The Straits Times Index (STI) recorded a 5.6% total return in the first quarter of 2026, driven by a 5.1% rise in the index and dividends, outperforming the FTSE APAC Index and the FTSE World Index. This performance highlights the STI’s resilience and income-defensive characteristics amidst global market volatility. The STI’s gains were bolstered by strong performances in the Technology and Industrials sectors, which saw returns of 17.9% and 11.7%, respectively.
Institutional investors showed significant interest in the Industrials, Consumer Cyclicals, and Telecommunications sectors, with net inflows reaching approximately S$470m. Singtel led the share buyback activity, acquiring 24.9 million shares as part of its S$2b value realisation programme. Overall, share buybacks in Singapore totalled around S$560m in Q1 2026.
The Singapore economy’s growth, estimated at 5.8% year-on-year for Q1 2026, was supported by manufacturing and trade sectors. However, global energy price increases, driven by the Iran conflict, introduced new uncertainties. Brent crude futures rose to US$94.68 per barrel in March, impacting trade-dependent economies.
Singapore-listed Gold ETFs continued to attract investors, marking their 22nd consecutive month of net inflows, with cumulative inflows reaching S$2.2b since June 2024. The SMID segment, excluding REITs, saw improved liquidity and institutional inflows, with AEM Holdings leading the cohort with a 142.4% total return in Q1 2026. This reflects the market’s focus on earnings visibility and medium-term demand signals.
