(May 19): Singapore stocks climbed to a record on Tuesday as investors sought defensive havens during volatility sparked by the Iran war.
The Straits Times Index rose as much as 1% on Tuesday to 5,047.54, surpassing its previous intraday record on Feb 23. Top contributors to the gain include Thai Beverage PCL, Singapore Telecommunications Ltd, and CapitaLand Investment Ltd.
The city state’s benchmark has risen about 8.6% this year, outpacing MSCI Asean Index’s 0.3% decline. The record came as declines in technology stocks on Tuesday dragged down equity markets across Asia.
Unlike other Asian markets such as South Korea or Taiwan, Singapore’s gains have not been driven by enthusiasm for artificial intelligence. Instead, its year‑to‑date performance has been comparatively modest within the region, but steady. With energy prices spiking after the war, investors have leaned on Singapore’s economic and political stability, and the appeal of dividend-paying stocks that make up a significant portion of its index.
“Singapore’s equity market has remained relatively resilient despite ongoing global volatility, supported by its defensive sector composition and consistent inflows,” said Thilan Wickramasinghe, the head of research at Maybank Securities. “This has placed the market at a relatively favourable position.”
A government‑led initiative to strengthen Singapore’s equities market has also played a role. The $6.5 billion Equity Market Development Programme, launched last year to encourage selected funds to invest in local stocks, is designed to boost valuations and broaden participation beyond large‑cap stocks.
Singapore tightened its monetary policy settings last month, becoming the first in Asia to respond to rising inflation risks from the energy price surge. The Singapore dollar’s resilience, outperforming Southeast Asian peers since the war’s onset, has also contributed to the market’s rise.
Meanwhile, foreign deposits in Singaporean banks climbed to $659 billion in March, the highest level since records began in 2021, according to data released by the Monetary Authority of Singapore.
Uploaded by Tham Yek Lee
