Market participants share their views on whereinvestors can find value in Singapore’s equity market. HSBC’s Q1 2026investment outlook report notes that Singapore continues to provide compellingdividend yields. SingaporeSummit: Meet the largest APAC brokers you know (and those you still don't!).The bank has an overweight view on Singaporestocks for their elevated dividends and defensive character, which it feels canhelp dampen portfolio volatility.Singapore Valuations Driven by Structural GrowthThis perspective is shared by Gidon Kessel,group head deposits and wealth management at UOB, who adds that domesticcompanies have displayed improving earnings momentum in a market withhigh-yielding stocks across different market capitalisations,including small- and mid-caps.Investors are responding to companies that aredeliberately building capabilities, strengthening capital managementdiscipline, improving disclosure and engaging more actively with the investorcommunity to explain how shareholder value is created and sustained.“That said, valuation confidence tends to bestronger where company strategies are aligned with longer-term economic growthdrivers, such as infrastructure renewal, energy transition, supply chainrealignment and regional demand growth, rather than relying on cyclical orthematic sector momentum alone,” notes Geoff Howie, SGX market strategist.He expects stronger valuation confidence wherecompanies invest in understanding their value drivers, articulate them clearlyand communicate consistently across cycles. This includes clarity aroundcapital allocation, operating metrics and risk management,rather than reliance on sector tailwinds or broad macro narratives.Investor Communication, Governance and Market DepthCommunications matter because evenwell-defined strategies are discounted if investors cannot understand them.Communities matter as peer learning, governance standards and market engagementhelp lift overall confidence and comparability.That is the view of Robin Harris, Ocorian'sregional head of APAC, who says investors are increasingly focused on companiesthat use the current spotlight to commit to disciplined disclosure, consistentmetrics and proactive investor engagement, supported by research coverage, institutionalparticipation and a disclosure-based regulatory regime.“Together, these factors can deepen liquidity,strengthen price discovery and build a more compelling and resilient market forinvestors over the long term,” he adds.Banks and REITs Dominate Singapore’s Income ProfileThe Singapore market is concentrated in banksand REITs, which gives it a more income-driven profile. At the same time, itoffers stability and steady earnings, which continues to appeal toinstitutional investors.On the macro side, geopolitical uncertaintyand inflation risks are also influencing rate expectations, which in turn wouldaffect how different sectors are going to be valued, explains Lydia Chin,senior manager fund solutions at Vistra in Singapore.“Banks and REITs remain key holdings forincome-focused investors,” she says. “Banks continue to look resilient withstrong earnings and dividends. REITs are more mixed, still under pressure fromhigher interest rates and refinancing costs, where we are seeing more selectiverepositioning rather than broad de-risking, particularly into higher quality, well-leased assets.”Earnings Outlook and Valuation BackdropPolicy reforms have gone some way to closingthe liquidity discount that Singapore equities have carried for years. Theearnings backdrop is solid — with banks in particular delivering — while thebroader Straits Times Index, or STI (a market capitalisation-weighted indexthat tracks the performance of the top 30 companies listed on SGX), is on trackfor high single-digit earnings growth in 2026.“In addition, Singapore's safe haven appealhas driven real capital inflows that many other markets in the region simplyaren't seeing, and a 4–5% dividend yield is hard to argue with in the currentenvironment,” says Patrick Na, head of financial services South East Asia atTMF Group.He also acknowledges that a lot of there-rating has already happened and, with the STI trading well above itshistorical average P/E, the market needs earnings to do the heavy lifting fromhere.Where Investors are Finding OpportunitiesAccording to Na, the most interestingopportunities are in small- and mid-caps, which trade at a meaningful discountto regional peers.“Within that universe, industrials and tradeconnectivity names are where I would focus attention,” he says. “On thelarge-cap side, the banks (DBS, OCBC and UOB) are hard to avoid. The dividendyields are attractive and the balance sheets are in good shape. S-REITs areworth a closer look too, particularly in data centres, logistics andhospitality, where the underlying demand story is strong and falling ratesimprove the economics.”“Telecoms — particularly Singtel — areinteresting for a slightly different reason; there is asset monetisationpotential there that I don't think the market has fully credited yet.”Jupiter Asset Management owns five stocks inSingapore, all with strong governance and balance sheets, observes investmentmanager of Asian equities Sam Konrad.“We see DBS as not just the best bank inSingapore but one of the best banks in the world,” he says. “ST Engineering isa very high-quality defence company in a sector with strong structuraltailwinds, while Singtel gives us exposure to the telco markets of India, Australia, Thailand,Indonesia and the Philippines, as well as growth from data centres.”CapitaLand Integrated Commercial Trust ownssome of the highest-profile office and retail assets in Singapore. The firmalso owns Genting Singapore,an integrated resort with one of the two casino licences in the country, whichit views as a way to play increased tourism and leisure spending in the region.Broad-based Sector Strength in 2026Almost all of Singapore’s equity sectors are“firing on all cylinders” for investors in 2026, reckons Robert St Clair, headof investment strategy at Fullerton.“Equity market alpha has broadened anddeepened, with significant contributions from industrials (benefiting fromrobust external demand and productivity gains), financials (gaining from strongloan growth and non-interest income) and communications and utilities, wherecost controls have been important,” he says.Defence is another sector that could still seegood opportunities for growth due to current geopolitical uncertainties, addsCarmen Lee, head of equity research at OCBC.“With Singapore’s smart nation focus, weexpect AI-related investments to be a strong long-term mega trend that willbenefit companies that are either offering AI-related services or using AI togrow their businesses or reduce costs,” she says. “Core defensive industries intelecommunicationsand renewable energy are likely to remain preferred holdings.”Adeline Gao, research analyst at FSM Global,observes that the banking sector is expected to see net interest marginstabilisation this year, while wealth management remains a key growth driversupported by safe-haven inflows amid global uncertainty.“Beyond financials, Singapore’s semiconductorsupply chain players are positioned to benefit from the ongoing global ‘gigacycle’, supporting both revenue growth and order visibility,” she says. “Inaddition, industrial names with exposure to defence and strong order backlogsare expected to deliver sustained earnings growth, supported by rising globaldefence spending and increased procurement activity.”This article was written by Paul Golden at www.financemagnates.com.