 24 Jul 2026

[8] The Business Times; DBS' S$200 billion milestone: What will it take to create more high-performing big-cap stocks?; 19 Jul 2026

[9] The Edge Singapore; CapitaLand-Mapletree merger talks said to stall; 23 Jul 2026

[10] The Business Times; Temasek-backed property firms' merger talks are said to stall; 23 Jul 2026

[11] The Business Times; 'Positive surprises' in store for S-Reits' H1 earnings as valuations lag fundamentals, say analysts; 21 Jul 2026

[12] Yahoo Finance; 3 Singapore Blue-Chip REITs Report Next Week; 23 Jul 2026

[13] The Straits Times; Trump imposes new 12.5% tariff on Singapore on alleged forced labour ban violation; 24 Jul 2026

[14] CNA; US hits Singapore with 12.5% tariffs, citing failure to ban imports produced with forced labour; 24 Jul 2026

[15] The Business Times; US imposes new tariffs on 60 partners over forced labour concerns; Singapore subject to 12.5% levy; 24 Jul 2026

[16] The Edge Singapore; MAS set to hold rates on mild inflation, signal tightening; 24 Jul 2026

[17] Singapore Business Review; MAS seen holding policy in July on balanced growth and inflation risks; 23 Jul 2026

[18] The Straits Times; Singapore's GIC posts lower returns as wars, tariffs turn global markets volatile; 24 Jul 2026

[19] Yahoo Finance; Singapore Shares Surge Over Rebound in Chipmaker Stocks; HS Optimus Zooms 17%; 21 Jul 2026

---

Disclaimer

Not financial advice. The author is not licensed to provide investment advice in Singapore. This is general commentary and personal opinion based on publicly available information, and does not take account of your objectives, financial situation or needs. Figures are compiled from public sources and may be incomplete, delayed or wrong — verify against the company's own filings and SGX before relying on anything here. The author may hold positions in the securities mentioned. Do your own research, and consider speaking to a licensed financial adviser before making any investment decision.

Get AGM minutes + ex-date schedules, annual reports summaries, and stocks price volume combined with SGX announcements!  Do Paper Trading and Track the Top Market Movers!  Here:

👉 sgstocksbrief.com

If you find this useful, I also publish in-depth investment book summaries.  Don't spend 8 to 10 hours reading the original book, just read the summary in less than one hour!  Get them here:

👉 Investment books summaries at https://maxloodigital.com/

👉 Package Discount for All Four Summaries!

Weekly STI Commentary: Banks Take a Breather, Property Stocks Rally as Index Holds Steady

Weekly STI Commentary: A Week of Mixed Signals as Banks Retreat and Property Stocks Rally

Market Overview and STI ETF Performance

The Straits Times Index closed the trading week from 13 July to 17 July 2026 at 5,509.00, reflecting a modest weekly gain of 0.71 percent despite a slightly negative final session. On the last day of the period, the index fell by 30.00 points or 0.54 percent from the previous close of 5,539.00. The 52-week range for the STI remains broad at 4,141.00 to 5,561.00, indicating that the benchmark is trading near the upper end of its annual range. The SPDR STI ETF, which tracks the index directly, ended the week at S$5.60, marginally below its previous close of S$5.63, with its own 52-week range of S$4.22 to S$5.665 reflecting the same trend.

Breadth data for the final day showed a nearly even split, with 13 stocks advancing, 14 declining, and three unchanged. The average change across all constituents was negative 0.13 percent, confirming that the index’s slight weekly gain was driven by a handful of outperformers rather than broad-based strength. This divergence between the index level and market breadth is a pattern worth watching, as it often signals that gains are concentrated in a few heavyweights rather than reflecting general market health.

Sector-by-Sector Analysis

The sector performance data reveals a clear rotation taking place beneath the surface. Financial Services, which had been the star performer in recent weeks, suffered the sharpest average decline of 0.94 percent across four stocks. This pullback was led by United Overseas Bank, which fell 2.37 percent on the final day and was the second-worst performer among all constituents. The banking sector has been under scrutiny after a remarkable run that saw DBS Group Holdings cross the S$200 billion market capitalisation mark for the first time and all three local banks hit record highs earlier in the month. News articles from both The Straits Times and The Business Times noted that analysts expected second-quarter earnings for DBS and OCBC to be slightly above expectations, while UOB’s earnings might miss expectations when excluding one-off income. This specific concern around UOB appears to have triggered profit-taking, with UOB shares falling 3.8 percent on Friday alone according to a Business Times report on 17 July.

Utilities was the worst-performing sector for the day, declining 2.19 percent on average, dragged down entirely by Sembcorp Industries. The stock fell 2.19 percent on the final day and was the week’s second-worst weekly loser, dropping 4.80 percent from S$5.63 to S$5.36. Sembcorp is now trading near its 52-week low of S$5.34, which raises the question of whether this represents a buying opportunity or a value trap. The company’s low P/E ratio of 9.7 times suggests potential undervaluation, but the elevated volume at 2.0 times the average indicates that institutional investors may be reducing positions ahead of the upcoming earnings season.

Technology was the other notable laggard, with Venture Corporation falling 1.95 percent on the final day and recording a weekly decline of 4.46 percent. Concerns over artificial intelligence trade valuations, which were flagged in a Yahoo Finance article on 16 July, have weighed on tech-related stocks across the region. Venture’s position as Singapore’s only pure technology constituent in the STI makes it particularly vulnerable to global tech sentiment shifts.

In contrast, the Communication Services sector, represented solely by Singapore Telecommunications, posted the strongest average gain of 1.14 percent. Singtel’s share price rose 1.14 percent on the final day to S$4.44, and the stock was among the five highest turnover stocks for the day with over S$145 million traded. The Consumer Defensive sector also performed well, gaining 0.70 percent on average across three stocks, including Thai Beverage which was the top daily gainer.

Real Estate was the most intriguing sector, with 12 stocks averaging a modest gain of 0.22 percent. Within this group, the performance was highly differentiated. Hongkong Land Holdings gained 1.46 percent on the day and was the week’s top weekly performer with a 5.52 percent gain, while CapitaLand Ascendas REIT rose 1.21 percent. However, CapitaLand Investment Limited fell 1.58 percent and is now trading near its 52-week low of S$2.45. This divergence within the same parent group suggests that investors are distinguishing between asset-heavy property developers and asset-light investment managers.

