We live in interesting times. With the pandemic slowly receding and major economies reopening, optimism has flowed into the Singapore stock market. Even the threat of inflation and the prospect of higher interest rates have not dampened the enthusiasm. The bellwether Straits Times Index (SGX: ^STI), or STI, has risen by 9.5% year to date. In contrast, the S&P 500 Index in the US has declined by 6.8% over the same period, while the technology-heavy NASDAQ Composite Index has fallen by close to 11%. The STI has even surpassed its highest level of 3,407.02 in 2019; it was surpassed just a week ago when the index closed at 3,420. Investors may wonder if this momentum can continue? Does the STI have much more room to run? Banking on the lenders The bulk of the index’s weight is focused on Singapore’s three big banks. The three lenders make up almost 44% of the index, and exert a heavy influence on its direction....