- Key Players: DBS, OCBC, UOB, SGX
- Narratives: Our "Big Three" banks are the gravitational center of the STI, taking up a ~55% weightage on the index. Local banks continued posting record high income, running against fears of falling interest rates compressing net interest margins (NIM) and crippling bank profits. On the other hand, SGX is poised for a
The Straits Times Index (STI) had been range-bound for over a decade, earning it monikers such as the "Super Terrible Index".
The past two years seem to have rewritten the script, with the STI breaching the historic 4,000 mark in 2025 and continuing on to break 5,000 in 2026. Investors may be feeling apprehensive with our flagship index trading at unprecedented highs.
So is the STI still attractive at 5400? We'll run a deeper dive on the index's underlying sector earnings, and answer the burning question: Is this rally fundamentally justified, or am I buying at the top?
Financial Services, Wealth Giants (~60% Weightage)
