In the Sweet Spot: What are Maybank’s 2026 Singapore Strategy & Top Picks?
Following a stellar 22.67% surge in 2025, the $FTSE Singapore Straits Time Index (.STI.SG)$ has maintained its robust momentum into the new year. As of January 23, the index has climbed 4.97% YTD, having repeatedly shattered historical records in early January to reach an all-time high of 4,882.50 points.
As the STI hits historic highs, market sentiment is divided.
In its latest Singapore Market Outlook 2026, Maybank has aggressively raised its STI target to 5,600 points. This projection, pegged at 17.1x forward P/E (historical 5-year average plus two standard deviations), reflects strong expectations for continued valuation re-rating driven by institutional inflows and a structural "Value-Up" across the board.
Strategic Alpha: Maybank’s 2026 High-Conviction Selections
Before diving into the macro drivers, we highlight Maybank’s top 10 "high-conviction" picks. The following portfolio balances defensive yield giants with growth-oriented mid-caps (SMIDs) positioned to benefit from institutional liquidity shifts.
Investment Thesis: The Four Pillars of the 2026 "Sweet Spot"
The Certainty Premium & Global Safe Haven
In a fragmented geopolitical landscape, Singapore’s political stability and fiscal discipline have turned "certainty" into a high-value asset. This is pulling safe-haven flows into liquid blue-chips. $OCBC Bank (O39.SG)$ (5.0% yield) remains the sector's anchor, while $SGX (S68.SG)$ serves as a direct proxy for this liquidity, having already seen a 71% surge in Average Daily Value (ADV) late last year as market reforms began to bite.
Large-Cap Reform & Dividend Acceleration
The "Value-Up" era for Singapore’s heavyweights is reaching a harvest phase. Maybank expects dividend CAGR to jump to 9% over the next three years—a significant leap from the 5% historical average. As corporate structures are streamlined, capital is being returned to shareholders at an unprecedented rate, making the yield spread against falling SORA rates increasingly attractive.
SMID Value Unlocking via MAS Reforms
Small and Mid-Cap (SMID) stocks currently trade at a deep discount of roughly 1.0x P/B. The implementation of the MAS EQDP initiative is the primary catalyst here. High-performers from last year like $Food Empire (F03.SG)$ and $CSE Global (544.SG)$ (both up 30-50% in 2025) still offer significant runway as institutional liquidity filters down from the large-cap space.
Scaling AI & Infrastructure Foundations
Beyond finance, structural growth is driven by tangible operational leverage. $StarHub (CC3.SG)$ (6.4% yield) is successfully scaling AI to optimize its base, while $Sea (SE.US)$ (SE) offers a high-growth entry point after a 40% correction in 2025. This digital expansion is mirrored by physical growth; Changi Airport T5 and the Tuas Mega Port are hitting peak construction phases, providing a durable industrial tailwind that reinforces the 5,600 target.
What’s Your Move, mooers?
As we navigate this record-breaking market, we want to hear your perspective:
– Yield vs. Growth: With $Lendlease Reit (JYEU.SG)$ offering a 6.3% yield and $Sea (SE.US)$ positioned for a rebound, are you prioritizing high-dividend stability or tactical growth in 2026?
– The SMID Play: Do you believe the MAS EQDP reforms will finally close the valuation gap for mid-caps, or will the blue-chips continue to dominate the rally?
Join the conversation in the comments below！
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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