To The Moon

The Singapore Exchange (SGX) has announced that its equities division, SGX Securities, will now operate under the name SGX Stock Exchange, a change revealed by SGX CEO Loh Boon Chye on January 5.

Speaking at the 60th-anniversary celebration of the benchmark Straits Times Index (STI) held at the SGX Centre's IPO Arena, Loh stated that this move reinforces the division's role as the core pillar of SGX Group's multi-asset ambitions and is crucial for Singapore's status as an international financial centre. He further emphasized SGX's ongoing commitment to supporting companies throughout their growth cycles while expanding access and opportunities for investors.

Chee Hong Tat, Minister for National Development and Deputy Chairman of the Monetary Authority of Singapore (MAS), highlighted that sustaining the momentum of liquidity and new listings is essential for Singapore to achieve its goal of cultivating a dynamic equity market.

Chee remarked that the journey to build a more compelling and attractive Singapore equity market commenced strongly in 2025. He called for all stakeholders, including MAS, SGX, and their partners, to intensify efforts this year, building upon the progress made in the previous year.

In his address, Chee pointed to increased trading activity on the local bourse. The average daily traded value of securities on SGX surged by nearly 20% year-on-year, approaching $1.8 billion in November 2025, prior to the typical year-end slowdown. The full-year average daily traded value reached its highest level since 2010, and the total market capitalization of listed companies surpassed the $1 trillion milestone.

Chee also noted the STI's impressive performance, with total returns exceeding 28% last year. Over a five-year horizon, he added, the STI delivered total returns of over 100% in Singapore dollar terms, outperforming other regional markets.

Loh observed that the STI's total return is competitive with leading global benchmarks like the S&P 500 and Nasdaq. He attributed the index's consistent and respectable long-term returns to underlying earnings growth and more active capital management by its constituent listed companies.

This positive momentum extended to small- and mid-cap Singapore stocks. Turnover in this segment grew by over 40% year-on-year, and the iEdge Singapore Next 50 Index, which tracks the next 50 largest companies outside the STI's top 30 blue chips, achieved a total return of more than 25% in 2025.

The anniversary celebration follows a series of government initiatives aimed at bolstering Singapore's stock market.

A review group established by MAS in August 2024 to propose measures for revitalizing the market released its final report on November 19. The group recommended various actions, including the creation of a $5 billion Equities Market Development Programme (EQDP) fund to direct capital into the local equities market.

To date, $3.95 billion of the $5 billion fund has been allocated to nine asset managers: Avanda Investment Management, Fullerton Fund Management, JP Morgan Asset Management, Amova Asset Management (formerly Nikko Asset Management), AR Capital, BlackRock, Eastspring Investments, Lion Global Investors, and Manulife Investment Management.

Additional proposed measures include establishing a dual-listing bridge connecting SGX and Nasdaq, as well as a "Value Unlock" programme designed to assist listed companies in enhancing their capabilities in investor relations, corporate strategy, and capital optimization.

Chee reiterated that attracting more companies to list on SGX remains a top priority. He highlighted that IPO activity in Singapore last year was the most robust since 2019, with total funds raised exceeding $2.4 billion.

According to Chee, revitalizing the stock market yields broader benefits, such as energizing the nation's enterprise financing ecosystem and accelerating its transition toward an innovation-driven economy.

He explained that a vibrant market provides a reliable exit avenue for private equity and venture capital investors to realize their investments, thereby giving them the confidence to reinvest their capital into new startups and growth companies.

Loh characterized the recovery in IPO activity during 2025 as an "encouraging start" and expressed the group's anticipation of welcoming more listings.

STI turns 60

Launched in 1966 as the Straits Times Industrial Index, the benchmark was rebranded as the STI in 1998. Initially comprising 55 constituents, the index was later refined to include Singapore's top 30 blue-chip companies. As of August, the STI represents approximately 85% of the total capitalization of the Singapore stock market.

Twelve of the index's 30 constituents have been members since 1998. This group includes the three local banks—DBS Bank, Oversea-Chinese Banking Corporation (OCBC), and United Overseas Bank (UOB)—government-linked entities like Singapore Telecommunications (Singtel) and Singapore Airlines (SIA), as well as foreign companies such as Jardine Matheson and Hongkong Land. Notably, the three banks collectively account for about half of the STI's total weighting.

On December 22, the STI breached the 4,600-point level. In a December 11 report, DBS Group Research analysts Yeo Kee Yan and Foo Fang Boon projected that the STI could reach 4,880 points by the end of 2026. Earlier, Timothy Wong, DBS Group Research's group head, forecasted that the index could climb to nearly 10,000 points by 2040.

JP Morgan analysts Khoi Vu and Rajiv Batra also expressed optimism regarding the STI's prospects, initially setting a target of 5,000 points for September 2026 before raising their projection to 6,000 points.