Straits Times Index targets raised by brokerages amid earnings growth

Brokerages are raising their targets for the Straits Times Index (STI) following a period of strong corporate earnings and macroeconomic resilience. The consensus 12-month target for the index currently stands at 6,140 points, representing a potential upside of approximately 5.5 per cent. This optimism is driven by improved company fundamentals, particularly among heavyweight banks, rather than market valuations alone.

Specific brokerage forecasts include a bull-case 12-month target of 6,800 points from Maybank and a target of 6,682 points from UOB Kay Hian. DBS Group Research has projected the STI to reach 5,850 points by the end of 2026.

Despite recent gains, where the index rose more than 90 points over three sessions to close at 5,801.96, analysts suggest the rally may face consolidation. Market sentiment is being influenced by global concerns regarding interest rate outlooks and performance in U.S. and Asian markets.