STI crosses 4,700 mark for first time buoyed by DBS, OCBC gains

[SINGAPORE] The blue-chip Straits Times Index (STI) breached the 4,700-point mark for the first time on Tuesday (Jan 6), setting it on course for a ninth straight month of gains.

The index gained more than 1 per cent to hit an all-time high of 4,741.85 points as at 11.40 am on Tuesday, buoyed by DBS and OCBC gains.

DBS shares climbed 2.2 per cent to a record high of S$57.92 as at 11.38 am on Tuesday; OCBC shares also crossed the S$20 mark for the first time, hitting an all-time high of S$20.19 at 11.41 am after gaining 1.2 per cent.

The STI’s latest high comes shortly after it crossed the 4,600 level for the first time in December, ending the year at 4,646.21 for a 22.7 per cent gain over the past 12 months.

It crossed the 4,700 level for the first time on Tuesday – just the third trading day of 2026 – on the back of general positive sentiment in the Singapore equity market.

Analysts have pointed out that the local bourse stands to gain this year in view of support measures by the government to revitalise the equity market and falling interest rates.

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Singapore’s macroeconomic environment has also been largely positive, with the city-state’s gross domestic product expanding by a much-higher-than-expected 4.8 per cent in 2025 after a robust fourth quarter.

DBS analysts had previously forecast that the STI could rise to nearly 10,000 points by 2040 if historical return patterns hold. Fee income and recovery in loan growth are also expected to be key drivers for the trio of local banks in 2026.

This year, the STI could potentially hit 5,000 points, said UOB Kay Hian, though Macquarie analysts expect a decline to about 4,500 points by the end of the year.