SGX, OCBC, and ST Engineering in focus: Weekly Review with SIAS

What happened?

In this week's Weekly Market Review in partnership with the Securities Investors Association Singapore (SIAS), we discuss the rebound in global equity markets, the latest structural changes announced by SGX to improve accessibility for retail investors, and the strongest-performing STI stocks in the first half of 2026. We also look at the technical outlook for the STI and major US indices heading into the second-half earnings season.

Watch the video to learn more about what we are looking out for this week.

Weekly Market Review

1:50 - Macro Update

• US markets rebounded last week, with the S&P 500 gaining 1.8% to close near the 7,500 level, while the NASDAQ rose 2.1% despite continued volatility in technology stocks.
• The STI continued its strong performance, gaining 1.0% over the week to remain above the 5,200 level and reach another record high.
• Investor sentiment in Singapore was supported by SGX's announcement of structural reforms, including the wider use of broker custody accounts and reduced board lot sizes for higher-priced stocks.
• From 15 July, investors will have the option of holding SGX-listed securities through omnibus broker custody accounts, while enhanced safeguards will ensure continued access to corporate actions and shareholder meetings.
• From 5 October, board lot sizes for stocks trading above S$10 will be reduced, making higher-priced stocks such as DBS, OCBC, UOB, SGX and Keppel more accessible to retail investors.
• Among the stronger-performing Singapore stocks last week, ST Engineering rose 4.2%, while DBS and OCBC gained 2.0% and 1.8% respectively as investors remained positive on the banking sector.
• On the weaker side, Sembcorp Industries declined 7.0% following a broker downgrade on earnings concerns.

STI Top Performers:

• ST Engineering
• Hongkong Land
• DBS
• OCBC
• Yangzijiang Shipbuilding

STI Worst Performers:

• CapitaLand Investment Limited
• Frasers Centrepoint Trust
• Keppel Ltd.
• CapitaLand Ascendas REIT
• Sembcorp Industries

Companies in Focus: 

Singapore Exchange Limited (SGX: S68)

• SGX was the best-performing STI constituent in the first half of 2026, with its share price rising about 42% as stronger trading activity and measures to support Singapore's equity market boosted investor sentiment.
• The exchange continued to deliver strong financial performance, with first-half FY2026 revenue, operating profit and earnings all increasing year on year, supported by higher trading volumes.
• SGX also increased its dividend payout following the improvement in earnings and reiterated its commitment to further dividend increases over the next two years.
• The group's return on equity remained strong while leverage continued to decline, reflecting its capital-light business model and resilient cash generation.
• Following the strong share price performance, SGX is now trading at about 35 times earnings, above its historical average valuation.

Read also: 3 best-performing Singapore blue chip stocks that rose over 20% in 1H 2026. What could drive them next

Related Links:

• SGX: Singapore Exchange Limited (SGX:S68) latest valuation, share price and analysis
• SGX: Singapore Exchange Limited (SGX:S68) dividend history and dividend forecast

OCBC (SGX: O39)

• OCBC remained the best-performing Singapore bank in 2026, with its share price rising from around S$20 at the start of the year to a record high near S$25.
• The bank reported first-quarter 2026 net profit growth of 5% year on year to S$1.97 billion, driven by strong growth in non-interest income despite lower net interest margins.
• Wealth management continued to be the key growth driver as capital inflows into Singapore supported higher fee income.
• OCBC also maintained a strong capital position, allowing it to sustain its dividend while continuing to generate an annualised return on equity of around 13%.
• At current levels, OCBC trades at around 15 times earnings, above its historical average valuation as investors continue to reward its stronger earnings momentum.