Top Gainers and Losers Analysis

The top five gainers on the final day tell an interesting story about market positioning. Thai Beverage led with a 3.41 percent gain to S$0.46, continuing its recovery from lower levels. The stock has a relatively low P/E ratio of 11.4 times, which may be attracting value-oriented buyers. Jardine Matheson rose 1.57 percent to S$63.23, and Hongkong Land gained 1.46 percent to S$7.65. Both are part of the Jardine group, which has a historically low beta profile and tends to attract defensive flows during periods of uncertainty.

CapitaLand Ascendas REIT’s 1.21 percent gain was accompanied by unusual volume at 1.5 times the average, suggesting significant institutional interest. A Business Times article on 15 July reported that the REIT is divesting the Kim Chuan Telecommunications Complex for more than twice its acquisition price, which would unlock substantial value for unitholders. This transaction appears to be the catalyst behind the increased trading activity. Singtel’s gain of 1.14 percent rounded out the top five, supported by its role as a defensive telecommunications stock with a beta of just 0.25.

On the losing side, Singapore Technologies Engineering fell 2.52 percent to S$10.43, making it the worst performer for the day and the third-worst for the week with a 4.40 percent decline. The stock is now trading below its 50-day moving average of S$10.83 but remains above its 200-day moving average, a technical pattern that some traders interpret as a potential dip-buying opportunity. However, the company’s defensive characteristics, with a beta of only 0.15, suggest that the pullback may be temporary and related to profit-taking after a strong run.

United Overseas Bank’s 2.37 percent decline on elevated volume of 1.8 times the average reflects the specific concerns about its upcoming earnings. While DBS and OCBC are expected to report strong non-interest income growth of 20 percent, UOB’s earnings may disappoint when adjusted for one-off items. This divergence among the three local banks is unusual, as they typically trade in sync. Investors should watch for any guidance from UOB management that could clarify the earnings outlook.

Sembcorp Industries’ decline of 2.19 percent on double the average volume suggests active selling pressure. The stock is now within 1 percent of its 52-week low, and its P/E of 9.7 times may tempt value investors, but the volume signal warrants caution. Venture Corporation’s 1.95 percent decline and CapitaLand Investment’s 1.58 percent decline complete the top five losers, both reflecting sector-specific headwinds.

Volume and Momentum Analysis

The unusual volume readings provide important clues about where institutional money is flowing. Sembcorp’s volume at 2.0 times the average is the most extreme, but as noted, it is associated with selling pressure. United Overseas Bank’s 1.8 times average volume confirms that the earnings-related profit-taking was broad-based. CapitaLand Ascendas REIT’s 1.5 times average volume, however, appears to be accumulation rather than distribution, given the positive price movement and the catalyst of the Kim Chuan divestment.

The highest turnover stocks for the day were the three local banks, with DBS leading at approximately S$284 million, followed by UOB at S$245 million and OCBC at S$202 million. This concentration of trading value in banking stocks underscores their outsized influence on the STI. Singtel’s S$146 million in traded value and CapitaLand Ascendas REIT’s S$81 million round out the top five. The fact that DBS and OCBC saw high turnover but were not among the top gainers or losers suggests two-way trading, with some investors buying the dip and others taking profits.

Stocks near their 52-week highs include several high-quality names that may have further room to run. CapitaLand Integrated Commercial Trust at S$2.47 is within 4 percent of its high of S$2.57, while DBS at S$71.96 is within 2 percent of its high of S$73.55. Keppel DC REIT, OCBC, SATS, Singapore Exchange, Singapore Airlines, and Wilmar International are all within 5 percent of their respective 52-week highs. For novice investors, a stock trading near its high is not necessarily a sell signal if the underlying business fundamentals remain strong. The Singapore Exchange, for example, reported a 72 percent jump in securities trading value in June, capping what the Business Times described as a stellar fiscal year 2026. This operational momentum supports the stock’s elevated valuation.

Conversely, stocks near their 52-week lows include CapitaLand Investment, CapitaLand Ascendas REIT, Frasers Centrepoint Trust, Mapletree Industrial Trust, Seatrium, and Sembcorp Industries. While some of these may be turnaround candidates, others may face structural headwinds. The Mapletree Logistics Trust, for instance, has been defending delays in its S$1 billion divestment plan, citing a quiet market and low offers, according to a Business Times report on 16 July. This suggests that the REIT sector is still grappling with a challenging fundraising environment.

Impact of Macroeconomic and Geopolitical Factors

The broader macroeconomic environment continues to influence the STI in multiple ways. Singapore’s second-quarter economic growth slowed to 5.7 percent, as reported by both Bloomberg and The Straits Times on 14 July. While this is still a robust figure, it represents a moderation from earlier quarters and reflects the dual impact of AI-driven manufacturing strength and geopolitical disruptions from the Iran conflict. The non-oil domestic exports expanded by 38.4 percent in May, driven by AI-related demand, but the ongoing war in the Middle East has pushed energy prices higher, which could eventually feed through to inflation and prompt central banks to tighten monetary policy.

The implications for Singapore-listed stocks are nuanced. Higher energy costs benefit Sembcorp Industries as a utility provider but hurt its margin-sensitive industrial customers. Shipping and logistics companies face higher freight rates due to longer shipping routes, as a Straits Times article on 17 July detailed. This could benefit companies like Yangzijiang Shipbuilding, which has a low P/E of 8.6 times and strong revenue growth of 15.8 percent, but could hurt importers and exporters.

The Artificial Intelligence theme remains a key driver for the Singapore market. Analysts are split on whether AI-led growth can sustain the current market rally, with some warning that a re-escalation in the Middle East conflict could trigger a selloff in AI-related equities and cause firms to delay capital expenditure. This concern was evident in the regional selloff on 16 July, which dragged the STI lower. However, the long-term fundamentals for AI infrastructure spending remain intact, and Singapore is well-positioned as a data centre hub.

The impact of tariff wars and trade tensions is also relevant. The India-UK trade pact that took effect on 15 July could benefit Singapore as a regional trade hub, but broader US-China tensions continue to create uncertainty. The Monetary Authority of Singapore’s listing grant, which has backed 85 SGX debuts since 2019, is part of a broader effort to revive the equity market, but structural changes take time.

