Singapore Stocks Soar as JPMorgan Boosts Target to 7,000

JPMorgan Chase & Co raised its target for Singapore stocks due to robust economic growth and narrowing valuation gaps with developed-market peers. The Straits Times Index (STI) may climb up to 7,000 over the next 12 months in a bull case scenario, implying a 22 per cent upside from its close on August 12.

Singapore's Equity Market Development Programme and strong yields are bolstering investor flows, according to JPMorgan analysts. The city-state's stocks have gained more than 23 per cent in 2026, outperforming Hong Kong. Singapore upgraded its 2026 economic growth forecast as the AI boom lifts trade and manufacturing.

JPMorgan's top stock picks include DBS Group Holdings, Singapore Exchange, Keppel, and UOL Group. While valuations have broken out of the averages, JPMorgan analysts believe this level will be sustained due to high yield and a stable currency.