The Straits Times Index (STI) recorded a 3.3% total return in May, bringing its five-month total return to 10.8%, supported by Singapore’s robust economic backdrop. The country’s GDP growth, stable industrial output, and sustained non-oil domestic exports (NODX) momentum, partly driven by AI-related demand, underpinned this performance.
SATS led the STI constituents with a 16.7% price gain in May, reporting record FY26 revenue of S$6.35b, a 9% increase from FY25. The company highlighted its ability to capture cargo rerouting amid global trade disruptions due to tariff escalations and the Middle East conflict. “Cargo volumes increased 7.0% YoY to 9.65 million tonnes,” SATS noted, outperforming global benchmarks.
Venture Corporation followed with an 11.1% price gain, supported by a return to year-on-year revenue growth and a shift towards higher value-add segments. The company reported a 1.9% YoY revenue increase to S$628.5m, driven by demand in Test & Measurement Instrumentation and Semiconductor-related equipment. Venture’s margins remained resilient at around 9%, with a focus on high value-add solutions.
The STI’s performance was part of a broader trend in global equities, with mixed results across Asia. Singapore equities traded within a range, with gains in large caps offset by mixed performances in industrials and smaller capitalisation segments. The STI ETFs by State Street and Amova recorded S$129 million of net inflows in May, marking the 15th consecutive month of inflows.
Looking ahead, Singapore’s Ministry of Trade and Industry maintains its GDP growth forecast at 2.0% to 4.0%, despite global challenges such as the US-Israel-Iran conflict affecting energy supply and financial conditions. AI-related demand continues to support key sectors, although risks from energy disruptions and tariff escalations remain.
