JPMorgan Sees Singapore Stocks Soaring to 7,000 Points

JPMorgan Chase & Co. has upgraded its target for Singapore's benchmark Straits Times Index to 7,000 points, citing a stronger economic growth and improving market valuations. This represents a potential 22% upside over the next 12 months, according to the bank's research note cited by Bloomberg.

The upgrade is based on Singapore's GDP growth being revised upwards to 4.5%-5.5% for 2026, following a second-quarter growth rate of 5.9% year-over-year. The Ministry of Trade and Industry attributed this improvement to stronger-than-expected global investment linked to artificial intelligence and a less severe economic impact from the Middle East conflict.

JPMorgan's outlook also benefits from Singapore's high dividend yields and stable currency, which are expected to attract more investor flows. However, the bank notes that the sustainability of the AI investment cycle is crucial for maintaining earnings growth and supporting the bullish equity scenario.