Singapore equities ended the June 29 to July 3 trading week on a firm footing, with the Straits Times Index (STI) remaining near record highs after a mid-week rally led by banking and transport stocks before modest profit-taking capped gains.
The benchmark traded around the 5,191 to 5,201 range during the week after reaching an intraday record earlier, with the pullback viewed as a healthy consolidation rather than a reversal of the market’s upward trend.
Buying interest centred on heavyweight stocks including DBS, Singapore Airlines (SIA) and SATS, as investors continued rotating into domestic financial and transport counters amid confidence in Singapore’s economic outlook.
Market sentiment was also supported by the government’s expanded S$6.5 billion Equity Market Development Programme (EQDP), which continued to provide a structural boost to local equities and reinforce institutional participation in the market.
The macroeconomic backdrop remained favourable after the Monetary Authority of Singapore (MAS), in its latest survey of professional forecasters, trimmed its 2026 GDP growth projection slightly to 3.5%. Despite the lower growth forecast, economists continued to expect the central bank to leave monetary policy unchanged at its July review, helping maintain investor confidence.
Financial stocks and transport-related counters remained the week’s standout performers, reflecting continued demand for domestic cyclical and income-generating stocks.
Towards the end of the week, some investors locked in profits following the STI’s strong run to record levels earlier in the month. However, the selling pressure remained limited, suggesting underlying market sentiment stayed constructive.
With expectations of steady monetary policy and continued support from the EQDP, investors will be watching whether the STI can extend its record-setting run in the coming weeks while monitoring global market developments and corporate earnings for fresh catalysts.