Portfolio Strategy Recommendations

For novice investors building a long-term portfolio, the current market environment calls for a balanced approach between core stability and satellite growth. Based on the data, several stocks fit the core category: large-cap companies with low beta, high institutional ownership, and stable business models. DBS Group Holdings, with a beta of 0.28 and market cap of S$204 billion, remains a core holding despite recent volatility. Its 4.3 percent dividend yield is well-supported by strong profitability, and the bank’s record total income of S$5.95 billion in the first quarter provides a cushion.

Singapore Telecommunications, with a beta of 0.25 and a market cap of S$72.7 billion, is another core candidate. Its defensive characteristics and dividend yield make it suitable for income-focused investors. Similarly, Singapore Exchange Limited, with a beta of 0.25 and strong trading volume growth, offers a reliable business model that benefits from market activity.

For the satellite portion of a portfolio, which can tolerate higher risk for higher potential returns, several names stand out. CapitaLand Ascendas REIT, with a beta of 0.36 and revenue growth of 5.9 percent, offers an attractive dividend yield of 6.21 percent and has a catalyst in the form of the Kim Chuan divestment. Yangzijiang Shipbuilding, with a beta of 0.87 and revenue growth of 15.8 percent, trades at a low P/E of 8.6 times and could benefit from increased shipping activity. Keppel DC REIT, with a beta of 0.84 and revenue growth of 14.5 percent, is riding the AI data centre demand wave.

Stocks that may rise in the coming weeks include Hongkong Land, which has strong weekly momentum and a beta of only 0.34, making it a relatively safe satellite holding. Thai Beverage, despite its low beta of 0.46, has momentum from its weekly gain of 4.6 percent and a low P/E of 11.4 times. SATS Ltd, trading near its 52-week high and with a beta of 0.55 and revenue growth of 8.9 percent, could benefit from continued recovery in air travel.

For investors seeking value, CapitaLand Investment at near its 52-week low may present a contrarian opportunity. Its beta of 0.59 is moderate, and the stock’s dividend yield of 4.84 percent provides income while waiting for a recovery. However, the risk of further downside exists given the news that CapitaLand has disbanded its special opportunities team, which could indicate a strategic shift.

Outlook for the Coming Week

Looking ahead to the week starting 20 July, the STI is likely to remain range-bound between the 5,470 support level and the 5,561 resistance level, which was the week’s high. The index is coming off a week where it gained 0.71 percent despite a negative final day, suggesting that buying interest remains intact but is cautious.

The banking sector will be the key swing factor. With UOB’s earnings concerns already priced in, the stock may stabilise, while DBS and OCBC could resume their uptrend if positive earnings catalysts emerge. The banks’ second-quarter results will be released in August, and analyst expectations are already building. Any pre-announcement guidance could move the sector.

The REIT sector may see continued divergence. CapitaLand Ascendas REIT has a clear catalyst, while Mapletree Logistics Trust faces headwinds from delayed divestments. Frasers Centrepoint Trust, trading near its 52-week low, could benefit from retail sector resilience but remains risky.

Geopolitical developments will remain a wildcard. The Iran conflict and its impact on energy prices, as well as AI trade concerns, could trigger short-term volatility. However, Singapore’s strong economic fundamentals, with GDP growth still above 5 percent and exports surging, provide a solid macroeconomic backdrop.

For novice investors, the best approach remains dollar-cost averaging into core holdings while selectively adding satellite positions when compelling catalysts emerge. The STI ETF at S$5.60 offers a low-cost way to gain exposure to the entire market without stock-specific risk. With the index having risen significantly from its 52-week low of 4,141, but still below its high of 5,561, the risk-reward balance appears reasonable for long-term investors.

References

[1] The Business Times; Singapore stocks fall amid mixed regional showing; STI down 0.4%; 16 Jul 2026

[2] The Straits Times; Singapore banks hit record highs, DBS tops $70; 12 Jul 2026

[3] The Straits Times; DBS crosses $200 billion in market capitalisation as earnings optimism drives Singapore bank rally; 13 Jul 2026

[4] The Business Times; UOB shares fall 3.8% after months of steady gains; 17 Jul 2026

[5] The Business Times; DBS crosses S$200 billion in market capitalisation as earnings optimism drives Singapore bank rally; 13 Jul 2026

[6] The Business Times; CapitaLand Ascendas Reit to divest Kim Chuan Telecommunications Complex for more than twice its acquisition price; 15 Jul 2026

[7] The Business Times; S-Reits maintain pockets of resilience despite headwinds in H1; 12 Jul 2026

[8] The Business Times; SGX securities trading value jumps 72% in June, caps 'stellar' FY2026; 13 Jul 2026

[9] Yahoo Finance; Singapore Shares Sink, Track Regional Losses Over AI Trade Concerns; 16 Jul 2026

[10] Yahoo Finance; Singapore Shares Surge on Slowing US Inflation; 15 Jul 2026

[11] Yahoo Finance; Is Now the Time to Add Singapore ETFs to Your Portfolio?; 16 Jul 2026

[12] Bloomberg; Singapore on Track to Beat Cautious Official Forecast on AI; 14 Jul 2026

[13] Singapore Business Review; Analysts split on Singapore's AI-led growth outlook; 16 Jul 2026

[14] The Straits Times; Singapore's Q2 economic growth slows to 5.7%; 14 Jul 2026

[15] The Business Times; Keppel secures deal for final Bifrost cable pair; total contracts value hits US$1.3 billion; 13 Jul 2026

[16] The Business Times; Mapletree Logistics defends delays in S$1 billion divestment plan; 16 Jul 2026

[17] The Business Times; CapitaLand disbands special opportunities team; 13 Jul 2026

[18] The Straits Times; How Iran war, tariffs are reshaping global sea trade and affecting Singapore; 17 Jul 2026

[19] Yahoo Finance; India-UK trade pact takes effect, cutting tariffs and boosting services trade; 15 Jul 2026

[20] The Business Times; MAS listing grant backs 85 SGX debuts since 2019 as Singapore steps up equity market revival; 14 Jul 2026

---

Disclaimer

Not financial advice. The author is not licensed to provide investment advice in Singapore. This is general commentary and personal opinion based on publicly available information, and does not take account of your objectives, financial situation or needs. Figures are compiled from public sources and may be incomplete, delayed or wrong — verify against the company's own filings and SGX before relying on anything here. The author may hold positions in the securities mentioned. Do your own research, and consider speaking to a licensed financial adviser before making any investment decision.

