The Straits Times Index (STI) has risen nearly 7% this year, helped by gains in lenders amid strong dividend expectations. Brokerages including UBS Group and JPMorgan Chase & Co. recently upgraded Singapore’s equities to neutral as valuations have become less stretched while earnings momentum in index heavyweights remained solid.
Singapore stocks’ best rally in years may have legs as potential US interest-rate cuts burnish the appeal of the high-yielding market.
Growing confidence that US interest rates have peaked may drive investors to the city-state’s high-yielding real estate investment trusts (REITs) and bank shares. Traders are betting that the Federal Reserve will begin easing policy in September.
