An ‘Irrational’ Year of the Fire Horse and ‘DBS at $80’

Market analysts rely on intricate models to parse the way ahead for markets, drawing on a range of metrics to create a quantifiable basis for their views and make better sense of what might be around the corner.

However, for fengshui master Ken Koh, the word “irrational” will define the Year of the Fire Horse. “There’s no good kind of reasoning logic to a lot of things, but things do happen,” explains Koh, who shares his thoughts at the Maybank Securities Market Outlook and Fengshui event. “But does it mean that it’s going to be chaotic? Well, I like to see it this way. It is organised chaos.”

Yet amid the chaos, it is important to stay ready to invest and seize opportunities as they arise. According to Koh, the year will be characterised by people “chasing” wealth. “There are short spurts of opportunities, there will be periods of profit-taking,” he says. “Be resource ready. That’s important. You can’t invest without resources.”

For Koh, the year will be shaped by the masculine yang fire and is supposedly the peak of a three-year cycle of market confidence. “If some of you have been here last year, I would have told you that 2025, 2026 and 2027 are the ring of fire,” he adds. “From a fengshui perspective, it is all about economic drives, which also then spill into these markets and equities.” Koh says that this will last for the “foreseeable” future, at least until the end of 2027.

When asked if the fire element relates to war, Koh replied in the negative and instead suggested the potential of “spontaneous, short, sharp, irrational” conflicts. “There will be flare-ups and this will create blips in the stocks and equities markets,” he adds.” So if you are relating this to the point of investment, for example, I’ll say it will create a lot of opportunities and many windows.”

Buy house, sell house, shift house

When asked about the local property market, Koh draws on observations from his frequent collaborations with property developers seeking his fengshui advice. “The outlook has got a lot to do with, of course, demand and supply,” Koh says, implying that Singapore’s population growth will remain a demand driver for real estate.

When queried on what stocks he owns, Koh’s choices are decidedly rational — unlike his view of the bigger picture. Koh says one of his favourites is Oversea-Chinese Banking Corp, and he is also invested in Singapore Telecommunications. For property-related counters, he notes that real estate agency PropNex is one of his favourites, as the company is plugged into the growth of the property sector but is not a developer saddled with heavy capex.

“You know, what are the three top hobbies of Singaporeans? Buy house, shift house, sell house,” quips Koh, before adding his belief that property brokers are required for the functioning of the property market and hence his belief in the counter. Koh stresses that his views are not financial advice and investors should seek professional advice.

From the professionals

In addition to equities, Koh says that metals and minerals will continue to grow in the Year of the Horse, fuelled by uncertainty and irrationality.

Arguably, the first month of 2026 has been marked by chaos, starting with the US attack on oil-rich Venezuela, followed by US President Donald Trump’s menacing of Greenland, the establishment of Trump’s “Board of Peace” and the imminent threat to attack Iran by the US.

Amid heightened and sustained geopolitical tensions, markets continue to rally. For instance, the New York Stock Exchange index touched new highs during January and overall rose more than 3% m-o-m to close at 22,719 points on Jan 30. Gold skyrocketed to US$5,500 ($7,002) per ounce on Jan 29 before retreating below US$4,900 the next day, which was still US$500, or more than 10%, higher than the start of the month. A similar story played out in Singapore, where the Straits Times Index (STI) closed around 259 points, or 5.6% m-o-m higher at 4,905.

For Maybank Securities’ head of research, Thilan Wickramasinghe, the Singapore stock market has yet to reach its projected peak of 5,600, as he noted earlier in a Jan 12 research report. Adding more colour to his report at the event held on Jan 31, Wickramasinghe says that four narratives will shape the local market in 2026.

Firstly, Wickramasinghe reiterates Singapore’s “certainty premium”. Using data to illustrate how assets under management (AUM) for banks in Singapore have increased in tandem with the World Uncertainty Index, he says that capital wants to “find certainty”, which is a safe haven.

There is also plenty of firepower to be deployed. He acknowledges that not all of the capital inflows will go into the market. “Even if some of it goes to the market, that’s going to create a significant impact.”

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Capital infusion from overseas is just one driver for Wickramasinghe, who believes that the Singapore government’s predilection for using fiscal policy to “smoothen” downturns also influences international perceptions of the island state’s stability.

Elaborating, Wickramasinghe says that fiscal stimulus and the country’s construction boom are stimulating economic activity and creating employment. Maybank’s economists earlier estimated that the industry will see demand of around $100 billion through 2030 and, in classical economics fashion, create a “significant” multiplier effect on employment, spending, and loans.

DBS at $80?

Large-cap companies will be the second narrative of STI’s growth story, according to Wickramasinghe, who lists several reasons for his view. These include growth in earnings, dividends, and return on equity.

Citing how sovereign wealth fund Temasek is driving restructuring in Singapore-listed companies in which it holds significant stakes, the analyst forecasts earnings growth, especially for large-cap Temasek-linked businesses.

With rising revenue, he projects that dividends from large caps will double over the next three years compared with the previous 10 years, while also noting that share buybacks are at a 10-year high.

Furthermore, Wickramasinghe suggests that Singapore appears to lag behind similar markets in return on equity (ROE) and, as such, believes there is room for this to grow. “There’s going to be a new boom in the large caps,” he says to the audience. “So, if you think DBS is expensive at $60, wait until it’s $80.”

Small and AI storylines

Wickramasinghe also believes that small- and mid-caps will be the third narrative about local equities this year. Comparing data from the Japanese, Korean, and Chinese markets, which implemented “value-up” programmes earlier than Singapore, he believes that the valuation of Singapore’s small- and mid-caps will play catch-up with those in other markets.

Additionally, he points out that earnings per share growth for small and mid caps has outpaced that of Singapore large caps since 2021; these stocks, as a whole, offer “a lot more” opportunities this year.

The final storyline for Singapore this year is the broader adoption of artificial intelligence by organisations. Wickramasinghe suggests that AI integration into business operations will become more ubiquitous in 2026. With Singapore leading the region in AI spend and adoption, he expects operational improvements in margins and volumes to accelerate in 2026. He cites the increase in Singapore banks’ pre-provision operating profit (PPOP) over the past one-and-a-half years, despite declines in headcount, as an example of the benefits of AI.

Home, truly, where the opportunities are

Wickramasinghe believes that, with market review measures encouraging greater interest from retail investors, such as reducing board lot sizes, retail investors will, in turn, stimulate more trading by institutional investors, leading to an overall improvement in liquidity.

Combined with falling interest rates, the belief that valuations in Singapore are “cheap” compared to other large markets, and the afore-mentioned four narratives, Wickramasinghe believes in the growth potential of the local stock market.

“As Singaporean investors, we have a lot of options and we can invest anywhere,” he says. “But I think in 2026, I truly believe that some of the best investment opportunities will be right here at home.”

Traditionally, at this time of the year, the team at The Edge Singapore will suggest a list of stocks we think are worth a closer look. With market activity picking up strongly, we narrow down 20 local stocks — some household names, others more obscure — and five overseas stocks that are of interest. Gong xi fa cai!

See the team's 2026 stock picks below:

Global stock picks:

An ‘Irrational’ Year of the Fire Horse and ‘DBS at $80’

Buy house, sell house, shift house

From the professionals

DBS at $80?

Small and AI storylines

Home, truly, where the opportunities are

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