Broker Name: DBS Group Research
Date of Report: 5 February 2026
Excerpt from DBS Group Research report.
Report Summary
- Singapore’s equity market has seen strong gains, driven by government support measures and a surge in market capitalisation and trading activity.
- The STI is expected to remain rangebound near 5,000, with support at 4,800 and 4,735, and resistance at 5,000; index target will be reviewed after 4Q25 results.
- DBS highlights value-unlocking opportunities in small and mid-cap (SMC) stocks, with top picks including UOL, City Developments, Guocoland, Singapore Land, Haw Par, Hotel Properties, and Thai Beverage.
- 6 stocks are on positive earnings watch: SATS, Bumitama Agri, IFAST, UMS Integration, Nam Cheong, and OCBC; 3 stocks are on negative watch: UOB, PropNex, and HL Asia.
- Budget 2026 could benefit infrastructure providers (Singtel, Keppel DC REIT), tech stocks involved in advanced manufacturing (UMS, Frencken, AEM, Venture), and potentially property agencies if cooling measures are eased; reduced cost-of-living handouts may negatively impact Sheng Siong and FCT.
- Recent support measures such as the Equity Market Development Programme (EQDP) and ‘Value Unlock’ package have successfully revitalized investor interest, especially in SMCs.
- DBS’s preferred value unlocking plays are expected to benefit from corporate actions like asset sales, portfolio securitisation, and potential privatisations.
- Investor focus has shifted from large caps to SMCs, with key themes being value unlocking, earnings growth/recovery, and resilient yield.
- January 2026 posted the strongest market start since 2017, led by property and tech sectors, as investors anticipate further catalysts from earnings and policy announcements.
- DBS’s rating system is based on absolute total return and the report includes standard disclaimers about the nature of the analysis and potential conflicts of interest.
Above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS website: https://www.dbs.com.sg