---

Disclaimer

Not financial advice. The author is not licensed to provide investment advice in Singapore. This is general commentary and personal opinion based on publicly available information, and does not take account of your objectives, financial situation or needs. Figures are compiled from public sources and may be incomplete, delayed or wrong — verify against the company's own filings and SGX before relying on anything here. The author may hold positions in the securities mentioned. Do your own research, and consider speaking to a licensed financial adviser before making any investment decision.

Get AGM minutes + ex-date schedules, annual reports summaries, and stocks price volume combined with SGX announcements!  Do Paper Trading and Track the Top Market Movers!  Here:

👉 sgstocksbrief.com

If you find this useful, I also publish in-depth investment book summaries.  Don't spend 8 to 10 hours reading the original book, just read the summary in less than one hour!  Get them here:

👉 Investment books summaries at https://maxloodigital.com/

👉 Package Discount for All Four Summaries!

Weekly Commentary: STI Surges to Near All-Time High as Banking Giants Lead Rally Amid Geopolitical Turmoil

Market Overview and STI ETF Performance

The Singapore equity market delivered a remarkable performance during the trading week from July 6 to July 10, 2026, with the Straits Times Index surging 3.97 percent from 5,260.00 to close at 5,469.00 on Friday. On the final trading day alone, the index added 35.00 points or 0.64 percent, advancing from its previous close of 5,434.00. The STI now sits just three points shy of its 52-week high of 5,472.00, a level not seen since the current bull run began. Market breadth was overwhelmingly positive, with 26 stocks advancing, only two declining, and two unchanged on the latest day. The average change across all constituents stood at a robust plus 1.08 percent.

The SPDR STI ETF, which tracks the index and serves as a convenient entry point for novice investors, mirrored this strength. The ETF closed at S$5.57, up from its previous close of S$5.515, and now trades near the top of its 52-week range of S$4.15 to S$5.578. For investors holding the ETF, the week delivered a paper gain of approximately 1.0 percent on the day and nearly 4 percent over the five sessions. The ETF’s proximity to its 52-week high suggests that momentum remains firmly in favour of bulls, though it also raises the question of whether valuations have become stretched.

Sector-by-Sector Analysis

The sector performance data reveals a clear dichotomy: cyclical and defensive sectors rallied, while financial services lagged on the final day despite having been the engine of the week’s gains. The Energy sector, represented solely by Sembcorp Industries, posted an average daily change of plus 2.56 percent on Friday. This spike is attributable to a sharp rise in global oil prices following news of US military strikes against Iran earlier in the week, as reported by The Business Times. Investors in Sembcorp, which has significant exposure to both conventional and renewable energy, have reason to be optimistic, though the sustainability of oil-driven gains remains uncertain.

The Industrials sector, encompassing six stocks, rose an average of 2.22 percent on the day. This was led by Yangzijiang Shipbuilding and Keppel Ltd, both of which featured among the top gainers. Keppel’s diversified business spanning offshore and marine, energy, and asset management makes it a beneficiary of both higher oil prices and infrastructure spending. The Utilities sector, containing only Sembcorp Industries, climbed 1.43 percent. Real Estate, the largest sector by number of constituents with 12 stocks, added 1.05 percent on average, supported by broad-based gains among developers and REITs alike.

Consumer Cyclical, represented by Genting Singapore, rose 0.81 percent, while Consumer Defensive stocks such as Thai Beverage, Wilmar International, and DFI Retail Group gained an average of 0.73 percent. Communication Services, essentially Singtel, added 0.23 percent. The Technology sector, comprising Venture Corporation, eked out a minimal 0.06 percent advance, reflecting the stock’s ongoing struggle relative to the broader market.

The Financial Services sector was the sole laggard on Friday, declining an average of 0.18 percent. This might seem counterintuitive given the week’s narrative, but it likely reflects profit-taking after the stellar run enjoyed by DBS, OCBC, and UOB earlier in the week. As reported by multiple sources, all three banks hit all-time highs on July 9, with DBS crossing S$70 for the first time and OCBC reaching S$27.54. The pullback on Friday was modest, suggesting that institutional investors are merely consolidating positions ahead of the second-quarter earnings season in early August.

Top Gainers and Losers Analysis

The top gainers on Friday were led by Yangzijiang Shipbuilding, which surged 5.87 percent to S$3.61. This move came on volume 1.5 times its average, indicating strong investor conviction. Yangzijiang is a proxy for global trade and shipbuilding demand, and its low price-to-earnings ratio of 8.6 times makes it one of the cheapest stocks on the STI by that metric. The rally may also reflect optimism about China’s economic recovery and increased orders for container vessels.

Keppel Ltd climbed 5.42 percent to S$11.48, with volume surging to 2.1 times its average, the highest relative turnover among all constituents. This is notable because high volume often precedes further price moves. Keppel’s exposure to energy services and its recent strategic pivot toward infrastructure and asset management likely attracted buyers looking to capitalise on the oil price spike. Seatrium Ltd, the offshore and marine specialist, added 2.56 percent to S$2.00, also on healthy volume.

City Developments Limited rose 2.05 percent to S$7.95, while CapitaLand Investment Limited gained 2.01 percent to S$2.54. Both stocks have been under pressure in recent months, with CapitaLand Investment trading near its 52-week low of S$2.45. The rebound suggests bargain-hunting may be underway, though investors should note that the stock remains in a downtrend.

On the losing side, Singapore Exchange Limited fell 1.54 percent to S$24.24, despite being near its 52-week high of S$24.73. The decline may be linked to news that SGX cut loose Scientific Beta for 23 million euros, as reported on July 8. While the impact on earnings appears manageable, the market may be reassessing SGX’s growth trajectory. Frasers Logistics & Commercial Trust slipped 0.52 percent to S$0.96. DFI Retail Group and Mapletree Logistics Trust were unchanged, while Venture Corporation inched up 0.06 percent, effectively flat.

Volume and Momentum Analysis

Unusual volume patterns provide valuable clues about where smart money is flowing. Keppel Ltd’s 2.1 times average volume is a standout, confirming that the day’s price surge was backed by genuine buying interest rather than thin liquidity. UOL Group Limited traded at 1.9 times its average volume, despite a relatively muted price move. UOL’s price of S$9.82 sits below its 50-day moving average of S$10.03 but above its 200-day moving average, a configuration often interpreted as a potential dip-buying opportunity. Investors who believe the stock will revert to its short-term trend may see this as an entry point.

