JPMorgan Chase & Co raised its bull case target for the Straits Times Index (STI) to 7,000 over the next 12 months, implying a 22% upside from the August 11 or 12 close, 2026 [1, 2, 3, 4]. The move reflects optimism driven by strong economic growth in Singapore and a narrowing valuation gap with developed-market peers.
Singapore’s stocks have performed well this year, gaining more than 23% in 2026 and outperforming Hong Kong’s benchmark [1, 2, 3, 4]. Since JPMorgan raised its base case STI target to 6,000 in January, the index has risen 16% [1, 2, 3, 4]. However, the STI saw a slight dip of up to 0.7% on August 12, 2026 [1, 3, 4].
Singapore upgraded its 2026 economic growth forecast around August 11, attributing momentum to an AI boom that is lifting trade and manufacturing sectors despite drag from Middle East conflicts [1, 2, 3, 4]. JPMorgan analysts including Khoi Vu said, "A goldilocks economic backdrop should continue to underpin earnings per share growth and empower fiscal room. Strong yields, stable currency, and the Equity Market Development Programme should enhance investor flows" [1]. They added that while valuations have risen above historical averages, they expect them to hold as the STI reprices closer to developed markets thanks to high yields and a stable currency [2].
JPMorgan’s top picks for Singapore stocks include DBS Group Holdings, Singapore Exchange, Keppel, and UOL Group [1, 2, 3, 4]. Factors supporting Singapore stocks include their strong dividend yields, currency stability, government programmes supporting equity markets, and Singapore’s appeal as a geopolitical safe haven [1, 2, 3, 4].
The next key checkpoint will be monitoring STI performance throughout the rest of 2026 against JPMorgan’s new 7,000 bull case target, especially given recent market volatility.