Read also: DBS vs OCBC vs UOB: Which Singapore bank looks best for income investors after the rally

Related Links:

• OCBC: Oversea-Chinese Banking Corporation (SGX: O39) latest valuation, share price and analysis
• OCBC: Oversea-Chinese Banking Corporation (SGX: O39) dividend history and dividend forecast

ST Engineering (SGX: S63)

• ST Engineering was another standout performer in the first half of 2026, supported by resilient earnings growth and optimism surrounding increased global defence spending.
• First-quarter 2026 revenue increased 11% year on year, with all major business segments delivering growth, including Defence & Public Security, Commercial Aerospace, and Urban Solutions & Satcom.
• The group maintained a strong order book of S$34.5 billion, with S$8 billion expected to be delivered over the remainder of 2026, providing strong earnings visibility.
• Management expects the direct financial impact from the Middle East conflict to remain limited, with the region accounting for less than 3% of group revenue, while its diversified business model continues to provide resilience against geopolitical uncertainty.
• Following the strong rally, ST Engineering is now trading at around 33 times earnings, above its historical average valuation.

Read also: 3 best-performing Singapore blue chip stocks that rose over 20% in 1H 2026. What could drive them next

Related Links:

• ST Engineering (SGX: S63) latest valuation, share price and analysis
• ST Engineering (SGX: S63) dividend history and dividend forecast

Technical Analysis

Straits Times Index

• The STI continued to trade at record highs after reaching a new all-time high of 5,244 points last Friday. Despite a modest pullback at the start of the week, the broader uptrend remains intact.
• Immediate resistance is around the upper Bollinger Band near 5,324, while the 20-day moving average around 5,152 provides the first level of support. Stronger support is seen around the 5,000 psychological level.
• The RSI remains healthy at around 62, suggesting there is still room for the STI to trend higher before entering overbought territory.
• For now, the STI appears well-positioned to extend its gains over the coming weeks as investors prepare for the upcoming earnings season.

Learn more about the Straits Times Index (STI) here.

Dow Jones Industrial Average

• The Dow Jones continued to outperform, climbing to a fresh all-time high of 52,903 as investors rotated into financials and other traditional sectors.
• Immediate support is around the 20-day moving average near 51,570, while stronger support is seen around 50,253.
• The RSI has risen to around 70, indicating that the index is approaching overbought territory and could experience a period of consolidation.
• Any pullback towards the 20-day moving average could present opportunities ahead of the upcoming US earnings season.

S&P 500

• The S&P 500 remained in a consolidation phase after recovering to around the 7,500 level, supported by improving market sentiment heading into the second half of the year.
• Immediate resistance is around the upper Bollinger Band near 7,585, followed by the all-time high around 7,620. Support remains around the lower Bollinger Band near 7,280.
• The index continues to consolidate above its 20-day moving average, with investors looking ahead to upcoming earnings releases and the Federal Reserve's interest rate outlook.
• If interest rate expectations remain stable, the S&P 500 could retest its all-time high in the coming weeks.

Learn more about the S&P 500 index here.

Nasdaq Composite Index

• The NASDAQ recovered during the week but continued to lag the Dow Jones as investors remained selective towards technology stocks following recent valuation concerns.
• Immediate resistance is around the upper Bollinger Band near 26,798, while the previous all-time high around 27,100 remains the key upside target. Support is around the 25,000 psychological level.
• The RSI remains near the neutral 50 level, suggesting momentum has stabilised but is not yet strong enough to signal a renewed uptrend.
• A sustained move above the 20-day moving average and improvement in momentum could signal the next leg higher for the technology sector.

Learn more about the Nasdaq Composite index here.

What to look out for this week

Key dates

• Monday, 6 Jul: Lion-OCBC Securities China Leaders ETF/ Lion-OCCBC Securities Singapore Low Carbon ETF/ Lion-OCBC Securities APAC Financials Dividend Plus ETF ex-dividend.
• Wednesday, 8 Jul:  FOMC minutes
• Thursday, 9 Jul:  Singapore GDP flash (2Q), Philiip SGX APAC Dividend Leaders REIT ETF ex-dividend
• Friday, 10 Jul:  SK Hynix Nasdaq US dual listing, UMS Integration ex-dividend

Get the full list of stocks with upcoming earnings and upcoming dividends.

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