Sembcorp Industries saw volume 1.7 times its average, consistent with the energy sector’s strength. Yangzijiang Shipbuilding’s 1.5 times average volume further supports the bullish case for industrial stocks.

In terms of value traded, the three local banks dominated as expected. DBS Group Holdings recorded approximately S$294.1 million in turnover, followed by UOB at S$176.0 million and OCBC at S$133.7 million. Singtel traded S$101.9 million, while Keppel rounded out the top five with S$99.9 million. This concentration of turnover in a handful of names underscores the index’s heavy weighting toward financials and large-cap defensive stocks.

Impact of Macroeconomic and Geopolitical Factors

The week’s trading was shaped by a complex interplay of geopolitical events, monetary policy expectations, and domestic economic data. The most immediate catalyst was the US military strike against Iran, which sent oil prices sharply higher. Asian stocks initially steadied, as reported by The Business Times on July 8, but the knock-on effect on energy-sensitive sectors like offshore and marine was significant. The Straits Times cited a rise in electricity tariffs, which could weigh on consumer spending but also benefits utilities like Sembcorp.

Meanwhile, the ongoing US-China trade tensions resurfaced with a hearing on forced labour that could pave the way for additional Trump-era tariffs. The Business Times reported on July 7 that a proposed 12.5 percent tariff could affect one-third of Singapore’s exports to the United States. While the direct impact on STI stocks may be limited, given that most constituents derive revenue primarily from domestic or regional sources, the uncertainty could dampen sentiment for export-oriented companies like Venture Corporation.

On a more positive note, Singapore’s GDP upgrade and the distribution of CDC vouchers are expected to support retail sales, according to UOB research cited by Singapore Business Review. This bodes well for consumer-facing stocks such as Genting Singapore and Thai Beverage. Additionally, DBS Research published a note suggesting that S-REITs are poised for a rerating despite a hawkish Federal Reserve backdrop, as reported on July 8. This view may encourage income-seeking investors to accumulate REITs at current depressed levels.

The banking sector’s rally was driven by expectations of sustained higher interest rates, which boost net interest margins. Analysts have highlighted attractive dividend yields of 4 to 5 percent and share buyback programmes as key supports, as reported by The Straits Times on July 10. The three local banks are also benefiting from strong wealth management momentum ahead of the Q2 earnings season.

Portfolio Strategy Recommendations

For novice investors building a long-term portfolio, the current environment calls for a balanced approach that combines core stability with selected satellite positions. Core holdings should consist of large-cap stocks with low beta, high institutional ownership, and resilient earnings. Based on the data, DBS Group Holdings (beta 0.28), OCBC (beta 0.18), and UOB (beta 0.37) qualify as core positions despite their recent run-up. Their dividend yields remain attractive, and their strong balance sheets provide downside protection. Other core candidates include Singapore Telecommunications (beta 0.25), Singapore Technologies Engineering (beta 0.15), and Wilmar International (beta 0.10). These stocks are unlikely to deliver explosive growth but offer steady returns and lower volatility.

Satellite holdings, on the other hand, can be used to enhance returns by taking calculated risks. Yangzijiang Shipbuilding (beta 0.87) and Keppel Ltd (beta 0.51) have demonstrated strong momentum and may continue to benefit from energy and trade themes. However, their higher beta means they will fall harder in a downturn. Seatrium Ltd (beta 0.21) offers exposure to the offshore marine recovery with lower volatility, though its revenue growth of 17 percent is impressive.

For income-focused investors, the REIT sector offers compelling dividend yields. Mapletree Industrial Trust yields 6.55 percent, CapitaLand Ascendas REIT 6.19 percent, and Frasers Logistics & Commercial Trust 6.11 percent. Several REITs are trading near their 52-week lows, potentially offering capital appreciation if interest rate expectations soften. CapitaLand Investment Limited, Frasers Centrepoint Trust, and Keppel DC REIT are all within 5 percent of their lows. Investors with a longer time horizon may consider accumulating these on weakness.

Stocks that are below their 50-day moving average but above their 200-day moving average, such as UOL Group and Venture Corporation, represent potential “dip-buy” opportunities. However, caution is warranted: a break below the 200-day average would signal a more serious trend reversal.

Outlook for the Coming Week

The STI’s push toward the 5,472 resistance level sets up a critical test. A break above this level would confirm the continuation of the bull market and could open the door to further gains, potentially toward the 5,500 round number. However, the index is technically overextended after a near 4 percent weekly gain, and some consolidation is likely. The banking sector, which contributed the bulk of the gains, may take a breather as investors await Q2 earnings announcements in early August. The first round of results could provide fresh catalysts.

Geopolitical risks remain elevated. The situation in the Middle East is fluid, and any further escalation could trigger a spike in oil prices and a rotation out of risk assets. Conversely, a de-escalation could lead to a rally in consumer and industrial stocks. The US tariff hearing adds another layer of uncertainty, particularly for technology and manufacturing names.

For the STI ETF, the current level of S$5.57 offers limited upside in the near term, but investors employing a dollar-cost averaging strategy should continue to accumulate gradually. The ETF’s low expense ratio and broad diversification make it a suitable core holding for those who prefer a hands-off approach.

In summary, the Singapore market is riding a wave of optimism driven by banking strength and energy tailwinds, but the rally is narrowing. Prudent investors should maintain discipline, take partial profits on positions that have run too far too fast, and use any pullback to add to high-quality core holdings. The coming week will test whether the STI can sustain its momentum or whether profit-taking will set in.

