Technology, industrial sectors lift STI Q1 total returns to 5.6%

[SINGAPORE] The benchmark Straits Times Index (STI) delivered a total return of 5.6 per cent in the first quarter of FY2026, supported by gains in the technology and industrial sectors.

Among the top performing stocks with a market capitalisation of more than S$10 billion, by total returns, for the quarter, were ST Engineering (28.4 per cent) , Wilmar International (25 per cent) and the Singapore Exchange (SGX) (15.8 per cent).

The two leading sectors sustained their H2 FY2025 momentum, with the FTSE ST Technology Index reporting a 17.9 per cent increase in total returns, and FTSE ST Industrials Index climbing 11.7 per cent. Total returns by the consumer goods sector also lifted 13.6 per cent, said SGX in a note on Thursday (Apr 2).

Overall, the local index outperformed both the FTSE Asia Pacific Index, which rose 0.4 per cent, and the FTSE World Index, which declined 3 per cent over the same period in Singapore dollar terms.

The industrials, consumer cyclical and telecommunications sectors captured the highest institutional capital inflows, with Singtel recording its second highest net institutional inflow of S$274.2 million in Q1 FY2026.

Excluding real estate investment trusts (Reits), small and mid-capitalisation (Smid) stocks attracted close to S$470 million in net institutional inflows, of which Smid industrials booked more than S$200 million.

The segment’s average daily trading volume surged to S$670 million, signalling broader participation and improved price discovery beyond large-capitalisation counters. 

Share buybacks reached around S$560 million in Q1 FY2026, up about S$330 million from the same period last year. The increase can be attributed to Singtel’s ongoing S$2 billion value realisation programme where 21.2 million shares were bought back in March. 

Banks counters United Overseas Bank (UOB) and OCBC alongside Reit Keppel and ST Engineering also contributed to the increased buyback expenditure.

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