The Straits Times Index had a good first half. The SPDR STI ETF (SGX: ES3), which tracks Singapore’s Straits Times Index (SGX: ^STI), returned 13.1% for the first half of 2026. Three small-caps did far better. Micro-Mechanics (SGX: 5DD) delivered 78.1% in total returns over the same period. Civmec (SGX: P9D) returned 52.5%, while Valuetronics (SGX: BN2) came in at 26.7%. Each beat the index by a wide margin. The question worth asking is why, and whether the run has legs.

Why did a semiconductor tools supplier double?

Micro-Mechanics designs and makes consumable tools and parts used in critical semiconductor processing. The business runs on chip demand, and chip demand is running hot. For the third quarter ended 31 March 2026 (3QFY2026), revenue rose 16.2% year on year (YoY) to S$18.6 million. Net profit climbed 18.8% to S$3.8 million – the Consumable Tools segment led the way, with sales up 20.9% YoY to S$14.4 million on demand from artificial intelligence, computing, and memory applications....