J.P. Morgan upgrades Singapore equities to overweight on strong outlook, target 6% gain

J.P. Morgan has upgraded Singapore equities to overweight, citing attractive valuations, high dividend yields, and government measures aimed at revitalizing the domestic stock market.

The move follows Singapore’s latest budget announcement, which outlined initiatives to support economic growth and investment.

In a client note, J.P. Morgan analysts set a bullish target of 4,200 for the Straits Times Index (STI), representing a potential 6% gain from current levels. The benchmark index reached a record high of 3,949.65 on Wednesday and has risen 4% so far in 2025, following a 17% surge last year driven primarily by banking stocks and optimism around market-boosting policies.

Analysts expressed confidence in the government's strategy, stating that support for households and businesses would sustain economic activity, while investments in innovation and capital markets could unlock further growth opportunities. With improving market sentiment, Singapore’s equities may continue to benefit from both domestic and global investor interest.