New all-time high for the STI at 5,017.60

Date: February 23, 2026

• Singtel, OCBC & DBS lead STI to new all-time closing high
• Over in the US, Fed officials worried about inflation
• Probability that Fed will keep rates steady in March is 96%
• Wall Street ended firmer after US Supreme Court ruled Trump’s tariffs illegal
• SIAEC’s 3Q profit up 9.7% to S$41.9m
• Analysts mostly positive on SIAEC
• STI to reach 5,400 this year as financial sector benefits from Budget: UOB Kay Hian
• Increasing number of stocks hitting 52-week highs: SGX Research
• Key exports up 9.3% in January, fuelled by AI demand

 

STI gained 1.6% to close at new all-time high, led by Singtel, OCBC & DBS

The Straits Times Index gained about 80 points or 1.6% last week to close at a new all-time high of 5,017.6, surpassing the previous record of 5,016.76 reached on 12 Feb.

The index’s rise was led by OCBC’s S$0.61 or 2.9% gain over the week to S$21.72, Singtel’s S$0.13 or 2.6% rise to S$5.04 and DBS’s S$0.93 or 1.6% rise to S$57.99.

US Fed officials worried about inflation, leaning away from rate cuts

US Federal Reserve officials signalled renewed worries over inflation with “several” policymakers suggesting the central bank may need to raise interest rates if inflation stays above their goal.

Several participants said that they would have preferred a post-meeting statement that raised the possibility of raising the federal funds rate “if inflation remains at above-target levels”, minutes of the central bank’s Jan 27 to 28 policy meeting, released on Wednesday showed.

While the minutes fell far short of suggesting most officials were contemplating the possibility of rate increases, they made clear the Fed is shifting further away from agreeing on another cut.

The minutes showed most of the Federal Open Market Committee (FOMC) believed last year’s labour market weakness, which prompted the central bank to lower rates three times in late 2025, was fading by late January.

US President Trump has repeatedly said that he wants the next Fed chief to deliver lower interest rates, and on Jan 30, two days after this policy meeting, he announced he would nominate former Fed governor Kevin Warsh to take over when Jerome Powell’s tenure as chair ends in May.

“The minutes carry a distinctly more hawkish tilt,” Gregory Daco, chief economist at EY-Parthenon, wrote in a note to clients. “This sets up an interesting dynamic if and when Kevin Warsh is confirmed as Fed chair.

According to the CME FedWatch Tool, the probability of the Fed keeping rates unchanged at its 18 March meeting is now 96%.

Wall Street ended firmer after US Supreme Court ruled Trump’s tariffs illegal

Wall Street ended the week higher as investors navigated a flurry of economic data points, corporate earnings, and a major legal development in Washington.

After bouts of volatility earlier in the week, equities stabilized into Friday’s close, with market participants reassessing growth expectations and policy risk.

A key catalyst arrived from the nation’s highest court. In a 6-3 ruling, the U.S. Supreme Court struck down tariffs imposed by President Donald Trump, curbing the administration’s use of emergency authority to impose sweeping trade levies without explicit congressional approval.

For the week, the S&P 500 gained 1.1%, while the tech-heavy Nasdaq Composite moved up 1.5%, and the blue-chip Dow advanced 0.3%.

SIAEC’s 3Q profit up 9.7% to S$41.9m

Aircraft maintenance provider SIA Engineering Company (SIAEC) reported a net profit of S$41.9 million for the third quarter ended Dec 31, 2025, up 9.7% and an 8.7% rise in revenue to S$353.1m

SIAEC’s operating profit for the quarter was S$6 million, up from S$4.7 million in the year-ago period. Basic earnings per share was S$0.0374, up from S$0.0342 in Q3 of FY2025.

The group noted that demand for its maintenance, repair and overhaul (MRO) services remained steady as flight handling volumes across its line maintenance network grew; it said that flights handled in Singapore increased by about 3% from the previous corresponding period.

Analysts mostly positive on SIAEC

OCBC upgraded SIA Engineering Company (SIAEC) to a “buy” after its positive results and on a “constructive” outlook for aircraft maintenance, repair and overhaul (MRO) services in Singapore.

“Although manpower shortages and supply chain constraints have placed upward pressure on costs, we remain constructive on the broader MRO industry and especially engine maintenance,” said OCBC analyst Ada Lim on Friday (Feb 20), raising SIAEC’s target price from S$3.68 to S$4.05.

DBS analyst Jason Sum maintained a “hold” with a target price of S$4, noting that the third-quarter results slightly missed expectations due to disappointing core operating margins, which slipped 40 basis points quarter on quarter to 1.7%.

He cautioned that while startup and information technology costs may have peaked, cost drags will likely persist into the 2027 financial year as the Manila line maintenance unit scales up and the second Subang hangar prepares for operational readiness.

UOB Kay Hian’s Roy Chen maintained a “buy” and set a target price of S$3.92, viewing the results as broadly in line with estimates. He pointed out that the company still maintains a robust net cash position of about S$570 million and expects the Subang startup costs to peak within the next three to four quarters.

SIAEC’s shares fell S$0.07 to S$3.50 on volume of 2m on Friday. For the week, they gained a nett S$0.04.

STI to reach 5,400 this year as financial sector benefits from Budget: UOB Kay Hian

The financial sector is likely to be the “most identifiable market beneficiary” of this year’s Budget, said UOB Kay Hian (UOBKH), noting that Finance Minister Lawrence Wong’s speech did not have any “major surprises”.

The brokerage forecast that the Straits Times Index (STI) will hit 5,400 points by the end of the year, maintaining a “bullish” outlook on it and the Singapore equities market.

That target implies a 7.6% upside from current levels, UOBKH said in the note, adding that Bloomberg consensus target prices would result in an STI target of 4,900.

Increasing number of stocks hitting 52-week highs: SGX Research

In a 13 Feb Market Update, SGX Research said 21 stocks have made 52‑week highs during 1Q26, with momentum accelerating as six names hit 52-week highs in a single session on 12 Feb.

“These stocks were Keppel, Wilmar International, Oversea‑Chinese Banking Corporation, Singapore Telecommunications, SATS, and CapitaLand Integrated Commercial Trust highlighting improving breadth across cyclicals, defensives and yield plays. Another four stocks hit 52 week highs over the preceding two sessions’’ said SGX Research.

It added that the STI has delivered its strongest rally in more than two decades, breaking above long‑standing levels, even as valuations remain reasonable at around 1.6x price‑to‑book, well below prior cycle peaks above 2x.

“With economic growth, trade resilience and financial stability intact, market participants are watching whether recent gains have marked a broader structural re‑alignment between economic expansion and equity valuations beyond the Industrials and Technology upcycles’’.

Key exports up 9.3% in January, fuelled by AI demand

Singapore’s key exports expanded by a slower-than-expected 9.3% year on year in January, driven by electronics shipments due to strong artificial intelligence (AI)-related demand and a low base.

January’s expansion extends December’s 6.1% growth, even as it fell short of economists’ expectations. Private-sector economists had projected a 12.5% year-on-year increase for non-oil domestic exports (NODX), according to a Bloomberg poll.

Electronics exports jumped 56.1% on the year, more than double the preceding month’s 24.9%  increase. This was supported by strong AI-related demand and a low base from a year ago, stemming from the Chinese New Year (CNY) period falling in January last year.

Meanwhile, non-electronics shipments fell 3%, after December’s 0.8% increase.