References

[1] The Business Times; Singapore stocks rise as oil prices spike; STI up 1.2%; 09 Jul 2026

[2] The Business Times; Singapore banks lead gains on STI; benchmark index up 1.6%; 07 Jul 2026

[3] The Straits Times; Too expensive? Analysts say Singapore banks' shares can climb higher; 10 Jul 2026

[4] The Business Times; DBS, OCBC, UOB hit highs; 09 Jul 2026

[5] The Business Times; DBS, OCBC and UOB shares hit all-time highs as sentiment improves; 07 Jul 2026

[6] The Straits Times; DBS shares cross $70 mark for the first time as STI soars to new high; 09 Jul 2026

[7] The Business Times; DBS, OCBC, UOB push STI to new highs as institutions pile in ahead of earnings, dividend announcements; 09 Jul 2026

[8] The Business Times; Asian stocks steady as oil rises after US strikes Iran; 08 Jul 2026

[9] The Business Times; US forced-labour hearing begins, paving way for more Trump tariffs; 07 Jul 2026

[10] Singapore Business Review; GDP upgrade, CDC vouchers support retail sales outlook; 08 Jul 2026

[11] The Business Times; S-Reits poised for rerating despite hawkish Fed backdrop: DBS; 08 Jul 2026

[12] Yahoo Finance Singapore; SGX cuts loose Scientific Beta for 23 mil euros; 08 Jul 2026

---

Disclaimer

Not financial advice. The author is not licensed to provide investment advice in Singapore. This is general commentary and personal opinion based on publicly available information, and does not take account of your objectives, financial situation or needs. Figures are compiled from public sources and may be incomplete, delayed or wrong — verify against the company's own filings and SGX before relying on anything here. The author may hold positions in the securities mentioned. Do your own research, and consider speaking to a licensed financial adviser before making any investment decision.

Get AGM minutes + ex-date schedules, annual reports summaries, and stocks price volume combined with SGX announcements!  Do Paper Trading and Track the Top Market Movers!  Here:

👉 sgstocksbrief.com

If you find this useful, I also publish in-depth investment book summaries.  Don't spend 8 to 10 hours reading the original book, just read the summary in less than one hour!  Get them here:

👉 Investment books summaries at https://maxloodigital.com/

👉 Package Discount for All Four Summaries!

STI Powers to New Highs as Real Estate Leads; Sembcorp Plunges on Heavy Volume

STI Climbs to Fresh 52-Week High as Banking and Property Stocks Lead the Charge

The Singapore equity market continued its upward trajectory during the trading week from 29 June to 3 July 2026, with the Straits Times Index (STI) closing at 5,244.00 points on Friday, representing a gain of 27.00 points or 0.52 per cent for the final session alone. Over the full five-day period, the benchmark index advanced from 5,209.00 to 5,244.00, a modest but steady increase of 0.67 per cent. The week featured a mixed start with the STI trending lower on Tuesday amid a mixed regional showing, as reported by The Business Times, before closing the week on a positive note as investor sentiment improved following a lukewarm US jobs report that could influence the US Federal Reserve's interest rate trajectory (Article 6). The index now sits at the top end of its 52-week range, which spans from 4,002.00 to 5,244.00, reflecting the broad recovery that has characterised Singapore equities over the past twelve months.

The SPDR STI ETF, which offers novice investors a convenient way to gain exposure to the entire STI basket, mirrored the index's performance. The ETF closed the week at $5.332, up from its previous close of $5.315, with a 52-week range of $4.084 to $5.428. The ETF's performance underscores the broader market trend and provides a low-cost, diversified entry point for those looking to participate in the Singapore market without selecting individual stocks.

Sector Performance Reflects Broad Optimism

A detailed examination of sector-level data from the data analysis reveals a broadly positive week, with seven out of nine sectors posting gains. The Real Estate sector led the charge with an average daily change of plus 1.14 per cent across twelve constituent stocks. This strength was driven by property developers such as City Developments Limited, which climbed 2.86 per cent in Friday's session, and UOL Group Limited, which added 2.44 per cent. The sector's performance is notable given that several real estate investment trusts are trading near their 52-week lows, suggesting a potential divergence between developer stocks and REITs. For instance, CapitaLand Investment Limited, CapitaLand Ascendas REIT, Frasers Centrepoint Trust, Keppel DC REIT, and Mapletree Industrial Trust are all within 5 per cent of their respective 52-week troughs, as indicated by the data. This presents an interesting dynamic where some REITs may be undervalued, particularly given that several are offering dividend yields above 6 per cent, making them attractive for income-focused investors.

The Consumer Cyclical sector, which includes only one STI constituent in the data classification, posted an average gain of 0.82 per cent. While the sector is thinly represented in the index, its positive performance signals that discretionary spending sentiment remains intact. The Industrials sector, comprising six stocks, averaged a 0.54 per cent gain, supported by strong showings from Singapore Technologies Engineering Ltd and Yangzijiang Shipbuilding. The Consumer Defensive sector added 0.46 per cent, while Financial Services, including the three major banks, posted a 0.40 per cent average gain. Communication Services, represented by Singapore Telecommunications Limited, rose 0.22 per cent.

On the losing side, the Technology sector suffered a decline of 1.27 per cent, dragged down by Venture Corporation Limited, which fell 1.27 per cent on the final day and now sits below its 50-day moving average but still above its 200-day average. The Utilities sector was the worst performer, dropping 3.39 per cent, entirely attributable to Sembcorp Industries Ltd, which plunged 3.39 per cent on Friday alone and was the week's biggest loser with a 7.14 per cent decline. The Energy sector was flat for the day.

Top Gainers and Losers: Key Drivers Behind the Moves

Among the top five gainers on the final trading day, Yangzijiang Shipbuilding (Holdings) Ltd stood out with a 3.19 per cent rise to S$3.56. The shipbuilder's strong performance reflects ongoing demand in the global shipping industry and its low price-to-earnings ratio of 8.5 times suggests the stock remains undervalued relative to earnings. The stock also posted a weekly gain of 4.40 per cent, making it one of the best performers over the five-day period. City Developments Limited rose 2.86 per cent to S$7.90, continuing a recent uptrend that appears to be driven by improving sentiment towards the property sector. The stock carries a P/E ratio of 11.6 times, which is modest given its 11.1 per cent revenue growth, classifying it as a potential value play in the satellite portfolio category. UOL Group Limited gained 2.44 per cent to S$9.65, though it remains below its 50-day moving average of S$10.13, indicating a possible dip-buying opportunity for investors who believe the stock will recover. Jardine Matheson Holdings Limited and Hongkong Land Holdings Limited rounded out the top five with gains of 2.28 per cent and 2.11 per cent respectively, reflecting broad-based strength among the conglomerates and property groups.

