Investing Updates: About half of Singapore fund managers expect STI to rise 5-10% in 2026, potentially hitting fresh records

Source:

https://www.businesstimes.com.sg/companies-markets/about-half-singapore-fund-managers-expect-sti-rise-5-10-2026-potentially-hitting-fresh-records

ChatGPT:

About half of Singapore-based fund managers remain optimistic on local equities in 2026, with 52 per cent of respondents in an Investment Management Association of Singapore (Imas) survey expecting the Straits Times Index (STI) to rise by 5 to 10 per cent by year-end. Based on the STI’s level of around 4,500 when the survey was conducted, this implies a potential climb to between 4,800 and 5,020, which could see the benchmark reach fresh record highs. Nearly 90 per cent of respondents expect the STI to either strengthen or remain stable in 2026.
The positive outlook is supported by resilient bank earnings, attractive dividend yields and government initiatives aimed at revitalising Singapore’s equity market. The STI had already delivered strong gains of 22.7 per cent in 2025 and touched an all-time high earlier in January 2026.

Singapore’s prospects are part of a broader bullish stance on Asian equities. In the survey, Japan and China were rated the top potential outperformers for 2026, while Singapore ranked joint third with Taiwan. Regionally, 72 per cent of fund managers expect the MSCI Asia ex-Japan Index to rise by 10 to 20 per cent.
The Imas survey, now in its 11th year, gathered views from C-suite professionals across 63 member firms overseeing more than US$35 trillion in global assets. Respondents identified three major forces shaping the industry over the next year: increased adoption of artificial intelligence (AI), the continued rise of alternative investments, and growing regulatory and operational costs.
AI emerged as a newly prominent theme, with more than half of managers already using it in core investment functions such as research and fund commentary. At the same time, regulatory scrutiny and compliance costs are rising, while margin pressure from passive investment strategies remains a key concern. On the macro front, most respondents expect monetary easing in 2026, with many anticipating significant US Federal Reserve rate cuts, even as worries grow over the sustainability of recent market performance and central bank independence.