With the Straits Times Index (SGX: ^STI) at record highs, emotions are also running high – they vary from anxiety that stocks are going to crash, to the fear of missing out (FOMO) should stocks keep appreciating.
However, price itself is not the be-all and end-all of things.
Today, we examine how to approach stocks at all-time highs using a pragmatic, emotion-free approach.
Why Stocks Hit Multi-Year Highs
There are many reasons why a stock could be at multi-year highs.
Common reasons include sustained earnings growth or recovery, improved sentiment, or even structural tailwinds driving industrial trends.
The key here is that high prices often reflect strong underlying business fundamentals.
Overseas-Chinese Banking Corporation Limited (SGX: O39), or OCBC — Strong Fundamentals Driving the Rally
OCBC shares are near fresh highs, trading above S$21 recently.
The bank’s fresh rally is mainly due to better-than-expected earnings, with recent earnings for the quarter ending 30 September 2025 (3Q2025) at five-quarter highs.
This earnings rebound is aided by strong contributions from both its insurance arm (Great Eastern) and a strong showing by its wealth management segment.
Together, these segments help cushion a softer net interest income.
OCBC continues to operate from a position of financial strength, with ample capital buffers and low loan delinquency rates.
Singapore Telecommunications Limited (SGX: Z74), or Singtel — Re-Rating on Changing Perception
Like OCBC, Singtel shares are also trading at new record highs.
Unlike the bank, other than strong earnings, Singtel has been rewarded by its shareholders for the smooth execution of its digitalisation strategy (so far).
Currently, the telecom giant is trading at a forward price-to-earnings (P/E) ratio of roughly 22 times.
This metric represents a 20% premium compared to its five-year historical average.
Investors have embraced Singtel’s decent recent execution regarding its data centres and digitalisation initiatives, which partially contributes to this elevated valuation.
The story of Singtel goes to show how a change in investor sentiment can lead to rapid share price appreciation.
The story of Singtel goes to show how a change in investor sentiment can lead to rapid share price appreciation.
Seatrium Limited (SGX: 5E2), or Seatrium — Cyclical Recovery at Work
Rounding things off, another company that is trading near multi-year highs would be the offshore marine giant, Seatrium.
Share price has been on a tear since bottoming in mid-2024, due to an upswing in the offshore marine industry.
This fundamental improvement in Seatrium’s business is best seen in its operating leverage; gross margin doubled while net margin tripled in its latest first half ending 30 June 2025 results.
However, we caution that Seatrium’s operations are highly sensitive to the overall global economic conditions; such wild upswings in profitability as highlighted above can easily reverse should the economy weaken.
That said, shares could have further upside if economic conditions continue to remain resilient.
How to Think About Buy, Hold or Sell at Highs
Instead of reacting to new highs with, should I sell, or should I buy more, here are some level-headed measures you can implement instead.
First, ask: is the business doing well? Is it still growing earnings well?
Then, consider its valuation: are current valuations (price to book, P/E) reasonable in comparison to long-term fundamentals?
Finally, have shares rallied to the point where this position constitutes a significant portion of your overall portfolio? If yes, you can consider selling some to prevent concentration risk.
The key here is to utilise a process-driven framework to influence your investing decisions; do not merely rely on price itself!
Get Smart: High Prices Require Clear Thinking
Multi-year fresh highs in prices do not automatically mean you should sell or buy.
Some common mistakes that investors make may sound familiar, such as blindly chasing stocks at new highs or selling strong businesses too early.
This happens when you rely on emotions to dictate your investing decisions.
At the end of the day, success comes down to the quality of businesses you own, how you’ve spread your bets, and your ability to follow your process-driven gameplan.
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Disclosure: Wilson.H does not own shares in any of the companies mentioned.