On the losing side, Sembcorp Industries Ltd was the standout decliner, dropping 3.39 per cent to S$5.98. The stock traded at four times its average volume, signalling heavy selling pressure. The decline is particularly striking given that Sembcorp had been a strong performer earlier in the year, and its beta of just 0.08 suggests it is normally a low-volatility stock. The sharp move may be related to profit-taking after a sustained run or company-specific news, though the data does not specify a catalyst. The stock's P/E ratio of 10.9 times remains low, and it is classified as a core holding due to its large market capitalisation and low volatility. Venture Corporation Limited fell 1.27 per cent to S$17.06, continuing the weakness in the technology sector. The stock is trading below its 50-day moving average of S$17.48, though it remains above its 200-day average, suggesting a short-term pullback rather than a structural downturn. Singapore Airlines Limited declined 1.04 per cent to S$7.62, though it remains near its 52-week high of S$7.72. The airline's recent earnings report showed a sharp drop in net profit, as noted in a July watchlist article, which may be weighing on sentiment despite strong cargo volumes. SATS Ltd lost 0.89 per cent to S$4.45, while Keppel Ltd edged down 0.37 per cent to S$10.86.

Volume and Momentum: Institutional Activity Remains Elevated

Trading activity on Friday was concentrated in the banking sector, with DBS Group Holdings Ltd leading turnover at approximately S$200.4 million, followed by Singapore Telecommunications Limited at S$124.5 million and Oversea-Chinese Banking Corporation Limited at S$116.6 million. Sembcorp Industries Ltd, despite being the biggest loser, saw heavy trading of S$114.1 million, reflecting strong interest from both buyers and sellers. United Overseas Bank Limited rounded out the top five with S$104.1 million traded. These turnover figures indicate that institutional investors remain active in the market, particularly in the financial sector, which continues to dominate trading volumes.

The breadth of the market was positive, with 21 stocks advancing, 6 declining, and 3 unchanged on the final day of the week. This breadth reading, combined with the average daily change of plus 0.54 per cent, suggests that the rally is broad-based rather than driven by a handful of stocks. The unusual volume in Sembcorp Industries Ltd warrants attention as it may signal a change in investor sentiment towards the utilities and energy company, which has historically been a low-beta, stable holding.

Several stocks are trading near their 52-week highs, including DBS Group Holdings Ltd at S$66.76 (high S$67.00), OCBC at S$25.31 (high S$25.32), SATS Ltd at S$4.45 (high S$4.59), Singapore Exchange Limited at S$24.05 (high S$24.73), Singapore Airlines at S$7.62 (high S$7.72), and UOB at S$40.24 (high S$40.35). Stocks that are close to their highs often exhibit momentum, but they also carry the risk of a pullback. For novice investors, chasing stocks at 52-week highs requires caution, though the underlying fundamentals of the banks remain strong. Articles have highlighted that Singapore banks continue to be a "shock-proof income engine" (Article 11), with DBS in particular positioned to benefit from China's tighter grip on wealth flows (Article 26). DBS also completed a landmark S$1 billion synthetic securitisation, the first for a Singapore bank (Article 27), demonstrating its innovative capacity.

Conversely, stocks near their 52-week lows include CapitaLand Investment Limited, CapitaLand Ascendas REIT, Frasers Centrepoint Trust, Keppel DC REIT, Mapletree Industrial Trust, and Seatrium Ltd. These names may offer value opportunities, especially given their above-average dividend yields. For instance, Mapletree Industrial Trust yields 6.55 per cent, CapitaLand Ascendas REIT yields 6.26 per cent, and Frasers Centrepoint Trust yields 5.61 per cent. The industrial REIT sector has been singled out in recent analysis as paying above 6 per cent distributions (Article 17), making them attractive for income-oriented investors. However, the fact that these REITs are near their lows suggests that the market is pricing in risks such as higher interest rates or weaker property fundamentals. The recent article on rotation into SGX small and mid-cap stocks (Article 15) suggested that while interest in larger caps may be returning, analysts caution against overvalued tech counters.

Macroeconomic and Geopolitical Factors at Play

The week's market movements did not occur in a vacuum. Several macroeconomic and geopolitical factors are shaping investor sentiment in Singapore. The US Federal Reserve's interest rate stance remains a key concern, with the latest jobs report showing a lukewarm reading that could influence the timing of any rate hike (Article 6). A higher-for-longer interest rate environment is generally negative for REITs, which rely on borrowing to finance their properties, but positive for banks, which benefit from wider net interest margins. This dynamic helps explain the divergent performance between the banking sector and REITs during the week.

Geopolitical tensions also remain in focus. Article 39 highlighted that Asian markets were mixed due to AI doubts and Iran tensions, which could disrupt global energy supply chains. For Singapore, which is a major trading and refining hub, any escalation in the Middle East could impact fuel costs and shipping routes. The USMCA review mentioned in Article 34 suggests that global tariff strategies remain uncertain, which could affect trade-dependent economies like Singapore. However, Singapore's safe-haven status and stable business environment continue to attract global financial firms, as noted in Article 36, which reported that financial firms are pivoting to Asia, including Singapore.

Domestically, the Singapore Exchange is implementing structural changes to improve market accessibility. From mid-July, a post-trade custody model will be introduced, and from early October, board lot sizes for higher-priced stocks will be reduced (Articles 12, 20, 24). This will make it easier for retail investors to buy shares in companies like DBS, OCBC, UOB, and Keppel, which currently trade at prices above S$10. The reduction in lot sizes is expected to lower the entry barrier for novice investors, potentially increasing participation and liquidity. Singapore Exchange itself has been enjoying higher target prices amid a volume surge (Article 25), and analysts see the Equity Market Development Programme as a positive catalyst.

Portfolio Strategy: Balancing Core Holdings with Satellite Opportunities

For Singaporean investors, the current market environment offers a mix of stability and growth opportunities. The data provides a useful classification of stocks into core holdings and satellite holdings. Core stocks are typically large-cap, stable companies with high institutional ownership and low beta, making them suitable as the foundation of a portfolio. These include DBS Group Holdings (beta 0.28), OCBC (0.19), UOB (0.37), Singapore Telecommunications (0.25), Singapore Exchange (0.24), Singapore Airlines (0.52), Keppel Ltd (0.51), CapitaLand Investment (0.59), and Wilmar International (0.11), among others. These stocks offer dividend yields that, while lower than REITs, are supported by strong earnings and balance sheets. The three local banks in particular are trading near their 52-week highs, reflecting their resilience. For novice investors, these core holdings should form the bulk of a long-term portfolio.

