SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

<ul><li>Singapore's economy in 2H26 is bolstered by AI demand, infrastructure investment, and resilient services amid global cost pressures.  </li><li>Financial services led July's top performers, with Great Eastern Holdings, Pan-United, and OCBC showing significant total returns.  </li><li>Institutional net outflows in July were S$464 million, while retail investors net bought S$545 million, indicating differing market strategies.  </li></ul>

Singapore's economy in 2H26 is bolstered by AI demand, infrastructure investment, and resilient services amid global cost pressures.  Financial services led July's top performers, with Great Eastern Holdings, Pan-United, and OCBC showing significant total returns.  Institutional net outflows in July were S$464 million, while retail investors net bought S$545 million, indicating differing market strategies.  

STI Chalks Up Strongest Monthly Gains since Nov 2020 with 8.8% Rally  

<ul><li>Combined 1Q26 non-interest income for DBS, OCBC, and UOB reached S$5.16 billion, accounting for 39% of total income.</li><li>The trio reported 1Q26 net interest income of S$8.04 billion, marking the fourteenth consecutive quarter above S$8.0 billion.</li><li>Asset quality remained stable with unchanged NPL ratios in 1Q26, supported by low NPA formation and disciplined provisioning.</li></ul>

Combined 1Q26 non-interest income for DBS, OCBC, and UOB reached S$5.16 billion, accounting for 39% of total income.The trio reported 1Q26 net interest income of S$8.04 billion, marking the fourteenth consecutive quarter above S$8.0 billion.Asset quality remained stable with unchanged NPL ratios in 1Q26, supported by low NPA formation and disciplined provisioning.

<ul><li>Over 50 primary-listed Singapore stocks repurchased S$911M in shares in 4M26, up from S$750M in 4M25.</li><li>Singtel, OCBC, and Keppel led buybacks with a combined S$636M, while non-STI stocks contributed S$28.5M.</li><li>Hong Lai Huat repurchased 35.3M shares, 6.8% of capital, with FY25 buybacks at S$0.086 per share.</li></ul>

Over 50 primary-listed Singapore stocks repurchased S$911M in shares in 4M26, up from S$750M in 4M25.Singtel, OCBC, and Keppel led buybacks with a combined S$636M, while non-STI stocks contributed S$28.5M.Hong Lai Huat repurchased 35.3M shares, 6.8% of capital, with FY25 buybacks at S$0.086 per share.

Buyback Consideration Surpasses S$900M in Early 2026

<ul><li>SGX's 10-share board lot initiative saw over 20,000 trades in 10-share lots, surpassing 100-share trades.</li><li>Jardine Matheson Holdings had strong adoption with one-third of trades in 10-share lots, median size 20 shares.</li><li>Liquidity remained stable; 8 of 11 stocks recorded higher average daily turnover than on 2 October.</li></ul>

SGX's 10-share board lot initiative saw over 20,000 trades in 10-share lots, surpassing 100-share trades.Jardine Matheson Holdings had strong adoption with one-third of trades in 10-share lots, median size 20 shares.Liquidity remained stable; 8 of 11 stocks recorded higher average daily turnover than on 2 October.

10-Share Lots See Immediate Uptake in First 11 Stocks

Equity Analyst

Ravi Kumar

Thematic (Sector/Industry)

<ul>
<li>The SGX Next 50 Index systematically captures Singapore's second-order financial beneficiaries, wealth platforms, brokerages, and non-bank capital allocators, excluded from the STI's Big 3 bank-dominated universe by construction.</li>
<li>Structural tailwinds are compelling: Singapore's NBFI sector assets grew 9.7% year-on-year, securities turnover surged 66% and asset management AuM expanded at 8.8% CAGR, far outpacing banking loan growth of 2.1%.</li>
<li>Three constituents - iFAST, UOB-Kay Hian, and Yangzijiang Financial, offer fee-driven, asset-light exposure with ~0.7 STI correlation, delivering meaningful diversification alongside Singapore's core banking index.</li>
</ul>


The SGX Next 50 Index systematically captures Singapore's second-order financial beneficiaries, wealth platforms, brokerages, and non-bank capital allocators, excluded from the STI's Big 3 bank-dominated universe by construction.
Structural tailwinds are compelling: Singapore's NBFI sector assets grew 9.7% year-on-year, securities turnover surged 66% and asset management AuM expanded at 8.8% CAGR, far outpacing banking loan growth of 2.1%.
Three constituents - iFAST, UOB-Kay Hian, and Yangzijiang Financial, offer fee-driven, asset-light exposure with ~0.7 STI correlation, delivering meaningful diversification alongside Singapore's core banking index.


Beyond the Big 3: Second-Order Beneficiaries of Singapore's Financial Ecosystem

Singapore

OCBC Bank is a Singaporean multinational banking and financial services corporation. It offers a comprehensive suite of services including consumer, corporate, investment, and private banking, alongside insurance, asset management, and stockbroking. The company is headquartered in Singapore and was founded on October 31, 1932.

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OCBC Bank (OCBC SP)

STI Chalks Up Strongest Monthly Gains since Nov 2020 with 8.8% Rally

Singapore's economy in 2H26 is bolstered by AI demand, infrastructure investment, and resilient services amid global cost pressures. Financial...

Singapore Exchange Ltd (SGX)

STI Banks Beat 1Q26 on Strong NOII

Combined 1Q26 non-interest income for DBS, OCBC, and UOB reached S$5.16 billion, accounting for 39% of total income. The trio reported 1Q26 net...

Singapore Exchange Ltd (SGX)

Buyback Consideration Surpasses S$900M in Early 2026

Over 50 primary-listed Singapore stocks repurchased S$911M in shares in 4M26, up from S$750M in 4M25. Singtel, OCBC, and Keppel led buybacks with...

Singapore Exchange Ltd (SGX)

Beyond the Big 3: Second-Order Beneficiaries of Singapore's Financial Ecosystem

The SGX Next 50 Index systematically captures Singapore's second-order financial beneficiaries, wealth platforms, brokerages, and non-bank capital...

Ravi Kumar

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

STI Chalks Up Strongest Monthly Gains since Nov 2020 with 8.8% Rally

Singapore's economy in 2H26 is bolstered by AI demand, infrastructure investment, and resilient services amid global cost pressures. Financial...

Singapore Exchange Ltd (SGX)

STI Banks Beat 1Q26 on Strong NOII

Combined 1Q26 non-interest income for DBS, OCBC, and UOB reached S$5.16 billion, accounting for 39% of total income. The trio reported 1Q26 net...

Singapore Exchange Ltd (SGX)

Buyback Consideration Surpasses S$900M in Early 2026

Over 50 primary-listed Singapore stocks repurchased S$911M in shares in 4M26, up from S$750M in 4M25. Singtel, OCBC, and Keppel led buybacks with...

Singapore Exchange Ltd (SGX)

10-Share Lots See Immediate Uptake in First 11 Stocks

SGX's 10-share board lot initiative saw over 20,000 trades in 10-share lots, surpassing 100-share trades. Jardine Matheson Holdings had strong...

Singapore Exchange Ltd (SGX)

Beyond the Big 3: Second-Order Beneficiaries of Singapore's Financial Ecosystem

​The SGX Next 50 Index systematically captures Singapore's second-order financial beneficiaries, wealth platforms, brokerages, and non-bank capital...

Ravi Kumar

The SGX Next 50 Index systematically captures Singapore's second-order financial beneficiaries, wealth platforms, brokerages, and non-bank capital...