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DBS Group Research sticks with STI 10,000 target for 2040, expects index to hit 4,880 next year

Lin Daoyi
Lin Daoyi • 3 min read
DBS Group Research sticks with STI 10,000 target for 2040, expects index to hit 4,880 next year
DBS projects the STI to grow 8% to 4,880 in 2026, a “more moderate” increase after a strong performance this year. Photo: Bloomberg
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DBS Group Research is not deviating from its projection for the Straits Times Index (STI) to hit nearly 10,000 by 2040 in a report issued Dec 11.

In order for the STI to reach this presumably giddy height, analysts Yeo Kee Yan and Foo Fang Boon make the following assumptions — continued improvement in investor sentiment, reforms to revive the Singapore equity market and a benign interest-rate environment.

In the more foreseeable year ahead, the investment theme for the STI in 2026 is “ride secular winners, seek SMC [small- and mid-cap] opportunities”, say the DBS analysts.

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