Satellite holdings, which are higher growth and higher risk, include stocks such as Yangzijiang Shipbuilding (beta 0.88, revenue growth 15.8 per cent), City Developments (beta 0.43, revenue growth 11.1 per cent), SATS Ltd (beta 0.56, revenue growth 8.9 per cent), Seatrium (beta 0.27, revenue growth 17.0 per cent), and Keppel DC REIT (beta 0.84, revenue growth 14.5 per cent). The satellite classification also includes some REITs that offer growth potential alongside dividends. Given that several REITs are near their 52-week lows, they may present a buying opportunity for those willing to accept higher volatility. The data shows that Mapletree Industrial Trust, CapitaLand Ascendas REIT, and Frasers Centrepoint Trust all offer yields above 6 per cent, making them attractive for income investors who are comfortable with the risks of a potential economic slowdown.

The stock that is below its 50-day moving average but still above its 200-day moving average may signal a short-term pullback that could be a buying opportunity. UOL Group, with a beta of 0.61, falls into this category. Its price of S$9.65 is below the 50-day MA of S$10.13 but above the 200-day average, suggesting that the longer-term trend remains intact while the short-term dip could be exploited by patient investors. Similarly, Venture Corporation, despite its decline, remains above its 200-day MA, indicating that the overall trend is not broken.

Outlook for the Coming Week

The STI's ability to close at a fresh 52-week high suggests that momentum remains positive, though the pace of gains has moderated compared to earlier in the year. The index is likely to face resistance at the 5,250 to 5,300 level, where profit-taking could emerge. The banking sector, which has been the primary driver of the rally, may continue to lead given the supportive interest rate environment and strong fundamentals. However, investors should watch for any signs of slowing earnings growth or unexpected regulatory changes. The REIT sector, while under pressure, could see a rebound if interest rate expectations stabilise. The news that Singapore targets stronger business competitiveness (Article 35) and that new IPO aspirants are signalling renewed listing activity (Article 23) bodes well for overall market sentiment.

The upcoming week will see the release of more economic data from the US and China, which could influence global risk appetite. The Federal Reserve's next meeting remains a key focus, and any hawkish signals could weigh on equities globally. For Singapore, the domestic economy continues to show resilience, and the market's valuation remains reasonable by historical standards. The STI ETF remains a straightforward way for novice investors to gain diversified exposure without the need to pick individual winners.

In summary, the week ending 3 July 2026 was a positive one for the Singapore market, with the STI extending its gains to a new 52-week high. Real estate and financial stocks led the advance, while utilities and technology lagged. Investors should maintain a balanced approach, anchoring their portfolios with core holdings in the banks and telecoms while selectively adding satellite positions in undervalued REITs and growth-oriented industrials. The structural improvements to the Singapore Exchange are a long-term positive, and the market's momentum, while not explosive, remains intact.

References

[1] The Business Times; Singapore stocks rise on Thursday amid mixed regional showing; STI up 1.1%; 02 Jul 2026

[2] Yahoo Finance Singapore; Singapore Shares Marginally Open Higher Amid Cautious Trading; 03 Jul 2026

[3] Yahoo Finance Singapore; Singapore Shares End Week Higher, Track Regional Gains; CNMC Goldmine Surges 10%; 03 Jul 2026

[4] Yahoo Finance Singapore; July 2026 Watchlist: 3 Blue-Chip Stocks to Watch; 28 Jun 2026

[5] Yahoo Finance Singapore; 3 Blue Chip SGX Stocks That Outran The Market by 7.8% or more; 03 Jul 2026

[6] Yahoo Finance Singapore; Why Singapore Banks Remain the Market’s Shock-Proof Income Engine; 30 Jun 2026

[7] The Straits Times; Want to own stocks of S'pore banks? It will cost less to get started ...; 02 Jul 2026

[8] The Business Times; Rotation into SGX SMIDs looms, but look beyond tech: analysts; 03 Jul 2026

[9] Yahoo Finance Singapore; 3 Industrial S-REITs Paying Above 6%; 30 Jun 2026

[10] Yahoo Finance Singapore; June 2026: 3 Blue Chip SGX REITs That Pipped the Market; 01 Jul 2026

[11] Yahoo Finance Singapore; SGX to implement post-trade custody model from mid-July; lower board lot sizes in early October; 01 Jul 2026

[12] The Business Times; New IPO aspirants signal renewed listing activity on SGX; 01 Jul 2026

[13] The Business Times; SGX to roll out post-trade custody model, changes to bid mechanics ...; 01 Jul 2026

[14] The Edge Singapore; SGX enjoys higher target prices again with volume surge; 03 Jul 2026

[15] Yahoo Finance Singapore; DBS seen to benefit from China's tighter grip on wealth flows - analysts; 01 Jul 2026

[16] Reuters; DBS completes $1 billion synthetic securitisation in first for a Singapore bank; 30 Jun 2026

[17] The Business Times; Singapore stocks trend lower amid mixed regional showing; STI down 0.7%; 30 Jun 2026

[18] The Business Times; The USMCA review will signal Trump's upcoming global tariff strategy; 30 Jun 2026

[19] Yahoo Finance Singapore; Singapore targets stronger business competitiveness and value unlocking with listcos; 02 Jul 2026

[20] The Business Times; Global financial firms plan Asia expansion, pivoting to South Korea amid caution on China and India, survey shows; 30 Jun 2026

[21] The Business Times; Gaming growth, AI-boosted supply chains: S&P lists 5 Apac sectors to watch right now; 02 Jul 2026

[22] Yahoo Finance; Asian markets mixed in choppy trade as AI doubts, Iran tensions cloud outlook; 29 Jun 2026

---

Disclaimer

Not financial advice. The author is not licensed to provide investment advice in Singapore. This is general commentary and personal opinion based on publicly available information, and does not take account of your objectives, financial situation or needs. Figures are compiled from public sources and may be incomplete, delayed or wrong — verify against the company's own filings and SGX before relying on anything here. The author may hold positions in the securities mentioned. Do your own research, and consider speaking to a licensed financial adviser before making any investment decision.

Get AGM minutes + ex-date schedules, annual reports summaries, and stocks price volume combined with SGX announcements!  Do Paper Trading and Track the Top Market Movers!  Here:

👉 sgstocksbrief.com

If you find this useful, I also publish in-depth investment book summaries.  Don't spend 8 to 10 hours reading the original book, just read the summary in less than one hour!  Get them here:

👉 Investment books summaries at https://maxloodigital.com/

👉 Package Discount for All Four Summaries!